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Mudslide Fears In California; Storm Damage In California; Plains On Fire In Texas; Baby Noor From Iraq; Financial Resolution Tips

Aired January 02, 2006 - 10:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: We're out of time.
MILES O'BRIEN, CNN ANCHOR: Way out of time. Overtime.

Daryn, take it away. Happy new year.

DARYN KAGAN, CNN ANCHOR: Happy new year to you, Miles, and to you, Soledad. A great 2006 to you guys in New York City.

We'll go ahead and start the year. The first Monday and boy is weather the word today for much of the U.S. The two most destructive forms of weather are out there in polar opposites. We have fire and we have rain. Fires scorching the dry southwest. Tens of thousands of acres have burned. Entire towns have been wiped out. We have live team coverage.

And rain with it. Flooding and mudslides drenching California. The northern part of the state headed for much of the weekend. Now Southern California is getting soaked. Live team coverage of the soggy conditions as well ahead on CNN LIVE TODAY.

First, though, a quick check of other stories happening right "Now in the News."

U.N. investigators say they want to interview Syria's president in last year's assassination of a former Lebanese leader. Investigators quote Syria's former vice president as saying Bashar al- Assad had made direct personal threats against former Lebanese Prime Minister Rafik Hariri months before his February assassination. Investigators also want to interview Syria's foreign minister.

Iraq's oil minister has announced his resignation to protest a hike in his country's gas prices. Ibrahim Bahr Al-Ulum says that the price increase will negatively impact the living conditions of many Iraqis who are already struggling to survive.

Here in the U.S., a Florida teenager is back home from Iraq after running away from a hair-raising, globe-trotting adventure. Sixteen- year-old Farris Hassan was greeted at the airport last night by his parents who whisked him away from the media that followed his journey. Later this hour, we will hear from his mother.

Hello, good morning and happy new year to you. I'm Daryn Kagan at CNN Center in Atlanta. We start in California where residents in the south are bracing for the latest storm. While neighbors to the north begin a massive cleanup, the storm unleashed floods and mudslides, threatened levees and forced road closures. The high water is receding in the region today reveling piles of debris. Live reports for you this hour from two hard hit areas in the north, San Anselmo and Truckee. But we're going to begin farther south in Santa Monica. Not too far away where they're awaiting the beginning of the Rose Parade. Jen Rogers is there.

Hi, Jen.

JEN ROGERS, CNN CORRESPONDENT: Hi there, Daryn.

Well, so far we have not had as much rain as we expected. It really hasn't lived up to expectations. But what we have had a lot of is really high wind. We're expecting gusts up to about 40 miles per hour. Let me just show you what the trees are doing here. We're losing branches. The trees have been blowing pretty steadily all morning long.

Now one of the big issues here is going to be that we've had so much rain over the last, you know, couple of weeks and over this weekend especially that the ground is already very soft. So mudslides and landslides are going to be an issue. Right now we're above the Pacific Coast Highway. This leads up to Malibu and you can see this is a very steep cliff. If we get a lot of rain, this would be a place that you could be looking for mudslides or landslides and places like this are very common all up and down the coast.

Now take a look out to the beach. We also have a high surf warning in effect. You can see the big white waves out there pounding the coast. So again, a high surf advisory, a high wind advisory. And we also do have a flash flood watch in effect for the burn areas. Those are really outside of Los Angeles city proper. But burn areas would be where they have had forest fires or fires during the summer and fall, so people will be watching for some issues there as well.

But so far, Daryn, again, the rain keeping off a little bit, but I'm not sure they're going to get away with the Rose Bowl parade not getting a drop on it, but we'll see.

KAGAN: We'll see. Jen, I'm flashing back because those very beaches are where I lived out my teenage years, so I know that part of PCH and I know that the part that usually has mudslides is usually farther up, as you were saying, closer to Malibu. Is the word that things are still looking good up that direction?

ROGERS: You know, right now we don't have reports any of major slides in that area. But, of course, that would be an area. And even though this is a public holiday, we're already starting to see traffic pick up a little bit and we have already seen one accident. I talked to the highway patrol. They've seen almost double the number of accidents that they would on a normal morning. So traffic is going to be an issue. We'll be watching all these roads for sure.

KAGAN: All right. Jen Rogers in Santa Monica, California, thank you. And about an hour away from where Jen's standing in Pasadena, they're standing by waiting for the Rose Parade to begin. You can see, people are bundled up. Now, of course, the Rose Parade usually takes place on New Year's Day but never on a Sunday. So they delayed it until today. No rain has fall on this parade in over 50 years, but it looks like they might get a soggy one indeed today and still the parade is set to go on.

Let's move to Northern California. A quaint town of San Anselmo in Marin County has been transformed by the type of flooding it has not seen there in decades. CNN's Katherine Barrett joins us. She is in San Anselmo. The damage right now estimated in the tens of millions of dollars.

Good morning.

KATHERINE BARRETT, CNN CORRESPONDENT: Good morning to you, Daryn.

That's right. This quaint town is now littered with piles of debris like the one you see behind me. The wreckage of Saturday's flood that had the main street behind me here running with four feet of water. That water found its way into shops and residences all along this street. People here are still waking up to struggle and deal with the wreckage of their businesses.

To clean them up, many spent New Year's Day digging out, mopping up shops. The river damaged flooring, goods in these shop, fixtures. The piles of debris behind me are fixtures and things that people have found unsalvageable.

As you said, the damage estimated just in this one town at between $25 and $30 million. Shop owners will spend more time today cleaning out the wreckage. Also in this area, isolated mudslides damaged roads. And this one in Fairfax, California, destroyed one home. Up in the California wine country, the Napa River left its banks, flooding that town, causing evacuations of the area and also flooding California's famed vineyards.

Now it is still raining here, but the rivers have recede for the most part to below flood stage and the rain is not nearly as heavy as it was in recent days. There remains a flood warning in effect for the Russian River in Guerneville and we'll just have to watch and see if this storm system intensifies. But today, again, expected to be a day of cleaning out, mucking out and trying to find a way to recover.

Daryn.

KAGAN: Katherine Barrett live in San Anselmo, thank you.

Now we go from the deluge to the drought. Wildfires are burning across north Texas and Oklahoma for a seventh straight day. The small Texas towns of Kokomo and Ringgold have essentially been destroyed. Winds gusting to 60 miles an hour, fanning flames outside of Lubbock forcing evacuation. And a wildfire that destroyed homes on the outskirts of Oklahoma City is now under control. But at least a dozen wild fires are still burning across that state.

So putting these fires into context, they are simply massive. In Eastland County, Texas, the blaze is 35 miles long, up to three miles wide. It threatened small towns in its path and, as we just mentioned, the fires have already charred a couple of communities. One of them is Ringgold, Texas, and Brad Watson from our CNN affiliate, WFAA, has that story.

(BEGIN VIDEOTAPE)

BRAD WATSON, CNN CORRESPONDENT, (voice over): This wildfire started late Sunday in Clay County. And driven by strong west winds, ripped into Montague County for almost 20 miles. The small town of Ringgold, population 100, stood directly in the fire's path and didn't stand much of a chance.

UNIDENTIFIED FEMALE: They were tall and fast and they was twirling like -- I mean they'd just go and it would just carry them and then it would just start up again.

WATSON: The Texas Forest Service says flames destroyed 32 homes and damaged seven. The town also lost its store and post office. The surging fire then slashed toward Nocona, where the fire department ordered an evacuation for the whole town of 3,200. Some fled to a Red Cross shelter set up at a church in nearby Muenster.

UNIDENTIFIED FEMALE: It was scary. It's still scary. You know, I mean, I've never been in nothing like this.

WATSON: But the fire missed Nocona and jogged north of town where firefighters stalled it. But there's new concern now about a wind shift.

UNIDENTIFIED FEMALE: The winds aren't supposed to be as strong tomorrow but they're supposed to be blowing more out of the north rather from the west, which is what we've pretty much had all day today. Which means it's going to push the fire a different direction. So we're concerned about the southern plank of the fire.

(END VIDEOTAPE)

KAGAN: And let's go live now. Brad Watson with our affiliate WFAA.

Brad, what's the situation right now?

WATSON: Well, the situation right now is, there's going to be this wind shift, as the forest service was talking about. Our winds are still coming out of the west. They're supposed to shift from the north. This is critical to this particular fire because when the winds shift and start coming out of the north, they're supposed to kick up to 20 miles an hour today. Our humidity is supposed to get down to, get this, about 6 percent. Higher temperatures, higher winds, lower humidity, there will be another red flag warning issued by the forest service in this area today, which means conditions are prime for more wildfires. Now to try and knock this particular wildfire down, it's taken about 20 miles or so. They're going to bring in aerial tankers. They're going to drop retardant on the flames. They're also going to bring in three helicopters that have those 1,000 gallon buckets to also supplement on that. They'll have ground crews.

The key here is time. They need to try and get this thing knocked down before the winds shift, because if they shift and kick up, that means we could be off in another direction and this fire starts heading south almost kind of like an L shape. So they want to try and get on top of this this morning.

But if the winds shift and take off and they don't have it controlled by then, it could be headed to a new direction and this thing could keep on running. So there's no guarantee that's going to happen. And they're really after it this morning. And they'll do their best to try and get it down. We'll see what happens later today.

Daryn.

KAGAN: Brad Watson live with our affiliate WFAA. Brad, thank you for the latest on that.

So we, as we said, we have the drought, the deluge and, on top of everything, tornadoes? That's what Bonnie Schneider tell us in our weather center.

Bonnie.

(WEATHER REPORT)

KAGAN: And we'll have many more weather updates later this hour, plus reports on conditions in Oklahoma and California. Or you can go to the web at any time for severe weather stories, as well as the forecast for your community, cnn.com.

One of the many amazing images from California this weekend was the dramatic rescue of a woman from raging floodwaters. We will check in and see how she's doing.

Also, the three-month-old Iraqi baby in urgent need of medical attention. She is now here in the U.S. And we've just learned more about the treatment she will be receiving.

Also, back from Iraq, an American teenager who should not have been there in the first place. The Florida teen who decided to vacation in Baghdad. His mother talks about the happy reunion when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

KAGAN: The Florida teenager who ran away from home in order to pursue his journalistic ambitions in Iraq will be filing an informal report today with his mother. She is awaiting details of her son's journey. That ended last night with his return home to Florida. We spoke with mom earlier here on CNN.

(BEGIN VIDEO CLIP)

SHATHA ATIYA, FARRIS HASSAN'S MOTHER: We briefly met in the airport before he went to his dads. So, basically, we just hugged, kissed. We're happy. And told him that we're very happy that he's home alive and everyone cried a bit. And I had to brief him a little bit about the presence of the media because it was pretty overwhelming. And we just, you know, just embraced him, talked about how we feel and later on we're going to meet today and discuss the rest of the important things that we have to go through.

(END VIDEO CLIP)

KAGAN: Oh, I bet there will be some discussing there. The 16- year-old waited until he was in Kuwait before telling his parents of his travel plans. Well, he wasn't able to speak Arabic. He did make his way to Baghdad where he walked into the Associated Press bureau and he volunteered to work as a reporter.

Just a couple of hours ago, we learned more about the medical plans for baby Noor, the Iraqi baby whisked to the U.S. for life- saving surgery. Doctors say the three-month-old could undergo surgery a week from today thanks largely to a community effort to arrange for her travel and her care. CNN's Christopher King has that story.

(BEGIN VIDEOTAPE)

CHRISTOPHER KING, CNN CORRESPONDENT: A celebration for baby Noor and a solemn hope from the people who played a role in her potentially life saving trip to the U.S.

UNIDENTIFIED MALE: We pray that you might help her stand as a sign and a symbol for us.

KING: Members of the Shepherd of the Hills United Methodist Church just outside Atlanta said special prayers for the little girl from Iraq. It was one of their members, Lieutenant Jeff Morgan from the Georgia National Guard who first saw baby Noor during a raid for insurgents in Abu Ghraib. He, and the rest of his company, felt compelled to help the family. An e-mail plea went out from Morgan to his friend and fellow church member Debbie Stone.

DEBBIE STONE, CHURCH MEMBER: Because we all saw this, I think, as an opportunity for us to truly make a difference in a family and a community in Iraq.

KING: Stone contacted a non-profit organization and now an Atlanta hospital and doctors are preparing for life-saving surgery. Noor has spina bifida, a life-threatening birth defect in which her final cord never completely closed. Doctors in Iraq had given her just 45 days to live, but the three-month-old has already defied those odds.

On Saturday, baby Noor, her grandmother and father landed in Atlanta. The long diplomatic push to get her here is over. Now the real battle begins. Doctors here say the little girl is in good condition now. Without surgery, they say, she would have died. They believe if baby Noor is treated in time, she has a good chance of survival. Dr. Roger Hudgins, who specializes in spina bifida, will perform the surgery on baby Noor for free.

DR ROGER HUDGINS, CHILDREN'S HEALTHCARE OF ATLANTA: My hope is that this child will, number one, be intellectually and cognitively normal.

KING: The outlook for baby Noor is unclear. Doctors are evaluating her to see when she'll be stable enough for surgery. The operation could take about three hours. But the benefits, if she's lucky, they say, could pay off for a lifetime.

Christopher King, CNN, Atlanta.

(END VIDEOTAPE)

KAGAN: Rebuilding lives in New Orleans is clearly a priority in 2006. But now's the time for many people to try to salvage some of their more precious belongings. Ahead on CNN LIVE TODAY, the efforts underway to save the musical instruments that helped add to the flavor of the crescent city.

Also, lose weight, quit smoking. Those are two of the most common resolutions for the new year. But did you make any promises about your finances? If you do, we've got the lady here to help you.

Hey, Ger, happy new year.

GERRI WILLIS, CNN CORRESPONDENT: Happy new year to you too, Daryn.

Hey, you were thinking about shedding pounds. We're going to show you how to fatten that wallet. "Five Tips" is next.

(COMMERCIAL BREAK)

KAGAN: The new year brings the promise of a new start. So we thought we would usher in 2006 with some financial resolutions for you to consider. Joining us with her "Top Five Tips" is our Personal Finance Editor Gerri Willis.

Gerri, happy new year.

WILLIS: Happy new year to you too, Daryn. Good to see you.

Tip number one today, you've got to haggle for a new rate on your credit card. Guess what, everybody starts the new year with a lot of debt from the holidays from giving gifts. You've got to get rid of it because, let's face it, Daryn, you don't want to be paying for this when you're trying to pay for your summer vacation. The best thing to do is call your credit card company up and ask for a lower rate. If you have a credit score of 650 or more, you should be successful in doing that . And you can always shop around as well at cardratings.com and cardtrack.com for a more -- a better card if you don't have a good one now.

KAGAN: You're a fan of the credit cards that give you money back?

WILLIS: I am and I'll tell you why. For most of us, credit cards are sort of a necessary evil. You have to have them to do almost anything in our society. You need to have some on hand. Some of them pay you money back. It's worth thinking about finding one of these. Right now American Express has what it called the One Card, which pays you 1 percent cash back. They put that money into a 3.5 percent high yield savings account, which is a pretty good deal.

Bank of America has a new interesting program for debit card holders. They call it their keep the change program. Every time you buy something, they round up that amount to the nearest dollar, they put the difference into a savings account. Now this is your money, obviously, that you're saving. This is not a cash back award program. But they do have a cash back with that. The savings account yields 0.5 percent. They match that for the first three months, whatever you're making, and 5 percent annually after that.

Now it takes a lot of time to analyze all these offers, but I'm telling you, cardtrack.com, one of these Web sites can help you do it and find the best one for you. Because, Daryn, let's face it, the offers you get in your mailbox every day may not be the best deal.

KAGAN: Unless you're looking into wallpapering a room because we get plenty of them, don't we?

A lot of people have student loans hanging over their head.

WILLIS: Well, here's the big news headline. If you have student loans, the rates on it are going to go up and dramatically. The Stafford Loan, the rate will move to 6.8 percent from 4.7. That is a huge difference. But there is something you can do about it. You can always consolidate your loans. That locks in the rate of interest. If you're still in school, you can take an in-school deferment or just get an early repayment status on those loans and you can lock in the lower rate. It's important to do that now because Congress is acting and those rates are going to go up willy nilly and it's going to make you responsible for even more debt.

KAGAN: A little check-up on your 401(k) might be in order.

WILLIS: Yes, this is always a good time of year to think about the 401(k). And if you haven't flipped the switch on yours yet, you really need to do it. Also, if you're over 50, you can play catch-up on that retirement by adding an additional $5,000 this year to your retirement. It's a great thing if you're behind and, heck, who isn't behind on their 401(k)?

KAGAN: And, finally, look at your insurance package.

WILLIS: You need to reevaluate that insurance, especially in the wake of Katrina and everything else that happened last year. You may be underinsured. In fact, up to 40 percent of the people who made improvements to their home, big improvements, capital improvements, they haven't changed their home insurance. That means they're not adequately insured if something happens to your house, like a hurricane. And keep in mind, flood insurance. A lot of people last year after the hurricanes need flood insurance. And, Daryn, I've got to tell you, most people who use flood insurance aren't even on the coasts. So you want to think seriously about whether you're in a flood plain. To find out, contact your insurer and talk to them and see if you're one of those people who needs to get one of the policies.

KAGAN: Some folks in California are probable thinking about that today.

WILLIS: Yes, absolutely.

KAGAN: Gerri, thank you. Good to see you.

WILLIS: You're welcome.

KAGAN: Let's go ahead and check on what's happening right "Now in the News" as we get close to the half hour.

Turkey's ambassador to Iraq survived an assassination attempt today. A Turkish embassy official says the ambassador was leaving a Baghdad mosque when his three-car convoy came under attack. About 15 gunmen fired from rooftops but no one in the convoy was hurt.

More violence in Iraq today. A car bomb exploded near a bus carrying Iraqi police recruits. Seven people were killed, 13 others were wounded north of Baquba. The bus and a number of vehicles were destroyed.

The U.S. military says that four American civilian contractors in Iraq died in a vehicle accident. That accident happened yesterday at the Alisad (ph) air base near Anbar Province. The contractors were riding in a bus that was hit by a 7-ton truck. Nineteen other people, including a U.S. marine, were injured. The military says the accident was not a result of hostile action.

Colder weather and rain helped firefighters battle some of the 27 brush fires across southeastern Australia today. The number of fires is down by half since the weekend. Triple digit temperatures and strong winds fueled those. Officials say it could be four days until they are all under control. One death is being blamed on those bush fires.

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