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President Bush Urges Congress To Act; Oregon Storms; Protesters Face Off; Gerri's Top Tips

Aired December 03, 2007 - 10:00   ET

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

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In August, Congress passed legislation to help modernize the Foreign Intelligence Surveillance Act. That bill closed critical intelligence gaps, allowing us to collect important, foreign intelligence information about terrorist plots.
The problem is the new law expires on February 1st. While the threat from the terrorists does not expire. The director of National Intelligence, Mike McConnell, has warned that unless the FISA reforms in the act are made permanent, our National Security professionals will lose critical tools they need to protect our country.

Instead of listening to the judgment of Director McConnell, some in Congress now want to restrict the intelligence tools that help keep the American people safe. They're blocking efforts to provide meaningful liability protection to those companies now facing multibillion dollars lawsuits only because they are believed to have assisted in our efforts to defend our nation following the September 11th attacks. Congress must stop this obstruction and make certain our National Security professionals do not lose a critical tool for keeping our country safe.

Third, Congress needs to act immediately to prevent the Alternative Minimum Tax from hitting more Americans this year. The AMT was enacted in 1969 to ensure that a few hundred wealthy individuals paid their fair share of taxes. But when Congress passed the AMT, it was not indexed for inflation.

As a result, the AMT's higher tax burned is being imposed on more and more middle class families. Last month Treasury Secretary Paulson wrote a letter to members of Congress warning them about this. That if they put off an AMT fix, it could delay the delivery of about $75 billion worth of tax refund checks.

Instead of listening to Secretary Paulson's warning, Congress continues to delay action. The longer congress delays action, the longer Americans will likely wait to get their tax refund checks next year. If Congress fails to act, as many as 25 million Americans would be subject to AMT. On average, these taxpayers, many of them middle class families, would have to send an extra $2,000 to the IRS next April. At a time when many American are struggling with home mortgages and health care costs, the last thing they need is for Congress to stick them with an additional tax increase.

Finally, Congress has important work to do on the federal budget. One of the Congress' most basic duties is to fund the day-to-day operations of the federal government. Yet only one of the 12 spending bills has made it into law. Congressional leaders are now talking about piling the remaining bills into one monster piece of legislation, which they will load up with billions of dollars in earmarks and wasteful spending.

Now is not the time to burden our economy with wasteful Washington spending that will lead to higher taxes. Congressional leaders need to do their job and pass the remaining spending bills in a fiscally responsible way. If they send me an irresponsible spending bill, I will veto it.

The end of 2007 is approaching fast and the new Congress has little to show for it. I call on members to use the time left to support our troops and to protect our citizens, prevent harmful tax increases and responsibly fund our government.

Thank you.

BETTY NGUYEN, CNN ANCHOR: And there you have it. The president talking money today and what he wants Congress to do in regards to the legislative priorities.

We want to bring in CNN's Jessica Yellin on Capitol Hill.

And, Jessica, basically want you to serve as a fact check, if you would for us, in regards to what the president just said. First of all, he said, if there's a delay in funding and Congress doesn't get these priorities set and send him that, the Defense Department will lay off some 100,000 people. Is that correct?

JESSICA YELLIN, CNN CORRESPONDENT: Well, you know, both the president and the Democrats here have acknowledged that. The money for the DOD could run out by February. But the Democrats -- so the president is right in theory, but the Democrats have made it absolutely clear that they will get them funding by the time any of that would happen. The question is, what will that funding look like?

Something else the president said is, well, the proposals that the Democrats have put out would require a withdrawal date from Iraq. That's not true. What the Democrats have tabbed (ph) is something that would require an initial draw down and then a goal date for a withdrawal. But that could be changed by any of the generals.

So what they're doing is using this issue to really fight over a policy issue. It sounds like a lot of political squabbling, but there is some policy substance under it and the Democrats have promised to get that money to the troops. The president just wants it on his terms.

Betty.

NGUYEN: Yes, but is there any money under it. Because the president said, you know, if this isn't done, the military's going to run out of some money by early next year. It's going to affect the Marine Corps and it's going to effect a lot of the operations. YELLIN: No, the money is there. What the congressional research services and the folks who do nonpartisan checking on the money say, the money is there. It has to be move around. It might not be convenient. But there is no near-term threat to lose the funding. That is what the officials have said who are nonpartisan and not aligned with any side here. Although the Department of Defense has itself said that they will start sending out notices to let people know that the money is soon to be gone. So what you're seeing is brinksmanship. They're playing a game of brinksmanship to see who will brink first.

NGUYEN: All right. Two more things you mentioned. National Security professionals will lose the tools that they need to keep people safe. Is that true?

YELLIN: Well, it's the FISA bill, which is the wiretapping bill. And that's something that is almost certain to be before the Senate this last stretch of time. So, I mean, before recess, which is in December 21st-ish probably. So, no, it's not likely that they will lose the tools in the near term. There will be some debate over what will be in that bill. But the Senate here is promising to get it done. That one still remains up in the air. How it will play out. But the Democrats and Republicans have both made it clear they value this program and they don't want it to go away.

NGUYEN: And last thing he said is that -- if the bill is not passed and soon, he says that a lot of people are going to be affected by this Alternative Minimum Tax, saying that it could delay some $75 billion in tax refunds.

YELLIN: And, bingo, he is right. This is an important piece of legislation because it really -- it hits Americans in the pocketbook and it could hit 25 million Americans with increased taxes or most of them with increased taxes. And Congress has been unable to agree on how to pay for this. And the Senate has promised to take this up in the remaining days. They really do need to. Otherwise, a lot of Americans will feel the pinch in the wallet and the Democrats, look, they don't want their voters having to pay extra income taxes because they failed to act. So the Democrats are committed to getting it done, they say. They just have to figure out exactly how to pay for it.

NGUYEN: Yes, that's going to hit a lot of people if something isn't done about it, but it hasn't already hit a lot of folks.

All right, Jessica Yellin joining us live. Thank you.

And we want to let you know this. A little bit later today, Senator Harry Reid is going to be having a press conference, obviously, in response to some of this. That's going to be at 1:00 p.m. Eastern today. And, of course, CNN will take that live.

T.J. HOLMES, CNN ANCHOR: A snowstorm hitting the Northeast. The powerful Pacific storm hammering the Northwest. Hurricane-force winds and towering waves deliver is vicious one-two punch. The latest from reporter Chad Carter in Lincoln City, Oregon. And he is with CNN's Portland affiliate KPTV.

(BEGIN VIDEOTAPE)

CHAD CARTER, CNN CORRESPONDENT: The Oregon coast continues to get pounded by high winds today as a storm system moves off the Pacific Ocean and is just battering the Oregon coast.

Let's give you a look behind me. You can see how strong those winds are as it blows the rain right in front of that light pole and it is shaking this morning. Here in Lincoln City, where we're seeing some of the toughest wind, it has blown the siding right off the Chinook Winds Casino here. That happened yesterday when some of the strongest winds started coming ashore.

However, we're expecting a lot more all day long. And the rain continues to come down in sheets. We have received inches in just the last day and a half or so alone. Forecasters here are saying that there is much more in store.

The coastal communities about an hour and a half west of Portland are bracing for all of this. Emergency officials saying they are prepared, but with power out in many, many communities, they're having to do their best to wait this storm out and wait for daylight to see exactly what kind of mess mother nature has left behind.

In Lincoln City, Chad Carter, CNN.

(END VIDEOTAPE)

NGUYEN: What a mess.

HOLMES: Yes, it's a wallop on the West Coast. Wind advisories there. Flood warnings. All those things in effect right now.

NGUYEN: Yes, meteorologist Jacques Jeras is live in the severe weather center with a look at where the storms are now.

And we're not just talking about the West Coast, Jacqui. It's both the West and the East Coast getting hit up today.

(WEATHER REPORT)

NGUYEN: We do want to talk a little bit more about a killer storm that's barreling through the heartland. This morning it is plowing into the Northeast. Much of the region battered with snow, sleet, freezing rain. Parts of New England could see a foot or more of snow and that could mean an ugly, ugly travel day in the Northeast again today.

Now the same storm created even more chaos in the nation's mid section. Hundreds of flights were canceled over the weekend. The storm blamed for at least 11 traffic deaths.

When weather becomes the news, you can see it right here on CNN. And if it's happening outside your window, send us your video or photos. All you have to do is go to cnn.com and click on I-Report or type i-Report at cnn.com into your cell phone. But remember, stay safe while doing it.

HOLMES: Well, the NFL's friends and family and certainly the Washington Redskins stopping today to remember Sean Taylor. Funeral being held this morning in Miami or the Redskins' safety. He was shot at his home last week. The Redskins did hold a tribute before their game yesterday. Then on their first defensive play, the team honored him by lining up just 10 players on the field instead of 11. We'll show you some of Taylor's funeral. That's coming up in our 11:00 Eastern hour. And cnn.com will have complete coverage of his funeral service.

NGUYEN: Don Imus back on the air, but will he be as risque as ever or is he a changed man? We'll talk about it with media critic Howard Kurtz.

(COMMERCIAL BREAK)

HOLMES: Well, hey there, everybody. I'm T.J. Holmes. You are in the CNN NEWSROOM.

A man shoots pair of burglars outside his neighbor's house. Did race have anything to do with it?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It doesn't matter what race the thieves are. They're going to get killed when they break into the wrong house.

(END VIDEO CLIP)

HOLMES: Taking lives to protect property and a community divided.

(COMMERCIAL BREAK)

NGUYEN: A Texas homeowner shoots and kills two men he suspects of breaking into his neighbor's home. We told you a couple weeks ago about Joe Horn's call to 911. Well he's heard telling the operator saying that he is going to shoot the suspects. And now there is more fallout from the story with protesters facing off and things getting downright nasty. Kevin Reese (ph) with affiliate KHOU reports.

(BEGIN VIDEOTAPE)

KEVIN REESE, CNN CORRESPONDENT, (voice over): The Christmas decorations light up Timberline Drive, but if you look closely, support for neighbor Joe Horn is on display here, too. It certainly was on display earlier. Activists Quanell X came here again to protest the shooting deaths of two burglars. He got a protest in return.

UNIDENTIFIED FEMALE: I'm glad somebody came and showed up to support our neighbor.

REESE: Some of these people actually live in this neighborhood, but many more of them do not, including a group of bikers who wanted to be here to shout Quanell down.

UNIDENTIFIED MALE: It doesn't matter what race the thieves are. They're going to get killed when they break into the wrong house.

REESE: Racial slurs were also shouted from the crowd. Quanell and his supporters raised fists in a black power salute in return. The crowd tried to drown them out with another message, to go home.

UNIDENTIFIED MALE: Give us your address and we'll send our thieves to you.

QUANELL X, PROTEST LEADER: What the two brothers did was wrong. We believe that it's not right for anyone to become judge, jury, and executioners.

REESE: Before the shouting and shoving matches were over, riot police were on stand-by just in case this got out of control. But it didn't and Quanell left and the neighbors and their supporters declared victory.

UNIDENTIFIED FEMALE: I think we let them know that we're not going to get pushed around and that we have the right to stand up, just like they have the right to stand up, and support.

(END VIDEOTAPE)

NGUYEN: Man. Well, Horn's attorney says his client shot the men only after they came into his yard and threatened him. This case is expected to go before a grand jury. And we will continue to follow it.

HOLMES: Another case we are continuing to follow, Sudan's president pardoned the British teacher convicted of insulting Islam. Gillian Gibbons is out of jail this morning. She'll be heading back to England from Khartoum. Gibbons was sentenced to 15 days for allowing the student to name a teddy bear Muhammad. She says she never meant to offend anyone. Gibbons' family thrilled that she's out of jail, but her son says they won't breathe easy until she is on a plane.

(BEGIN VIDEO CLIP)

JOHN GIBBONS, GILLIAN GIBBONS' SON: It's been a strange old week. It's been a very stressful -- it's some parts are very difficult for the family. But we're just pleased that hopefully now it might be coming to an end and mom might be coming home. Fingers crossed. But as you say, we're not going to, you know, get to excited until she's on that plane. Just if this week's taught me anything, anything can happen.

(END VIDEO CLIP)

HOLMES: Yes, on Friday, a mob of protesters demanded Gibbons actually be executed. British Prime Minister Gordon Brown's reaction to the pardon, he says common sense has prevailed. NGUYEN: Well, a stinging defeat for Venezuelan President Hugo Chavez. Venezuelans rejected his proposed changes to their constitution. Thousands who opposed the changes celebrated early this morning. The proposals would have strengthened President Chavez' move towards socialism and would have allowed him to run for re-election indefinitely. The vote, about 51 percent against, 49 percent in favor.

PRES. HUGO CHAVEZ, VENEZUELA, (through translator): We will fulfill, abide by the constitution. We fulfill our obligation. We will fulfill our conscience and we recognize the decision that has been made by the people.

(END VIDEO CLIP)

NGUYEN: Still, though, President Chavez will be in office for some time to come. His term doesn't end until 2012.

HOLMES: Well, are you keeping up on your house payments? Certainly hope so. Well, are your neighbors? It might be important to you as well. It can be affecting you. The housing crisis. More foreclosures may be right around the corner.

(COMMERCIAL BREAK)

NGUYEN: All right. Let's check out the numbers on this Monday. Look at that. The Dow already in negative territory, down 42 points. And the Nasdaq not looking so great either. It's down almost eight points on this Monday. We'll continue to follow it and bring you updates.

HOLMES: Oh, the housing crisis, it's going on right now and a new wave of foreclosures could be around the corner. So the crisis is not subsiding. And the reason, adjustable rate mortgages the big problem now. CNN's personal finance editor Gerri Willis here with us.

Gerri, always good to see you, but sometimes the topic is not so pleasant.

GERRI WILLIS, CNN CORRESPONDENT: That's true, T.J. It's great to see you though.

HOLMES: How big of an issue are we talking about this time? How big of a problem are we seeing?

WILLIS: Well, there are about 2.3 million sub prime borrowers out there who face higher interests rates as their loans adjustable rate resets for the end of next year. Now that means those low teaser rates they had, they go away and new higher rates could mean mortgage payments that double for some homeowners. The peak of sub prime U.S. mortgage resets hits next March.

HOLMES: Is next March. All right. The first thing you should do. You have an adjustable rate mortgage now. What's that first step? People trying to get out of it, I guess. WILLIS: Well, the first job is to get your paperwork out. If you have an adjustable rate mortgage, dig out the document called the adjustment rate rider. Now this should be included with your original closing papers. This document will tell you when your rate can change, as well as how much it can change. Look for the word caps, which describes the limits on just how far your interest rate can move at any one time. If you have any questions or you're not sure what you will have to pay, call a nonprofit counseling organization. To find one in your area, go to hud.gov.

T.J.

HOLMES: All right. Of course, everybody's hearing about it. People do have those AMRs. But how do they know if necessarily it's for you right now. Who should be trying to refinance?

WILLIS: Well, refinancing can be a solution, but it's not in the cards for everybody, especially if home prices have dropped in your area. If value haven't dropped significantly and you want to get out of a rate reset, you should definitely go the refinancing route. That makes sense if you plan to stay in your home for at least another two years. And, look, if you can lower your interest rate by 1.5 percentage points, you'll definitely want to do it. In order to refinance, you'll need 10 percent to 20 percent equity in your moment.

HOLMES: Not a lot of people have that much equity in their home. So some issues there as well. What if refinancing is not an option and you just need some help with the mortgage? Help out there for folks?

WILLIS: Well, you should know that right now Treasury Secretary Henry Paulson is delivering remarks at the National Housing Forum. Now Paulson and federal banking regulators are working out the details of a plan to extend lower introductory interest rates, those teaser rates, on home loans before they reset at higher levels. Now one scenario you should know would extend rates for five to seven years. That could give borrowers enough of a breather to shore up their finances and ultimately refinance into fixed rate loans.

Now, it's a plan. It's not done. A decision should come out this week. But we'll give you the details as it develops. It's definitely worth following.

T.J.

HOLMES: All right. But it looks like it could happen, so there could be some good news on the horizon, right?

WILLIS: That's right. That's right, T.J.

HOLMES: All right. Gerri Willis, always good to see you. Thank you so much, ma'am.

WILLIS: Thank you.

NGUYEN: Well, quite a comeback for a radio talker. Don Imus on the air once again. Media critic Howard Kurtz is in the NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: Well, hello there again, everybody. T.J. Holmes and Betty Nguyen here sitting in for Tony and Heidi. They have the day off.

NGUYEN: Yes, I hope they're having a great Monday.

(WEATHER REPORT)

HOLMES: Got pictures here of the snow and ice we received from some of our i-Reporters. We always appreciate them. This is Giovanni Sanchez, who took this picture outside his house in Murray, Utah. It's near Salt Lake City, where he says he had a foot of snow. Says he had. So I don't know what his neighbors had, but he had at least a foot.

Check this out as well, a tree covered in ice. This is Dan who took this one for us in Elkhorn, Wisconsin. He says the sight of ice reflecting off the porch lights was just gorgeous, but of course not all electrical power crews like to see this, because the branches get heavy, they fall on the power lines, and then you got a mess.

And then Donna Murphy here. That's not Donna Murphy. That's Donna Murphy?

NGUYEN: Let's hope that's not Donna Murphy.

HOLMES: We're just teasing you. This is just her dog.

NGUYEN: I don't know. How old is that dog?

HOLMES: That's a grown dog.

NGUYEN: Yes, he's old enough to have grown a winter coat.

HOLMES: This is a dog on the back deck in Sanford, Michigan.

Of course, when weather becomes the news, see it right here on CNN. If it's happening outside your window, send us your video or photos maybe of your furry animal as well. Go to CNN.com, click on i- Report, or you type ireport@cnn.com into your cell phone, but still, please, stay safe out there.

(NEWSBREAK)

NGUYEN: Well, he's back. Lots have said that it would only be a matter of time. This morning radio talker Don Imus is back on the airwaves eight months after racist and sexist comments got him fired. What can we expect this time around?

Joining me is media critic and author Howard Kurtz to talk about it. Hello, Howard.

Don Imus back on the air. Was it the same old Imus, or has he changed?

HOWARD KURTZ, "WASHINGTON POST" MEDIA CRITIC: Well, Imus was on good behavior this morning, Betty. He spent a lot of time talking about his apology to the Rutgers women's basketball team. This, of course, caused his firing from CBS Radio and from MSNBC some seven months ago.

In fact, he said that, "I will never say anything in my lifetime that will make any of these young women regret or feel foolish that they accepted my apology and forgave me."

He even said something nice about Al Sharpton, who helped force him off the air. And he has diversified his cast. He has a black female comic now as part of his ensemble.

NGUYEN: And you know, as you mentioned, he did apologize today. He even went on to say some other things. We're going to take a listen to part of the show.

(BEGIN VIDEO CLIP)

DON IMUS, RADIO TALK SHOW HOST: I will never say anything in my lifetime that will make any of these young women at Rutgers regret or feel foolish that they accepted my apology and forgave me. And no one else will say anything on my program that will make anybody think that I didn't deserve a second chance.

(END VIDEO CLIP)

NGUYEN: You hear the applause there. It sounds like this is a new and improved Imus, but I have to ask you this, do you think it's going to cause some of his listeners to turn away.

KURTZ: Well, I certainly gave some thought to the notion that Imus without the edge might not be Don Imus. So just to remind us he hasn't completely gone straight, he talked about how Dick Cheney is still a war criminal and Hillary Clinton is still Satan.

But, look, I mean, a lot of people got the misimpression after that reprehensible remark that Imus made about the Rutgers women, that that was all he did. And they forget, I think, that he also conducts a lot of thoughtful interviews with journalists and politicians. I've been on his show on occasion. This morning he talked to two presidential candidates, Chris Dodd and John McCain, and so that was always kind of the good Imus, the benefit of his show.

In my book, "Reality Show," I talk about Tow Brokaw and other friends of Imus urged him to take himself off the air and maybe pledge some money from his salary to a scholarship at Rutgers. But instead, he kept staying on the air, he keep the story alive, and he kind of became a toxic -- a symbol of a toxic culture of the airwaves in America.

Now, obviously, he wants a second chance. He's talking about changing the tone of the program.

NGUYEN: But is he censoring himself? Did you feel like he wasn't really the Imus that a lot of people tune in to hear?

KURTZ: I didn't feel like he was censoring himself, except in this regard -- I felt like he was steering clear of the really rough- edged insult humor, sometimes racially or ethnic based, that got him into trouble, not just with this remark, but other times as well. If that's censoring himself, that's what he should do, because I don't think he gets another chance after this. If he makes an explosive remark, it could be very difficult.

NGUYEN: OK, you know, that being the case, just very quickly, it doesn't seem like his advertisers have gone too far away. Is he still going to be the powerhouse that he once was?

KURTZ: Not for some time to come, Betty, because while he's on a big station in New York, WABC, he's not on that many other radio stations yet around the country. Doesn't have a big TV outlet, has a small cable show that's picking him up. So he won't have that kind of clout unless he can build up that national distribution that he enjoyed for so many years.

All right, Howard Kurtz, "Washington Post" media critic, joining us live today. Thank you, Howard. We do appreciate it.

HOLMES: A soccer star suffers a career-ending injury. Not on the field of play. In the field of battle.

(COMMERCIAL BREAK)

HOLMES: U.S. troop deaths down in Iraq. The Pentagon says there were 37 U.S. combat deaths in November. That is the lowest number since March of last year. The military credits this year's troop buildup for the reduction in overall violence.

NGUYEN: Well, a soccer star sidelined, an Iraqi man caught in the crossfire of war, now honored by his teammates.

CNN's Mohammed Jamjoom reports.

(BEGIN VIDEOTAPE)

MOHAMMED JAMJOOM, CNN CORRESPONDENT (voice-over): All Taha Kamil wanted was to play football. He was the star player on his team in Fallujah. He had been offered a contract to play in Jordan. His dream was on the verge of coming true. In Iraq, though, happy endings are hard to come by.

Last June Taha had finished an examine and was walking back to his university dorm. A firefight between coalition forces and unknown militants erupted. Baja was shot three times in the leg. One bullet his hit his thigh. Two more struck him under the knee.

"Before I fainted," Taha says, "I was trying to close the wound with my belt. I tied my leg where the wound was, but the injury was so severe and the bullet had penetrated my leg completely."

Baja was first taken to a hospital in Baghdad where he says doctors assessed his injuries as critical. Before he could be treated, however, the Iraqi National Guard surrounded the hospital and he was detained as a terrorist suspect.

"They took me as if I was the one who shot against them," he says. "I was wearing my college uniform. My I.D. was that of a university student."

In the end Baha was moved to Fallujah hospital and was told that gangrene had set in. The worst news possible -- his leg would have to be amputated. His teammates were devastated.

"He was the main player on the team," Taha Rafi Jomma. "He was our star midfielder. We had nobody else with his skill level and his fitness. The entire team was depending on him."

At first pictures of him with his teammates were too difficult for Baha to look at it. He had thrown this one in the trash. Now these snapshots, medals and cups remind him of better times, but the hurt remains.

"I feel pain in my heart," he says, "when I remember the old days playing with friends. All gone."

As hard as it is though, Taha cannot abandon his teammates in Fallujah. He cheers them on from the sidelines, and they find his presence inspirational.

"When we see him disabled and here with us, Jomma says, he gives us determination and strength. We will dedicate the first goal to him. Baha tries hard to be as positive as he can be."

"These are good young men," he says, "and they all have potential." And god willing, they will win. A team player always.

Mohammed Jamjoom, CNN, Baghdad.

(END VIDEOTAPE)

(BUSINESS HEADLINES)

NGUYEN: We do have some new details this morning about the man who took hostages at Hillary Clinton's campaign office. The man's stepson tells us this, quote, "He needed help."

Stay with us.

(COMMERCIAL BREAK)

HOLMES: A man suspected of taking hostages at a Hillary Clinton campaign office appears before a judge this afternoon.

And here now, CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): Benjamin Warren, stepson of the man accused of taking hostages at Hillary Clinton's campaign office told CNN a political ad drove suspect Leeland Eisenberg to seek help from the New York senator.

That ad a Clinton campaign commercial features a man who claims the former first lady helped his son get a bone marrow transplant. Warren says his stepfather who had suffered from mental illness thought he might be able to get treatment with Clinton's assistance.

He needed help, Warren said. He couldn't get it. Eisenberg, who released his hostages and surrendered peacefully Friday, has a history of mental illness, substance abuse and run-ins with the law. The owner of this local restaurant says he refused to hire Eisenberg.

What was he like?

ANTHONY EJARQUE, RESTAURANT OWNER: He was angry. He was very angry. We didn't hire him. He had come in and interviewed and he had some businesses in town that had gone bankrupt and he was very angry and upset about that and blaming a lot of individuals and blaming society basically.

ACOSTA: As for the former hostages, friends say they are recovering from a terrifying ordeal. Dan Nagy says he was able to speak with one of the captives on the phone during the standoff.

DAN NAGY, CLINTON CAMPAIGN WORKER: You just can picture her face inside that building, talking on the phone, crying her eyes out, not knowing what is going to happen. That is the hardest part.

ACOSTA: The people of Rochester would like to put the standoff behind them so they held their annual winter parade as scheduled to try to get some their small town back to the way it was.

Jim Acosta, CNN Rochester, New Hampshire.

(END VIDEOTAPE)

NGUYEN: Spies wanted in London. Just ring the telly. Thrill seekers need not apply. We'll explain all of this right after the break.

(COMMERCIAL BREAK)

HOLMES: It's party time at the White House. You can see this is a Christmas party, of course. The president and Mrs. Bush throwing the children's holiday reception. This is happening at the White House on the state floor. This is what you're seeing here, the Ford Theater actors here performing some of Dicken's classic "A Christmas Carol." Two-hundred child are in the audience. You can make them out there on right-bottom of the screen, but about 200 kids there of active-duty servicemen and women in the audience getting a treat at the White House today. Just wanted to bring you that Christmas picture.

NGUYEN: Get you in the spirit.

Well, they didn't exactly put a "spies wanted" sign in the window, but it's close.

CNN's Phil Black and Britain's new recruiting drive.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT (voice-over): Sometimes James Bond's job doesn't seem that appealing.

(BEGIN VIDEO CLIP)

SEAN CONNERY, ACTOR: Do you expect me to talk?

UNIDENTIFIED ACTOR: No, Mr. Bond. I expect you to die.

CONNERY: Oh, no, you don't.

(END VIDEO CLIP)

BLACK: Sometimes it does. Bond is the iconic image of a British spy.

(BEGIN VIDEO CLIP)

CONNERY: A martini, shaken, not stirred.

(END VIDEO CLIP)

BLACK (on camera): So is vodka martini your preferred drink?

Well, if somebody else is picking up the tab, I'll drink anything I can get.

(voice-over): Harry Ferguson was a real spy, a former MI6 officer. In the age of global terrorism, the British government needs lots of people who are like Harry, and many who are not.

HARRY FERGUSON, FMR. MI6 OFFICER: We want tall, short fat, old, young, preferably young, because you get more mileage out of them when you train them. So there shouldn't be a typical intelligence officer.

BLACK: So great is the demand for new talent in Britain's intelligence services, they are recruiting more openly and more creatively than ever before. The government's communications headquarters, or GCHQ, is Britain's high-tech listening post. And now to find computer savvy new blood, it is posting job ads inside online video games.

ALAN THOMPSON, GCHG: People who need to react in very quick time scales to deliver the needs for our services.

BLACK: MI5, Britain's domestic security service, has its own recruitment Web site. So does MI6, the foreign spy agency, where hopefuls can take an online test to see if they've got what it takes. And for the first time MI6 officers and its chief recruiter have given a radio interview, shooting down the Bond myth. "MARK," MI6 HEAD OF RECRUITMENT: It does tend to turn out quite a lot of thrill seekers and fantasists, and we're really not interested in them.

BLACK: MI6 is based in this building on the River Thames. We know this because it was in a James Bond movie.

(on camera): So working over there has nothing to do with fast cars, beautiful women, all being licensed to kill. Those who've done the job say in general terms it's about getting other people around the world to reveal their secrets, often while risking their lives. They say it's hard work, never glamorous, but it does have rare moments that almost live up to the hype.

FERGUSON: Because you're dealing with other country's security, because you're dealing with terrorists, there are moments when it is the best job in the world.

BLACK: Gone are the days when spy recruits were tapped on the shoulder by university professors doubling as talent scouts. Britain now wants non-British looking spies who speak obscure languages, suave, trigger-happy womanizers, or man-eaters, need not apply.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACTRESS: Who are you?

CONNERY: Bond, James Bond.

BLACK: Phil Black, CNN, London.

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