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American Morning

New Taped Message From Osama bin Laden; Saddam Hussein's Wife Added to Iraq's Most Wanted List; Israel Responds to Ultimatum

Aired July 03, 2006 - 08:59   ET

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

MILES O'BRIEN, CNN ANCHOR: A new taped message from Osama bin Laden. The al Qaeda leader again trying to stir the pot in Iraq.
Saddam Hussein's wife added to Iraq's most wanted list. His eldest daughter also on the list, but well behind the country's new public enemy number one.

CAROL COSTELLO, CNN ANCHOR: No negotiations. Israel now with an answer for militants who have set a deadline for serious consequences.

O'BRIEN: A release of another kind for rapper Lil' Kim. There she is, out of prison a couple of months early. Good time, they say. We'll tell you why.

And a big thumbs up for Roger Ebert after emergency surgery. An update on his condition ahead on AMERICAN MORNING.

Good morning to you. I'm Miles O'Brien.

COSTELLO: And I'm Carol Costello, in this week for Soledad.

We have some new pictures out of Spain. We told you about this in the last hour. A terrible train wreck near Madrid, Spain, east of the city in Valencia. You see people being loaded onto an ambulance right now.

Somehow the train derailed. It was a subway train, and the train crashed into something, although we don't know what because we're not seeing pictures of that right now. But, we do know that 30 people were killed, and we assume that scores more were injured. A spokeswoman for Valencia Emergency Services Department has confirmed there were several deaths, 30, as I said, and added that it was a serious incident with an important number of deaths.

We're going to keep you posted as we get more information on this -- Miles.

O'BRIEN: Al Qaeda taking some new directions today. The latest audio message from Osama bin Laden is the second to come out in just three days, and it calls for the first time on Sunni Muslims to fight Shia Muslims in Iraq.

National Security Correspondent David Ensor live now from Washington with more -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Miles, this is something of a change of tactics, it would seem, from al Qaeda central. In the past, bin Laden's deputy, Ayman al-Zawahiri, had urged Abu Musab al-Zarqawi, the now-dead leader of al Qaeda in Iraq, not to attack innocent Muslims. But now you have this message from -- from bin Laden in which he calls on the supporters of al Qaeda in Iraq to attack apostates and supporters of these Shiite governments that have been in place since Saddam Hussein was overthrown.

So it's, in effect, a call for Muslims to fight Muslims, and that is something new from al Qaeda. He also talks about who he thinks should be the new leader of al Qaeda in Iraq.

(BEGIN VIDEO CLIP)

OSAMA BIN LADEN, AL QAEDA LEADER (through translator): Our Muslim people in Iraq need to learn that no truce should be accepted with the crusaders and the apostates. There shouldn't be any half- solutions, and there is no way out for them except by fighting and holding on to their struggle.

(END VIDEO CLIP)

ENSOR: Well, that, in fact, was a reference to this -- that is part of the discussion that bin Laden gave about why Sunnis should attack the Shiites who are supporting the governments in Iraq. But he also went on to say that someone named Abu Hamza al-Mujahir will be the new leader of al Qaeda and that those who support him should support this person.

Now, Pentagon officials are saying that that man -- that's a new nom de guerre for a man named al-Masri, who they previously identified as the person they believe is taking over al Qaeda in Iraq. Here is a picture of the person that they are talking about.

So various names. But the Pentagon, at least, says that that's the man who is now in charge of al Qaeda in Iraq.

O'BRIEN: All right. So it is confusing when they are constantly throw out all these aliases.

ENSOR: Yes.

O'BRIEN: But we should focus on one individual.

I can't recall an occasion when two tapes have come out this close together, David. What does that tell you?

ENSOR: It's a big effort by al Qaeda central to remain relevant by putting out lots of tapes. This is the fifth from bin Laden this year. There has been an absolute blizzard of them from his deputy, Ayman al-Zawahiri.

Clearly, they want to comment on the news, they want to try to seem relevant. They want to try to rally their forces at a time when they feel that they may be doing well in Afghanistan, in Somalia, and even, to some extent, in Iraq, although they lost the leader there.

Back to you, Miles.

O'BRIEN: David Ensor in Washington.

Thank you -- Carol.

COSTELLO: Iraq is out with a list of most wanted. Near the top, Saddam Hussein's wife and his oldest daughter. They're allegedly financing violence within Iraq from other countries, where they live rather opulent lives.

CNN's Arwa Damon is live in Baghdad to tell us more about this list and the efforts to catch the most wanted.

Hello, Arwa.

ARWA DAMON, CNN CORRESPONDENT: Hello, Carol. That's right.

Now, first of all, topping that list is Izzat Ibrihim al-Duri, with a $10 million reward. Now, he was the deputy commander of Iraq's Revolutionary Command Council, which essentially ran the entire country. He is to date the senior most former Ba'ath Party member still at large.

Now, there were reports back in November of 2005 that he was killed. This was posted on a Ba'athist Web site. There has been no confirmation of that.

But as you just mentioned, two very interesting names on that list, Saddam Hussein's eldest daughter and his wife. His eldest daughter currently resides in Jordan. She's been there since 2003. Now, according to the Iraqi government, she is accused of providing logistics and financial support to the insurgency here in Iraq.

His wife is believed to be in Qatar. And according to Iraq's national security adviser, Mowaffaq al-Rubaie, he says that the government has specific evidence that she placed billions of U.S. dollars in a bank in one of Iraq's neighboring countries and that they have evidence that the millions of dollars of that money ended up in Iraq, financing terrorism and terrorists operating here.

Now, he said that the government was going to expend all efforts to capture these 41 most wanted.

(BEGIN VIDEO CLIP)

MOWAFFAQ AL-RUBAIE, IRAQI NATIONAL SECURITY ADVISER: We, the Iraqi people and Iraqi government, we will spare no effort. We will leave no stone unturned to bring these people to justice inside Iraq.

(END VIDEO CLIP)

DAMON: And he also said that he was calling on the Iraqi people to bring forward information.

Now, CNN went out and spoke to some Iraqis who are living in Baghdad, those who are living the violence every day. And this list was met with actually quite a positive response. In fact, Mowaffaq al-Rubaie also said to us earlier that Iraqis he spoke to after announcing the list said to him, this is what we want to see from our government. We want to see our government taking action, taking the security situation seriously.

Many Iraqis also saying that they felt that this was a positive thing, that now the Iraqi people could identify those that were committing the crimes against them -- Carol.

COSTELLO: Let's talk a little bit about Jordan and Qatar, where Saddam's daughter and wife now reside. What are those countries saying about possibly turning over these women?

DAMON: Well, that's going to be a tough one. And we actually spoke with a spokesperson for Jordan's government who said that they have not yet officially received any requests from the Iraqi government, saying that the Iraqi government had to go through those official channels.

We specifically asked this spokesperson, "Well, what is going to happen when the request finally does arrive to the Jordanian government?" And his response was, "We will cross that bridge when we get there."

In terms of Qatar, it is unclear yet whether or not Qatar will turn over Saddam Hussein's wife or keep her in custody. But that is potentially a sticking point between Jordan, Iraq and other neighboring countries -- Carol.

COSTELLO: Arwa Damon reporting live from Baghdad this morning.

Thank you.

O'BRIEN: The crisis grows in Gaza. Israel responding to a dire ultimatum from Palestinian militants who are said to be holding an Israeli soldier hostage.

CNN's Paula Hancocks live now from Gaza City -- Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Miles.

Well, the three militant groups who are holding this kidnapped Israeli soldier came up with this ultimatum a little earlier on Monday. What it basically says is Israel has to meet its demand by 6:00 a.m. local time on Tuesday morning. That's 11:00 p.m. Eastern Time Monday evening.

Now, these demands basically say that they want 1,000 prisoners to be released -- this is what they've said in the past couple of days -- from Israeli jails. And also, all Palestinian women and children. Now, they said if those demands are not met, then there will be future consequences. They haven't specified what they would be.

Israel has reacted and said that they will not succumb to extortion. The prime minister's office saying that the line is exactly the same, they will not negotiate with terrorists, and they have no intention of carrying out a prisoner swap.

Now, there has been increased violence in the north and the south of Gaza. It's in clashes between Israeli forces and Palestinian militants. Three militants were killed in the early hours of Monday morning, two of those killed were later found to be wearing suicide belts. And also in northern Gaza, two further militants killed in gun battles with Israel.

Now, we have seen some of the troops and some of the tanks move into northern Gaza, but a very small percentage. This is not the extensive operation that Ehud Olmert, the Israeli prime minister, had threatened. Most of the tanks and troops are still on the northern border waiting for the political call to go in -- Miles.

M. O'BRIEN: Paula Hancocks in Gaza.

Thank you very much -- Carol.

COSTELLO: Happening "In America," in Madison, Indiana, four people in the hospital this morning after a car careens through a crowd at a hydroplane race. Police say the 18-year-old driver of the car appeared to be unconscious when his car plowed into a crowd of spectators. The race stopped after the crash.

Charges could be filed. We're expecting to hear more from police this morning.

Movie critic Roger Ebert in serious but stable condition this morning after emergency surgery to repair a ruptured blood vessel. It's a complication following an earlier cancer surgery. Doctors giving Ebert a thumbs up for a full recovery.

Lil' Kim got out of prison this morning in Philadelphia. The rapper, whose real name is Kimberly Jones, was sentenced to a year and a day for lying to a grand jury about a gunfight she saw. She's getting out a little early for good behavior.

Fast-moving storms in southeastern Pennsylvania. Strong winds being blamed for knocking over more than 100 trees throughout the area. One man was seriously injured when lightning hit an oil refinery in southwest Philadelphia.

And fireworks are blamed for a spreading wildfire southeast of Portland, Oregon. Luckily, there are no homes near the 60-acre fire. Firefighters found a stash of fireworks near where the fire started.

Wildfires also a threat near Boise, Idaho. Most of them apparently sparked by lightning. Firefighters trying to keep about a half-dozen wildfires from getting any close to homes there. So far, the largest of those wildfires has destroyed about 50 acres.

O'BRIEN: Well, if the weather and the technical gods shine down on NASA, the space agency plans to light a candle on a fireworks display to remember tomorrow. Space shuttle Discovery now slated to flight 2:38 p.m. Eastern Time. Over the weekend, a pair of delays. Scrubs, they call them in business. That's an old...

COSTELLO: Where's your shuttle?

O'BRIEN: My shuttle is hidden under the rotating service structure. We keep using that old B (ph) roll from a few days ago. In any case, that's another...

COSTELLO: There's your shuttle.

O'BRIEN: And so here's a shuttle, just in case you forgot what they look like. We had a couple of delays on account of thunderstorms in the area. The weather's supposed to be -- there you go. There's the space shuttle.

COSTELLO: It's beautiful.

O'BRIEN: But that's not actual size.

The two delays about a million bucks each.

COSTELLO: Wow.

O'BRIEN: So it was $2 million right there.

COSTELLO: Oh, that's a drop in the bucket, isn't it in comparison?

O'BRIEN: It is. And April 15th, think of that. Think of those two times. You think the price -- the next time you go to fill up your car, think of that million-dollar fill-up they have...

COSTELLO: I will.

O'BRIEN: ... on liquid hydrogen and oxygen. It will put it in perspective.

Anyway, we'll have live coverage whenever the shuttle flies. I'll be heading back down to catch the launch in just a little while.

COSTELLO: Well, I hope it takes off for your sake.

O'BRIEN: Yes, me, too.

Time fore -- as a matter of fact, let's check the forecast.

Chad, what are they saying now?

CHAD MYERS, CNN METEOROLOGIST: Actually, still 40 percent chance of no launch because of weather.

Miles, I can't tell you how many times I've had to explain to people why they have to take off at certain minute of the day.

O'BRIEN: Yes. Yes.

MYERS: No one seems to get it. You know?

O'BRIEN: All right. One more time.

MYERS: Go ahead. Go ahead.

COSTELLO: So listen, people!

O'BRIEN: Here we go. Listen up, folks.

Think of it this way: the idea is to get to the space station. In order to get to the space station, thing of a quarterback throwing a pass to a receiver. OK?

The shuttle is the football, the receiver is the space station. You must launch or fire the pass at just the right moment in order for the receiver to catch the ball. Otherwise it will never catch up.

COSTELLO: Gotcha.

O'BRIEN: Got it? Otherwise, it's a fumble. And you don't want a fumble in space.

MYERS: Right, especially in three-dimensional space...

O'BRIEN: Yes.

MYERS: ... when you're not only trying to pass the ball to a running guy, but the other guy, he's going around and around like this, and you're trying to catch him...

O'BRIEN: Yes. Yes.

COSTELLO: Encroachment.

(LAUGHTER)

MYERS: I know Carol can't wait for football season. She's a huge fan. She has the NFL package on her dish, or whatever she has.

COSTELLO: Oh, I've got the -- yes, you're right.

MYERS: I know you do. I know you probably -- and Timmy (ph) is all excited about it.

Rain showers across parts of West Virginia, also now into heavy rain showers into Chicago. The biggest weather story of the day will probably, though, be Houston.

Houston seeing heavy rain already, and the rain is going to continue for the next three days. Right now the heaviest stuff is east of the city of Houston, but there will be more rain coming into Galveston, into Harris County. Some spots could see 10 inches of rain, more flooding expected down there across the Big Bend and northern parts of Texas.

Ninety-seven for Memphis today. Only 84 in Houston because the sun never comes out because it rains most of the day.

Back to you guys.

COSTELLO: Thanks, Chad.

MYERS: You're welcome.

COSTELLO: Still to come, President Bush's poll numbers down again. But his numbers look -- well, they actually look good compared to what people think about Congress.

We'll take a closer look.

O'BRIEN: It's all relative.

Also, the housing market appears to be cooling off. Are there any deals out there for first-time buyers? And what's a seller to do in all of this?

That's ahead.

COSTELLO: And later, Crockett and Tubbs leap from the small screen to the big screen. But this summer's "Miami Vice" may not be a sure-fire hit.

We've got a preview just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: The latest on some breaking news coming to us from Valencia, Spain, about 220 miles east of Madrid on the coast of the Mediterranean. A subway train there has derailed. At least 30 people are dead, according to a spokesman for the government there. There you see some of the aftermath pictures.

The initial investigation, according to a spokesman for the Valencia regional government, is it was an accident. Repeating, it was an accident, according to the government officials so far.

Thirty people are dead in the wake of that derailment. Of course, you'll recall, March 11, 2004, Madrid, Spain, the scene of that simultaneous series of bombings which targeted trains, actually inter-city trains, killing more than 190 people. That ultimately linked to terrorists with al Qaeda aspirations.

But as far as we know right now, this case in Valencia just coming in to us now, at least 30 dead in the wake of a derailment there. And we're told so far, at least, that it is an accident -- Carol.

COSTELLO: In this country, more bad news for President Bush in the polls. The latest from "TIME" magazine shows his approval numbers still sinking, and the news is even worse for Congress.

Senior Political Analyst Bill Schneider in Washington this morning to break down the numbers for us. WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Carol.

COSTELLO: Good morning, Bill.

Let's take a look at the first set of numbers. Shall we?

SCHNEIDER: OK. The latest number to come out of "TIME" magazine's poll just out this weekend is a 35 percent job approval rating for President Bush, down from 37 percent in March. That's the lowest we've seen recently.

Some polls in the last few weeks have shown President Bush's numbers going up a little bit in the wake of the killing of al-Zarqawi and the president's trip to Baghdad. But that appears to have been a short-lived effect. The number, 35 percent in this latest poll, is the lowest we've seen in the past month.

COSTELLO: Those -- that was like a lot of good news coming at one time. What can the president do to get those numbers up. Anything?

SCHNEIDER: Well, what Americans are looking for is some good news coming out of Iraq. And the terrible news of continuing bombings, even though a new government was formed, makes Americans very dispirited about the progress there. And they don't see either the president or Congress being able to do much about it.

COSTELLO: Well, yes, you mention Congress, because their approval ratings are even lower than President Bush's, 31 percent.

SCHNEIDER: That's right.

COSTELLO: That's just -- that's obscene.

SCHNEIDER: It is an extremely low rating for Congress. And what's interesting is, even Republicans do not approve of the way Congress is handling its job, even though it's a Republican Congress. They control both the Senate and the House.

Why is everyone down on Congress? Remember, they're the ones on the ballot this year. Not President Bush. Because they don't see much coming out of this Congress.

No immigration bill seems to be able to get passed. Congress can't seem to do anything about gas prices. They rejected all plans even to begin troop withdrawal from Iraq. Instead, they were debating a flag burning amendment, and they couldn't quite pass that.

COSTELLO: So you would think that would be a boon for Democrats. And it is, somewhat, because 47 percent polled say they would now vote for a Democrat over Republicans. Is that number good enough?

SCHNEIDER: Well, we'll see come this fall. But it is a 12-point lead over the Republicans. The significant number there is only 35 percent. Barely more than a third said that they would vote for a Republican for Congress this year. That 12-point lead has Republicans in Congress very worried about holding onto their majority.

COSTELLO: You know, Republicans are using the same sort of tactic to continue to try to defeat the Democrats. They're using that, you know, they're not strong enough in the area of defense.

SCHNEIDER: Yes. Now, Republicans have -- seem intent on painting Democrats as weak on national security. After all, it worked for them in the last midterm in 2002.

Just last week, the Democratic leader in the House, after the Supreme Court's Guantanamo decision, said that the Supreme Court decision, in her words, "... affirms the American ideal that all are entitled to the basic guarantees of our justice system."

She was immediate will attacked by her Republican counterpart, John Boehner, the House Republican leader, who said that what she said amounts to advocating "special privileges for terrorists."

So it's pretty clear that the Republicans are intent on using the national security issue once again to try to save their majority.

COSTELLO: Yes, but might that not be a mistake? Because it's just the same old stuff.

SCHNEIDER: Well, but Americans continue to worry a great deal about their security, and they want to be assured that whoever is in charge is at least committed to measures to protect national security. It's not an issue that goes away very quickly.

COSTELLO: No, it isn't.

CNN Senior Political Analyst Bill Schneider joining us this morning.

Thank you.

SCHNEIDER: Sure.

COSTELLO: Part of the best political news team on television.

O'BRIEN: This just in to CNN. Sources are telling us that there may be a problem with the space shuttle Discovery.

Engineers inspecting Discovery in the wake of those two scrubbed launch attempts over the weekend have found a four to five-inch crack in the insulating foam. Let me show you on the model roughly where this has occurred.

On this model, it's not quite the fidelity you need, but there is a long pipe which extends down here. And it's right in this region. There is liquid oxygen in a tank up here, liquid hydrogen in a tank down there.

There's a pipe that connects the two, and apparently right in this area, perhaps as a result of filling it up with that super-cold cryogenic fuel, caused it to flex and caused a four to five-inch crack. They actually found a piece of foam lying at the base of the mobile launch platform.

There is a meeting under way even as we speak. The mission management team trying to decide what to do next. Should a repair be attempted, or should they fly with the crack as is? You'll recall, falling foam remains a persistent source of concern for the space shuttle program.

COSTELLO: Now wait. Wait. The crack just suddenly appeared? Because the launch has been delayed. So might the crack have been there from the get-go?

O'BRIEN: No, they would have seen it before. But what happens is, when you put in that super-cold hydrogen and oxygen, the things starts creaking and flexing. And you fuel it up and take the fuel out, and put it back in, and there is a lot of give.

This fuel tank is made of just a very light alloy, and so it has a lot of flex built into it. So one of the concerns is, as you do that, as you keep changing the temperature, you cause flex and the potential for a crack is there.

They've spotted a crack. The question is, how big a crack is? Could the crack lead to more foam shedding off? And if it did, would it be likely to hit the orbiter?

COSTELLO: But you've got to wonder, too, why take a chance? Because we know what happened the last time.

O'BRIEN: Well, there you have it.

COSTELLO: They can't afford for anything to happen. And if anything does, they're going to blame it on that.

O'BRIEN: I think that might be almost a direct quote in the meeting that's going on right now. There will be conversations just like that.

We'll keep you posted as to whether this means a delay for the launch of Discovery. As we say, this is just in. A crack on the external fuel tank for the space shuttle Discovery. The mission management team looking at it right now, trying to decide what this means for the intended launch tomorrow at 2:38 p.m. Eastern Time.

We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: Oh, boy. The state of -- you know, I've been bemoaning this so-called bubble...

COSTELLO: Whining.

O'BRIEN: Whining. I've been whining. That's the term.

I've been whining about the bubble ever since I bought into Manhattan real estate. And, of course, we've seen that prices are just slowing down. And what was a seller's market now is a buyer's market.

And there you have it. That's my conundrum.

June Fletcher is a real estate reporter for "The Wall Street Journal." She's here to make me feel bad.

Thanks a lot, June.

JUNE FLETCHER, "THE WALL STREET JOURNAL": Well...

O'BRIEN: Oh, by the way, she's author of the book "House Poor." And boy can I relate to that. That's the Miles O'Brien story right there.

She joins us from Washington.

June, good to have you with us.

FLETCHER: Thanks for having me.

O'BRIEN: She's also with "The Wall Street Journal." I did say that.

Let's -- let's throw some numbers out here first. Existing home prices -- put up a slate there. Last quarter of last year, of 2005, up 13.4 percent. First quarter of 2006, up 9.5 percent. And then you see the next quarter projected, 5.1 percent.

There you have it, the temperature going down.

What's going on, June?

FLETCHER: Well, you know, what's happening is confusing to a lot of people, because you hear the prices are still going up. Right? And 9.5 percent still sounds pretty healthy. But what's happening is, sales are starting to slow, inventory levels are starting to go up.

What's going to happen next is that the prices, I'm sad to say, are going to go down. It's sad if you're a seller, but it's not so sad if you are a buyer. There have been a lot of people who have been priced out of the market right now who are thinking that this is a time for celebration.

O'BRIEN: Yes. All right, let them celebrate. Let them have fun.

So let's talk about new home prices for a moment, where the increases were not as great in the first place. And thus, you have sort of the same curve there. It's going down.

Why -- first of all, new home prices tend to do this. They tend to increase at a little less faster rate than existing homes. Why is that? And why are they down so much here in this case?

FLETCHER: Well, new home prices have a lot of profit already. Already built into them from the first place. So they don't have to appreciate too much.

But, what's very disturbing about these numbers -- and I actually find them even more disturbing than the existing home price data -- is that they're going to be increasing only by half the amount that they were this year. And that's very scary, because new home prices set the price for everybody else's house.

You know, given the choice between an existing home and a new home, everybody would rather have a new home. Right?

O'BRIEN: Not necessarily. Some people like, you know, that old patina.

FLETCHER: They like that old patina, but they don't like to replace the roof and the furnace and all the other things.

O'BRIEN: Well, that's true. Yes, I guess I'm a glutton for punishment.

FLETCHER: So, typically, you know, most people, anyway, like new homes. And so what happens is, if new home prices start to decline, it sets the -- it's a domino effect for everything else in the market.

O'BRIEN: Uh-oh.

FLETCHER: New home prices go down, and then the existing homes that are about the same size and quality, they have to cut their prices a little bit lower, too. And so it tends to be a domino effect and create lower prices all the way down the line.

O'BRIEN: Let's go to the markets where it is chilliest, shall we say. Of course, what's interesting about this, and seemingly contradictory, it's where it's warmest -- Palm Springs, California; Palm Beach, Florida; Miami, markets that are not doing so well.

Is this reflective of a lot of people kind of diving in, buying vacation homes, flipping them, trying to ride the wave, and this whole scenario kind of coming to an end?

FLETCHER: Absolutely. You know, that's -- well, I don't think that people are going to stop buying vacation homes. You've got 78 million baby boomers in the market. They want to have a vacation home.

But what has happened is, people have been going in and buying these as investments. And I think what's really going to happen in the near term is the investors are fleeing these markets, these coastal markets, where appreciation went up, you know, as much as 39 percent in places like Naples, Florida.

So I think what's happening is, is investors, interestingly enough, are going inland. They're going to places like Austin, Texas, they're going to the western Carolinas, they're going to Nashville, Tennessee, some of the mountain places.

Interestingly enough, some of the people in Florida who have been living through hurricanes in the southern tips of Florida are now getting summer homes in the mountains of the -- of North Carolina.

O'BRIEN: Oh, high ground.

FLETCHER: Absolutely.

O'BRIEN: A good place to be.

FLETCHER: So -- so, some markets, surprising markets that no one really thought about before are now becoming desirable mountains. Before it was just beach, beach, beach. And now it's the mountains.

O'BRIEN: June Fletcher is with "The Wall Street Journal" and the author of the book "House Poor."

Thanks for your time.

FLETCHER: Thank you very much.

O'BRIEN: Totally bummed out now -- Carol.

COSTELLO: We'll try to get a good breakfast for you after the show.

O'BRIEN: That's what I need, a good breakfast.

COSTELLO: That will make you feel better.

O'BRIEN: Thank you.

COSTELLO: It's what my grandma always says, Manga.

Coming up, the director of "The Sixth Sense" is back with a new flick, but will audiences warm up to "The Lady in the Water"?

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