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Three Bombs in 45 Minutes Kill 16 in Iraq; Laguna Beach Landslide; 'CNN's Defining Moments'

Aired June 02, 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.


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. It's just about half past the hour on this AMERICAN MORNING.
Coming up, a very dangerous situation in Laguna Beach in California.

BILL HEMMER, CNN ANCHOR: This landslide that took place yesterday, wiping out million-dollar homes on Wednesday. More could be in danger today. We're going to talk to the town's mayor in a moment, too, about the damage, whether or not the worst is or is not over for today. Also, we'll be in touch with some homeowners out there, too. It is early in the morning, 4:30 California time, but this is on the forefront in the minds of those folks in Laguna Beach without question.

O'BRIEN: Especially when you see the houses just roll straight down the hill. And, of course, it's all from the water that they got over the winter.

HEMMER: It could be.

O'BRIEN: What a mess there.

HEMMER: It could be.

O'BRIEN: Let's get the headlines first, though, with Carol Costello.

Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.

"Now in the News."

A developing story right now, a gunman holding a woman hostage in a convenience store near Indianapolis. He says he does not want to hurt her. The standoff has been under way for about 21 hours now. It started when police chased two burglary suspects into a store parking lot. One of the men was caught, the other ran into that convenience store. Negotiators are trying to talk the man into surrendering.

In California, lawyers in the Michael Jackson trial are set to deliver their closing arguments today. The prosecution and defense each have up to four hours to make their case. The trial could go to the jury by the end of today or tomorrow. Some 75 of Jackson's fans and supporters held a prayer vigil outside of the Neverland Ranch. The event eventually turned into a celebration of the pop star with singing and some dancing.

A leading anti-Syrian journalist has been killed in Lebanon. Police say his car exploded some three hours ago in a Christian area of Beirut. These are pictures just in to CNN. The man wrote for a Lebanese newspaper critical of Syria. An unidentified woman wounded in the blast.

Israel is releasing some 400 Palestinian prisoners. Buses carrying the former detainees began arriving in border checkpoints earlier today. The release is part of a cease-fire agreement between Israeli Prime Minister Ariel Sharon and the Palestinian leader, Mahmoud Abbas. In the meantime, Abbas is recovering this morning after undergoing a minor heart procedure at a hospital in Jordan. He is expected to return to Ramallah tomorrow.

And talk about a publicity problem. A San Francisco 49ers training video has the Bay area fuming. The 15-minute film features racist jokes, lesbian soft porn and topless blondes. Kirk Reynolds, the 49ers PR director, is now apologizing. He said he made the video to coach players on dealing with the media, and he never ever meant for the public to see it. He is now leaving his post. So, how did this tape get out? How did it make its way to the media? We'll talk with the man who broke the story in the next hour of AMERICAN MORNING.

O'BRIEN: When you consider that that tape was the end part of a two-and-a-half hour presentation on diversity and sensitivity, one thinks, oh, yes, from the PR director, big oops.

Carol, thanks.

COSTELLO: What was he thinking?

O'BRIEN: Yes, file that under, what were you thinking? Thanks.

Well, three car bombings in just 45 minutes killed 16 people in Iraq this morning. The first attack was in the northern town of Tuz Khurmatu. It killed 10, wounded 38 at a restaurant. Then, an attempt on an American diplomatic convoy in the northern city of Kirkuk, it was off target. Two children died there. Eleven other Iraqi civilians were hurt. Finally, a suicide car bomber killed a local political leader and three bodyguards in Baquba.

And today's attacks, like many that we've seen in the recent past, have seemed to have increased and seem to be well-coordinated. But it doesn't mean necessarily that there's just one group behind all of those attacks.

Barbara Starr live at the Pentagon for us this morning.

Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad. Well, as the violence continues, a lot of people are now asking: What is going on inside Iraq?

(BEGIN VIDEOTAPE)

STARR (voice over): As the death toll in Iraq has mounted for U.S. troops and Iraqis, one word has been used repeatedly to describe the violence: insurgency.

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: We're involved in an insurgency, a very violent insurgency.

STARR: But is Iraq an insurgency? Most experts agree it is a unique conflict that cannot be easily labeled. The Pentagon defines insurgency as "an organized movement, aimed at the overthrow of a constituted government through use of subversion and armed conflict."

MICHAEL O'HANLON, SR. FELLOW, BROOKINGS INSTITUTE: In Iraq, you have a small insurgency fighting largely for the benefit of one ethnic group but aided by globally-motivated and inspired jihadists.

STARR: Experts say the Iraq insurgency centers around members of the former regime who want to retake power. They number in the thousands. But the most lethal fighters are the hundreds of foreign fighters trying to incite civil war, loyal to Abu Musab al-Zarqawi.

COL. THOMAS X. HAMMES, U.S. MARINE CORPS: What you have in Iraq is a variety of organizations that are very interested in taking power. Now, they don't agree with each other, but they do all agree that the United States has to get out.

STARR: Is Iraq the new Vietnam? Experts say no. The North Vietnamese had outside support from the Soviets and Chinese, and appealed to much of the population. Is Iraq the new El Salvador? For years, the U.S. supported the government there, fighting a left-wing insurgency. Now, in Iraq?

O'HANLON: You do not have essentially the whole society engaged in a broad ideological debate.

STARR: So, can this multi-headed enemy be defeated by U.S. and Iraqi forces and by an emerging Iraqi democracy? Fighting insurgents takes manpower.

TOM DONNELLY, AMERICAN ENTERPRISE INSTITUTE: Because you're not just bombing people or blowing things up or destroying enemy forces in large formations. You have to pacify and secure villages and places to allow a new government to legitimate itself to take root.

(END VIDEOTAPE)

STARR: Well, Soledad, most military experts now say no matter what you call it, it will take years to bring peace to Iraq. Tomorrow, we take a look at how the violence has evolved -- Soledad.

O'BRIEN: Barbara Starr for us this morning at the Pentagon. Barbara, thanks -- Bill.

HEMMER: It's now 25 minutes before the hour. We're going to get you back to California in a moment here. And we talked about this with Chad a short time ago. There is other weather news, and for that, back to the CNN center.

(WEATHER REPORT)

HEMMER: Those homes lost in the Laguna Beach landslide may be just the beginning. Experts are saying more of that a rain-soaked southern California hill could give way today. And they're watching it so closely. Eighteen multimillion-dollar homes were either damaged or destroyed on Wednesday.

Lori Herek and Ryan Haskell are with me now. They were both inside Lori's home when that landslide hit. Ryan is the boyfriend of Lori's daughter. Lori's daughter was away at work when this happened.

And good morning to both of you. It's just a tick past 4:30 in the morning out there. Lori, you were inside the home. Describe us to what happened, what you felt and what you heard.

LORI HEREK, LOST HOUSE IN LANDSLIDE: I first heard water. It sounded like there was water leaking under my bedroom. I didn't really think much about it. I thought, well, I'll get to that later on today.

And then I heard the house start to pop and crack. And I thought maybe it was some sort of hailstorm unexpectedly. So, I went out the front door, and I noticed that the streets were dry, and that the cracking had stopped when I walked outside. So, I thought, oh, my god, it's coming from inside the house.

I went back inside the house. It got a little bit louder, the noises. The popping became louder. And I went back out front, probably about 30 seconds later, and I saw the curb separating from the driveway. So, I ran back into the house and woke Ryan. And at that point, it was just happening very quickly. And the house was actually starting to shift as we ran out the front door.

HEMMER: Lori, a couple things...

HEREK: And we ran to my next door neighbors' house.

HEMMER: I apologize for the interruption.

HEREK: By the time we got to his house, the house had already buckled and was sliding down the hill.

HEMMER: I'm not sure if you can still hear me. I'm going to try and hang with this for a moment here. And I apologize for the interruption there.

HEREK: My goodness, we can't...

HEMMER: Yes, Lori, if you can still hang with me a second here. Maybe I can try Ryan here, because he's on a different line out there. Hey, Ryan, the situation that Lori is describing, what kind of a time period elapsed during this?

RYAN HASKELL, LOST HOUSE IN LANDSLIDE: We just had time, you know, to get out of the house. That's about it. We didn't have time to get anything. We had no warning. We just pretty much had time to get out with our lives, and that's it.

HEMMER: So, it was just the two of you inside the home. You go outside. And what happened at that point? Do neighbors show up?

HASKELL: No. At that point, we ran over to our neighbor, Steve, and we started banging on his door, you know, to get out of his house before, you know, the same thing happened to him. And then more people started -- I guess they heard us yelling and started coming out of their houses.

And we all -- you know, we all got into the back of a pickup truck, and telephone wires started coming down on top of us. And we couldn't back up because the road had lifted up. So, we couldn't drive anywhere. And the only chance we had was just to, you know, take off down the hill.

HEMMER: From the point that that home was destroyed, where you and Lori were at the time, to the point where you got out of the house, how much time would you say elapsed, Ryan?

HASKELL: I'd say about 60 seconds or less, I'd say.

HEMMER: Just one minute to get out. Let me try Lori again here, if I could. Lori, there was an awful lot of rain this past winter, 28 inches in fact, which is more than double the normal rainfall in California for that time of the year. Where you aware of that this past winter? And was your community, and perhaps other communities up and down the coast where you live, were you concerned at all that this could be a possibility given all of the saturation this past year?

HEREK: Of course. Whenever you have a constant, excessive rain like that, living on a hillside, of course you worry. However, with that being said, I think it's important that people not point a finger right now at any one particular reason for the hillside sliding. I think we need to wait and be patient and cooperate. I think the local government, as well as the state and federal government, need to band together, along with the people of Laguna Beach. We're a very tight- knit community, and we will all support one another at getting to the bottom of the reason why the hillside slid so quickly, so ferociously, without any warning whatsoever. And hopefully, we will at some point be able to return to our homes.

HEMMER: Good luck to you. And you're going to need some luck today, going forward through the weekend, too. Lori Herek and Ryan Haskell are my guests there from Laguna Beach. Thanks for talking with us, and I hope you get some sleep some time soon, too. Thanks and good luck.

HEREK: Thank you. Thank you. HASKELL: Thank you. Thanks.

HEMMER: Sure. Here's Soledad.

O'BRIEN: It's tough for them there.

Well, as "Deep Throat," Mark Felt provided information that eventually toppled Richard Nixon's presidency. Last night in an exclusive CNN interview, Larry King asked former President Bill Clinton to weigh in on Felt's actions.

(BEGIN VIDEO CLIP)

WILLIAM CLINTON, FORMER PRESIDENT OF THE UNITED STATES: He always felt ambivalent about it apparently, and I think that's good, because on balance you don't want law enforcement officials leaking to the press, even the truth, much less some vendetta or something that's not true. But under these circumstances, I think he did the right thing.

(END VIDEO CLIP)

O'BRIEN: Tonight, in a CNN prime time exclusive, Larry King talks to Watergate reporters Carl Bernstein and Bob Woodward. That's at 9:00 p.m. Eastern, right here on CNN.

Still to come this morning, we're going to take a look back at one of the defining moments of CNN's 25 years on the air, a beautiful day that quickly turned tragic: 9/11. Stay with us. We're back in a moment.

(COMMERCIAL BREAK)

HEMMER: All this week, we're marking CNN's 25th anniversary on the air with our series, "CNN's Defining Moments." Today, that series could not be complete without a look back at what happened on September 11. Starting as a beautiful day here in New York City, but soon turning into a day that shook America to the core.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: This just in. You are looking at obviously a very disturbing live shot there. That is the World Trade Center, and we have unconfirmed reports this morning that a plane has crashed into one of the towers of the World Trade Center.

ROSE ARCE, CNN PRODUCER: Suddenly, there was this second sort of (INAUDIBLE) that came out of the sky, and everyone just looked right up, and another plane came and just barreled into the other tower.

HEMMER (voice over): 9/11, 2001, within the space of only 20 minutes, the twin towers of New York City's World Trade Center had been attacked.

ARCE: At first, I thought, 'Oh, I'm dreaming, I'm going to wake up. This can't be. This hasn't happened.' AARON BROWN, CNN ANCHOR: There has just been a huge explosion. We can see a cascade of sparks and fire, and now this -- it looks almost like a mushroom cloud explosion. And I'll tell you that I can't see that second tower.

HEMMER: In Washington, there was an attack on the Pentagon.

STARR: There was a voice in the hallway, full of running people yelling, "Get out, get out, get out. We've been hit!" A fire truck came and started pouring water on the fire, but it was having no effect. I mean, this was an extremely hot, extremely intense fire.

HEMMER: The fourth hijacking, destination never known, foiled by a group of brave passengers, whose actions forced the plane to crash in a Pennsylvania field.

UNIDENTIFIED MALE: A plane down in Pennsylvania.

UNIDENTIFIED MALE: Somerset County?

UNIDENTIFIED MALE: One of the last places you would probably expect to be touched by the violence of an act of terrible terrorism like we have seen today.

HEMMER: In the wake of the worst terrorist attack on America's soil, the nation pulled together, and the spirit of the people of New York City helped guide the way.

UNIDENTIFIED MALE: They were committed from the very beginning to deliver their city from the ashes and build it back up again, come hell or high water.

(END VIDEOTAPE)

HEMMER: Three-and-a-half years later in the city of New York City, the debate continues as to what to do with this area known as 16 acres, that rectangular part of land in lower Manhattan. That debate continues almost on a daily basis here in the city.

Tomorrow, we continue our series, "CNN's Defining Moments," with a look back at the Gulf War. That's tomorrow at 7:00 a.m. Eastern Time here on CNN's AMERICAN MORNING Friday morning.

In a moment here, Andy is back "Minding Your Business" with good news for homeowners. Housing prices are going up. We know that. How long will it last? Some believe it may last a bit longer than others are saying.

Back in a moment here as we continue after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Business news now. On average -- that's what I'm trying to say -- it's going to cost you nearly a quarter-of-a-million bucks to buy a house. So, does that mean the market is about to bottom out? Andy Serwer is "Minding Your Business" this morning.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: One of those questions that we don't know the answer to, but we have some clues, Soledad.

First of all, the great housing boom of 2005 continues. A new government report just released shows that housing prices across the country increased 12.5 percent in the first quarter, one of the biggest increases ever.

Let's take a look how housing prices have jumped in certain states over the past year. These are one-year increases in housing prices, folks. You can see Jack's state of Nevada topping the list there. And I pronounced it correctly.

JACK CAFFERTY, CNN ANCHOR: Thank you. I appreciate it.

SERWER: You're welcome.

California, actually some of that is sad to say, Jack, of course, is a spillover from the California market. You know, when California sneezes, you might say, Nevada might get a cold. Well, it's the opposite.

CAFFERTY: That's why we have the mountain range.

SERWER: Right. Hawaii is very hot. Washington is very hot. And even the slow markets, if we can turn to that, are not so slow. I mean, inflation is running at about 3.5 percent. So, you can see, even these slower -- these are the bottom ones -- are growing pretty fast.

Over the past five years, the average house in America is up 50 percent. In other words, if your home was worth $200,000 in 2000, it's now worth $300,000. In some markets, much more than that.

In California, over the past five years, housing prices have doubled. Doubled in five years, which is remarkable.

And as far as what the future will hold, it all has to do with interest rates, Soledad. Interest rates have actually slowed down, have actually dropped over the past year, surprising a lot of people. If interest rates stay low, the bubble, while it may not continue to grow, may just sort of fizzle a little bit. If interest rates spikes suddenly, the housing market could be in trouble.

O'BRIEN: As is the indication. All right, Andy, thanks.

SERWER: You're welcome.

HEMMER: The "Question of the Day" and back to Jack for that now.

CAFFERTY: Thank you, Bill.

At the time that Mark Felt was leaking information to Bob Woodward and Carl Bernstein, he was also the number two guy at the FBI. Felt was reportedly angry with President Nixon that he had been passed over for the top job at the bureau after J. Edgar Hoover died -- a disgruntled government employee as it were. Without Felt's information, the Watergate cover-up may never have been exposed. But the fact of the matter is Mark Felt was breaking the law.

The question is this: As "Deep Throat," was Mark Felt a hero or villain?

Mike in South Carolina: "He's a hero. If he had quit his job and stood on a street corner telling what he knew, he would have been dismissed as another passed-over civil servant. Doing it the way he did got the story out."

Al in Washington: "Villain isn't even close. He's a liar and as dishonest as the president he squealed on. He should be prosecuted and thrown into prison to live out his days as a traitor to the country and the post he dishonored."

Joe in Florida writes: "I only wish we had a "Deep Throat" for this administration. Think of the corruption that could have been uncovered with all of the misstated intelligence that took us into the war."

Frank in Pennsylvania: "When individuals holding some of the highest offices in the land are using the Constitution as paper towel to wipe up a coffee spill, someone with a love of freedom has to step forward. Mr. Felt's actions support the old saying, 'Wrong is wrong, even when everyone is doing it, and right is right even when you stand alone.'"

And finally, Bill writes: "The key is J. Edgar Hoover. Had he lived and remained the head of the FBI for, say, another five years, the Watergate scandal never would have happened. His old school way of dealing with the problem would have silenced Mark Felt and protected the president."

HEMMER: Something to consider.

O'BRIEN: Interesting.

SERWER: Yes.

HEMMER: The point that Bernstein was making all week is that we're giving "Deep Throat" too much credit.

CAFFERTY: Well...

SERWER: He said that, too.

HEMMER: Yes.

SERWER: He says there were other sources.

HEMMER: An aspect of the story certainly, but without the Senate hearings and the hours and hours of audiotape at the White House. CAFFERTY: With all due respect to Carl Bernstein, he created the mystique around Mark Felt.

SERWER: Indeed.

CAFFERTY: That's all his doing.

SERWER: And the nice name. There was the garage. There was the movie. There was a book. Very sexy stuff.

CAFFERTY: If they had written in the book a high-ranking source in the Justice Department had provided the information...

SERWER: Yes.

CAFFERTY: ... it would have been forgotten about a week later.

HEMMER: Instead of writing about that character.

CAFFERTY: Those guys created the mystique around this guy.

HEMMER: And the fact that the city of Washington kept this secret for more than 30 years.

O'BRIEN: Thirty years. That's pretty amazing.

SERWER: Yes, at the "Post," right.

O'BRIEN: That's a great "Question of the Day." Thanks, Jack.

Well, still to come this morning, a devastating landslide forces hundreds from their homes in California. We're going to take you live to the scene them, ahead on AMERICAN MORNING.

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 June 2, 2005 - 07:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. It's just about half past the hour on this AMERICAN MORNING.
Coming up, a very dangerous situation in Laguna Beach in California.

BILL HEMMER, CNN ANCHOR: This landslide that took place yesterday, wiping out million-dollar homes on Wednesday. More could be in danger today. We're going to talk to the town's mayor in a moment, too, about the damage, whether or not the worst is or is not over for today. Also, we'll be in touch with some homeowners out there, too. It is early in the morning, 4:30 California time, but this is on the forefront in the minds of those folks in Laguna Beach without question.

O'BRIEN: Especially when you see the houses just roll straight down the hill. And, of course, it's all from the water that they got over the winter.

HEMMER: It could be.

O'BRIEN: What a mess there.

HEMMER: It could be.

O'BRIEN: Let's get the headlines first, though, with Carol Costello.

Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.

"Now in the News."

A developing story right now, a gunman holding a woman hostage in a convenience store near Indianapolis. He says he does not want to hurt her. The standoff has been under way for about 21 hours now. It started when police chased two burglary suspects into a store parking lot. One of the men was caught, the other ran into that convenience store. Negotiators are trying to talk the man into surrendering.

In California, lawyers in the Michael Jackson trial are set to deliver their closing arguments today. The prosecution and defense each have up to four hours to make their case. The trial could go to the jury by the end of today or tomorrow. Some 75 of Jackson's fans and supporters held a prayer vigil outside of the Neverland Ranch. The event eventually turned into a celebration of the pop star with singing and some dancing.

A leading anti-Syrian journalist has been killed in Lebanon. Police say his car exploded some three hours ago in a Christian area of Beirut. These are pictures just in to CNN. The man wrote for a Lebanese newspaper critical of Syria. An unidentified woman wounded in the blast.

Israel is releasing some 400 Palestinian prisoners. Buses carrying the former detainees began arriving in border checkpoints earlier today. The release is part of a cease-fire agreement between Israeli Prime Minister Ariel Sharon and the Palestinian leader, Mahmoud Abbas. In the meantime, Abbas is recovering this morning after undergoing a minor heart procedure at a hospital in Jordan. He is expected to return to Ramallah tomorrow.

And talk about a publicity problem. A San Francisco 49ers training video has the Bay area fuming. The 15-minute film features racist jokes, lesbian soft porn and topless blondes. Kirk Reynolds, the 49ers PR director, is now apologizing. He said he made the video to coach players on dealing with the media, and he never ever meant for the public to see it. He is now leaving his post. So, how did this tape get out? How did it make its way to the media? We'll talk with the man who broke the story in the next hour of AMERICAN MORNING.

O'BRIEN: When you consider that that tape was the end part of a two-and-a-half hour presentation on diversity and sensitivity, one thinks, oh, yes, from the PR director, big oops.

Carol, thanks.

COSTELLO: What was he thinking?

O'BRIEN: Yes, file that under, what were you thinking? Thanks.

Well, three car bombings in just 45 minutes killed 16 people in Iraq this morning. The first attack was in the northern town of Tuz Khurmatu. It killed 10, wounded 38 at a restaurant. Then, an attempt on an American diplomatic convoy in the northern city of Kirkuk, it was off target. Two children died there. Eleven other Iraqi civilians were hurt. Finally, a suicide car bomber killed a local political leader and three bodyguards in Baquba.

And today's attacks, like many that we've seen in the recent past, have seemed to have increased and seem to be well-coordinated. But it doesn't mean necessarily that there's just one group behind all of those attacks.

Barbara Starr live at the Pentagon for us this morning.

Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad. Well, as the violence continues, a lot of people are now asking: What is going on inside Iraq?

(BEGIN VIDEOTAPE)

STARR (voice over): As the death toll in Iraq has mounted for U.S. troops and Iraqis, one word has been used repeatedly to describe the violence: insurgency.

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: We're involved in an insurgency, a very violent insurgency.

STARR: But is Iraq an insurgency? Most experts agree it is a unique conflict that cannot be easily labeled. The Pentagon defines insurgency as "an organized movement, aimed at the overthrow of a constituted government through use of subversion and armed conflict."

MICHAEL O'HANLON, SR. FELLOW, BROOKINGS INSTITUTE: In Iraq, you have a small insurgency fighting largely for the benefit of one ethnic group but aided by globally-motivated and inspired jihadists.

STARR: Experts say the Iraq insurgency centers around members of the former regime who want to retake power. They number in the thousands. But the most lethal fighters are the hundreds of foreign fighters trying to incite civil war, loyal to Abu Musab al-Zarqawi.

COL. THOMAS X. HAMMES, U.S. MARINE CORPS: What you have in Iraq is a variety of organizations that are very interested in taking power. Now, they don't agree with each other, but they do all agree that the United States has to get out.

STARR: Is Iraq the new Vietnam? Experts say no. The North Vietnamese had outside support from the Soviets and Chinese, and appealed to much of the population. Is Iraq the new El Salvador? For years, the U.S. supported the government there, fighting a left-wing insurgency. Now, in Iraq?

O'HANLON: You do not have essentially the whole society engaged in a broad ideological debate.

STARR: So, can this multi-headed enemy be defeated by U.S. and Iraqi forces and by an emerging Iraqi democracy? Fighting insurgents takes manpower.

TOM DONNELLY, AMERICAN ENTERPRISE INSTITUTE: Because you're not just bombing people or blowing things up or destroying enemy forces in large formations. You have to pacify and secure villages and places to allow a new government to legitimate itself to take root.

(END VIDEOTAPE)

STARR: Well, Soledad, most military experts now say no matter what you call it, it will take years to bring peace to Iraq. Tomorrow, we take a look at how the violence has evolved -- Soledad.

O'BRIEN: Barbara Starr for us this morning at the Pentagon. Barbara, thanks -- Bill.

HEMMER: It's now 25 minutes before the hour. We're going to get you back to California in a moment here. And we talked about this with Chad a short time ago. There is other weather news, and for that, back to the CNN center.

(WEATHER REPORT)

HEMMER: Those homes lost in the Laguna Beach landslide may be just the beginning. Experts are saying more of that a rain-soaked southern California hill could give way today. And they're watching it so closely. Eighteen multimillion-dollar homes were either damaged or destroyed on Wednesday.

Lori Herek and Ryan Haskell are with me now. They were both inside Lori's home when that landslide hit. Ryan is the boyfriend of Lori's daughter. Lori's daughter was away at work when this happened.

And good morning to both of you. It's just a tick past 4:30 in the morning out there. Lori, you were inside the home. Describe us to what happened, what you felt and what you heard.

LORI HEREK, LOST HOUSE IN LANDSLIDE: I first heard water. It sounded like there was water leaking under my bedroom. I didn't really think much about it. I thought, well, I'll get to that later on today.

And then I heard the house start to pop and crack. And I thought maybe it was some sort of hailstorm unexpectedly. So, I went out the front door, and I noticed that the streets were dry, and that the cracking had stopped when I walked outside. So, I thought, oh, my god, it's coming from inside the house.

I went back inside the house. It got a little bit louder, the noises. The popping became louder. And I went back out front, probably about 30 seconds later, and I saw the curb separating from the driveway. So, I ran back into the house and woke Ryan. And at that point, it was just happening very quickly. And the house was actually starting to shift as we ran out the front door.

HEMMER: Lori, a couple things...

HEREK: And we ran to my next door neighbors' house.

HEMMER: I apologize for the interruption.

HEREK: By the time we got to his house, the house had already buckled and was sliding down the hill.

HEMMER: I'm not sure if you can still hear me. I'm going to try and hang with this for a moment here. And I apologize for the interruption there.

HEREK: My goodness, we can't...

HEMMER: Yes, Lori, if you can still hang with me a second here. Maybe I can try Ryan here, because he's on a different line out there. Hey, Ryan, the situation that Lori is describing, what kind of a time period elapsed during this?

RYAN HASKELL, LOST HOUSE IN LANDSLIDE: We just had time, you know, to get out of the house. That's about it. We didn't have time to get anything. We had no warning. We just pretty much had time to get out with our lives, and that's it.

HEMMER: So, it was just the two of you inside the home. You go outside. And what happened at that point? Do neighbors show up?

HASKELL: No. At that point, we ran over to our neighbor, Steve, and we started banging on his door, you know, to get out of his house before, you know, the same thing happened to him. And then more people started -- I guess they heard us yelling and started coming out of their houses.

And we all -- you know, we all got into the back of a pickup truck, and telephone wires started coming down on top of us. And we couldn't back up because the road had lifted up. So, we couldn't drive anywhere. And the only chance we had was just to, you know, take off down the hill.

HEMMER: From the point that that home was destroyed, where you and Lori were at the time, to the point where you got out of the house, how much time would you say elapsed, Ryan?

HASKELL: I'd say about 60 seconds or less, I'd say.

HEMMER: Just one minute to get out. Let me try Lori again here, if I could. Lori, there was an awful lot of rain this past winter, 28 inches in fact, which is more than double the normal rainfall in California for that time of the year. Where you aware of that this past winter? And was your community, and perhaps other communities up and down the coast where you live, were you concerned at all that this could be a possibility given all of the saturation this past year?

HEREK: Of course. Whenever you have a constant, excessive rain like that, living on a hillside, of course you worry. However, with that being said, I think it's important that people not point a finger right now at any one particular reason for the hillside sliding. I think we need to wait and be patient and cooperate. I think the local government, as well as the state and federal government, need to band together, along with the people of Laguna Beach. We're a very tight- knit community, and we will all support one another at getting to the bottom of the reason why the hillside slid so quickly, so ferociously, without any warning whatsoever. And hopefully, we will at some point be able to return to our homes.

HEMMER: Good luck to you. And you're going to need some luck today, going forward through the weekend, too. Lori Herek and Ryan Haskell are my guests there from Laguna Beach. Thanks for talking with us, and I hope you get some sleep some time soon, too. Thanks and good luck.

HEREK: Thank you. Thank you. HASKELL: Thank you. Thanks.

HEMMER: Sure. Here's Soledad.

O'BRIEN: It's tough for them there.

Well, as "Deep Throat," Mark Felt provided information that eventually toppled Richard Nixon's presidency. Last night in an exclusive CNN interview, Larry King asked former President Bill Clinton to weigh in on Felt's actions.

(BEGIN VIDEO CLIP)

WILLIAM CLINTON, FORMER PRESIDENT OF THE UNITED STATES: He always felt ambivalent about it apparently, and I think that's good, because on balance you don't want law enforcement officials leaking to the press, even the truth, much less some vendetta or something that's not true. But under these circumstances, I think he did the right thing.

(END VIDEO CLIP)

O'BRIEN: Tonight, in a CNN prime time exclusive, Larry King talks to Watergate reporters Carl Bernstein and Bob Woodward. That's at 9:00 p.m. Eastern, right here on CNN.

Still to come this morning, we're going to take a look back at one of the defining moments of CNN's 25 years on the air, a beautiful day that quickly turned tragic: 9/11. Stay with us. We're back in a moment.

(COMMERCIAL BREAK)

HEMMER: All this week, we're marking CNN's 25th anniversary on the air with our series, "CNN's Defining Moments." Today, that series could not be complete without a look back at what happened on September 11. Starting as a beautiful day here in New York City, but soon turning into a day that shook America to the core.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: This just in. You are looking at obviously a very disturbing live shot there. That is the World Trade Center, and we have unconfirmed reports this morning that a plane has crashed into one of the towers of the World Trade Center.

ROSE ARCE, CNN PRODUCER: Suddenly, there was this second sort of (INAUDIBLE) that came out of the sky, and everyone just looked right up, and another plane came and just barreled into the other tower.

HEMMER (voice over): 9/11, 2001, within the space of only 20 minutes, the twin towers of New York City's World Trade Center had been attacked.

ARCE: At first, I thought, 'Oh, I'm dreaming, I'm going to wake up. This can't be. This hasn't happened.' AARON BROWN, CNN ANCHOR: There has just been a huge explosion. We can see a cascade of sparks and fire, and now this -- it looks almost like a mushroom cloud explosion. And I'll tell you that I can't see that second tower.

HEMMER: In Washington, there was an attack on the Pentagon.

STARR: There was a voice in the hallway, full of running people yelling, "Get out, get out, get out. We've been hit!" A fire truck came and started pouring water on the fire, but it was having no effect. I mean, this was an extremely hot, extremely intense fire.

HEMMER: The fourth hijacking, destination never known, foiled by a group of brave passengers, whose actions forced the plane to crash in a Pennsylvania field.

UNIDENTIFIED MALE: A plane down in Pennsylvania.

UNIDENTIFIED MALE: Somerset County?

UNIDENTIFIED MALE: One of the last places you would probably expect to be touched by the violence of an act of terrible terrorism like we have seen today.

HEMMER: In the wake of the worst terrorist attack on America's soil, the nation pulled together, and the spirit of the people of New York City helped guide the way.

UNIDENTIFIED MALE: They were committed from the very beginning to deliver their city from the ashes and build it back up again, come hell or high water.

(END VIDEOTAPE)

HEMMER: Three-and-a-half years later in the city of New York City, the debate continues as to what to do with this area known as 16 acres, that rectangular part of land in lower Manhattan. That debate continues almost on a daily basis here in the city.

Tomorrow, we continue our series, "CNN's Defining Moments," with a look back at the Gulf War. That's tomorrow at 7:00 a.m. Eastern Time here on CNN's AMERICAN MORNING Friday morning.

In a moment here, Andy is back "Minding Your Business" with good news for homeowners. Housing prices are going up. We know that. How long will it last? Some believe it may last a bit longer than others are saying.

Back in a moment here as we continue after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Business news now. On average -- that's what I'm trying to say -- it's going to cost you nearly a quarter-of-a-million bucks to buy a house. So, does that mean the market is about to bottom out? Andy Serwer is "Minding Your Business" this morning.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: One of those questions that we don't know the answer to, but we have some clues, Soledad.

First of all, the great housing boom of 2005 continues. A new government report just released shows that housing prices across the country increased 12.5 percent in the first quarter, one of the biggest increases ever.

Let's take a look how housing prices have jumped in certain states over the past year. These are one-year increases in housing prices, folks. You can see Jack's state of Nevada topping the list there. And I pronounced it correctly.

JACK CAFFERTY, CNN ANCHOR: Thank you. I appreciate it.

SERWER: You're welcome.

California, actually some of that is sad to say, Jack, of course, is a spillover from the California market. You know, when California sneezes, you might say, Nevada might get a cold. Well, it's the opposite.

CAFFERTY: That's why we have the mountain range.

SERWER: Right. Hawaii is very hot. Washington is very hot. And even the slow markets, if we can turn to that, are not so slow. I mean, inflation is running at about 3.5 percent. So, you can see, even these slower -- these are the bottom ones -- are growing pretty fast.

Over the past five years, the average house in America is up 50 percent. In other words, if your home was worth $200,000 in 2000, it's now worth $300,000. In some markets, much more than that.

In California, over the past five years, housing prices have doubled. Doubled in five years, which is remarkable.

And as far as what the future will hold, it all has to do with interest rates, Soledad. Interest rates have actually slowed down, have actually dropped over the past year, surprising a lot of people. If interest rates stay low, the bubble, while it may not continue to grow, may just sort of fizzle a little bit. If interest rates spikes suddenly, the housing market could be in trouble.

O'BRIEN: As is the indication. All right, Andy, thanks.

SERWER: You're welcome.

HEMMER: The "Question of the Day" and back to Jack for that now.

CAFFERTY: Thank you, Bill.

At the time that Mark Felt was leaking information to Bob Woodward and Carl Bernstein, he was also the number two guy at the FBI. Felt was reportedly angry with President Nixon that he had been passed over for the top job at the bureau after J. Edgar Hoover died -- a disgruntled government employee as it were. Without Felt's information, the Watergate cover-up may never have been exposed. But the fact of the matter is Mark Felt was breaking the law.

The question is this: As "Deep Throat," was Mark Felt a hero or villain?

Mike in South Carolina: "He's a hero. If he had quit his job and stood on a street corner telling what he knew, he would have been dismissed as another passed-over civil servant. Doing it the way he did got the story out."

Al in Washington: "Villain isn't even close. He's a liar and as dishonest as the president he squealed on. He should be prosecuted and thrown into prison to live out his days as a traitor to the country and the post he dishonored."

Joe in Florida writes: "I only wish we had a "Deep Throat" for this administration. Think of the corruption that could have been uncovered with all of the misstated intelligence that took us into the war."

Frank in Pennsylvania: "When individuals holding some of the highest offices in the land are using the Constitution as paper towel to wipe up a coffee spill, someone with a love of freedom has to step forward. Mr. Felt's actions support the old saying, 'Wrong is wrong, even when everyone is doing it, and right is right even when you stand alone.'"

And finally, Bill writes: "The key is J. Edgar Hoover. Had he lived and remained the head of the FBI for, say, another five years, the Watergate scandal never would have happened. His old school way of dealing with the problem would have silenced Mark Felt and protected the president."

HEMMER: Something to consider.

O'BRIEN: Interesting.

SERWER: Yes.

HEMMER: The point that Bernstein was making all week is that we're giving "Deep Throat" too much credit.

CAFFERTY: Well...

SERWER: He said that, too.

HEMMER: Yes.

SERWER: He says there were other sources.

HEMMER: An aspect of the story certainly, but without the Senate hearings and the hours and hours of audiotape at the White House. CAFFERTY: With all due respect to Carl Bernstein, he created the mystique around Mark Felt.

SERWER: Indeed.

CAFFERTY: That's all his doing.

SERWER: And the nice name. There was the garage. There was the movie. There was a book. Very sexy stuff.

CAFFERTY: If they had written in the book a high-ranking source in the Justice Department had provided the information...

SERWER: Yes.

CAFFERTY: ... it would have been forgotten about a week later.

HEMMER: Instead of writing about that character.

CAFFERTY: Those guys created the mystique around this guy.

HEMMER: And the fact that the city of Washington kept this secret for more than 30 years.

O'BRIEN: Thirty years. That's pretty amazing.

SERWER: Yes, at the "Post," right.

O'BRIEN: That's a great "Question of the Day." Thanks, Jack.

Well, still to come this morning, a devastating landslide forces hundreds from their homes in California. We're going to take you live to the scene them, ahead on AMERICAN MORNING.

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