Bernanke to Speak Regarding Feds Plans to Fix Crisis; Stocks Surge; Obama Gets Another Endorsement; Mystery of Autism: No One Treatment for All
KIRAN CHETRY, CNN ANCHOR: A lot of gains made in how best to deal with it early and how it can really affect the outcome of how the child develops, so very fascinating. We are on that today as well. But we're also talking about "Your Money." Thanks so much for being with us on this AMERICAN MORNING. In fact, a lot of news to talk about. Developments today impacting issue number one, the economy. Federal government taking some drastic steps to clean up the housing and credit crisis, also hoping that a financial rescue could help. Federal Reserve Chairman Ben Bernanke is going to be testifying before Congress in just about 3 1/2 hours. The Fed chairman has supported holding Wall Street firms accountable for the loans that they financed and has encouraged banks to write down the value of certain mortgages to help borrowers avoid foreclosure. Also, for first time, he'll publicly answer questions about the Bear Stearns debacle last month and the government's controversial intervention. Bernanke met privately with House Republicans yesterday. They said that he refused to say the economy is in a recession. Bernanke speaks just as the opening bell will ring on Wall Street, and that could be a good thing. Investors seem to be showing new confidence at the worst of the credit crisis could be behind us. Asian stocks rallied overnight. Tokyo's Nikkei up four percent. European trading up as well. All of that following a nearly 400-point gain in the Dow yesterday. Dow futures run slightly off right now, but, of course, that could change throughout the morning. Still the triple whammy of tight credit. The housing slump and sky high gas prices are weighing down on the minds of many. Car sales down for all five major automakers. U.S. companies also reporting double-digit losses in March compared to a year ago. Americans not buying the gas-guzzling SUVs or pickup trucks. Actually, going for smaller cars, hybrids and crossovers. Crossovers look like SUVs but are built like cars instead of trucks. Well, the new quarter kicks off with a bang on Wall Street. The Dow as we said jumping almost 400 points. Gerri Willis joins us now with more on that. Whether it's a one day thing or not, I think there is a lot of excitement that there is finally some good news to talk about.</s>GERRI WILLIS, PERSONAL FINANCE EDITOR: That's right. You just said it. The Dow up 391 points, almost 400 points, 3.2 percent. The rest of the indexes rallied as well. And what's going on here is the stocks moving on news of European banks taking big write-offs, as much as $24 billion. In the losses on the credit markets, the thought here, hey, maybe the credit crunch is over. Maybe the economy has room to rally here. I guess we'll have to wait and see. It's an interesting story, though, guys, because you saw what happened in the global markets as well. You know, the rallies that went on overnight. Big moves here in Japan, Hong Kong, Australia. As you can see, it's not being reflected, though, this morning in our markets, unfortunately. The futures not looking as happy certainly as they did yesterday.</s>CHETRY: But it will be interesting to see what happens today and tomorrow as the government takes up some of these big issues like the credit crisis trying to push through some legislation to help with foreclosure. I'm sure you will be all over that as well.</s>WILLIS: Exactly. And if you're wondering whether the markets have a right (ph) about the economy, probably not. We don't know yet. We're still in the dark about whether the economy is going to go into recession or not. Still waiting to find out. Housing is still suffering quite a bit. Even if the banks are able to clear up their problems with their bottom lines in the next few quarters, there are still a lot of problems for Americans right now with high cost and problems with their mortgages.</s>JOHN ROBERTS, CNN ANCHOR: At least some people seeing reason to be optimistic which is a nice change. Gerri Willis, thanks. "Most Politics in the Morning" right now. And a big endorsement overnight for Senator Barack Obama's foreign policy credentials. Former Indiana Congressman Lee Hamilton will announce that he is backing Obama today. Indiana holds its primary on May the 6th; 84 delegates at stake there. Hamilton co-chaired both the 9/11 Commission and the Iraq Study Group. He told "Bloomberg News" that he was impressed by Obama's approach to national security and foreign policy, so he has decided to back him. And Senator Hillary Clinton is announcing a new plan today to keep jobs here in America. Clinton is proposing $7 billion in yearly tax incentives if companies promise not to send jobs overseas. At a campaign appearance in Pittsburgh, she will also suggest eliminating tax breaks for companies that outsource jobs. "Your Money" is on the minds of both candidates as they campaign through Pennsylvania today. CNN's Dan Lothian live in Philadelphia for us this morning with the CNN Election Express. Very early and still dark there, but good morning to you, Dan.</s>DAN LOTHIAN, CNN CORRESPONDENT: Good morning, John. Well, indeed, you know, that endorsement, that will be a key endorsement for Senator Barack Obama. This is an area that Senator Clinton has really tried to exploit pointing out that she does have the experience. And for Barack Obama, as you pointed out, certainly this will help in terms of national security as foreign policy credentials. That will no doubt capture a lot of the news today, the news cycle today, but there will be also a lot of focus on the economy. As you also mentioned, Senator Clinton will be focusing particularly on her economic plan, job creation, providing those incentives for companies that do not send their jobs overseas. So in essence, creating more jobs for Americans here at home. Both of these candidates are really pushing hard here in the state of Pennsylvania to reach out to those undecided voters with about three weeks to go before the Pennsylvania primary.</s>SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I know that the people of Pennsylvania are ready to come to events like this, study what we talk about, look at our records, and have a chance to make your voices heard and your votes counted. I'm so proud to be campaigning for president in Pennsylvania, a state that I love.</s>SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I am here to report that my bet has paid off. My faith in the American people has been vindicated because everywhere we go people are standing up and saying we're ready for something new, we're ready to turn the page. We're ready to write a new chapter in American history.</s>LOTHIAN: Senator Clinton still leads Barack Obama here in Pennsylvania in the polls by double digits. But Senator Obama leads here in the television ad wars. He has outspent her three to one here. Essentially, he's trying again with his TV ads to eat into her lead and also perhaps cause her to spend money here in this state which will weaken the amount of money that she can spend in some of the other contests -- John.</s>ROBERTS: Dan, there are some surveys that suggest that Barack Obama is beginning to close the gap there in Pennsylvania. Is his campaign confident that maybe she's not going to have the run away victory there that it looked like she was going to have a couple of weeks ago?</s>LOTHIAN: Well, no one is predicting exactly what the numbers will be at the end of the day. But certainly, they are hoping to do well. And that's the reason they pumped a lot of money here into the state. Again, they're looking at those undecided voters, roughly 10 percent or so of undecided voters here in Pennsylvania. That's what they are really going after. They really want to do well. If you talk to the political analysts, they're saying he probably cannot pull out a win here but he has to have a strong showing. So that is certainly what they'll be focusing on.</s>ROBERTS: All right. Dan Lothian for us this morning in Philadelphia. Dan, thanks very much -- Kiran.</s>CHETRY: So we take a look now at our current delegate estimate. Barack Obama still leading Hillary Clinton by 140 delegates. He has 1,626. Hillary Clinton has 1,486, but Clinton still leads Barack Obama by 31 superdelegates. Hundreds of superdelegates still remain undecided. DNC Chairman Howard Dean coming under some fire for being -- supposedly not doing enough to bring a peaceful end to what many are calling a divisive campaign. He addressed that last night at CNN's ELECTION CENTER.</s>HOWARD DEAN, DNC CHAIRMAN: And I have to chuckle a little bit. The people who are complaining that I'm not taking a stronger role when you drill down on that a little as I have what they called me is I see what you mean is, you'd like me to be a strong leader and adopt your point of view and then ram it through the DNC. I'm not going to do that for either side. There are going to be donors and supporters on both sides that are mad at me. I'm going to play this one by the rules.</s>CHETRY: Dean is expected to meet with Democrats from Florida today to talk about finding a way to seat Florida's delegates at the national convention.</s>ROBERTS: Presumptive GOP nominee John McCain will be campaigning in Maryland and Florida today. But last night, he made a stop in New York City and exchanged insults with David Letterman. Letterman started by taking some shots at McCain's age. McCain fired back.</s>DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN: He looks like a guy who's always got wiry hair growing out of new places. He looks like the guy who points out the spots they missed at the car wash.</s>SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: You think that stuff is pretty funny, don't you?</s>LETTERMAN: Well --</s>MCCAIN: Well, you look like a guy whose laptop would be seized by the authorities.</s>LETTERMAN: What?</s>MCCAIN: You look like a guy caught smuggling reptiles in his pants.</s>ROBERTS: So there you go. John McCain's sense of humor on display last night on "The Late Show with David Letterman." Some breaking news this morning. CNN is confirming that Irish Prime Minister Bertie Ahearn will step down on May the 6th from a position that he has held for the past 11 years. His resignation will follow a previously planned trip to the United States. He's been at the center of a cash payment scandal, and his hold on power there in Ireland has been steadily weakening since the investigators alleged that he received some cash payments from developers back in the 1990s. They have documented $150,000 of deposits to accounts that Ahearn has that have not been accounted for. So again, Bertie Ahearn, prime minister of Ireland, stepping down on May the 6th. Alina Cho here now with other stories new this morning. Good morning to you, Alina.</s>ALINA CHO, CNN CORRESPONDENT: Hey, good morning, guys. Good morning, everybody. New this morning, fast moving developments at the NATO summit in Romania. Overnight, President Bush called on NATO to increase troop levels in Afghanistan. And within the hour, the NATO secretary general said that request is likely to be approved. President Bush insists more troops are critical to winning the war on terror.</s>GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As President Sarkozy put it in London last week, we cannot afford to lose Afghanistan. Whatever the cost, however difficult a victory, we cannot afford it, we must win. I agree completely. To ensure that we do win, France is sending additional forces to Afghanistan. The United States is deploying an additional 3,500 marines. Romania is adding forces, as are several other allies. We ask other NATO nations to step forward with additional forces as well. If we do not defeat the terrorists in Afghanistan, we will face them on our own soil.</s>CHO: President Bush is also taking a hard line against Russia on this trip, calling on NATO to offer membership to two former Soviet republics, Georgia and Ukraine. Russia is opposed to that. He's also trying to build consensus on a missile defense shield in eastern Europe. Back in this country, a devastating four-alarm fire overnight in Manchester, New Hampshire, to tell you about. Firefighters do have it under control now. But about 100 people are now homeless and some barely escaped the flames. Crews say the wood frame buildings were built back in the late 1800s and had no sprinkler systems. That may have helped fuel the fire. Two students in Georgia are under arrest this morning for allegedly plotting to attack their teacher, and here is the unbelievable part about it. The kids are third graders. Police say as many as nine kids, ages 8 to 10, may have been involved. They allegedly brought a broken steak knife, handcuffs and duct tape to the school. Apparently, intending to knock out their teacher with a paperweight, handcuff her, and then stab her. School officials were tipped off to the plot by another student. Apparently, it all started when the teacher scolded a student for standing on a chair. A passenger arrested at Orlando International Airport is due in federal court today. The FBI says Kevin Brown, a Jamaican national was carrying materials in his luggage that could have been used for an explosive device. Airport security officials say they observed Brown acting strangely. As he got ready to board a flight to Jamaica, they found pipes, end caps, BBs, batteries and unknown liguid and bomb- making literature in his luggage</s>ROBERTS: Yes, it caused quite a sensation, as you said at Great Central.</s>CHO: Yes.</s>ROBERTS: What we need to do is we need to play a little bit more of that video this morning, because the really interesting part of this exercise is people's reaction...</s>CHO: Oh, yes.</s>ROBERTS: ... that are caught on camera on this whole thing.</s>CHO: That's a great one.</s>CHETRY: The only way you'll get someone's attention in Grand Central is to stop.</s>CHO: That's right.</s>CHETRY: Anything else can be going on and no one's noticing. They're rushing to the train.</s>CHO: Mile in a minute. You're right.</s>CHETRY: You stop the crowd. Boy, then you got their attention.</s>CHO: That's right.</s>CHETRY: Thanks, Alina.</s>CHO: You bet.</s>CHETRY: Well, some troubling news about the future. More than a million dropouts a year. Why so many kids are quitting school. There is a troubling study out, but is there hope on the horizon? Are these schools in the cities around the country making changes? We're also going to talk a little bit more about why where you live makes a huge impact on whether or not you'll graduate. Coming up on AMERICAN MORNING, the mystery of autism. Two boys with two very different stories.</s>HARRY SLATKIN, SON HAS AUTISM: It's hard because you have to grapple with the fact I do have a normal daughter. But I will never have a normal son.</s>CHETRY: Heartbreak and hope. Alina Cho with a special follow-up report.</s>ALINA CHO, CNN CORRESPONDENT: When you think about David as a grown man, what is your great hope for him?</s>LAURA SLATKIN, SON HAS AUTISM: That he's happy. We just want to see him smile.</s>CHETRY: Two families, worlds apart. Ahead on AMERICAN MORNING.