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Explosions at Gadhafi's Compound; Libyan Rebels Enter Capital; Obama: "Tripoli Slipping From The Grasp of a Tyrant"; Gunfire in Tripoli; Families of Jailed U.S. Hikers Plead For Compassion; Teachers Fight For Facebook; Scientists Cite Gains On Lou Gehrig's Disease

Aired August 22, 2011 - 06:00   ET

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

CHRISTINE ROMANS, CNN ANCHOR: Freedom ride. I'm Christine Romans. The rebels rolling into Moammar Gadhafi's last stronghold, reaching the heart of Tripoli, celebrating on his turf and CNN was on the back of the truck to witness it all.

CAROL COSTELLO, CNN ANCHOR: Amazing. I'm Carol Costello. President Obama is now telling Moammar Gadhafi to face the facts and give it up. The White House already hoping the rebels are ready to lead out on this AMERICAN MORNING.

ROMANS: All right. Good morning, Carol. Good morning, everyone. It is Monday, August 22nd. This is AMERICAN MORNING. I'm Christine Romans.

COSTELLO: I'm Carol Costello. Thank you for joining us. Ali has the morning off. A lot going on. So let's get right to it.

ROMANS: That's right. Up first, breaking news, new explosions overnight coming from Moammar Gadhafi's Tripoli compound. Three of his sons are in custody, but Gadhafi's whereabouts are still unknown as history continues to unfold in Libya this morning.

COSTELLO: Quite a sight. Rebel forces say they control most of the capital and Gadhafi's forces in one Tripoli neighborhood are negotiating their surrender. Listen.

Talk about happy. After months of fighting the rebels finally and easily rolled into Tripoli, Gadhafi's army almost didn't put up any fight.

ROMANS: Wild celebrations as the rebels took Green Square, the symbolic center of Tripoli. Thousands of Libyans tearing down pictures of the dictator and firing guns into the air, but this time firing in celebration.

COSTELLO: Thousands also filled the streets to celebrate in the heart of Libya's second city, Benghazi, second largest city. Even though it's a victorious day for many Libyans it came at a painful price. A Libyan government spokesman says some 1,300 people were killed and about 5,000 wounded in just this past weekend.

ROMANS: We are hearing rebels have captured three of Gadhafi's sons. A prosecutor for the International Criminal Court sells CNN talks will be held today on transferring one of them, Saif Gadhafi to The Hague.

Still no one knows for sure where their father is. He may not be even in Tripoli anymore even though he went on the radio vowing to stay until the end.

COSTELLO: Yes, who knows where he is at this moment. President Obama is monitoring all of this from Martha's Vineyard and said Libya is slipping from the grasp of a tyrant and that Gadhafi needs to face reality and acknowledge he is no longer in control.

ROMANS: All right, the celebrations continue in Tripoli and across Libya this morning. Our Sara Sidner in rolled into the capital with rebels. She watched as they seized control of the main square and she watched as the people there came alive.

COSTELLO: You know, there were expectations of a blood bath, but there wasn't one, at least not on this day. We begin our coverage with Sara who is still in Tripoli. She's not live. Let's -- let's take a look back at what she got and then we'll talk to her live.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Finish, finish. Gadhafi finish.

UNIDENTIFIED MALE: Tripoli very, very happy. Gadhafi finish. Now leave.

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: What you're seeing behind me are the rebels are now saying there's going to be a massive battle here. They do not have full control of the city.

UNIDENTIFIED MALE: At the moment we're not fully in control of Tripoli because you can see, you can see that.

SIDNER: What is this making -- how do you feel about this day? You are from Tripoli. Why is this day important, a historic day?

UNIDENTIFIED MALE: Historic day because we had to leave from here and now we had it to fight. I'm not a fighter. I'm a student. It's my first time to like handle a gun.

SIDNER: Civilians are now gone from here and we also have to leave. What's happening as everyone starts gathering -- we are here in the middle of Tripoli, what we're seeing is rebels all over the square. There are really no civilians. Mostly men with guns in the square, but we're also seeing people running. There's a lot of gunfire. They say they are snipers. We all had to pull back.

The situation very tense here, but there is a lot of celebrating going on. Some of this is just gunfire in the air, but people are very, very concerned because they say there were snipers posted on the top of some of these buildings.

They're not sure exactly where some of this gunfire is coming from. Every now and then you see people just running trying to get out of the way. But right now the rebels have Green Square and it is a historic moment here in Tripoli in the capital. The real stronghold of Moammar Gadhafi has now been taken over by the rebels.

(END VIDEOTAPE)

COSTELLO: Sara Sidner in is still in Tripoli. Sara, I'm wondering what happened to these thousands and thousands of people loyal to Moammar Gadhafi?

SIDNER: They're nonexistent is the best way I can describe it. We are -- main square there, Green Square, and I can tell you there's not a -- rebel and a -- who have come out. Libya, we are united. Free Libya.

There's a lot of -- you ride along, seeing hundreds of people, for example, out of their homes. What you are seeing is long stretches of no one, shuttered buildings, shuttered homes, nobody around, and then suddenly you find where there are a few families on their balconies or at street level and cheering or chanting as the rebels pass to and fro from the middle of the city center out.

The rebels clearly have a handle on getting in and out of neighborhoods. They are going neighborhood to neighborhood, trying to what they told us. Clear those neighborhoods of remaining Gadhafi forces including snipers.

That's what the situation is right now. We're not seeing at this point and in this neighborhood, any evidence that Gadhafi troops are still here in this particular part of Tripoli.

COSTELLO: Sara, initially we heard that one of Gadhafi sons was leading a small force in Tripoli. Do you know anything more about that?

SIDNER: We've heard nothing, but rumors are absolutely rampant. They have been for many months now, to be honest, but now that this has come to a head, the rumors get more and more sometimes outrageous.

Not hearing that same information. What we are hearing is a lot of screaming, people are celebrating and they are in and out of Green Square, although they do say there are still some parts of the city, although they may be spread out inside buildings for a second.

COSTELLO: We're going to jump away, Sara, having trouble understanding you right now. Communications -- communications, of course is difficult.

ROMANS: Chaotic scene for her? In Green Square a month ago it was plastered with a picture of Moammar Gadhafi in full uniform and now it's plastered with rebels and with people celebrating in the streets about the fact that the rebels have entered Tripoli.

All right, we'll go back to Sara in just a few minutes. But the images of rebel forces rolling into Tripoli sparked celebrations across that country. Thousands of fighters shouted, fired their weapons into the air in Benghazi, that's rebels first stronghold. It's also the city where the current rebel government resides. And this right here was the scene in Misrata, a city that came under heavy fire by Gadhafi forces for months in the early part of the conflict.

Here at home, President Obama is being briefed on the dramatic developments in Libya during his vacation on Martha's Vineyard. The president issued a statement saying, quote, "Tripoli is slipping from the grasp of a tyrant. The Gadhafi regime is showing signs of collapsing.

The surest way for the bloodshed to end, is simple, Moammar Gadhafi and his regime need to recognize that their rule has come to an end. Gadhafi needs to acknowledge the reality that he no longer controls Libya. He needs to relinquish power once and for all."

CNN's Dan Lothian live on Martha's Vineyard. Clearly the focus of the administration's been on jobs and the jobs package for United States and suddenly, again, Libya in the headlines on his vacation, Dan?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. And so the president has to juggle not only his domestic agenda, but also foreign policy agenda. This is, though, positive news for the administration this coming some six months or so after President Obama first called on Moammar Gadhafi to step aside.

As you pointed out, the president has been getting briefed throughout these developments. John Brennan, his counterterrorism adviser has been here on the island. We are told to expect that the president will be getting a briefing first thing this morning.

The president also conducted a high-level conference call last night with senior level members of his national security team, including his chief of staff, the secretary of defense, and

Others we are told, but you know, the administration so far has been very careful not to put the president out in front of a camera obviously because the situation is so fluid.

But as you pointed out, the president did release a statement last night and also in that statement, the president saying, quote, "the people of Libya are showing that the universal pursuit of dignity and the freedom is far stronger than the iron fist of a dictator.

The big question is what happens next. There are a lot of questions uncertain what this new leadership will look like. The president saying that there should be a peaceful transition towards democracy. But again, questions as to how that will all unfold. Christine?

ROMANS: All right, Dan Lothian in Martha's Vineyard. Thanks, Dan. We'll check in with you again soon.

COSTELLO: With the Gadhafi regime crumbling, Libyan rebels now say three of Gadhafi sons have been captured. Our senior international correspondent Nic Robertson has reported extensively from Libya. Nic is live in Washington this morning.

So Nic, the first question, what's going to happen to these three sons?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Saif Al Islam Gadhafi, his son who has essentially been leading the country, has international arrest warrant from the International Criminal court out for him.

So there's going to be a lot of pressure on the Transitional National Council to live up to the expectations of the international community, the requests of Secretary of State Hillary Clinton, other world leaders, that they should honor the wishes of the people of the country, they should form a transitional government and key their international obligations to act in a democratic way.

There will be pressure on them to hand Saif Al Islam Gadhafi over to the International Criminal Court in The Hague. But the other sons, one could expect to see them perhaps to go on trial in Libya in the not-too-distant future.

But certainly in this period where there's still chaos on the streets, where there is still sort of a sense that the battle is not completely over, it's not beyond the realms of imagination to expect, if they were to get in the hands of the crowd, their outlook would be very, very limited.

It would be pretty desperate situation for them. So at the moment the best they can hope is they're safely under lock and key right now, Carol.

COSTELLO: As far as Moammar Gadhafi is concerned, what is your best guess? I mean, is he in Algeria? Is he headed to Venezuela, or is he still hiding somewhere in Tripoli?

ROBERTSON: You know, he always vowed to fight to the end and the fact that three of his sons have been caught is somewhat surprising. You would that think they would have been smart enough to read the writing on the wall and get out of the city.

Gadhafi has been surrounded by fans that told you everyone loves you, the country is OK. You don't need to run. Has he listened to them and is he now holed up somewhere in Tripoli because he didn't run when he could.

I'm surprised that Saif Al Islam and Sadi Gadhafi have allowed themselves to be in the position where they've been out-maneuvered and been caught. So there's quite a possibility that Moammar Gadhafi himself hasn't run.

That he hasn't listened, you know, to what's going on properly, and is believed there's plenty of time and he can get out when he wanted to. He has said he'll fight to the end.

Anyone's guess is 42 years in power, the guy is not crazy. His paranoid, perhaps, schizophrenic, according to some people that know him, but there's a possibility he may yet be caught inside the country. It wouldn't surprise me if that was still to happen.

COSTELLO: Maybe we'll know soon. Nic Robertson, many thanks.

Now is your chance to talk back on the big story of the day. The question this morning, was U.S. involvement in Libya worth it? There's no question now Libyan leader Moammar Gadhafi's reign is over.

Thousands are reportedly dead and it's likely more will die. But thanks in large part to NATO forces and the United States, Libya will likely be free of a cruel dictator. Libya is celebrating.

Here at home, in the United States, the celebrations may be satisfying to watch, but the feeling is tempered like everything else, U.S. involvement in Libya was conflicted.

Liberal Congressman Dennis Kucinich accused President Obama of an impeachable offense because Mr. Obama moved forward on Libya without congressional approval. Republican Senator John McCain was critical because he said President Obama didn't move fast enough to prevent a long, drawn out fight for freedom.

Americans weary of war were also concerned about costs. According to the Obama administration, the Libyan mission will cost American taxpayers $1.1 billion by September 30th. Still, in just six months, Gadhafi is just about gone. Remember he was slaughtering his own people.

Al Jazeera estimated last month 13,000 Libyans have died in this conflict. So the Talkback question this morning, was U.S. involvement in Libya worth it? Facebook.com/AmericanMorning. Facebook.com/AmericanMorning. I'll read your comments later this hour.

COSTELLO: And we are still waiting for the end game. We are still waiting for Moammar Gadhafi, wherever he may be.

Ahead on AMERICAN MORNING, Gadhafi's last stand. President Obama said he needs to face the facts and get out. What role would the U.S. play in a post-Gadhafi Libya? A live report from the Pentagon coming up next.

COSTELLO: And Hurricane Irene may be heading straight to the United States. Reynolds Wolf with the forecast, next.

(COMMERCIAL BREAK)

ROMANS: Breaking news happening now.

Our Matthew Chance is hearing gunfire right outside one of the main hotels in Tripoli. Let's go live right now to Matthew. Matthew, what can you tell us is happening around you?

(AUDIO GAP)

All right. We don't have audio from Matthew right now. He's at the Rixos Hotel in Tripoli where it's been kind of a harrowing - harrowing couple of days, you know, is an understatement actually. We'll get back to him. COSTELLO: Well, there's sporadic fighting between Gadhafi forces and the rebels -

ROMANS: Right.

COSTELLO: -- but it's very sporadic. They're also snipers on buildings. And the reason the communication is iffy is you also have NATO forces flying over and blocking communication, satellite communication, so that if Moammar Gadhafi were trying to communicate, that communication would be cut off. And sometimes it affects our own transmissions.

ROMANS: Right. And one of the challenges about the gunfire, too, is you don't know what exactly is happening. You don't know if it's celebratory gunfire. You don't know if it's gunfire between snipers and rebels, or if there have been some - some Gadhafi tanks that have been rolling out in some parts of some neighborhoods. But we know that Gadhafi really only controls I think less than 20 percent of the city now.

COSTELLO: Yes.

ROMANS: And that's going neighborhood by neighborhood at this point.

COSTELLO: Do we have Matthew back? We have Matthew back.

I know this is not celebratory gunfire, because Matthew said as much at 5:00 A.M. -

ROMANS: Right.

COSTELLO: -- Eastern Time. So, Matthew, what is going on?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, it's, as I say, it's one of those areas that's still controlled by the Gadhafi loyalists. We've got Colonel Gadhafi's compound just behind me and that's been the scene of some ferocious battles over the course of the past hour or so between, you know, Gadhafi loyalists staging a sort of defense there and the rebels who very much want to take that - that symbolic target.

Rebel forces, they want to come to the Rixos Hotel as well (INAUDIBLE) and the international (ph) media presence. But, again, this is an area, one of the few areas in Tripoli, where the government forces of Colonel Gadhafi are apparently still, you know, kind of making a stand, are still kind of like not allowing the rebels to just walk in, which is what they've done in - in the vast majority of areas in Tripoli.

You've seen these - these incredible pictures of rebels simply driving into Tripoli from the west, from the east, from the south, with very little or no resistance. On their - on their trip into the Libyan capital, which is obviously the intention to what the Libyan government of Colonel Gadhafi said just yesterday, they said they have tens of thousands of soldiers who are bracing themselves to make a vigorous defense of Tripoli. ROMANS: All right. Matthew Chance, we'll continue to check in with you about the situation there.

In the meantime, it is 21 minutes after the hour here. And Hurricane Irene is gaining speed and strength. Hurricane warnings in effect now for Puerto Rico and Dominican Republic. Irene could hit the U.S. by the end of this week.

Reynolds Wolf tracking Irene from the CNN Hurricane Headquarters. Good morning, Reynolds.

REYNOLDS WOLF, AMS METEOROLOGIST: Good morning.

You know, you mentioned speed and strength, the two things that have increased since our last update. You're right on both of those especially when it comes to maximum sustained winds, currently at 75 miles per hour. And the situation is that it may intensify at least over the next several days. Possibly with winds going to up about 90 or so.

However, the farther out you go, further you extrapolate from the original forecast to the current forecast, things get a little bit - a little bit inaccurate. We'll get (ph) a few more errors that sometimes pop up.

Something else we're also seeing right now is the intrusion of some dry air moving into the top half of the storm. The thing is, though, you still have plenty of convection closer to the center of circulation and back to the forecast in terms of the National Hurricane Center their forecast brings it right through the Turks and Caicos, then into the Bahamas, possibly moving into the State of Florida as we get into possibly Thursday or even into Friday.

Keep in mind that is just the center of this storm. This is something that's very big. In fact, if you were able to pick this thing up right now and just drop it over the State of Florida it would nearly cover the entire state. When you include the outflow, even the center of the storm -

(AUDIO GAP)

WOLF: -- before - before we get too nervous, the farther out we go, the more likely we are to see changes to forecasts. It may pull deeper into the Atlantic and miss land altogether, it could venture farther into the south and the Gulf of Mexico. But still, Florida is certainly in the cone of uncertainty. If you happen to live in the State of Florida, it is the time to just go ahead and prepare some of those preparedness kits. Store some water, some batteries, that kind of thing.

It doesn't mean you need to evacuate as of yet. We're a long, long way from that. But it's certainly time to keep a sharp eye on what's happening in the Atlantic.

Back to you. ROMANS: All right. Reynolds, thanks so much.

COSTELLO: Still to come on AMERICAN MORNING, a cloud of fear lifting over Libya this morning as Gadhafi's 42-year rule nears the end. We will show you a passionate interview with a 19-year-old woman from Tripoli who finally thinks it's safe enough to speak.

ROMANS: And even though the war in Libya is not over just yet, we're already seeing the effects in oil markets - on oil prices. We're going to tell you why right after the break.

(COMMERCIAL BREAK)

ROMANS: "Minding Your Business" this morning.

Investors bracing for another potentially rocky week in the market. Right now, though, U.S. stock futures for the Dow, NASDAQ and S&P 500, they're all trading higher as you can see ahead of the opening bell. That's just getting a bit of a boost from a dip in oil prices overnight that's after news that the war in Libya could be coming to an end soon and the country could resume oil production.

Before the war started, Libya produced about 1.6 million barrels of oil every day. That accounts for almost two percent of global supply.

European markets trading higher on the news out of Libya, but that's likely a short-lived distraction from the mounting concerns about debt problems in several European countries. France becoming a bigger player now in the credit crisis in that region. French President Nicholas Sarkozy is expected to announce austerity measures this week.

Those fears were a major contributor to steep losses in U.S. market last week. The Dow lost four percent. The S&P 500 down 4.5 percent. The NASDAQ dropped more than 6.5 percent to end the week. And over the past month the big three have lost between 15 and 18 percent.

And looking ahead to Friday, Fed Chief Ben Bernanke will give his keynote address at the Fed's annual retreat in Jackson Hole, Wyoming. And now at this event last year he hinted at another round of stimulus for the U.S. economy, which was implemented a few months later. Analysts have been debating whether a third round of so-called quantitative easing could be on the horizon to boost an ailing U.S. economy.

Bloomberg News reporting $1.2 trillion were borrowed by U.S. in European banks during the height of the financial crisis. Citigroup and Bank of America taking up the largest loans. The Fed told Bloomberg that all of those loans have been paid back in full with interest.

Don't forget for the very latest news about your money, check out the all new CNNMoney.com.

AMERICAN MORNING will be back right after this quick break.

(COMMERCIAL BREAK)

ROMANS: Thousands celebrating as Libyan rebels reach the heart of Tripoli. But the big question remains, where is Moammar Gadhafi, on this American Morning.

And good morning. It's Monday, August 22nd. Welcome back to AMERICAN MORNING. I'm Christine Romans.

COSTELLO: And I'm Carol Costello. Ali has the morning off. There's a lot going on internationally today, so let's get right to it.

We are watching breaking news for you this morning. New explosions rocking Moammar Gadhafi's compound overnight. NATO and Libyan rebels hope he'll come out from wherever he's hiding.

Across Libya, thousands of Libyans are now celebrating after rebel forces rolled into the heart of Tripoli.

ROMANS: President Obama is monitoring all of this, of course, and said Libya is slipping from the grasps of a tyrant and that Gadhafi needs to face reality and acknowledge he is no longer in control.

COSTELLO: And as Gadhafi's regime begins to crumble, a 19-year-old woman who lives in Tripoli who does not want to be identified, called in to our newsroom to do something she has never been able to do before, speak freely.

(BEGIN VIDEO CLIP)

RESIDENT OF TRIPOLI (via telephone): This is the freedom we've been waiting for for 42 years. He'd been president for 42 years, not to mention the last six months, where we weren't allowed to do anything here in Tripoli, just sitting at home at night you don't know where your neighbor is.

So, today when the day came, I don't even know how to explain it. We were outside of the windows screaming. No one can control (INAUDIBLE). Everyone is screaming. We realized no one wants him, no one wants this dictator.

Most of us had our phones closed because we were scared. But There's no more fear. Gadhafi is gone, we don't want him anymore. The end. Game over.

(END VIDEO CLIP)

COSTELLO: Remember when Gadhafi used to hold those press conferences and he surrounded himself with people who supposedly loved him and there was cheering for him. Well, where are those people now?

ROMANS: I know. The very square where people are gathering right now that has been taken by the rebels -- just a month ago was covered with a humongous poster of him and his military regalia, but now, it's being tramp on.

COSTELLO: Torn down. Sarah Sidner rolled into the capital of Tripoli with the rebels and she watched as they seized control of the city and the people came alive at a time when no one knew for sure whether Gadhafi forces would fight or fly. Take a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Allahu Akbar. Finished, finished, Gadhafi.

UNIDENTIFIED MALE: Tripoli very, very happy. Gadhafi finished. Now, we live in freedom.

SARA SIDNER, CNN CORRESPONDENT: We are in Green Square what you're seeing behind me are a few people that the rebels are now saying there's going to be a massive battle here. They do not have full control of the city.

UNIDENTIFIED MALE: At the moment, we are not fully in control of Tripoli because you can see, you can see that --

SIDNER: What does this make you -- how do you feel about this day? You are from Tripoli. Why is this day important? This day historic day?

UNIDENTIFIED MALE: A historic day because we had to leave from here like scared, without anything, and now we had to fight. I'm not a fighter. I'm a student. And it's my first time like handle a gun.

SIDNER: The civilians are now gone from here and now, we also have to leave.

(GUNFIRE)

Right now, what's happening as everyone's --

(GUNFIRE)

SIDNER: We're here in the middle of Tripoli. What we're seeing is rebels all over the square. There are really no civilians, mostly men with guns in the square.

But we're also seeing people running. There's a lot of gunfire. They say there are snipers. We all had to pull back.

The situation is very tense here. But there is a lot of celebrating going on. Some of this is just gunfire in the air.

But people are very, very concerned because they say there were snipers posted at the top of some buildings. They're not sure exactly where some of the gunfire is coming from.

So, every now and then, you see people running, trying to get out of the way.

But right now, the rebels have Green Square, and it is a historic moment here in Tripoli, in the capital. The real stronghold of Moammar Gadhafi has now been taken over by the rebels.

Sarah Sidner, CNN, Tripoli.

(END VIDEOTAPE)

ROMANS: NATO says the Gadhafi regime is clearly crumbling. But two key questions this morning, what's the tipping point that removes Gadhafi from power and what will the U.S. role be?

Barbara Starr live at the Pentagon for us.

Good morning, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Christine.

Well, you know, this is what U.S. officials have been looking for for days, that tipping point at which Gadhafi can no longer recover, he cannot credibly say, again, that he leads Libya, something that's been in question for some time, of course.

The tipping point factors they're looking for, can he communicate with his loyalists forces? Can he even issue orders to them? Can he pay them? What can he do with his forces that will change the play on the ground on this battlefield?

Right now, all of that by all accounts appears to be ebbing away. You are seeing these interrupted communications in Tripoli. NATO by all accounts is interrupting those communications to do that very thing, to keep him from communicating and issuing orders to his forces.

U.S. officials for many days now have said his days are numbered over the last several hours, saying really, his grasp on control, whatever it was, is slipping away.

But the question now, of course, is what does come next. What does NATO do? What does the U.S. do? How can the rebels transition all of this into a credible functioning government in Libya very quickly? Christine, Carol?

ROMANS: And that's a question, I guess, Barbara. What could the U.S. role be here? I mean, there's been criticism about the U.S. role so far. Some saying it went too far. That's what liberals say. Senator John McCain, for example, said we didn't give enough of an active role.

STARR: Well, look, the U.S. did something very different here as everyone has seen than it did in Iraq or Afghanistan. This was a NATO operation. This did not have a U.S. face on it. That was very deliberate. The U.S. did not want to get involved with combat forces in a third war.

The idea was to have NATO take the lead in this, back up from the United States, with support, with some air power, with some communications. By all accounts, it's worked up until this point. You know, clearly, the Gadhafi regime has taken some time, but it is crumbling very, very rapidly today. The question now will be the economic assistance, the humanitarian relief, medical supplies, assistance in forming a new government, if the Libyans want it, trying to get this country back as rapidly as possible, to a functioning government, and a functioning society. There are oil resources at stake. Libya's very strategic on the southern coast of the Mediterranean, very important. Things should start moving very quickly. We'll see how it goes -- Carol, Christine.

ROMANS: Barbara Starr -- thanks, Barbara.

COSTELLO: Planning for Libya with no Gadhafi. The State Department has already mirrored what President Obama said about the dictator, which is sort of a "face it, it's over already."

But what the transition will look like exactly is much more involved, as you just heard?

Jill Dougherty, live at the State Department now. So, what do you hear from the State Department about what a new Libya will be like?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Well, you know, there's a short-term and a long term. Right now, you have the fighting and as that transition occurs or begins at least, it's very important that the TNC -- and, of course, that's the Transitional National Council, which has been leading the rebel movement -- is doing everything that it says it would do and that is to be as democratic as possible and create next a democratic structure. So, if there were reprisals or retribution, that would be a big problem. Let's say that they began unilaterally shooting Gadhafi supporters.

So, the -- I just was in communication with a senior U.S. official with direct knowledge of what is going on, and this official says that the news reports from Tripoli are encouraging. Excuse me. So far, the people are avoiding retribution. So, that's one.

And then the State Department issuing a statement and listen to exactly how it's phrased. "Assistant Secretary of State Jeff Feltman's visit to Benghazi," which is a rebel stronghold, "we continue efforts to encourage the TNC to maintain broad outreach to across all segments of Libyan society and to plan for post-Gadhafi Libya."

And what they're saying, though, that broad outreach is very important, because Libya is a tribal society. If they do not include everybody, that could be an indication or an invitation to some very serious problems within the country. And then they also have to make sure that they create this post-Gadhafi society.

What would happen, actually, is they would have a transitional, not just the TNC, that would lead to an interim authority, that interim authority would then create the structures for having elections, writing a new constitution, et cetera. So, there is a lot of work and a lot of challenge here, especially when you get into the issues, Carol, and, Christine, of money that will now be freed up for the TNC. Huge amounts of it, $30 billion, $34 billion coming from the United States alone, which is the money that was freed up in the United States.

When you get that amount of money, how it's going to be divided up, who's going to use it, will it be done correctly, becomes a very big issue.

COSTELLO: Very big issue, especially for taxpayers who are essentially paying the bill and, you know, we're talking about this and Gadhafi still out there.

DOUGHERTY: Yes. But we should make clear that is money that belongs to the Libyans that was frozen. It's their assets that were frozen. Those would be freed up. So, we're not at that point talking about U.S. tax dollars.

COSTELLO: Thanks for clarifying. We appreciate that. Jill Dougherty live from the -- live from Washington today.

ROMANS: So, what are the opinion pages saying this morning about Libya and other news of the day. Here's some of what's being said in paper and online in our morning opinion segment.

"The Wall Street Journal" critical of the U.S. for not taking a stronger stand on Libya from the very beginning. Editorial in "The Journal" says in part, "The shame is how much faster Gadhafi might have been defeated, how many fewer people might have been killed, and how much more influence the U.S. might now have."

COSTELLO: With all that is going on in Libya, not to mention high unemployment and a volatile stock market, Margaret Carlson addresses those who have been critical of the president for taking a vacation. Here's some of what she says in "Bloomberg." She says, "The truth is a president can't solve most of the problems on his desk, even if he never leaves the Oval Office. He might as well take a few days off."

Just a little sampling of the op-eds this morning for you.

Coming up next on AMERICAN MORNING: the rebels say Libya is now under their control, but Moammar Gadhafi is not backing down.

Coming up next, we'll talk with a woman who's interviewed Gadhafi and has written a book on the "Arab Spring."

ROMANS: "Arab Spring" just got a new whiff of life, didn't it?

And hurricane Irene gaining strength, could the U.S. be in its path and when -- on this AMERICAN MORNING.

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COSTELLO: Forty-three minutes past the hour. We are watching breaking news for you this morning. The end appears near for Libyan dictator Moammar Gadhafi. Libyan rebels say they now control most of the capital.

(VIDEO CLIP PLAYS) COSTELLO: And yes, they're happy. Thousands filled the streets and erupted in sheer joy after rebel trucks moving in with barely any resistance.

ROMANS: And the rebels say they have now captured three of Gadhafi's sons, including one time heir apparent Saif al-Islam, who along with his father faces charges of crimes against humanity at the International Criminal Court. Gadhafi's whereabouts, though, are still unknown at this hour.

COSTELLO: Yes, that's the big mystery this morning.

We want to bring in Robin Wright, the author of "Rock the Cashar: Rage and Rebellion Across the Islamic World." She's also an Arab affairs analyst at the U.S. Institute of Peace and the -- at the Woodrow Wilson Center, rather.

Robin, you have interviewed leader Moammar Gadhafi. Where do you suppose he is? Give us your best guess.

ROBIN WRIGHT, WOODROW WILSON CENTER: I suspect he's trying some place from Tripoli to figure out his future very quickly. The importance of the arrest of his three sons is a fact that Saif al Gadhafi was the one who was his political adviser and was the key figure in negotiating Gadhafi's re-entry in the international community, his surrender of weapons of mass destruction and his compromise on Pan Am 103. This will be a moment where Gadhafi doesn't have the kind of wise counsel.

He's a very unstable leader. He will be relying largely on his fourth son, Khamis, who is leader of a critical military unit that will be trying to defend probably just the family and inner circle right now.

ROMANS: You know, Nic Robertson was saying that he already -- Nic Robertson was saying he thought he'd been surrounded by these (INAUDIBLE) who kept saying you are impervious to international pressure. The people love you. Where are the tens of thousands of people who neighbor after neighbor were worried that they were all of these supporters for Gadhafi. They're not there.

WRIGHT: This is not over. And, there is the danger that there's some settling of scores, that there are some people who may come back in the aftermath of Gadhafi's demise and try to stake a claim in the future, potentially, in an insurgency, but I think the reality is that after 42 years, the majority of Libyans are willing to see something different.

Tripoli is quite different from Eastern Benghazi and that you have different tribes, different players. So, this is not going to be neat as it was in Benghazi, but --

COSTELLO: I'm sorry. I was just going to bring up his sons again, because they will likely face some kind of court. Do you think Moammar Gadhafi will face a court and maybe receive some kind of justice or do you think he'll go to Venezuela or Algiers or someplace like that? WRIGHT: I suspect it's too late for him to negotiate some way out, unless, he's somehow managed to get outside of Tripoli already, but I think that the noose is tightening. You know, he's just waited too late. It's very hard to see also, you know, any leader in the Arab world who would want to take him. I'm not sure Hugo Chavez in Venezuela would want him, maybe some African leader.

Gadhafi has always thought of himself much more as a member of the African union than a part of the Arab world. He even had visions of kind of leading the African union. And that's a place -- that's part of the world where there are more regimes that might with a hefty paycheck take him in, but I suspect we may be beyond that right now.

ROMANS: So, Robyn, when -- what makes him? What triggers him giving up or does he ever give up?

WRIGHT: Again, this is where he doesn't have the counsel of his sons, and I think the danger is that he's relying on his -- Khamis, the fourth of the seven sons, and looking at that military option. He's such an unstable man. You know, I've interviewed him. I've interviewed many world leaders, and there's no one like Moammar Gadhafi in terms of his quirkiness, his unpredictability, his rages.

He can turn on a dime. And this is, you know -- it's very hard for anyone to really know what he might do.

ROMANS: How does --

COSTELLO: You know what a vision comes to my mind is pulling Saddam Hussein out of that hole, right?

WRIGHT: Right.

COSTELLO: Might we see that?

WRIGHT: I suspect he's going to be cornered. I doubt he's going to be in some place buried in the ground, but whether he's got some kind of bunker potentially, we don't know what provisions. I've been to (INAUDIBLE) military barracks where I've interviewed him, and this is a site that is kind of bizarre. You have a military barracks, and he's brought in the big tent made of quilts where he brings, you know, foreign dignitaries, people to interview him.

He's got some camels in the middle of the military barracks. He wants to kind of set the scene. This is -- this has been -- was his stronghold and the compound where he lived, and those are the two places that the rebels will be trying to conquer most of all.

COSTELLO: They may be already there for all we know. Robin Wright, thanks so much for joining us this morning. We appreciate it.

WRIGHT: Thank you.

ROMANS: So unstable to be able -- the way she talks about the rages and the -- you know, irrational behavior to survive and lead for 42 years. It's remarkable. All right. We're going to continue to monitor the very latest situation in Libya, but first, here's what's coming up on AMERICAN MORNING. Missouri teachers are fighting for their right to Facebook. We'll tell you why they're suing the state.

COSTELLO: And after a volatile week on Wall Street, we'll tell you how markets are looking this morning. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Fifty-one minutes past the hour. Here's what you need to know to start your day.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): New video just in from Libya showing rebels taking control of the capital city of Tripoli. New explosions rocking leader Moammar Gadhafi's compound. No one knows for sure where Gadhafi is right now. Three of his sons in custody.

Hurricane Irene churning near the Caribbean islands. Forecasters say Irene could dump up to 20 inches of rain in Haiti and the Dominican Republic. Irene could hit the United States by the end of the week.

The families of two American hikers sentenced to eight years in prison are urging the Iranian government to show compassion and free those two men. Josh Fattal and Shane Bauer were convicted of espionage and illegal entry into Iran. They were arrested more than two years ago.

A Missouri teachers union is suing the state over a new law that prevents them from using the social networking site, Facebook, to connect with students. They say it violates their constitutional rights. The law takes effect on Sunday.

A possible breakthrough that could lead to an effective treatment for Lou Gehrig's disease. Northwestern University researchers say they have found that the basis of the disease is a malfunctioning protein recycling system in the neurons of the brain and the spinal cord. These neurons become severely damaged when they can't repair or maintain themselves.

And investors bracing for another potentially rocky week in the markets after steep losses across the board last week. Right now, U.S. stock futures for the Dow, NASDAQ and S&P 500 are all trading higher ahead of the opening bell. Investors getting a boost from a dip in oil prices overnight.

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COSTELLO (on-camera): And that's the news you need to know to start your day. AMERICAN MORNING back after this.

(COMMERCIAL BREAK) COSTELLO: Fifty-four minutes past the hour. We asked you to talk back on one of big stories of the day. That would be Libya. We asked you this question. Was U.S. involvement in Libya worth it?

This from Craig, he says, "You make it sound like our involvement there is over. If we never spend another dime on Libya, maybe it was worth it, but we know that will not be the case."

This from Ann, "No, I don't, especially when it comes to spending money that we don't have to help them. The governor should take care of us before helping anybody else right now."

And this from a different Craig, "Any war intervention, police action to remove a brutal dictator that abuses the power entrusted to him/her, that kills its country's own citizens, that blatantly lies to the global population, is always worth it." If you're not willing to fight for the freedom of others, what's the value of your own freedom?

Please, keep the conversation going, Facebook.com/americanmorning, and, I'll read some of your comments a bit later.

ROMANS: All right. Your top stories coming ahead after this quick break. It's 55 minutes after the hour.

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