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American Morning

Iraq Refugee Camps; Housing Slowdown?

Aired August 24, 2006 - 07:35   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody, I'm Soledad O'Brien.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris, in for Miles O'Brien. Relentless sectarian violence in Iraq is creating a new misery, internal refugee camps.

Michael Holmes got an exclusive look, and Michael joins us this morning.

And, Michael, how would you describe these camps?

MICHAEL HOLMES, CNN CORRESPONDENT: Well, they're not pretty, I've got to tell you that, Tony. It's not a nice thing to see. These were people who used to live comfortable, normal lives, if you'd like. The government here estimates nearly a quarter-of-a-million Iraqis now live in camps, all of them displaced from their homes since February of this year. Now that number grows every daytime. They're called internally displaced people, but really they're refugees in their own country. They're being forced to flee their homes, their lives, by this increasingly deadly sectarian violence.

Around the country were are 19 camps like the one we saw. Some of them have Sunnis who were forced to flee Shia neighborhoods. One of them we saw happened to contain Shias forced to escape death threats and killings in their own Sunni neighborhoods. We visited this camp called Jakuk (ph). Now, that has about 800 people living in an area, try to imagine this, the size of two soccer fields. Most of the housing there is just tents, a dusty landscape, sewage in the street, but in many ways it showcases the pessimism of those there, because they're starting to build there more permanent homes out of bricks they're making themselves. It's -- the kids that are there, they don't go to school. They try to amuse themselves playing marbles. Some of them just literally staring blankly into an increasingly bleak future -- Tony.

HARRIS: And, Michael, what about the prospects for the futures for these people?

HOLMES: Well, as long as the sectarian violence continues, and continues at the rate it has in recent months, they're not going home any time soon. In fact, one of the people we spoke with, she had fled her home with her family because of the threat, went to her parents' home, and the whole family moved in there, then they got threats there and they had to move out. A lot of these people feel that they'll never go home again, at least while the situation is the way it is.

HOLMES: Michael Holmes for us in Baghdad. Michael, thank you. Appreciate it.

O'BRIEN: Something we've known ever since we were kids, the solar system has nine planets, right? But as of today, it might not be true. The International Astronomical Union will vote today on the new definition of a planet, and Pluto -- poor little Pluto -- is expected to be demoted to dwarf planet. That's a step below Earth and the seven other classical planets. Last night comedian David Letterman joked about the up-coming decision. Listen.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, COMEDIAN: Tomorrow on the -- they're going -- astronomers will vote whether Pluto retains its planet status. The astronomers will vote tomorrow to whether or not to keep Pluto as a planet, and if Pluto loses, it will run as an independent.

(END VIDEO CLIP)

O'BRIEN: Sounds like he's kind of mocking Democratic Senator Joe Lieberman of Connecticut, who of course is now running as an independent after losing the primary.

(WEATHER REPORT)

O'BRIEN: Thanks to medical breakthroughs, pregnancy is now more likely than ever. In your 30s and your 40s and even your 50s, different health risks, of course, as you get older of course. We'll take a look, coming up this morning.

HARRIS: Also, is it finally a buyer's market? We'll take a close look at the cooled-off housing market, still ahead.

O'BRIEN: And America's incredible shrinking vacation. Lots of folks say they just don't have time to vacate. Take a look at how one company's fixing that problem. That's ahead. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: So what do you do on your summer vacation? For many Americans, believe it or not, the answer is, uh, nothing, because they've had no summer vacation at all. A new national poll finds that nearly half of the people surveyed cannot find the time for free time.

AMERICAN MORNING's Alina Cho with more on the incredible shrinking vacation. It's hard to believe, really.

ALINA CHO, CNN CORRESPONDENT: It is hard to believe, Soledad, but it is true. More Americans are taking fewer vacations. Some are too busy, others say vacations are too expensive, and guess what, high prices at the pump don't help either.

Whatever the case, Americans these days are saying less is more.

(BEGIN VIDEOTAPE)

CHO (voice-over): John Pepe is always working. He's on the job by 6:00 a.m., a trader at the New York stock exchange by day, a spin class teacher by night. He's also a divorced father of two. That leaves little time for himself or for a vacation. He only takes two weeks a year, even though he's allowed to take more.

(on camera): Some people might say, you get five weeks, you only take two; you're out of your mind.

JOHN PEPE, SALES TRADER/GYM OWNER: Yes, you could say that, in a good way, though. But a lot has to do with, you know, cost of traveling today. I mean, to vacation for four is not what it used to be, the cost of gas.

CHO (voice-over): In the dog days of August, when many could be relaxing at the beach, 43 percent of Americans, according to a new Gallup poll, have no summer vacation plans.

PEPE: Friends, family, they stay completely out of my mind and how long can you keep up this torrid pace and so forth.

CHO: It's gotten so bad accounting firm PriceWaterhouseCoopers completely shuts down for about 29 days a year. All 29 employees have to take a vacation. The response, overwhelmingly positive.

KYM WARD GAFFNEY, PRICEWATERHOUSECOOPERS: Hey, looking at your BlackBerry, no messages are coming through. You check your voice mail, kind of anticipating some calls, no calls. You took this breath and you say wow, OK, people are really serious about this.

CHO: A win-win.

BARBARA KRAFT, PRICEWATERHOUSECOOPERS: Folks came back and said it's the first time I had guilt-free time away from the firm.

CHO: And the firm says workers come back relaxed and refreshed and better able to handle stress. But don't tell that to John Pepe.

PEPE: Take it off, let's go!

CHO: He says any stress he brings home he works off at the gym, which he owns, another reason he says he can't get away.

PEPE: Would I love the extra time? Absolutely, but right now...

HOLMES: It's not an option.

(END VIDEOTAPE)

CHO: The travel industry association says the average American believes his or her summer vacation will last just six nights, and that's not a lot, especially when you consider that on average, Soledad, it takes at least three days to unwind. I'm sure you know that from taking vacations.

O'BRIEN: And about three minutes to get it all come crashing back the minute you step back in the office door.

CHO: That's absolutely right. You suddenly forget you were on vacation, don't you?

O'BRIEN: So this guy's just not taking the vacation? I mean, that's like burning the candle at both ends.

CHO: I know. Two weeks a year is what he takes, and he's actually taking next week off. So I said, well, what are you going to do? He said, I'm taking the week off from my Wall Street job; I'm still going to be teaching my spinning classes at night. It's a new business, so.

O'BRIEN: That's not vacation?

CHO: Yes, not a vacation, but he says I'm going to take some day trips with the kids. I'm going to try to unwind a little bit. So we'll see.

O'BRIEN: All right, Alina, thanks.

CHO: Sure.

HARRIS: Remember when two weeks was the average? Two weeks was the average. That's all you would get a year.

CHO: That's right. Not anymore.

O'BRIEN: Before BlackBerries. Two weeks is not really two weeks when everybody's e-mailing you.

HARRIS: I guess -- all right.

Coming up, looks like the housing market is taking a dip, but is now the time to buy? We will take a look. That is next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Homeland Security Secretary Michael Chertoff says progress is being made in securing the nation's borders. Secretary Chertoff said new procedures designed to deport more illegal immigrants have resulted in some real progress. He's in Austin today, discussing border issues with the governors of Texas and California, New Mexico and Arizona.

The Department of Homeland Security also praising its own efforts for ending a policy called catch-and-release. This new get-tough attitude comes as the White House is trying to convince Congress to pass comprehensive immigration reform.

CNN's Lisa Sylvester has more this morning.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice over): Under the old rule, Border Patrol agents would simply release illegal alien border crossers who were from countries other than Mexico back on to U.S. streets. Today, Secretary Michael Chertoff declared the federal government had completely turned around that policy known as Catch and Release in less than a year.

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: I'm pleased to say not only did we meet that, but we exceeded that deadline. As of the last several weeks, we have essentially been at 100 percent catch and remove in our southern and northern border.

SYLVESTER: DHS also touted the addition of 4,000 new detention beds. Illegal alien removals are expected to surpass last year. And 900 new Border Patrol recruits are trained and ready for duty.

But not to rain on Chertoff's parade, critics say the Department of Homeland Security is still a long way from solving the illegal immigration crisis.

MARK WYLAND, CALIFORNIA ASSEMBLYMAN: I think it's a good thing that they've done that, but the problem is that means that we'll catch a few more of the non-Mexican illegal immigrants, but we still have floods of illegal immigrants entering the country. And in order to make states like California work well, we need to control that.

SYLVESTER: As for catch and remove, Border Patrol agents are returning illegal aliens back to their home countries, but only those caught within 100 miles of the border.

BILL BUCHANAN, AMERICAN COUNCIL FOR IMMIGRATION REFORM: You still have the whole country. We're talking about 11 million illegal aliens, possibly 20 million, and maybe even by some measures 30 million.

SYLVESTER: Illegal aliens who make it to the interior are still, for the most part, scot-free.

(on camera): Employers are still flouting immigration laws, hiring illegal workers, and illegal aliens are still evading the U.S. judicial system. More than 66,000 illegal aliens placed in removal proceedings failed to show up for immigration courts the first half of this fiscal year. That is on track to surpass the number of absconders in 2003 and 2004 combined.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: This report first aired on "LOU DOBBS TONIGHT," which airs each weeknight at 6:00 p.m. Eastern -- Tony.

HARRIS: Well, is it a good time to buy a home? We'll get new clues in a few hours when the government tells us just how many homes sold last month.

Meanwhile, the National Association of Realtors says sales of previously owned homes dropped more than 4 percent in July to the slowest pace since January of 2004.

Reporter Cheryl Preheim from our affiliate KUSA in Denver has more on what the slowdown means for consumers. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hi, Cindy, how are you?

UNIDENTIFIED FEMALE: I'm fine, thank you. How are you?

UNIDENTIFIED MALE: Good!

I brought my little new brochures.

CHERYL PREHEIM, KUSA REPORTER (voice-over): Cindy Cowan (ph) has gone through too many of these.

UNIDENTIFIED FEMALE: I think this is the third round.

PREHEIM: Without any results.

UNIDENTIFIED FEMALE: First (ph) poster child for a home that doesn't sell.

PREHEIM: Their condo has been on the market for...

UNIDENTIFIED FEMALE: For a year. It's been too long. I'm not getting any younger.

PREHEIM: The Zurkel's (ph) house in hilltop has been up for sale for about 11 months.

UNIDENTIFIED FEMALE: There are so many houses on the market now that, you know, there's more competition than there used to be two years ago.

PREHEIM: In Colorado right now, there are 24,326 single-family homes for sale. Last year at this time, just under 18,800. In 2002, about 17,000. Realtors point to a lot of factors.

UNIDENTIFIED MALE: Three-dollar gas, not knowing where our next war is going to be, all of the things that are affected by petroleum prices and the cost of groceries and household goods, uncertainty in the employment market.

PREHEIM: Realtors also say new construction makes resales that much more challenging to sell.

UNIDENTIFIED FEMALE: New builders can offer a number of incentives that resale homeowners can't provide.

PREHEIM: And on top of it all, Colorado has the highest foreclosure rate in the country.

UNIDENTIFIED MALE: Those properties won't be coming on the market for perhaps five to six months. So we're building a glut in the future with every foreclosure filing. It's simply going to take a while to absorb those properties into the market.

PREHEIM: So it could be a while longer before the sign at Zurkel house and so many others finally comes down.

UNIDENTIFIED MALE: It's a tough time.

(END VIDEOTAPE)

(BUSINESS HEADLINES)

O'BRIEN: We've got to take a short break. We're going to update your top stories right after this. Stay with us.

(COMMERCIAL BREAK)

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