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CNN Live At Daybreak

Mosul: What's Next?; 'Your Money'; Holiday Cheer

Aired December 22, 2004 - 06:29   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 COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Britain moves forward with Mideast peace efforts. Just about an hour ago on a trip to Israel, British Prime Minister Tony Blair said London plans to host an international meeting next year. The topic? Palestinian reforms.

A mortgage giant is cleaning house. Two top executives have been forced out at Fannie Mae, including the chief executive. The institution is being investigated by federal authorities for possible accounting mistakes.

To count or not to count? That's the question before the Washington State Supreme Court today. It considers whether some 730 disputed ballots should be counted in the state's still unsettled governor's race.

President Bush has increased his pardon count a bit. He's granted four more, bringing to 31 the total number of clemencies he's issued so far. That's below the pace of most other modern presidents.

(WEATHER REPORT)

COSTELLO: We begin this half-hour with a fight for Iraq and new information about that deadly attack in Mosul. The military now says it is possible the attack was caused by a bomb planted inside a crowded mess tent, not by an outside rocket attack as first reported.

At least 22 people died in that attack, making it one of the deadliest single incidents for American troops since the war began. Fourteen were U.S. soldiers, four were U.S. contractors, four were Iraqi security forces.

The Iraqi militant group, Jaish Ansar Al-Sunna, has claimed responsibility for the attack in postings on an Islamic Web site. More than 1,300 U.S. troops have died in Iraq since the invasion that toppled the Iraqi leader, Saddam Hussein.

And we'd like to talk about the why of Mosul now. Our military analyst, Brigadier General David Grange, on the line from Chicago.

Good morning, General.

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Good morning to you.

COSTELLO: So, what is this that there is now some doubt about what kind of explosives hit the tent? The FBI is now on the scene. One theory is that someone might have walked into the mess tent and planted something. If that's true, how could that happen?

GRANGE: Well, for one person to walk in with an explosive that size would be quite a significant feat. This obviously was a large explosive to cause that kind of damage.

But it could have been planted earlier. It could have been brought in, in some kind of a cart. Who knows? It could have been a contractor that was a plant by the insurgents. But the forensics with the FBI team there, with the military investigators, they'll determine from the shrapnel and residue of the explosive charge what it was.

COSTELLO: We've been getting a lot of e-mails from viewers this morning about what happened in Mosul, General. I want to read one to you. This is from Carl from Charlotte, North Carolina: "If we need more troops, and many of your expert guests say we need 100,000 more to get the job done, then do it."

Would more troops or more armor or more equipment have prevented this attack?

GRANGE: I don't know if it would have prevented it, but one thing to keep these types of attacks down. Now, if it was something that was planted inside, that's a security check, a security procedure issue. If it was a mortar rocket attack, it's very hard to defend against.

And what you have to do is active patrolling throughout the Mosul area. And since this is an urban area, this requires a lot of troops. And so, in certain areas in Iraq, more troops are probably needed; in others, not as many.

So, it has to be phased. And the key thing is that this is a race for the elections. And the insurgents are scared to death that they're losing a little bit of a grip. There was a captured letter from Zawahiri to bin Laden that I had the opportunity to read, and they are truly fearful that this thing may work. And that's why they are increasing these attacks throughout Iraq, especially in Mosul.

COSTELLO: But in knowing that the attacks would increase in the lead-up to the Iraqi elections, why not send in many, many more troops? Is it because there just aren't enough troops out there to send?

GRANGE: Well, the military is quite small right now, and you have people that just returned back. And to send more troops in, they would just be turning right around. But in certain areas, I agree, there should be more troops.

COSTELLO: So, General, why aren't the generals on the ground there in Iraq speaking out loudly to get more troops in? GRANGE: Well, in their mind, they may not need them. And they're on the ground. And, of course, they do the troop-to-task analysis, and they understand the situation much better than me because they are there.

But insurgency requires a lot of force, because you cannot use your maneuver like you do in the attack for Baghdad back in March and April of 2003. Insurgencies require a lot of patrolling, requires a lot of presence on the ground. And in this area, I think Mosul needs to be reinforced a little bit, because the activity has increased quite a bit by the insurgents in that locale.

COSTELLO: All right. Well, let me interrupt you for just a second to talk about strategy, since you mentioned maneuvers. The U.S. military let the insurgency grow in Falluja, and then chased it out. Now it seems to have moved into Mosul. Is it time to change strategy again?

GRANGE: Well, you're not going to see an offensive in Mosul like you did in Falluja, because that was definitely a safe haven. Mosul is just increased activities of insurgents, and it's a serious threat. I mean, don't take this wrong. But it's not a safe haven like Falluja. But increased activity has to take place.

Where I have confidence in the situation of Mosul is I know the commander, General Carter Ham, very well. He worked for me for three years. And he's quite competent. And he will increase the pressure where need be. I know that. My gut feeling tells me that it would be nice to reinforce his elements up there between now and the elections and a little bit after.

General Grange, thanks for joining DAYBREAK this morning.

Of course, that attack in Mosul has left some military families in mourning, and others more worried than ever about their loved ones. But there are people out there helping them to cope.

"AMERICAN MORNING's" Soledad O'Brien joins us now from her office in New York to talk about a special guest.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol. That's right. Among the dozens who were killed and injured were members of the main National Guard. And this morning, we're going to talk a chaplain who is counseling the family members of the victims and the survivors as well. We're going to ask him this morning how he can possibly help them cope in a disaster of this magnitude. And also, obviously as close as it is to Christmas and the holidays, what kind of pressure that adds, and what he is trying to do now. His name is Chaplain Andrew Gibson (ph), and we talk with him this morning on "AMERICAN MORNING."

Carol -- back to you.

COSTELLO: All right. Thank you, Soledad. You only have nine days left to spend the money in your FSA. Don't know what an FSA is? Well, Ali Velshi will be here to explain.

And just because you're drinking and not eating doesn't mean you're taking in fewer calories. We'll bring you some holiday cheer tips.

But first, here's a look at what else is making news this morning.

(COMMERCIAL BREAK)

COSTELLO: This morning on "Your Money," use it or lose it. If you have a flexible spending account in your health plan, you have less than 10 days to spend the money. What can you spend it on? And what can't you spend it on?

For the details, we're joined by our DAYBREAK contributor, Ali Velshi.

I always thought this was kind of a silly idea.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Well, it is. I can't figure out how much I've spent in the month before, and this is asking you to estimate what you're going to spend on health care expenses in the following year. So, you make this decision at the beginning of the year, and you fund it through the course of the year by deductions from your salary, generally.

And the idea is the flexible spending account means the money you put into that is pre-tax. You're not paying tax on that. So, if you know how much you're going to spend on qualified medical expenses, you pay that from pre-tax money. It's a bit of a saving if you know -- if you have some sense of what you're going to spend.

Now, let's talk a little about this. You contributed a certain amount annually through your employer, and you have a maximum annual contribution that's determined by your employer. No federal income tax is deducted from that contribution, and you can't be self-employed to use this.

But it is use it or lose it. If you get to the end of the year and you've put aside $1,000 and you've used 300 or 500, you've lost that money. It's not your money anymore.

COSTELLO: So what do you do? Do you run out and have some medical procedure?

VELSHI: Well, that's what happens. You start to see signs in glasses shops and things like that. Use your FSA before the end of the year. We accept the payment. It can be used for only qualified medical expenses, but there's a long list that you can look up of qualified medical expenses: prescription glasses, contact lenses, solution, health insurance premiums, chiropractic, psychiatric care, psychologist visits, and over-the-counter...

COSTELLO: Tooth whitening.

VELSHI: Tooth whitening is not one of them. It's included, dental is in; tooth whitening is out.

COSTELLO: Darn!

VELSHI: Alcoholism and drug addiction treatment, if you want to stop smoking, fertility, sterilization, hypnosis, all of those kinds of things are covered.

COSTELLO: Your hypnosis is covered?

VELSHI: Hypnosis is covered. Even over-the-counter drugs if you are using them for an imminent condition. In other words, if I've got a headache today or tomorrow, I can get aspirin. I can't stock up on aspirin.

COSTELLO: So, you can't say, I think I'm going to have the flu, so I...

VELSHI: In three months or something like that.

COSTELLO: You can't do that.

VELSHI: It's a little dodgy as to when you start getting these things that are not clearly defined. But there are a lot of interesting things.

Now, here's what's not covered. You mentioned tooth whitening. That's one of them. Tooth whitening is not covered. Health club dues, unless they are prescribed because you need it. Cosmetic surgery if it's elective is not covered. Hair transplants, no. And marriage counseling.

COSTELLO: Marriage counseling.

VELSHI: I'm so out of luck.

COSTELLO: Hypnosis is in there?

VELSHI: Teeth whitening, health club dues, cosmetic surgery, hair transplants and marriage counseling. I'm done.

COSTELLO: You can get hypnotized but you...

VELSHI: But you can't get marriage counseling.

COSTELLO: You know, this is...

VELSHI: Unless your marriage is causing you such stress that it needs you to get -- I mean, you know, that's (UNINTELLIGIBLE) the program.

COSTELLO: You could be -- if you're having trouble with your wife, you can be hypnotized to better deal with her...

VELSHI: There you go. There you go.

COSTELLO: I like that idea.

VELSHI: You're getting all sorts of tips and information here on DAYBREAK.

COSTELLO: Thanks.

VELSHI: But the trick is to try and estimate how much you're going to spend. If you can do that, it might be worth it. Don't over-invest in this thing, because you'll just end up losing it.

COSTELLO: Exactly. Thank you, Ali. We appreciate it.

VELSHI: OK.

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.

Britain will host a conference on Palestinian reforms in the near future. Prime Minister Tony Blair made the announcement this morning on a trip to Israel aimed at revising peace efforts.

Poland's prime minister became the second world leader to pay a surprise visit to Iraq in the last two days. The prime minister and his defense minister met with Iraqi leaders before heading to southern Iraq to visit Polish troops.

In money news, serial stocks in blue chip technology helped power the Dow to its highest closing in three and a half years. Some analysts say the upswing was boosted by what they call the year-end Santa Claus trend.

In culture, she calls herself a diva. They love her. Now she'll prove it. Female impersonator Dame Edna will show up at New York's Metropolitan Opera. Let's briefly hear her sing, shall we?

(BEGIN VIDEO CLIP)

DAME EDNA, FEMALE IMPERSONATOR (singing): My single brightest asset, it's my eyes. I pride myself on my eyes.

(END VIDEO CLIP)

COSTELLO: You like dancing now, don't you? She's going to perform the "Barber of Seville," at least part of it.

National Hockey League star Tom Bartusi (ph) is expected to plead guilty today in that attack on another player last season. New reports say Bartusi (ph) will be required to do community service.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Soldiers fighting in Iraq have stories to tell, but one family is not being allowed to access his -- access to his stories, I should say. Bill Hemmer has more on that coming up on "AMERICAN MORNING."

Tell us more -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning. Here's the story. A Marine was killed in Iraq. A family now wants access to his final legacy. And that legacy, Carol, are private journals, e-mails he kept online. Yahoo says he can't have them. As you can imagine, the family is not happy. The community is outraged. And we'll talk to the father about that story and what hope they have now of getting that final legacy.

See you at the top of the hour -- Carol.

COSTELLO: Yahoo says they can't have them.

HEMMER: Yes indeed.

COSTELLO: I can't wait to hear...

HEMMER: The provider, yes.

COSTELLO: Thank you, Bill.

HEMMER: Sure.

COSTELLO: Having some drinks during this holiday season? Well, we'll tell you how you can drink responsibly without putting extra weight on as well. Straight ahead, counting the calories in your holiday drink.

(COMMERCIAL BREAK)

COSTELLO: It's a beautiful day in New York. Would you believe it's gone up to 55 here? Sorry, all of you people out in Indiana and Ohio. You're going to get blasted.

You know, it wouldn't be the holidays without a little cheer. We know overindulgence will cause us to ride home in a cab. But a few too many could also compromise our waistlines.

Lisa Drayer is here with more.

I cannot believe how many calories are in a glass of wine.

LISA DRAYER, REGISTERED DIETICIAN: I know. A lot of calories. We often think about all of the foods during a holiday season, but alcoholic beverages can pack a lot of calories.

A glass of wine specifically? A hundred calories for white wine and 105 calories for five ounces of red wine.

COSTELLO: Just five ounces?

DRAYER: Exactly. That's what's considered one serving. So that's -- if you have more than one, you can imagine how the calories quickly add up. COSTELLO: I didn't realize that one glass of wine was one serving. I thought three.

DRAYER: On average. Also, peppermint schnapps, often popular during the holidays, one and a half ounces has 125 calories. And that's pretty standard for a shot of hard liquor. Also, 12 ounces of beer, 150 calories. A chocolate martini, two and a half ounces, that's really small, 188 calories.

COSTELLO: A chocolate martini.

DRAYER: Exactly. That's with that chocolate liquor in it. And eight ounces of eggnog, 538 calories. That includes rum.

COSTELLO: Wow! Wow!

DRAYER: Right. And it makes sense, because alcohol is calorie- dense. So, for example, for every gram of alcohol, you're getting seven calories in that gram. For carbohydrates and proteins, it's four. So, we're talking almost double the calories per gram.

COSTELLO: So another good reason not to overindulge. You know, I wanted to ask you about this, because this drink has become really popular: Red Bull and vodka.

DRAYER: Exactly.

COSTELLO: Which sounds disgusting, frankly.

DRAYER: It's actually very popular among college students these days. But it is a dangerous combination, because the stimulant effects of the energy drink cancel out any effects from the...

COSTELLO: From the vodka.

DRAYER: ... from the vodka, exactly. So, it's dangerous. People may not realize that they're tipsy, and it can lead to problems. So, it's not a good combination.

COSTELLO: So, tell female college students how many calories are in Red Bull. There are a lot of calories in that stuff.

DRAYER: Exactly. That will definitely increase the calories in the drink. But it's not a smart idea...

COSTELLO: No, don't do that.

DRAYER: ... if you're drinking those drinks.

COSTELLO: Can the Red Bull/vodka thing. That's disgusting.

OK. Tell us what we should be drinking this holiday season.

DRAYER: Right. Well, you want to stick to one serving ideally or limit it to two. That would be tops. That's the amount not only that is smart to consume in terms of calories, but it's the amount associated with the lowest risk of mortality among older adults. So that's one thing to keep in mind.

Also, if you're going to drink, you want to drink with meals, not without. Alcohol is absorbed more quickly without food in your system.

Also, a recent study from the University of Buffalo found that drinking without meals increases the risk of high blood pressure. So, another good reason to drink with food.

Limit it to one to two beverages. However, some groups should avoid alcohol completely. Those include pregnant women, women at high risk for breast cancer. More than one may increase the risk for breast cancer on a daily basis. Individuals with liver disease, and also individuals taking medications have to be careful because there can be some negative interactions. So talk to your doctor about that.

COSTELLO: Good advice. Be very smart about it this holiday season.

DRAYER: Yes.

COSTELLO: Thank you, Lisa.

DRAYER: Thanks.

COSTELLO: As usual.

This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Shall we get right to our mug question of the day, Chad?

CHAD MYERS, CNN METEOROLOGIST: Carol, that's a pretty mug.

COSTELLO: Yes, it is.

MYERS: That's the expensive one.

COSTELLO: I know. It's quite pricey.

MYERS: That's like 14 bucks.

COSTELLO: It is.

MYERS: It's time for the mug question for today. Were you paying attention? How many killer whales now live at the Seaworld in San Diego? Remember, there was just a baby whale born. So maybe add one to the number you thought it was. And what weight loss program will Kirstie Alley endorsed?

E-mail your answers to Daybreak@CNN.com. Daybreak@CNN.com. All you have to do is give me those -- I need both answers and your name, obviously. We will give you the results on Friday.

COSTELLO: Absolutely. And I was checking the papers this morning.

MYERS: Yes.

COSTELLO: And from "The Wall Street Journal" they're talking about popular toys for Christmas.

MYERS: Yes.

COSTELLO: Apparently, so many people are buying and then they run out that toymakers are now packaging them in smaller packages, which mean assembly for parents. And they talk specifically about the ESPN game station that takes three hours for parents to put together. And it comes with a 100-page instruction manual.

MYERS: Some assembly required. Batteries not included.

COSTELLO: Whew! And in "The New York Times," comedians in New York are forming a union, because they're paid so poorly. Get this: They're asking for 120 bucks for a 10 to 20-minute set on the weekends. That's up from a current average of $60. So, for 20 minutes of comedy, they only get paid 60 bucks.

MYERS: That doesn't even seem like it's worth a cab ride over there.

COSTELLO: It wouldn't pay for a cab ride or a cup of coffee either in New York.

MYERS: No, no. It really wouldn't. Right. You'd have to do about four or five shows a night.

COSTELLO: Exactly.

MYERS: I don't think you can probably book that. But anyway...

COSTELLO: Exactly. And as we've already said, it's already snowing in Indianapolis.

MYERS: Yes.

COSTELLO: In fact, we had a live shot from a reporter in our 5:00 a.m. hour of DAYBREAK. And it's really coming down. They already have a few inches on the ground.

(WEATHER REPORT)

COSTELLO: A preview now for what's in store for you tomorrow on DAYBREAK. The next segment in our video games series, Daniel Sieberg stops at the World Cyber Games in San Francisco. This is the Super Bowl of PC gaming. Plus, the latest Gallup Poll. Which celebrities have been nice and which ones have been naughty? That should be interesting. All of that and much more tomorrow on DAYBREAK.

And from the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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 December 22, 2004 - 06:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Britain moves forward with Mideast peace efforts. Just about an hour ago on a trip to Israel, British Prime Minister Tony Blair said London plans to host an international meeting next year. The topic? Palestinian reforms.

A mortgage giant is cleaning house. Two top executives have been forced out at Fannie Mae, including the chief executive. The institution is being investigated by federal authorities for possible accounting mistakes.

To count or not to count? That's the question before the Washington State Supreme Court today. It considers whether some 730 disputed ballots should be counted in the state's still unsettled governor's race.

President Bush has increased his pardon count a bit. He's granted four more, bringing to 31 the total number of clemencies he's issued so far. That's below the pace of most other modern presidents.

(WEATHER REPORT)

COSTELLO: We begin this half-hour with a fight for Iraq and new information about that deadly attack in Mosul. The military now says it is possible the attack was caused by a bomb planted inside a crowded mess tent, not by an outside rocket attack as first reported.

At least 22 people died in that attack, making it one of the deadliest single incidents for American troops since the war began. Fourteen were U.S. soldiers, four were U.S. contractors, four were Iraqi security forces.

The Iraqi militant group, Jaish Ansar Al-Sunna, has claimed responsibility for the attack in postings on an Islamic Web site. More than 1,300 U.S. troops have died in Iraq since the invasion that toppled the Iraqi leader, Saddam Hussein.

And we'd like to talk about the why of Mosul now. Our military analyst, Brigadier General David Grange, on the line from Chicago.

Good morning, General.

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Good morning to you.

COSTELLO: So, what is this that there is now some doubt about what kind of explosives hit the tent? The FBI is now on the scene. One theory is that someone might have walked into the mess tent and planted something. If that's true, how could that happen?

GRANGE: Well, for one person to walk in with an explosive that size would be quite a significant feat. This obviously was a large explosive to cause that kind of damage.

But it could have been planted earlier. It could have been brought in, in some kind of a cart. Who knows? It could have been a contractor that was a plant by the insurgents. But the forensics with the FBI team there, with the military investigators, they'll determine from the shrapnel and residue of the explosive charge what it was.

COSTELLO: We've been getting a lot of e-mails from viewers this morning about what happened in Mosul, General. I want to read one to you. This is from Carl from Charlotte, North Carolina: "If we need more troops, and many of your expert guests say we need 100,000 more to get the job done, then do it."

Would more troops or more armor or more equipment have prevented this attack?

GRANGE: I don't know if it would have prevented it, but one thing to keep these types of attacks down. Now, if it was something that was planted inside, that's a security check, a security procedure issue. If it was a mortar rocket attack, it's very hard to defend against.

And what you have to do is active patrolling throughout the Mosul area. And since this is an urban area, this requires a lot of troops. And so, in certain areas in Iraq, more troops are probably needed; in others, not as many.

So, it has to be phased. And the key thing is that this is a race for the elections. And the insurgents are scared to death that they're losing a little bit of a grip. There was a captured letter from Zawahiri to bin Laden that I had the opportunity to read, and they are truly fearful that this thing may work. And that's why they are increasing these attacks throughout Iraq, especially in Mosul.

COSTELLO: But in knowing that the attacks would increase in the lead-up to the Iraqi elections, why not send in many, many more troops? Is it because there just aren't enough troops out there to send?

GRANGE: Well, the military is quite small right now, and you have people that just returned back. And to send more troops in, they would just be turning right around. But in certain areas, I agree, there should be more troops.

COSTELLO: So, General, why aren't the generals on the ground there in Iraq speaking out loudly to get more troops in? GRANGE: Well, in their mind, they may not need them. And they're on the ground. And, of course, they do the troop-to-task analysis, and they understand the situation much better than me because they are there.

But insurgency requires a lot of force, because you cannot use your maneuver like you do in the attack for Baghdad back in March and April of 2003. Insurgencies require a lot of patrolling, requires a lot of presence on the ground. And in this area, I think Mosul needs to be reinforced a little bit, because the activity has increased quite a bit by the insurgents in that locale.

COSTELLO: All right. Well, let me interrupt you for just a second to talk about strategy, since you mentioned maneuvers. The U.S. military let the insurgency grow in Falluja, and then chased it out. Now it seems to have moved into Mosul. Is it time to change strategy again?

GRANGE: Well, you're not going to see an offensive in Mosul like you did in Falluja, because that was definitely a safe haven. Mosul is just increased activities of insurgents, and it's a serious threat. I mean, don't take this wrong. But it's not a safe haven like Falluja. But increased activity has to take place.

Where I have confidence in the situation of Mosul is I know the commander, General Carter Ham, very well. He worked for me for three years. And he's quite competent. And he will increase the pressure where need be. I know that. My gut feeling tells me that it would be nice to reinforce his elements up there between now and the elections and a little bit after.

General Grange, thanks for joining DAYBREAK this morning.

Of course, that attack in Mosul has left some military families in mourning, and others more worried than ever about their loved ones. But there are people out there helping them to cope.

"AMERICAN MORNING's" Soledad O'Brien joins us now from her office in New York to talk about a special guest.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol. That's right. Among the dozens who were killed and injured were members of the main National Guard. And this morning, we're going to talk a chaplain who is counseling the family members of the victims and the survivors as well. We're going to ask him this morning how he can possibly help them cope in a disaster of this magnitude. And also, obviously as close as it is to Christmas and the holidays, what kind of pressure that adds, and what he is trying to do now. His name is Chaplain Andrew Gibson (ph), and we talk with him this morning on "AMERICAN MORNING."

Carol -- back to you.

COSTELLO: All right. Thank you, Soledad. You only have nine days left to spend the money in your FSA. Don't know what an FSA is? Well, Ali Velshi will be here to explain.

And just because you're drinking and not eating doesn't mean you're taking in fewer calories. We'll bring you some holiday cheer tips.

But first, here's a look at what else is making news this morning.

(COMMERCIAL BREAK)

COSTELLO: This morning on "Your Money," use it or lose it. If you have a flexible spending account in your health plan, you have less than 10 days to spend the money. What can you spend it on? And what can't you spend it on?

For the details, we're joined by our DAYBREAK contributor, Ali Velshi.

I always thought this was kind of a silly idea.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Well, it is. I can't figure out how much I've spent in the month before, and this is asking you to estimate what you're going to spend on health care expenses in the following year. So, you make this decision at the beginning of the year, and you fund it through the course of the year by deductions from your salary, generally.

And the idea is the flexible spending account means the money you put into that is pre-tax. You're not paying tax on that. So, if you know how much you're going to spend on qualified medical expenses, you pay that from pre-tax money. It's a bit of a saving if you know -- if you have some sense of what you're going to spend.

Now, let's talk a little about this. You contributed a certain amount annually through your employer, and you have a maximum annual contribution that's determined by your employer. No federal income tax is deducted from that contribution, and you can't be self-employed to use this.

But it is use it or lose it. If you get to the end of the year and you've put aside $1,000 and you've used 300 or 500, you've lost that money. It's not your money anymore.

COSTELLO: So what do you do? Do you run out and have some medical procedure?

VELSHI: Well, that's what happens. You start to see signs in glasses shops and things like that. Use your FSA before the end of the year. We accept the payment. It can be used for only qualified medical expenses, but there's a long list that you can look up of qualified medical expenses: prescription glasses, contact lenses, solution, health insurance premiums, chiropractic, psychiatric care, psychologist visits, and over-the-counter...

COSTELLO: Tooth whitening.

VELSHI: Tooth whitening is not one of them. It's included, dental is in; tooth whitening is out.

COSTELLO: Darn!

VELSHI: Alcoholism and drug addiction treatment, if you want to stop smoking, fertility, sterilization, hypnosis, all of those kinds of things are covered.

COSTELLO: Your hypnosis is covered?

VELSHI: Hypnosis is covered. Even over-the-counter drugs if you are using them for an imminent condition. In other words, if I've got a headache today or tomorrow, I can get aspirin. I can't stock up on aspirin.

COSTELLO: So, you can't say, I think I'm going to have the flu, so I...

VELSHI: In three months or something like that.

COSTELLO: You can't do that.

VELSHI: It's a little dodgy as to when you start getting these things that are not clearly defined. But there are a lot of interesting things.

Now, here's what's not covered. You mentioned tooth whitening. That's one of them. Tooth whitening is not covered. Health club dues, unless they are prescribed because you need it. Cosmetic surgery if it's elective is not covered. Hair transplants, no. And marriage counseling.

COSTELLO: Marriage counseling.

VELSHI: I'm so out of luck.

COSTELLO: Hypnosis is in there?

VELSHI: Teeth whitening, health club dues, cosmetic surgery, hair transplants and marriage counseling. I'm done.

COSTELLO: You can get hypnotized but you...

VELSHI: But you can't get marriage counseling.

COSTELLO: You know, this is...

VELSHI: Unless your marriage is causing you such stress that it needs you to get -- I mean, you know, that's (UNINTELLIGIBLE) the program.

COSTELLO: You could be -- if you're having trouble with your wife, you can be hypnotized to better deal with her...

VELSHI: There you go. There you go.

COSTELLO: I like that idea.

VELSHI: You're getting all sorts of tips and information here on DAYBREAK.

COSTELLO: Thanks.

VELSHI: But the trick is to try and estimate how much you're going to spend. If you can do that, it might be worth it. Don't over-invest in this thing, because you'll just end up losing it.

COSTELLO: Exactly. Thank you, Ali. We appreciate it.

VELSHI: OK.

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.

Britain will host a conference on Palestinian reforms in the near future. Prime Minister Tony Blair made the announcement this morning on a trip to Israel aimed at revising peace efforts.

Poland's prime minister became the second world leader to pay a surprise visit to Iraq in the last two days. The prime minister and his defense minister met with Iraqi leaders before heading to southern Iraq to visit Polish troops.

In money news, serial stocks in blue chip technology helped power the Dow to its highest closing in three and a half years. Some analysts say the upswing was boosted by what they call the year-end Santa Claus trend.

In culture, she calls herself a diva. They love her. Now she'll prove it. Female impersonator Dame Edna will show up at New York's Metropolitan Opera. Let's briefly hear her sing, shall we?

(BEGIN VIDEO CLIP)

DAME EDNA, FEMALE IMPERSONATOR (singing): My single brightest asset, it's my eyes. I pride myself on my eyes.

(END VIDEO CLIP)

COSTELLO: You like dancing now, don't you? She's going to perform the "Barber of Seville," at least part of it.

National Hockey League star Tom Bartusi (ph) is expected to plead guilty today in that attack on another player last season. New reports say Bartusi (ph) will be required to do community service.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Soldiers fighting in Iraq have stories to tell, but one family is not being allowed to access his -- access to his stories, I should say. Bill Hemmer has more on that coming up on "AMERICAN MORNING."

Tell us more -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning. Here's the story. A Marine was killed in Iraq. A family now wants access to his final legacy. And that legacy, Carol, are private journals, e-mails he kept online. Yahoo says he can't have them. As you can imagine, the family is not happy. The community is outraged. And we'll talk to the father about that story and what hope they have now of getting that final legacy.

See you at the top of the hour -- Carol.

COSTELLO: Yahoo says they can't have them.

HEMMER: Yes indeed.

COSTELLO: I can't wait to hear...

HEMMER: The provider, yes.

COSTELLO: Thank you, Bill.

HEMMER: Sure.

COSTELLO: Having some drinks during this holiday season? Well, we'll tell you how you can drink responsibly without putting extra weight on as well. Straight ahead, counting the calories in your holiday drink.

(COMMERCIAL BREAK)

COSTELLO: It's a beautiful day in New York. Would you believe it's gone up to 55 here? Sorry, all of you people out in Indiana and Ohio. You're going to get blasted.

You know, it wouldn't be the holidays without a little cheer. We know overindulgence will cause us to ride home in a cab. But a few too many could also compromise our waistlines.

Lisa Drayer is here with more.

I cannot believe how many calories are in a glass of wine.

LISA DRAYER, REGISTERED DIETICIAN: I know. A lot of calories. We often think about all of the foods during a holiday season, but alcoholic beverages can pack a lot of calories.

A glass of wine specifically? A hundred calories for white wine and 105 calories for five ounces of red wine.

COSTELLO: Just five ounces?

DRAYER: Exactly. That's what's considered one serving. So that's -- if you have more than one, you can imagine how the calories quickly add up. COSTELLO: I didn't realize that one glass of wine was one serving. I thought three.

DRAYER: On average. Also, peppermint schnapps, often popular during the holidays, one and a half ounces has 125 calories. And that's pretty standard for a shot of hard liquor. Also, 12 ounces of beer, 150 calories. A chocolate martini, two and a half ounces, that's really small, 188 calories.

COSTELLO: A chocolate martini.

DRAYER: Exactly. That's with that chocolate liquor in it. And eight ounces of eggnog, 538 calories. That includes rum.

COSTELLO: Wow! Wow!

DRAYER: Right. And it makes sense, because alcohol is calorie- dense. So, for example, for every gram of alcohol, you're getting seven calories in that gram. For carbohydrates and proteins, it's four. So, we're talking almost double the calories per gram.

COSTELLO: So another good reason not to overindulge. You know, I wanted to ask you about this, because this drink has become really popular: Red Bull and vodka.

DRAYER: Exactly.

COSTELLO: Which sounds disgusting, frankly.

DRAYER: It's actually very popular among college students these days. But it is a dangerous combination, because the stimulant effects of the energy drink cancel out any effects from the...

COSTELLO: From the vodka.

DRAYER: ... from the vodka, exactly. So, it's dangerous. People may not realize that they're tipsy, and it can lead to problems. So, it's not a good combination.

COSTELLO: So, tell female college students how many calories are in Red Bull. There are a lot of calories in that stuff.

DRAYER: Exactly. That will definitely increase the calories in the drink. But it's not a smart idea...

COSTELLO: No, don't do that.

DRAYER: ... if you're drinking those drinks.

COSTELLO: Can the Red Bull/vodka thing. That's disgusting.

OK. Tell us what we should be drinking this holiday season.

DRAYER: Right. Well, you want to stick to one serving ideally or limit it to two. That would be tops. That's the amount not only that is smart to consume in terms of calories, but it's the amount associated with the lowest risk of mortality among older adults. So that's one thing to keep in mind.

Also, if you're going to drink, you want to drink with meals, not without. Alcohol is absorbed more quickly without food in your system.

Also, a recent study from the University of Buffalo found that drinking without meals increases the risk of high blood pressure. So, another good reason to drink with food.

Limit it to one to two beverages. However, some groups should avoid alcohol completely. Those include pregnant women, women at high risk for breast cancer. More than one may increase the risk for breast cancer on a daily basis. Individuals with liver disease, and also individuals taking medications have to be careful because there can be some negative interactions. So talk to your doctor about that.

COSTELLO: Good advice. Be very smart about it this holiday season.

DRAYER: Yes.

COSTELLO: Thank you, Lisa.

DRAYER: Thanks.

COSTELLO: As usual.

This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Shall we get right to our mug question of the day, Chad?

CHAD MYERS, CNN METEOROLOGIST: Carol, that's a pretty mug.

COSTELLO: Yes, it is.

MYERS: That's the expensive one.

COSTELLO: I know. It's quite pricey.

MYERS: That's like 14 bucks.

COSTELLO: It is.

MYERS: It's time for the mug question for today. Were you paying attention? How many killer whales now live at the Seaworld in San Diego? Remember, there was just a baby whale born. So maybe add one to the number you thought it was. And what weight loss program will Kirstie Alley endorsed?

E-mail your answers to Daybreak@CNN.com. Daybreak@CNN.com. All you have to do is give me those -- I need both answers and your name, obviously. We will give you the results on Friday.

COSTELLO: Absolutely. And I was checking the papers this morning.

MYERS: Yes.

COSTELLO: And from "The Wall Street Journal" they're talking about popular toys for Christmas.

MYERS: Yes.

COSTELLO: Apparently, so many people are buying and then they run out that toymakers are now packaging them in smaller packages, which mean assembly for parents. And they talk specifically about the ESPN game station that takes three hours for parents to put together. And it comes with a 100-page instruction manual.

MYERS: Some assembly required. Batteries not included.

COSTELLO: Whew! And in "The New York Times," comedians in New York are forming a union, because they're paid so poorly. Get this: They're asking for 120 bucks for a 10 to 20-minute set on the weekends. That's up from a current average of $60. So, for 20 minutes of comedy, they only get paid 60 bucks.

MYERS: That doesn't even seem like it's worth a cab ride over there.

COSTELLO: It wouldn't pay for a cab ride or a cup of coffee either in New York.

MYERS: No, no. It really wouldn't. Right. You'd have to do about four or five shows a night.

COSTELLO: Exactly.

MYERS: I don't think you can probably book that. But anyway...

COSTELLO: Exactly. And as we've already said, it's already snowing in Indianapolis.

MYERS: Yes.

COSTELLO: In fact, we had a live shot from a reporter in our 5:00 a.m. hour of DAYBREAK. And it's really coming down. They already have a few inches on the ground.

(WEATHER REPORT)

COSTELLO: A preview now for what's in store for you tomorrow on DAYBREAK. The next segment in our video games series, Daniel Sieberg stops at the World Cyber Games in San Francisco. This is the Super Bowl of PC gaming. Plus, the latest Gallup Poll. Which celebrities have been nice and which ones have been naughty? That should be interesting. All of that and much more tomorrow on DAYBREAK.

And from the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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