Skip to main content

tv   CBS Morning News  CBS  August 21, 2009 4:30am-5:00am EDT

4:30 am
cash for clunkers kaput. the end of the road for a popular program. explosive allegations. tom ridge says the bush administration played politics with terror alerts. and a hero's welcome? a homecoming for a freed lockerbie bomber. >> it's despicable. it's reprehensible. it's immoral. captioning funded by cbs good morning. thanks for joining us. i'm michelle guillen. time is running out for auto buyers who want to take advantage of the cash for clunkers program. susan roberts is in washington with the latest on the demise of a four-week-old program that's a victim of its own success. good morning, susan. >> reporter: hey there, susan. good morning to you. the cash for clunkers program will be shut down on monday. the program began winding down when congress realized it didn't have any more money for it.
4:31 am
the cash for clunkers program is about to come to a screeching halt. >> we're now slightly victims of success because the thing happened so quick. >> reporter: due to popular demand, the program has already burned through much of its $3 billion funding, forcing the government to shut it down monday night. >> i thought it was going towards the end of the year >> reporter: consumers will now only have a few more days to take advantage of the lucrative rebates, up to $4,500 when they trade in their old guzzlers for more fuel efficient cars. >> we knew it couldn't go on forever. the first $1 billion went away in the first six days. >> reporter: fred is just one of the many dealers who got much needed new business. nationwide, more than 457,000 clunkers have been tradeded in for a total of $1.9 billion in rebates. despite the deals, many dealerships are still frustrated with the government. less than 10% of the claims have actually been reimbursed, leaving many with unpaid claims worth hundreds of thousands of dollars. >> now, we have approvals, but we're still waiting to get paid.
4:32 am
>> they will get their money, but we've got to process it properly. >> reporter: to speed things up, president obama tripled the number of staffers handling the paperwork, and some automakers are following his lead. they've hired some 3,000 laid off workers to keep up with demand which they hope will last well after the cash for clunkers program ran out of gas. the program ran through its initial $1 billion in its first week. congress rushed another $2 billion on august 7th, but the program was just too popular. the money is not there anymore, michelle. >> it's a lot of money. susan roberts in washington. susan, thanks. former homeland security secretary tom ridge says other bush administration cabinet officials pushed him to raise the nation's terror alert level just before the 2004 presidential election. in a new book ridge says he objected despite pressure from former defense secretary donald rumsfeld and former attorney general john ashcroft. the alert level was not raised
4:33 am
in response to a release of a video from osama bin laden. ridge isn't talking yet, but his publisher says pressure to raise the security level persuaded ridge to leave the administration. intelligence officials say a missile apparently fired from a u.s. drone this morning destroyed a suspected taliban hideout and killed at least a dozen people. it was in the north waziristan region on the afghan bore ter. since last year, the u.s. has launched more than 40 missile attacks on al qaeda and taliban targets in the area. they're counting ballots from afghanistan's presidential election, but preliminary results aren't expected for days. only about 40% to 50% of country's 15 million registered voters defied taliban threats of violence and went to the polls. some of the 36 candidates are making claims of vote fraud. both president hamid karzai and his chief rival ab budullah abdullah are claiming victory. as it stands now, u.s. troop
4:34 am
strength by the year's end will total 68,000. cbs news has learned general stanley mcchrystal will recommend the pentagon add 15,000 to 45,000 more troops. a mass murderer is home with his family in libya this morning, cheered as a hero while families of the 270 people he killed at lockerbie, scotland, are left to wonder how it could have happened. randall pinkston reports on this final twist in the story of pan am flight 103. >> reporter: it was an unbelievable sight for the families of those lost in pan am flight 103 in december, 1988. 57-year-old abdel baset al megrahi, the only man convicted of blowing up the plane, arriving to cheering crowds in libya. >> today to have the man convicted of murdering 270 at 31,000 feet on compassionate grounds is despicable. it's reprehensible.
4:35 am
it's immoral. >> i was appalled. i felt sick to my stomach when i heard about it. this man was convicted of the largest mass murder on british soil, and he was allowed to go free. >> reporter: in 2001 al megrahi was convicted of checking the explosive luggage that eventually blew up over lockerbie. carrying a cane, he walked unassisted aboard a plane when he was released from prison. they called it a compassionate release because he is reportedly suffering from prostate cancer. ammerman was among the grief stricken families awaiting at the airport. many syracuse university students coming back from studying abroad. >> they took us up to the lounge. around 11:00, they took us aside individually and told us no one survived. >> reporter: two suspects were tried in the netherlands under scottish law. fhimah was acquitted.
4:36 am
megrahi was given a life sentence but released after only serving eight years. his hero's welcome, directly against what president obama had requested of the libyan government. >> we're now in contact with the libyan government and want to make sure that he is not welcomed back in some way but instead should be under house arrest. >> reporter: but instead of house arrest, megrahi was greeted by thousands with libyan leader moammar gadhafi's son serving as his escort. >> the leaders of these third world nations that believe in state-sponsored terrorism, if you outwait the united states and the united kingdom, they'll eventually give in. >> reporter: for victims' families, megrahi's freedom diminishes their loss. >> he gets to go home and be with his family before he dies, and none of people he killed had that luxury. >> reporter: randall pinkston, cbs news, new york. just ahead on the morning news, credit card companies hike rates ahead of new reformds. plus no room for error. a delicate chopper landing on
4:37 am
top of a narrow rock. first, jeff glor has a preview of tonight's "cbs evening news." >> strapped for cash. more and more americans are no longer able to afford life's small luxuries. find out what this cab driver is doing to relieve the recession one fare at a time. that's in "assignment america" tonight only on the "cbs evening news." you've wanted to quit smoking so many times, but those days came and went, and the cigarettes remained. but today's a new day. and a few simple steps can make a real difference in your next quit... things like starting with a plan to quit smoking... getting support... and talking to your doctor about how prescription treatments can help you.
4:38 am
talk to your doctor about prescription treatment options. and make this time, your time. ♪ ♪ i got troubles, oh ♪ but not today ♪ 'cause they're gonna wash away ♪ ♪ they're gonna wash away
4:39 am
♪ ♪ ♪ they're gonna wash away ♪ this old heart ♪ gonna take them away [ quacks ] there's new amazing video of the helicopter landing. it was part of a rescue mission on a remote part of south western utah on tuesday. a hiker fell into a canyon over the weekend and was injured. he was stranded for three days without food or water. the only place for the pilot to land on was that tiny ledge inside that narrow canyon. >> it was an exciting landing because you're looking into so much space as you land, and you know you don't have a lot of room for air. >> the hiker is hospitalized with numerous injuries, but he's expected to recover.
4:40 am
the manhunt for a reality tv contestant charged with murdering his ex-wife in california is now focused in canada. police believe ryan jenkins fled to canada after the body of jasmine fiore, a swimsuit model, was found on saturday. authorities say jenkins removed fiore's teeth and fingers before stuffing the body in a suitcase and dumping it in a trash bin. stock markets in a's na slipped this morning. claire le ka is here with more. most asian markets headeded into the weekend in red. foreign investors worry they've overestimated the global strength. japan's benchmark nikkei fell 3%. we'll see if the dow can start the week with a fourth straight win. the dow starts the week up nearly 71 points. the tech heavy nasdaq added 20. later this morning we'll find out whether business picked up in the housing market. july sales for previously owned homes are due. the numbers have gone up for the
4:41 am
past three months as lower prices pull in more buyers. the world's central bankers are gathering in jackson hole, wyoming, for their annual powwow. when fed chairman ben bernanke speaks later today, wall street will be listening as if he were next door. bernanke's topic is reflections on a year in crisis. turning to airlines, jet blue has cashed in on a special offer, one month of unlimited travel for $599. that promotion got a huge response, and the airline announced yesterday that the passes have sold out two days ahead of schedule. and wall street may be one of the few business settings in america where casual dress fridays haven't caught on. the gap hopes to change that today, giving away free jeans to more than 1,000 employees at the new york stock exchange. michelle? >> claire leka here in new york. claire, thank you. and new rules for credit card companies are in effect today. credit card users must be given 45 days notice of interest rate
4:42 am
changes, and they must get their bill at least 21 days before payment is due. but the companies also raised interest rates sharply before the new rules kicked in. kelly wallace reports. >> reporter: credit card companies say they're adjusting for the marketplace, but consumers say it's a money grab. >> stabbed in the back. >> reporter: outside pam and joe never missed a payment but still saw their interest rates on one of their bank of america cards more than double to 39%. >> i feel that sad state of affairs when we pay bank of america and they tn around and try to make more 3407b money off of us. >> reporter: card issuers appear to be locking in profits before the toughest restrictions on fees begin in february. since president obama signed it into law, the average variable rate has increased from 10.79% to 11.22%. and a report today finds that
4:43 am
credit limits have been slashed for 33 million people, half of them with excellent credit scores. >> i don't think we've seen the end of the reign of terror by the credit card companies. i think they are angling to try to position themselves. >> reporter: capital one has increased its rates to nearly 12%. discover has hiked fees 30%. and citigroup is beginning to add new annual fees, some in excess of $30. but the industry denies it's waging a preemptive strike to cash in before all the rules kick in. >> that's a red herring. the two main factors in changing the interest rate or your credit limit are the customer's risk profile sbls general economic lending conditions. that's really what's driving this train here. >> reporter: that also may be driving people like daisy mitchell out of business. >> i said, is this even legal? >> reporter: when chase raised mitchell's credit card rates from 10% to 14%, she says she was forced to shut down her children's boutique near orlando. >> i lost everything for apparently no reason.
4:44 am
>> reporter: the new rules are designed to protect consumers, but before the strictest reforms take effect, consumers may find themselves more vulnerable than ever before. kelly wallace, cbs news, new york. straight ahead, your friday morning weather. in sports, he does it again. usain bolt's latest world record sprint. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points
4:45 am
from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. specially formulated to promote hairball control and healthy weight. friskies indoor wet cat food feed the senses.
4:46 am
here's a look at the weather in some cities around the country. new york, late day thunder, 84. miami, 93. chicago, 68. denver, sunny and 87. los angeles, sunny and 74. and time now for a check on the national forecast. the latest satellite picture shows storm clouds extending from the great lakes to the gulf coast. there are gray skies across the upper midwest, and it's clear sailing from the plains to the pacific. later today, thunderstorms will erupt over much of the east. coastal areas from the carolinas to new england will see 10 to 15-foot waves for a while as hurricane bill moves northward toward nova scotia over the weekend. it will remain cool and wet over the great lakes, but it will be nice and sunny from the plains to the shores of the west coast. turning now to sports, and usain bolt's latest world record at the world track and field championships in berlin. the jamaican sprinter led the 200 meters all the way for his second record in four days.
4:47 am
his time of 19.19 seconds slashed more than .1 second off the mark he set last year at the beijing olympics. and turning now to baseball and a grand victory for the dodgers. it was back and forth between l.a. and the visiting cubs while russell martin came to the plate with the bases loaded and a 2-2 tie. martin's grand slam helped the dodgers to a 7-2 win. in philadelphia, jayson werth and the phillies showed why they lead in the national league in home runs. werth hit his fourth in three games, and ryan howard and carlos ruiz joined the party as the phils crushed arizona 12-3. and in the american league, j.d. drew homered twice as the visiting red sox completed a three-game sweep at toronto. boston's jon lester pitched eight strong innings to beat the jays 8-1. when we return, another look at this morning's top stories. and u.s. marines in afghanistan
4:48 am
try to keep the peace and get out the vote. ( music, toasters popping ) ♪ mmm... hot fudge sundae. ♪ ooh! frosted blueberry?!? ♪ over 25 flavors of kellogg's pop-tarts®. and they're all for fun and fun for all. pop-tarts®. made for fun™. come on. good girl.] mollie's never looked better. i really was amazed to see the change in her coat. people stop us when we're walking, and they'll say, "did you shine up her spots?" [ woman announcing ] just another way purina one... unlocks the brilliance of nature... to transform the life of your dog. for us to see the difference in mollie-- we were really excited about it. it just makes you feel wonderful.
4:49 am
[ announcer ] it's amazing what one can do.
4:50 am
on the "cbs morning news," here's a look at today's weather. thunderstorms will be developing throughout the east. the south will see a stormy day. it will be cool and gray around the great lakes, and it will be sunny from the plains to the pacific. here's another look at this morning's top stories. monday night is the end of the road for the cash for clunkers program. dealers may be busy this weekend as buyers rush to beat the deadline for the $3 billion auto rebate program. and from former homeland security secretary tom ridge, allegations security officials pressured him to raise terror alert levels before the 2004 presidential election. the first returns from afghanistan's presidential elections could come as early as tomorrow. many afghans defied taliban
4:51 am
threats to cast ballots. as lara logan reports from a taliban stronghold, many skipped the voting out of fear. >> april 20th. time to vote. >> reporter: one after another, the villages come up with reasons they couldn't make it to the polls. this man said the 12-mile road to the polling station is mined by the taliban. >> you've got to get out and vote. you've got to do a little sacrifice. >> reporter: while this man said the taliban told everyone here they will chop off their fingers. that's exactly what this taliban commander told cbs news in an exclusive interview. if we find someone who has voting ink on his finger, we will cut his finger off, he said. the taliban was hoping to scare enough people away to destroy faith in the election results. voter turnout in southern helmand province, they predicted, would fall to 10% from 68% in the last election. they couldn't scare everyone in helmand. some people in the village of
4:52 am
dahanad did get to cast their ballot just days after marines wrestled control of the town from taliban fighters. further south, where echo company operates, it was a different story. the polls have just closed. voting has now endeded, and the marines haven't found a single person in this part of helmand province who actually voted. >> hey, what's up? >> reporter: they did find curious young boys in the villages who played along as the marines tried to pass on a few very american customs. but there was a sense by the end of the day here that a milestone in afghan history had passed these people by, leaving this troubled part of the country more alienated from their government than ever. lara logan, cbs news, southern helmand. this morning on "the early show," kate major, the reporter who had an affair with jon gosselin of "jon & kate plus 8." gy energy juice drink. the great taste of cranberries, naturally energizing green tea, and b vitamins.
4:53 am
it's a good-for-you kind of energy that helps you get stuff done, and when your days look like this -- you need all the help you can get. wednesday's free. try cranergy from ocean spray. when you first smell the incredible scent of gain laundry detergent, time stops. ( ♪ ) your heart races. ( ♪ ) your eyes close. ( ♪ ) and you realize you're in love... earl! stop your time-wasting. with a laundry detergent. gain. to smell it is to love it. what are you waiting for? light & fit has 80 calories versus 100 in the other leading brand and a taste you'll find... [sluuurrrrpppp!] irresistible. light & fit. great taste, fewer calories.
4:54 am
4:55 am
4:56 am
. good morning. it's warm and humid out there. it's a warm morning. i don't want to say hot, but it's warm. i think the stuff is starting to get to the area. so let me phrase is to you this way, on a normal summer we would be so used to this we won the blink. but now it's got our attention. and we're starting to see shower activity out to the west. and you'll notice it's moving southwest to northeast. it being moisture, expressed ahead of that frontal system moving our way from the upper left-hand side of the screen. it's going to be one of those days, showers and thunderstorms around, maybe heavy one later on. a fumble on the field. more than a dozen people became i will on a football field.
4:57 am
the police make two more arrests in the beating of on elderly man. and get ready to pay a whole latte more for your favorite cup of joe. a little early for that, isn't it? it's getting ready to raise its prices again. more news. first warning weather and the first traffic report
4:58 am
4:59 am

360 Views

info Stream Only

Uploaded by TV Archive on