Return to Transcripts main page

CNN Live Today

Remaining Democrats State Their Case in New Hampshire

Aired January 23, 2004 - 10:02   ET

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


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


CAROL LIN, CNN ANCHOR: New Hampshire voters have their say on Tuesday, but last night it was the seven remaining Democrats who got to state their cases for nomination. Much of the time was spent in joining forces against President Bush.
But as CNN national correspondent Bob Franken shows us, the echoes could be heard from Iowa and the shout around heard around the political world.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Rule No. 1: make no mistakes, and in the case of Howard Dean, to smooth over that big mistake.

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: I think a lot of people have had a lot of fun at my expense over the Iowa hooting and hollering, and that's justified. The one thing I can tell you is that I'm not kidding about what I say.

FRANKEN: But Al Sharpton couldn't resist a little kidding.

REV. AL SHARPTON, (D), PRESIDENTIAL CANDIDATE: If I had spent the money you did and got 18 percent, I'd still be in Iowa hooting and hollering.

FRANKEN: But here, the new favorite is John Kerry, who focused from the top on President Bush.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: And he has not helped the average worker in America to advance their cause.

FRANKEN: Joe Lieberman tried, meanwhile, to stand out as impervious to Republican attacks.

SEN. JOE LIEBERMAN (D), PRESIDENTIAL CANDIDATE: I think the reason is that the Republicans can't run their normal playbook on me that they try to run on Democratic candidates.

FRANKEN: That other 2004 first-timer, Wesley Clark, was still trying to justify being a brand new Democrat.

WESLEY CLARK, (D), PRESIDENTIAL CANDIDATE: And I'm in this party now, and I'll bring a lot of other people into this party, too.

FRANKEN: This was a defensive battle; for John Edwards, defense against the nagging charges of inexperience. SEN. JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I think 32 percent of Iowans decided it was not too early, that they wanted me to be their president.

(END VIDEOTAPE)

FRANKEN: Dr. Dean seemed to be right at home, because everybody's strategy seemed to be come right out of the Hippocratic oath, which was: "First, do no harm." It was breathtaking, wasn't it, Carol?

LIN: Breathtaking, indeed, yes, for the yawns heard around the world. It wasn't that interesting a debate. Did you find it -- did it seem like the candidates were just trying to be more tame with one another, playing it safe?

FRANKEN: Well, I think what they were trying to do is not get in trouble. The truth is, is that they have learned the bitter lesson that sometimes the only thing that really comes out of the debate is a loss, unless you're kind of wishy-washy, trying to avoid the sound byte. Nobody knows that better by now than Howard Dean.

So, we'll have to see how the tracking polls react, if there is any reaction to this.

LIN: All right. Thank you very much, Bob Franken.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.








CAROL LIN, CNN ANCHOR: For insight now into the political grind in the granite state, we're joined by CNN political analyst Carlos Watson up in New York today.

Hi there -- Carlos.

CARLOS WATSON, CNN POLITICAL ANALYST: Hey, Carol. How are you doing? LIN: I'm doing just fine. I'm wondering how Howard Dean is doing these days. Has he recovered from the screech heard around the world?

WATSON: He's definitely trying. Last night, his voice was a bit hoarse during the debate, and a number of people took a poke at him, including Al Sharpton. And the polls show that he's now down by 15 points. Remember, before Iowa, he was up by 14.

But with all of that said, he's got a new strategy, including a new ad, where he tries to present himself as the doctor, the former governor, who is focused on health care, education and the economy. We'll see if it works, and it will be interesting to look at the tracking polls this weekend.

LIN: Yes. And interesting, also, that his strategy -- he's got a media strategy going. He made an appearance last night in an interview on ABC's "PrimeTime Live." And this is what he had to say about his behavior in Iowa.

(BEGIN VIDEO CLIP, ABC'S "PRIMETIME" THURSDAY)

DIANE SAWYER, "PRIMETIME LIVE": What do you see when you look at this?

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: I was having a great time. Look at me. I was. Look, I am not a perfect person, believe me. I have all kinds of warts. I wear cheap suits sometimes. I say things that I probably ought not say. But I lead with my heart, and that's what I was doing right there is leading with my heart.

(END VIDEO CLIP)

LIN: Not exactly Bill Clinton -- Bill and Hillary Clinton on "60 Minutes," but it certainly reminds me of a comeback strategy and trying to make yourself more sympathetic to people, having his wife, whom we've seen all of maybe two times in the last 18 months, by his side. What do you think?

WATSON: He's definitely trying to soften himself and humanize himself. I thought it was an OK performance, not the strongest, but New Hampshire voters are quirky. We saw in 1988 that they gave George Bush a second chance, a second win. He placed third in Iowa, and they ultimately gave him a first place win. And don't forget, just four years ago, John McCain, who I think ultimately ended up in fifth place in Iowa, won New Hampshire going away.

So, who knows? Maybe New Hampshire will give him a second chance, and maybe both that piece and the piece he did on Letterman will be helpful.

LIN: All right. What about John Kerry? Is he still the front- runner there?

WATSON: Boy, you know, it's incredible how your fortunes can change. On January 1 of this year, it looked like John Kerry's career was almost over. Now, he's up by 15 points. He's winning endorsements left, right and center. And at long last, he's finally bringing money into his campaign, almost $1 million in the couple days since Iowa.

Right now, he looks like a prohibitive favorite, but last time we said that with John Kerry, going back 9 or 10 months ago, that's when we saw him start to stumble. So, we'll see. But right now, he's unequivocally in the load.

LIN: And perhaps another favorite, at least the son of the south, John Edwards, the Dick Clark on the campaign trail. The guy looks so young.

WATSON: He does, although he's 50 years old. He'll remind you that he's had a very successful career as a lawyer and at least one term as a senator.

John Edwards got a nice bump coming out of Iowa. He went from single digits in New Hampshire to now he's barely trailing Wes Clark, and he's actually pushing Clark for potentially for third there.

But what's interesting is that while Edwards is up in New Hampshire and Clark is down to some extent in the race for third and fourth, both of them are looking not at New Hampshire as much as they are at February 3, where there are seven different contests, including the first contest in the South -- South Carolina.

LIN: Does it seem like the other candidates are pretty effectively discombobulating Wesley Clark's message, you know, confusing, at least mixing up who is this guy? I mean, is he a Democrat? Is he a Republican? What can we really believe about Wes Clark?

WATSON: Well, Wes Clark is certainly learning on the job. I mean, obviously, he was a career military officer for 30-plus years. And as a politician, you remember, he came into this race -- and most people forget this now -- in August or September actually as the overall favorite nationally. He surged in the polls, close to 25 percent in some polls, but he struggled and, you, you know, people are taking shots at him.

And his main argument before Iowa was that I'm the anti-Howard Dean. I'm the one guy who can stop him. But given that Kerry and Edwards surpassed him in Iowa, that message rings a little bit hollow these days.

LIN: All right. I guess it’s too early for you to make predictions yet, huh, Carlos?

WATSON: Well, we know about predictions. I will say this, though: President Bush is not sitting on the sidelines. Notice that after the State of the Union tour, he immediately has begun to tour the country, hitting critical states like Ohio and New Mexico with his message about economics and education.

LIN: All right. Well, thank you very much, Carlos. And today, the president is actually addressing the nation's mayors, so keeping in touch with the people around the country. We'll see what happens. Thanks very much for joining us.

WATSON: Good to join you. Take care.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.








CAROL LIN, CNN ANCHOR: The 61st annual Golden Globes are Sunday night at the Beverly Hilton hotel. And, as always, it will become the center of the fashion world.

And our own Daryn Kagan will be on the Red Carpet Sunday night. She joins us this morning from Beverly Hills with an insider's look at one of the most glamorous and pricey -- well, just take a look at what she's wearing.

Daryn, what is that gorgeous thing around your neck?

DARYN KAGAN, CNN ANCHOR: I know. Oh, this? This is a beautiful necklace. We're going to be talking with my new best friend, Martin Katz, the jeweler, in just a moment here. I want you know we're inside the In-Style Warner Brothers tent. This is where there's going to be this huge party after the party that is known as the Golden Globes.

Of course, there is the film and the award and the business side of the Golden Globes to talk about. We'll get to that a little bit later in the morning.

Come on, girlfriends. You what we're interested in, and it's ice. Let's get to the jewels.

Martin Katz, good morning.

MARTIN KATZ, JEWELER: Good morning to you.

KAGAN: It is a good morning when you show up with millions of dollars of jewels to help me wake up.

KATZ: It's better than coffee.

KAGAN: It's better than coffee. Not quite as warm, but it can kind of warm the soul.

KATZ: That's why they call it ice.

KAGAN: What's the trend this year? What are we going to see on the Red Carpet?

KATZ: This year on the Red carpet, earrings. You're going to see long earrings.

KAGAN: OK, let's look at what you put on me, this stuff. What do you call it?

KATZ: These are diamond Brioles (ph).

KAGAN: OK.

KATZ: And this, I call "rock candy," but notice the length. You've going to see still a lot of long earrings this year.

KAGAN: Because a lot of people are wondering about the whole chandelier thing, is that over?

KATZ: It's not over, but you're going to see variations of the long chandelier, and you're going to see them in long, narrow earrings, as well as earrings like...

KAGAN: How much? I hate to be tacky, but how much?

KATZ: One hundred and ten thousand.

KAGAN: One hundred and ten thousand dollars, OK. What else have you put on me here?

KATZ: Now you're wearing my diamond rope chain, which is a lot of fun...

KAGAN: It's fun.

KATZ: ... 145 one-karat diamonds. That's $1.5 million.

KAGAN: And this ring? This is catching a lot of people's...

KATZ: A 20-karat canary yellow diamond, $500,000.

KAGAN: Yes? We're doing OK. Just for fun, you put one more cuff on me. Now, just to be clear here on style, you wouldn't deck out a star in this much. I mean, too much can be too much.

KATZ: It can never be too much. But, no, I wouldn't deck out like this. You're going to coordinate your dress, the style of the person. Different celebrities carry different power in their jewelry. Some are very low key, some are very dynamic. And you match that -- at least I match to the celebrity the look in their jewelry.

KAGAN: Now, people get very secretive about this, about who they're dressing. They don't commit to the end. But are you talking to certain celebrities, and are you hoping to see some of your beautiful jewels on the Red Carpet?

KATZ: Oh, we have a lot of our jewels on the Red Carpet. You'll be seeing aquamarine this year on the Red Carpet.

KAGAN: We were going talking about that, because I'm going out on a limb and that's the color I'm going to be wearing.

KATZ: Well, you'll be in good company.

KAGAN: OK, there will be others than aquamarine?

KATZ: There is other color out this year. You're going to see some Briole (ph) diamond and pendant necklaces.

KAGAN: So, this is a little aquamarine number. Is this one spoken for?

KATZ: This is part of a suite spoken for, but you'll see some other styles of aqua.

KAGAN: And will we be seeing color, too?

KATZ: You'll definitely be seeing some color on the Red Carpet. We're doing a lot of combinations of the diamonds in the colors now.

KAGAN: And other stylists and jewelers I was talking to are saying glamour is back. This time last year the war was looming over -- the potential for war. It was a lot more somber.

KATZ: It was.

KAGAN: The Oscars, of course, it was a whole other story. But that color and glamour and glitz will be back.

KATZ: There's a lot better mood this year. It's a different environment this year. So, the -- not only is the glitz and glamour back, but the mood is back. And that's as good as anything.

KAGAN: We'll from looking for your beautiful jewels.

KATZ: I appreciate it.

KAGAN: Thanks for warming our morning with your beautiful ice.

KATZ: My pleasure. I hope you get used to that.

KAGAN: Yes, I will. You know, Monday is my birthday.

KATZ: Perfect.

KAGAN: You can pick out a couple of things for me. Martin Katz, thank you so much.

KATZ: Thanks for having me.

KAGAN: And it is a rough assignment here. They send me out once a year, Carol. But, you know, for CNN, for you viewers, I come to, you know, do a little journalism out here once a year.

LIN: Absolutely. From Kuwait to Beverly Hills, Daryn.

KAGAN: Yes.

LIN: You know, I've always admired you...

(CROSSTALK)

LIN: Hey, what's your favorite piece out there?

KAGAN: The favorite thing? Well, I did have my eye on this, this aquamarine. I like that. I'm enjoying -- oh, actually, you know what? I have to show you this one pair of earrings. It doesn't go with what I'm wearing, but you would love these, too. Check these out. Carol, this is what I'd bring back for you.

LIN: I've got to look down. Oh, those are gorgeous.

KAGAN: OK.

LIN: They're sort of like a chandelier style.

KAGAN: Explain it.

KATZ: These are chandeliers using Briole (ph) diamonds and a technique of micro-diamonds set that I developed. And this has diamonds on four sides of the loop with no metal showing. And it's featherweight. It's really a wonderful work of art.

KAGAN: Like butta (ph).

KATZ: Like butta (ph).

KAGAN: Like I said. OK.

LIN: That's fabulous.

KAGAN: This is your party favor that I'm bringing you back, Carol.

LIN: All right.

KAGAN: How much for those?

KATZ: Those are 75,000.

LIN: What a sweetie you are.

KAGAN: Oh, only for 75,000.

LIN: Hey, less than 110,000, that's what I always say. Thanks, Daryn. We'll see you in just a bit.

KAGAN: We'll see you later.

LIN: OK.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.









CAROL LIN, CNN ANCHOR: Last year was another big year for home improvement, and with the economic recovery even more of us are expected to take on renovations this year. But before you plan your next project, you'll want to think about controlling costs.

CNN's Gerri Willis reports on how a lot of homeowners are sinking their cash into a money pit.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN FINANCIAL NEWS EDITOR (voice-over): Ah, the dream house. But at what cost?

When Jeff and Kathy Diehl started planning their renovation last year, they had in mind a bargain-basement project.

KATHY DIEHL, HOMEOWNER: We were going to have them build the second story, just in the framing sense, putting the roof on, siding the entire house, and then Jeff and I finishing it inside ourselves.

WILLIS: Cost of the project? $51,000. But, as typically happens, there were a few unexpected costs.

JEFF DIEHL, HOMEOWNER: OK, now, this was an existing window here, and when they started to do the siding, this is where they discovered the water damage.

WILLIS: An additional cost of $700. Then the contractor created a few problems of his own.

J. DIEHL: They knew I was going to take the wall down myself eventually, so if I was alone here and I took that wall down without that support, the new upstairs would have came down on my head.

WILLIS: Jeff and Kathy also came up with their own changes.

K. DIEHL: We changed from oil to gas heat, and, in addition, you can see here where the electric has been upgraded to code, and also the floors have been refinished.

DIEHL: Another $7,400.

By the time Kathy and Jeff were done, their modest project had spiraled to a cost of $102,000. The biggest expense? $33,000 for finishing the interior -- a job that the couple ultimately decided they needed help to do.

So, what are some of the things homeowners can do to control the costs?

LYNDA LYDAY, HOME IMPROVEMENT EXPERT: Know exactly what it is you want. My suggestion is to go and buy the appliances and the fixtures yourself. You can save a little bit of money, and it also gets you very enthusiastic about the construction process of it and the beauty.

DIEHL: The Diehls are no financial novices. Karen is an accountant, but numbers crunching ability may be little help when you're doing your reno.

Consider the case of financial advisor Dave Huber. Huber and his wife, Nancy, decided to redo their kitchen, but the cost ballooned.

DAVE HUBER, HOMEOWNER: We had choices. We could have went with, you know, lower-end cabinetry, but when you start to think about the big picture, then that's when you justify in your mind that it makes sense to, you know, do something better.

WILLIS: But that was just the start. They also decided to move a door and expand the project into another room. Total cost? $90,000 -- $30,000 over budget.

(END VIDEOTAPE)

So, step No. 1 to make sure that your costs don't spiral out of control? Know what you're getting into. Research those costs before you start. The best way to do that is to go to this Web site: RemodelingMagazine.com. They'll give you prices by region. It's a very detailed Web site.

Also, as you're doing your planning, make sure you don't overbuild, because if you put too much money into your house, you'll never see the return at sale time -- Carol.

LIN: All right. And you also pick up on that point that one of your interviews said buy the fixtures yourself. I thought that you could get the contractor's price, though, if you shopped with a contractor.

WILLIS: Well, unfortunately, sometimes the contractor's price is actually higher. You can save money by shopping at one of the big chains that are in so many neighborhoods across the country to save some dollars, and also so that you don't get upgraded to higher and higher-end lines -- Carol. LIN: And you make a really good point about taking some of the emotion out of a project that's so personal, like renovating your home, about curbing your enthusiasm and really doing some researching ahead of time.

WILLIS: That's right. You know, the contractors told us that one of the big diseases that people have when they do renovation projects it's the-while-you're-here disease. You know, while you're here, could we repaint that room? Could we add a back room? Before you know it, your costs are out of control.

LIN: What about your relationship with your contractor?

WILLIS: Well, you have to manage your contractor like you manage anyone else. My advice here is make sure you have a weekly meeting with that contractor. Be the squeaky wheel. And assign one family member to have that meeting each and every week so they can keep tabs on your progress.

LIN: And the idea of shopping off-season for your clothes to get a discount, does that work with remodeling as well?

WILLIS: It sure does. You know, everybody seems to start their project in April or May in the spring when the weather starts warming up. Do it earlier. These guys are just sitting around right now, and would love to have a project, and you wouldn't have to pay those higher fees that you'll pay once everybody is putting their bid in.

LIN: Yes, competition is always good when pricing things.

WILLIS: That's right.

LIN: All right. Thanks, Gerri. Good advice.

WILLIS: Thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired January 23, 2004 - 10:02   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: New Hampshire voters have their say on Tuesday, but last night it was the seven remaining Democrats who got to state their cases for nomination. Much of the time was spent in joining forces against President Bush.
But as CNN national correspondent Bob Franken shows us, the echoes could be heard from Iowa and the shout around heard around the political world.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Rule No. 1: make no mistakes, and in the case of Howard Dean, to smooth over that big mistake.

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: I think a lot of people have had a lot of fun at my expense over the Iowa hooting and hollering, and that's justified. The one thing I can tell you is that I'm not kidding about what I say.

FRANKEN: But Al Sharpton couldn't resist a little kidding.

REV. AL SHARPTON, (D), PRESIDENTIAL CANDIDATE: If I had spent the money you did and got 18 percent, I'd still be in Iowa hooting and hollering.

FRANKEN: But here, the new favorite is John Kerry, who focused from the top on President Bush.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: And he has not helped the average worker in America to advance their cause.

FRANKEN: Joe Lieberman tried, meanwhile, to stand out as impervious to Republican attacks.

SEN. JOE LIEBERMAN (D), PRESIDENTIAL CANDIDATE: I think the reason is that the Republicans can't run their normal playbook on me that they try to run on Democratic candidates.

FRANKEN: That other 2004 first-timer, Wesley Clark, was still trying to justify being a brand new Democrat.

WESLEY CLARK, (D), PRESIDENTIAL CANDIDATE: And I'm in this party now, and I'll bring a lot of other people into this party, too.

FRANKEN: This was a defensive battle; for John Edwards, defense against the nagging charges of inexperience. SEN. JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I think 32 percent of Iowans decided it was not too early, that they wanted me to be their president.

(END VIDEOTAPE)

FRANKEN: Dr. Dean seemed to be right at home, because everybody's strategy seemed to be come right out of the Hippocratic oath, which was: "First, do no harm." It was breathtaking, wasn't it, Carol?

LIN: Breathtaking, indeed, yes, for the yawns heard around the world. It wasn't that interesting a debate. Did you find it -- did it seem like the candidates were just trying to be more tame with one another, playing it safe?

FRANKEN: Well, I think what they were trying to do is not get in trouble. The truth is, is that they have learned the bitter lesson that sometimes the only thing that really comes out of the debate is a loss, unless you're kind of wishy-washy, trying to avoid the sound byte. Nobody knows that better by now than Howard Dean.

So, we'll have to see how the tracking polls react, if there is any reaction to this.

LIN: All right. Thank you very much, Bob Franken.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.








CAROL LIN, CNN ANCHOR: For insight now into the political grind in the granite state, we're joined by CNN political analyst Carlos Watson up in New York today.

Hi there -- Carlos.

CARLOS WATSON, CNN POLITICAL ANALYST: Hey, Carol. How are you doing? LIN: I'm doing just fine. I'm wondering how Howard Dean is doing these days. Has he recovered from the screech heard around the world?

WATSON: He's definitely trying. Last night, his voice was a bit hoarse during the debate, and a number of people took a poke at him, including Al Sharpton. And the polls show that he's now down by 15 points. Remember, before Iowa, he was up by 14.

But with all of that said, he's got a new strategy, including a new ad, where he tries to present himself as the doctor, the former governor, who is focused on health care, education and the economy. We'll see if it works, and it will be interesting to look at the tracking polls this weekend.

LIN: Yes. And interesting, also, that his strategy -- he's got a media strategy going. He made an appearance last night in an interview on ABC's "PrimeTime Live." And this is what he had to say about his behavior in Iowa.

(BEGIN VIDEO CLIP, ABC'S "PRIMETIME" THURSDAY)

DIANE SAWYER, "PRIMETIME LIVE": What do you see when you look at this?

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: I was having a great time. Look at me. I was. Look, I am not a perfect person, believe me. I have all kinds of warts. I wear cheap suits sometimes. I say things that I probably ought not say. But I lead with my heart, and that's what I was doing right there is leading with my heart.

(END VIDEO CLIP)

LIN: Not exactly Bill Clinton -- Bill and Hillary Clinton on "60 Minutes," but it certainly reminds me of a comeback strategy and trying to make yourself more sympathetic to people, having his wife, whom we've seen all of maybe two times in the last 18 months, by his side. What do you think?

WATSON: He's definitely trying to soften himself and humanize himself. I thought it was an OK performance, not the strongest, but New Hampshire voters are quirky. We saw in 1988 that they gave George Bush a second chance, a second win. He placed third in Iowa, and they ultimately gave him a first place win. And don't forget, just four years ago, John McCain, who I think ultimately ended up in fifth place in Iowa, won New Hampshire going away.

So, who knows? Maybe New Hampshire will give him a second chance, and maybe both that piece and the piece he did on Letterman will be helpful.

LIN: All right. What about John Kerry? Is he still the front- runner there?

WATSON: Boy, you know, it's incredible how your fortunes can change. On January 1 of this year, it looked like John Kerry's career was almost over. Now, he's up by 15 points. He's winning endorsements left, right and center. And at long last, he's finally bringing money into his campaign, almost $1 million in the couple days since Iowa.

Right now, he looks like a prohibitive favorite, but last time we said that with John Kerry, going back 9 or 10 months ago, that's when we saw him start to stumble. So, we'll see. But right now, he's unequivocally in the load.

LIN: And perhaps another favorite, at least the son of the south, John Edwards, the Dick Clark on the campaign trail. The guy looks so young.

WATSON: He does, although he's 50 years old. He'll remind you that he's had a very successful career as a lawyer and at least one term as a senator.

John Edwards got a nice bump coming out of Iowa. He went from single digits in New Hampshire to now he's barely trailing Wes Clark, and he's actually pushing Clark for potentially for third there.

But what's interesting is that while Edwards is up in New Hampshire and Clark is down to some extent in the race for third and fourth, both of them are looking not at New Hampshire as much as they are at February 3, where there are seven different contests, including the first contest in the South -- South Carolina.

LIN: Does it seem like the other candidates are pretty effectively discombobulating Wesley Clark's message, you know, confusing, at least mixing up who is this guy? I mean, is he a Democrat? Is he a Republican? What can we really believe about Wes Clark?

WATSON: Well, Wes Clark is certainly learning on the job. I mean, obviously, he was a career military officer for 30-plus years. And as a politician, you remember, he came into this race -- and most people forget this now -- in August or September actually as the overall favorite nationally. He surged in the polls, close to 25 percent in some polls, but he struggled and, you, you know, people are taking shots at him.

And his main argument before Iowa was that I'm the anti-Howard Dean. I'm the one guy who can stop him. But given that Kerry and Edwards surpassed him in Iowa, that message rings a little bit hollow these days.

LIN: All right. I guess it’s too early for you to make predictions yet, huh, Carlos?

WATSON: Well, we know about predictions. I will say this, though: President Bush is not sitting on the sidelines. Notice that after the State of the Union tour, he immediately has begun to tour the country, hitting critical states like Ohio and New Mexico with his message about economics and education.

LIN: All right. Well, thank you very much, Carlos. And today, the president is actually addressing the nation's mayors, so keeping in touch with the people around the country. We'll see what happens. Thanks very much for joining us.

WATSON: Good to join you. Take care.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.








CAROL LIN, CNN ANCHOR: The 61st annual Golden Globes are Sunday night at the Beverly Hilton hotel. And, as always, it will become the center of the fashion world.

And our own Daryn Kagan will be on the Red Carpet Sunday night. She joins us this morning from Beverly Hills with an insider's look at one of the most glamorous and pricey -- well, just take a look at what she's wearing.

Daryn, what is that gorgeous thing around your neck?

DARYN KAGAN, CNN ANCHOR: I know. Oh, this? This is a beautiful necklace. We're going to be talking with my new best friend, Martin Katz, the jeweler, in just a moment here. I want you know we're inside the In-Style Warner Brothers tent. This is where there's going to be this huge party after the party that is known as the Golden Globes.

Of course, there is the film and the award and the business side of the Golden Globes to talk about. We'll get to that a little bit later in the morning.

Come on, girlfriends. You what we're interested in, and it's ice. Let's get to the jewels.

Martin Katz, good morning.

MARTIN KATZ, JEWELER: Good morning to you.

KAGAN: It is a good morning when you show up with millions of dollars of jewels to help me wake up.

KATZ: It's better than coffee.

KAGAN: It's better than coffee. Not quite as warm, but it can kind of warm the soul.

KATZ: That's why they call it ice.

KAGAN: What's the trend this year? What are we going to see on the Red Carpet?

KATZ: This year on the Red carpet, earrings. You're going to see long earrings.

KAGAN: OK, let's look at what you put on me, this stuff. What do you call it?

KATZ: These are diamond Brioles (ph).

KAGAN: OK.

KATZ: And this, I call "rock candy," but notice the length. You've going to see still a lot of long earrings this year.

KAGAN: Because a lot of people are wondering about the whole chandelier thing, is that over?

KATZ: It's not over, but you're going to see variations of the long chandelier, and you're going to see them in long, narrow earrings, as well as earrings like...

KAGAN: How much? I hate to be tacky, but how much?

KATZ: One hundred and ten thousand.

KAGAN: One hundred and ten thousand dollars, OK. What else have you put on me here?

KATZ: Now you're wearing my diamond rope chain, which is a lot of fun...

KAGAN: It's fun.

KATZ: ... 145 one-karat diamonds. That's $1.5 million.

KAGAN: And this ring? This is catching a lot of people's...

KATZ: A 20-karat canary yellow diamond, $500,000.

KAGAN: Yes? We're doing OK. Just for fun, you put one more cuff on me. Now, just to be clear here on style, you wouldn't deck out a star in this much. I mean, too much can be too much.

KATZ: It can never be too much. But, no, I wouldn't deck out like this. You're going to coordinate your dress, the style of the person. Different celebrities carry different power in their jewelry. Some are very low key, some are very dynamic. And you match that -- at least I match to the celebrity the look in their jewelry.

KAGAN: Now, people get very secretive about this, about who they're dressing. They don't commit to the end. But are you talking to certain celebrities, and are you hoping to see some of your beautiful jewels on the Red Carpet?

KATZ: Oh, we have a lot of our jewels on the Red Carpet. You'll be seeing aquamarine this year on the Red Carpet.

KAGAN: We were going talking about that, because I'm going out on a limb and that's the color I'm going to be wearing.

KATZ: Well, you'll be in good company.

KAGAN: OK, there will be others than aquamarine?

KATZ: There is other color out this year. You're going to see some Briole (ph) diamond and pendant necklaces.

KAGAN: So, this is a little aquamarine number. Is this one spoken for?

KATZ: This is part of a suite spoken for, but you'll see some other styles of aqua.

KAGAN: And will we be seeing color, too?

KATZ: You'll definitely be seeing some color on the Red Carpet. We're doing a lot of combinations of the diamonds in the colors now.

KAGAN: And other stylists and jewelers I was talking to are saying glamour is back. This time last year the war was looming over -- the potential for war. It was a lot more somber.

KATZ: It was.

KAGAN: The Oscars, of course, it was a whole other story. But that color and glamour and glitz will be back.

KATZ: There's a lot better mood this year. It's a different environment this year. So, the -- not only is the glitz and glamour back, but the mood is back. And that's as good as anything.

KAGAN: We'll from looking for your beautiful jewels.

KATZ: I appreciate it.

KAGAN: Thanks for warming our morning with your beautiful ice.

KATZ: My pleasure. I hope you get used to that.

KAGAN: Yes, I will. You know, Monday is my birthday.

KATZ: Perfect.

KAGAN: You can pick out a couple of things for me. Martin Katz, thank you so much.

KATZ: Thanks for having me.

KAGAN: And it is a rough assignment here. They send me out once a year, Carol. But, you know, for CNN, for you viewers, I come to, you know, do a little journalism out here once a year.

LIN: Absolutely. From Kuwait to Beverly Hills, Daryn.

KAGAN: Yes.

LIN: You know, I've always admired you...

(CROSSTALK)

LIN: Hey, what's your favorite piece out there?

KAGAN: The favorite thing? Well, I did have my eye on this, this aquamarine. I like that. I'm enjoying -- oh, actually, you know what? I have to show you this one pair of earrings. It doesn't go with what I'm wearing, but you would love these, too. Check these out. Carol, this is what I'd bring back for you.

LIN: I've got to look down. Oh, those are gorgeous.

KAGAN: OK.

LIN: They're sort of like a chandelier style.

KAGAN: Explain it.

KATZ: These are chandeliers using Briole (ph) diamonds and a technique of micro-diamonds set that I developed. And this has diamonds on four sides of the loop with no metal showing. And it's featherweight. It's really a wonderful work of art.

KAGAN: Like butta (ph).

KATZ: Like butta (ph).

KAGAN: Like I said. OK.

LIN: That's fabulous.

KAGAN: This is your party favor that I'm bringing you back, Carol.

LIN: All right.

KAGAN: How much for those?

KATZ: Those are 75,000.

LIN: What a sweetie you are.

KAGAN: Oh, only for 75,000.

LIN: Hey, less than 110,000, that's what I always say. Thanks, Daryn. We'll see you in just a bit.

KAGAN: We'll see you later.

LIN: OK.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.









CAROL LIN, CNN ANCHOR: Last year was another big year for home improvement, and with the economic recovery even more of us are expected to take on renovations this year. But before you plan your next project, you'll want to think about controlling costs.

CNN's Gerri Willis reports on how a lot of homeowners are sinking their cash into a money pit.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN FINANCIAL NEWS EDITOR (voice-over): Ah, the dream house. But at what cost?

When Jeff and Kathy Diehl started planning their renovation last year, they had in mind a bargain-basement project.

KATHY DIEHL, HOMEOWNER: We were going to have them build the second story, just in the framing sense, putting the roof on, siding the entire house, and then Jeff and I finishing it inside ourselves.

WILLIS: Cost of the project? $51,000. But, as typically happens, there were a few unexpected costs.

JEFF DIEHL, HOMEOWNER: OK, now, this was an existing window here, and when they started to do the siding, this is where they discovered the water damage.

WILLIS: An additional cost of $700. Then the contractor created a few problems of his own.

J. DIEHL: They knew I was going to take the wall down myself eventually, so if I was alone here and I took that wall down without that support, the new upstairs would have came down on my head.

WILLIS: Jeff and Kathy also came up with their own changes.

K. DIEHL: We changed from oil to gas heat, and, in addition, you can see here where the electric has been upgraded to code, and also the floors have been refinished.

DIEHL: Another $7,400.

By the time Kathy and Jeff were done, their modest project had spiraled to a cost of $102,000. The biggest expense? $33,000 for finishing the interior -- a job that the couple ultimately decided they needed help to do.

So, what are some of the things homeowners can do to control the costs?

LYNDA LYDAY, HOME IMPROVEMENT EXPERT: Know exactly what it is you want. My suggestion is to go and buy the appliances and the fixtures yourself. You can save a little bit of money, and it also gets you very enthusiastic about the construction process of it and the beauty.

DIEHL: The Diehls are no financial novices. Karen is an accountant, but numbers crunching ability may be little help when you're doing your reno.

Consider the case of financial advisor Dave Huber. Huber and his wife, Nancy, decided to redo their kitchen, but the cost ballooned.

DAVE HUBER, HOMEOWNER: We had choices. We could have went with, you know, lower-end cabinetry, but when you start to think about the big picture, then that's when you justify in your mind that it makes sense to, you know, do something better.

WILLIS: But that was just the start. They also decided to move a door and expand the project into another room. Total cost? $90,000 -- $30,000 over budget.

(END VIDEOTAPE)

So, step No. 1 to make sure that your costs don't spiral out of control? Know what you're getting into. Research those costs before you start. The best way to do that is to go to this Web site: RemodelingMagazine.com. They'll give you prices by region. It's a very detailed Web site.

Also, as you're doing your planning, make sure you don't overbuild, because if you put too much money into your house, you'll never see the return at sale time -- Carol.

LIN: All right. And you also pick up on that point that one of your interviews said buy the fixtures yourself. I thought that you could get the contractor's price, though, if you shopped with a contractor.

WILLIS: Well, unfortunately, sometimes the contractor's price is actually higher. You can save money by shopping at one of the big chains that are in so many neighborhoods across the country to save some dollars, and also so that you don't get upgraded to higher and higher-end lines -- Carol. LIN: And you make a really good point about taking some of the emotion out of a project that's so personal, like renovating your home, about curbing your enthusiasm and really doing some researching ahead of time.

WILLIS: That's right. You know, the contractors told us that one of the big diseases that people have when they do renovation projects it's the-while-you're-here disease. You know, while you're here, could we repaint that room? Could we add a back room? Before you know it, your costs are out of control.

LIN: What about your relationship with your contractor?

WILLIS: Well, you have to manage your contractor like you manage anyone else. My advice here is make sure you have a weekly meeting with that contractor. Be the squeaky wheel. And assign one family member to have that meeting each and every week so they can keep tabs on your progress.

LIN: And the idea of shopping off-season for your clothes to get a discount, does that work with remodeling as well?

WILLIS: It sure does. You know, everybody seems to start their project in April or May in the spring when the weather starts warming up. Do it earlier. These guys are just sitting around right now, and would love to have a project, and you wouldn't have to pay those higher fees that you'll pay once everybody is putting their bid in.

LIN: Yes, competition is always good when pricing things.

WILLIS: That's right.

LIN: All right. Thanks, Gerri. Good advice.

WILLIS: Thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.