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CNN NEWSROOM
Two Americans Released from North Korea; Millennials Have High Debt, Low Savings; When Did GM Top Execs Know of Ignition Problem?; Record Number of Haitian, Cuban Migrants Attempt to Reach U.S.
Aired November 10, 2014 - 09:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RANDI KAYE, CNN ANCHOR: Good morning everyone. I'm Randi Kaye in today for Carol Costello. Thanks for joining me. This morning we have new details on this weekend's unexpected release of two Americans imprisoned in North Korea. Kenneth Bae and Matthew Todd Miller stepped off the plane on American soil after whirlwind efforts to free them. It was a secret mission launched by the White House and dispatching, as its enjoy, America's top spy, National Intelligence Director James Clapper. A few hours ago, President Obama had this to say.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Obviously, I'm incredibly thankful to James Clapper for the efforts that he made and I couldn't be happier for the families as we enter the holidays to know their loved ones are back. It's a good news story.
(END VIDEO CLIP)
KAYE: And CNN's Ana Cabrera is live in Seattle near Kenneth Bae's family home. Ana, good morning to you.
ANA CABRERA, CNN CORRESPONDENT: Good morning, Randi. It's now been a little over 24 hours that both these men have been back here in the United States. It was an emotional reunion with both their families when they arrived late Saturday night. And while Matthew Todd Miller's family has asked for privacy during this time, we have been in touch with the family of Kenneth Bae, who as you mentioned is from the greater Seattle area. And they tell us he is really enjoying time home, eating pizza, sharing stories, and laughing with family and friends. They say their prayers for the past two years have finally been answered.
(BEGIN VIDEOTAPE)
CABRERA (voice-over): After months and years of detention, two Americans held prisoner in North Korea are back in the United States. First off the plane, Kenneth Bae, who had been held for two years and was sentenced to 15 years of hard labor for hostile acts against the government, claiming he was part of a Christian plot to overthrow the regime.
KENNETH BAE, RELEASED FROM NORTH KOREA: I just want to say thank you all for supporting me and standing by me during this time. It's been just an amazing blessing to see so many people being involved getting me released for last two years, not to mention - not only mentioning for the thousands of people who've been praying for me as well.
CABRERA: Then Matthew Todd Miller stepped off. Miller had been detained since April and was sentenced to six years of hard labor. He had been accused of tearing up his tourist visa and seeking asylum upon entering North Korea. Miller did not speak to the media after his arrival.
Their release comes after North Korea unexpectedly reached out to the White House to send a Cabinet level official to discuss the detentions. But apparently there wasn't a guarantee that the Americans would be brought home. They were set free after Director of National Intelligence James Clapper went to the capital of Pyongyang in a secret mission, delivering a letter from President Obama to North Korean leader Kim Jong-Un . The letter was said to be short and to the point. Clapper did not meet with Kim.
OBAMA: I think that is a wonderful thing for them and their families. Obviously we're very grateful for their safe return. And I appreciate Director Clapper doing a great job on what was obviously a challenging mission.
CABRERA: Their release comes less than a month after North Korea let go Jeffrey Fowle, an Ohio man who spent five months in detention. And now with the men who just returned, there are no Americans held in North Korea.
BAE: It's been an amazing two years. I learn a lot, I grew a lot, lost a lot of weight, in a good way. But I'm standing strong because of you.
(END VIDEOTAPE)
CABRERA: Those last few words, "I'm standing strong because of you." Kenneth Bae wants to extend gratitude to all a people who have been praying for him over the past couple of years, even thanking North Korea for having some mercy and letting him return to his family.
As for what's next, I had a chance to speak with his sister, Terri Chung, yesterday who tells me he doesn't really know what's next. At this point, he's focused on reconnecting with everybody. He has a wife who lives in China, his three children who live out of state. So everybody is making their way to Washington to be together. Randi?
KAYE: What terrific news. Ana Cabrera, thank you so much.
Joining me now is Ambassador Joseph DeTrani. He is the president of the Intelligence and National Security Alliance think tank, previously the special enjoy for six party talks with North Korea, and he served as James Clapper's North Korean mission manager.
Mr. Ambassador, nice to see you. So we now have the release of these two Americans. Why now do you think? Could this have anything to do with reports of human rights abuses in North Korea? JOSEPH DETRANI, PRES., INTELLIGENCE & NATIONAL SECURITY ALLIANCE:
This could have something to do with the human rights issue. I think North Korea is very concerned that the U.N. report on human rights violations in North Korea will go to the International Criminal Court, possible indictments to include Kim Jong-Un and some of the leadership. So this is an issue.
There are other issues I believe in addition to the International Criminal Court. I mean, North Korea over the last two and a half, close to three years, has been on a path of total disaster for North Korea. Nuclear tests, missile launches, the execution -- brutal execution of Jang Song Thaek, threats to the United States with preemptive nuclear strikes. So there's been a series of issues which has made North Korea a more isolated state. And I think North Korea realizes they've got to change their approach to international affairs; they've got to do better at reaching out to international community.
KAYE: I think a lot of folks are intrigued by the fact North Korea has said it received this, quote, "earnest apology" from President Obama for the men's actions. Is that possible? And, if not, then why come out and say it?
DETRANI: North Korea is always looking for something. And they use that something for their domestic audience to show that Kim Jong-Un and North Korea itself is such an important player. My sense is -- not knowing - my sense is a letter introducing General Clapper, the Director of National Intelligence, as the president's special enjoy would be very appropriate. So they knew they were dealing with a very senior official who was representing the President of the United States. I believe that's probably as far as it would go.
KAYE: And you worked for James Clapper. Why do you think he was a good choice for a mission like this?
DETRANI: Oh he's just an excellent choice. Excellent choice. He runs the intelligence community: 16 agencies who watch North Korea closely, who understand North Korea's missile programs. They understand their nuclear programs, they understand what they're doing on human rights issues, illicit activities. This is one interlocutor the North Koreans would have a very difficult time dealing with because he has all the facts and it's not so opaque to the DNI. So I think he was just an outstanding choice to represent the President of the United States.
KAYE: And a lot of the talk now is a lot of folks are hoping that this charm offensive, if you want to call it that, could bring other positive results. What do you think?
DETRANI: Well, the core issue here is North Korea's nuclear and missile programs. Obviously, illicit activities and human rights are also important. But they need to address their nuclear programs. And this has been on the table 20 years with frustrating negotiations. We had the agreed framework in '94, we had the joint statement in 2005. And North Korea, to this day, is building more of a capability, more of a missile capability, a nuclear capability. They need to commit to what they promised to do many, many years ago: comprehensive verifiable denuclearization, in return for security assurances, economic assistance, and -- ultimately when they resolve some of the other issues, like human rights issues, illicit activities -- normal relations.
KAYE: Ambassador Joseph DeTrani, always nice to see you. Thank you so much.
DETRANI: Thank you, Randi. Enjoy it.
KAYE: Thank you.
Still to come, burning through their cash. It seems millennials are spending just as fast as their money is coming in. CNN's Christine Romans following that story for us.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: They're spending it and more: a negative 2 percent savings rate, fragile finances for Generation Y. I'll have that story after the break.
(COMMERCIAL BREAK)
KAYE: Welcome back. Former president George W. Bush says it's about 50-50 whether his brother Jeb will make a run for the White House in 2016. And he tells CBS's "Face the Nation" that if Jeb does decide to run, he is 100 percent behind him.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: I'll do can whatever he wants. I will be one of his strongest backers. If he wants me out there publicly, I'll be out there publicly. If he wants me behind the scenes, I'll be behind the scenes. I'm all in for him. He'd be a great president and the country could use an optimistic view like his.
BOB SCHIEFFER, CBS NEWS: What about you?
LAURA BUSH, FORMER FIRST LADY: I agree.
(END VIDEO CLIP)
KAYE: As for comments by their mother that enough Bushes have already run for president, he says sometimes her predictions haven't been very accurate.
High debt, little savings -- that's how a new report describes a problem facing the so-called millennial generation, or those under 35 years old. CNN chief business correspondent Christine Romans here with more on that. And this goes against the usual perception that millennials are better at saving than the generation before them. So what exactly is changing here?
ROMANS: A lot of our studies have shown, until now, after the recession, that these millennials, these young people were really good savers. They were chastened by what happened. They were more like people who had survived the Depression before them, the generation that survived the Depression. But now something has changed.
This new Moody's Analytics survey shows that, look at this, under age 35, they have a negative savings rate, Radni. They're spending more money than they have. They're spending what they earn and whatever savings they have. Look at people 35 to 44. 3 percent is their savings rate. And the older you get, the more people are saving. Because they're scared and know they have to save money for their retirement.
So what's changing here? Well, we do know that millennials have very fragile finances. They're paying about half of their income on rent, in many cases, and then they've got student loan bills to pay. So they have money earmarked right away to go out the door every month.
In 1995, the median student loan debt for somebody who was under age 35 was about $6,000. Today it's $17,000. I mean, imagine, if you're just getting started in the world and you don't have the trampoline that is "no college debt". Like, if your parents paid for your college, you should thank them 100 times a day. Because you have started the world on a trampoline. If you have student debt, it's like being in quicksand at the moment. It's hard to dig out of and you have to -- there are specific skills for jobs. Lot of people have a degree and they feel like they're mal-employed, they're not working the way they should -- they'd like to be. So the younger generation, really, a turning point here where they're spending more money than they're bringing in. And that's dangerous.
KAYE: And who's going to bail them out, I guess, is the question? Big brother, big sister, maybe their parents?
ROMANS: I think the number one thing to do is move home. If you are one of these people, move home. Seriously. I mean, if you're spending half of your income -- your parents might not like this. But if you're spending half of income on your rent, double up, triple up, quadruple up. I mean, you got to get that rent part of it down because the student loans aren't going away. You cannot get -- even in bankruptcy, you cannot -- almost always the student loans stay with you. So pay the loans and lower the rent.
KAYE: I still remember calling my father, "Hey, Dad, can you help with rent this month?" It's a tough time. It's tough to be a millennial.
ROMANS: Yes, it really is.
KAYE: All right, Christine, thanks so much. Appreciate it.
Still to come, a damming new report alleges General Motors kept a deadly secret from the public for months before finally announcing a recall. CNN's Rene Marsh is here with the latest.
RENE MARSH, CNN AVIATION CORRESPONDENT: Well, Randi, new e-mails raising new questions about what top executives at GM knew about that deadly problem and when they knew it. Coming up on the other side of the break, we'll tell you about that new report.
(COMMERCIAL BREAK)
KAYE: General Motors allegedly made an urgent order for a half million replacement ignition switches almost two months before alerting federal safety regulators to the fatal problem. So far, at least 30 deaths have been linked to GM's faulty ignitions.
CNN's Rene Marsh is live in Washington with the latest for us. Good morning, Rene.
MARSH: Good morning, Randi. Now this morning new questions about just how long General Mortors and its top executives knew about this deadly problem with the ignition switches on 2.6 million vehicles.
Now CNN Money has obtained pages of e-mails that show urgent e-mails sent to an ignition switch supplier asking for half a million replacement parts as soon as possible. Now the e-mails are dated two months before the company alerted federal safety regulators. An attorney suing the auto maker on behalf of some of the victims says recently unclassified e-mails reveals that GM top executives knew about the problem long before a recall was issued. And if that truly is the case, it is a blow to their credibility. Remember, the company said top executives did not know about the problem until just before the February recall and they acted immediately.
Now, the faulty switches are linked to at least 30 deaths. But the problem is too much weight on an ignition key, it can move it out of the run position. And that would just end up with power being cut to air bags as well as to the braking system.
We should add that CNN has reached out to GM and we just received a response from GM. We do have that statement, want to get that up on the screen there. It says, "These e-mails are further confirmation that our system needed reform and we have done so." That again in part from General Motors.
So that's what we're getting from them at this point. We have not heard from the actual ignition switch supplier as far as a comment, Randi.
KAYE: I'm sure a lot of families affected by this will have a lot of thoughts on this one. Rene Marsh, appreciate it. Thank you.
And, still to come, record numbers of Haitians and Cubans using makeshift rafts and boats trying to reach America. In a CNN exclusive, we went along with the Coast Guard for a firsthand look at this dangerous trip.
(COMMERCIAL BREAK)
KAYE: The Coast Guard is seeing a record number of migrants trying to make it to the U.S. They found more than 600 migrants off Miami just last month, and at least four of them died. In a CNN exclusive now, our Alina Machado went along with the Coast Guard to get a first-hand look at the crisis.
(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: We got eyes on them.
ALINA MACHADO, CNN CORRESPONDENT (voice-over): A dramatic scene plays out in in the Florida straits.
UNIDENTIFIED FEMALE: You got them?
UNIDENTIFIED MALE: Yes, I got them.
MACHADO: A United States Coast Guard plane spots this is small boat packed with 29 Cubans, including several women and at least one young boy. The boat is taking on water.
UNIDENTIFIED MALE: So the Norvell is coming on scene.
MACHADO: Yet when the Coast Guard cutter Margaret Norvell arrives to help, the group's leader refuses to cooperate.
UNIDENTIFIED FEMALE: Being non-compliant and claiming that they are en route back to Cuba. Over.
MACHADO: Eventually the group gives up and gives in.
UNIDENTIFIED MALE: Oh yeah, they got them now.
MACHADO: Joining the growing number of migrants rescued while making this dangerous and sometimes deadly journey to the U.S.
UNIDENTIFIED MALE: We've been seeing the highest migration levels we've seen from Cuba and Haiti in the past five years.
MACHADO: Roughly 10,000 migrants have been found in this area just this year. That's more than 3,000 than the year before. The biggest spike? Cubans, whose numbers have doubled since the Castro government lifted travel restrictions in 2012.
(on camera): You have to be pretty desperate to jump -- to go into open water and just try to make it, no?
CAPT. MIKE FEDOR, CHIEF OF RESPONSE, U.S. COAST GUARD: Yes, it is.
MACHADO: I mean, it's dangerous; it's very dangerous.
FEDOR: Most of it is economic; they're looking for a better way of life.
MACHADO (voice-over): Lieutenant Kirk Fistic (ph) is the commanding officer of the Norvell, one of the agency's newest hi-tech ships in the Coast Guard's Seventh District.
LT. KIRK FISTIC, U.S. COAST GUARD: This is the front line of Coast Guard operations. This is where the action happens.
MACHADO: We wanted a get to a firsthand look at the action. So we spent a few days on board the Norvell and what we saw was sobering. A few hours into our journey, the Norvell takes on ten migrants. The lights of the U.S. shine in the distance. This is closest this group will get.
UNIDENTIFIED MALE: One more!
MACHADO: A doctor is concerned the last one may be suicidal, refusing to eat after telling the Coast Guard this was his ninth attempt to reach America.
(on camera): So you see they've put the man on the stretcher on the cutter safely, but it doesn't appear he's responding at this point. It's unclear what they're going to do with him. We know that the remaining nine migrants are all in the same area on this boat and they'll probably be here until the process runs its course.
(voice-over): In the early morning hours, another group of Cuban migrants is found barely moving, idling in what appears to be the middle of nowhere. Each one is given a life vest before being transferred to the cutter. Their small boat is then filled with gasoline -- and shot up with a 50 caliber machine gun. A fire sinks the tiny boat.
On the cutter, the migrants wear tyvek suits to stay dry. They're given red beans and rice to eat twice a day, and a rubber mat to sleep on. Some interact with Coast Guard members like Ronald Garcia, a Cuban-American himself.
RONALD GARCIA, U.S. COAST GUARD: It's difficult to see the situation that they're in.
MACHADO: In all, we saw about 80 Cuban migrants in just four days with the Coast Guard, all of them with desperation in their eyes. For most, their search for a new life over at least for now.
(on camera): Of the 80 migrants we saw, 29 Cubans who were found on a U.S. territory, were actually allowed to stay in the U.S. because of a long-standing policy that only applies to Cubans. Most migrants who are found at sea, regardless of their country of origin, are usually sent back.
Alina Machado, CNN, Miami Beach.
(END VIDEOTAPE)
KAYE: The next hour of CNN NEWSROOM begins right now.
