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Wintry Weather Over the Midwest and Heading Towards the Northeast; Race for White House Speeds Up; What Toys Are Safe for Your Kids?

Aired December 15, 2007 - 11:00   ET

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


BETTY NGUYEN, CNN ANCHOR: Hello, everybody. It is Saturday, December 15th. You are in the CNN NEWSROOM. I'm Betty Nguyen.
T.J. HOLMES, CNN ANCHOR: And I'm T.J. Holmes. We're talking winter, one-two punch. A second storm pounds the Plains States while folks in the Northeast brace for more snow. We're live all over the place and we're tracking the storm.

NGUYEN: We're also live on the campaign trail as the race for the White House speeds up. We're standing by for a big speech from presidential hopeful Rudy Giuliani.

HOLMES: Also Toyland, supposed to be a happy place. There's no trouble in Toyland. Yes, there is. Parents still shopping for their kids, but what's safe out there? We're going beyond the fears to offer you some solutions.

NGUYEN: Here we go again, bracing for the second major winter storm in less than a week. Winter storm watches, warnings, advisories, they stretch all the way from Oklahoma to New England. Look at this.

And check this out -- snow is falling early today in Enid, Oklahoma, falling sideways at that. University of Oklahoma in Norman canceled today's commencement ceremonies. It began snowing just after midnight in St. Louis as well. Flight delays of almost two 1/2 hours were reported at Chicago's O'Hare Airport. And late today a mix of snow and freezing rain is expected to hit New England where they're still coping with the aftermath of the earlier storm.

HOLMES: Lingering problems also in Oklahoma where tens of thousands of homes and businesses are still without power after last weekend's ice storm. The governor there getting ready to ask President Bush for a disaster declaration that would help provide money for the cleanup. CNN national correspondent Keith Oppenheim is live for us in Oklahoma City. Good morning to you again, sir.

KEITH OPPENHEIM, CNN CORRESPONDENT: Hi there, T.J. We're only supposed to get about two inches of snow in Oklahoma City today but that comes after the terrible ice storm that you referred to. Look at the damage it caused in front of this home as I go across the street here, you can see there's a tree service that's busy at work here trying to clean up all of these trees on this street that were knocked down. On top of that, power crews are busy trying to restore electricity, but that gets tougher when you have snow like this. It's probably going to slow some of the recovery efforts down today.

(BEGIN VIDEOTAPE)

OPPENHEIM (voice-over): Oklahomans are bracing for their second winter storm in less than a, while still reeling from the worst blackout in state history. Twenty-three deaths have been blamed on last weekend's ice storm and 100,000 homes and businesses are still without power.

CYNTHIA HILL, OKLAHOMA CITY RESIDENT: It's been cold. My walls are wet. You blow smoke in the house, but I had on about four layers of clothes and blankets and I survived.

OPPENHEIM: Cynthia Hill is one of the lucky ones. After five days without electricity, her heat is finally back on.

HILL: It just came on about 20 minutes ago. And you would have thought I won the lottery. I'm happy.

OPPENHEIM: President Bush declared a state of emergency earlier this week making the state eligible for federal aid. Utility workers from at least six surrounding states are helping out.

UNKNOWN MALE: Thanks for your hard work.

OPPENHEIM: Every day has brought steady progress in restoring power, but tired crews have had little time to prepare for this storm.

BRENT SWADLEY, UTILITY WORKER: Trying to replace a lot of pole right now. The trees are horrible. We've got about 25 to 35 mile an hour wind coming in next 24 hours. We're trying to prepare for that and try to get as many trees cut back as we can right now.

OPPENHEIM: With up to six inches of new snow expected in some parts of the state, utility workers from Texas might find themselves spending the holidays away from home.

TERRY TRULL, UTILITY WORKER: At least another week, maybe a bit longer. It just depends on how long it takes to get all of this back on.

(END VIDEOTAPE)

OPPENHEIM (on camera): We are back live watching the busy buzz of a chainsaw here on West 14th Street here in Oklahoma City. You know, T.J., the weather today, probably about two inches in Oklahoma City itself, maybe about four inches of snow that's coming to the north of here. You know, isolated, not really that bad. But it's going to make driving more slick, slower, and given that there are still, you know, a good 125,000 homes and businesses without power, it's just unwelcome weather at this point. Back to you.

HOLMES: Unwelcome. But we see a little bit of work happening. That's a good sign behind you. Keith Oppenheim for us this morning, thank you.

NGUYEN: Besides the widespread power outages, that's one thing, then you've got falling ice. It is a big problem in Oklahoma. Chunks of ice fell from a 458 tall tower outside a Lawton TV station right into the building. Water poured in, leaving workers a soggy mess to clean up. And then just watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Oh!

(END VIDEO CLIP)

NGUYEN: Did you hear that? Good thing there was not a car or a person when that piece came falling down. This place is also being bombarded by ice, falling from yet another TV transmission power, this one in Oklahoma City.

HOLMES: They're digging out in New England as well keeping an eye on the skies. CNN meteorologist Reynolds Wolf is live for us in Boston. Good morning to you again, sir.

REYNOLDS WOLF, CNN METEOROLOGIST: Hey, good morning, T.J. You're right. They're enjoying the sunshine, enjoying themselves. We are still digging out, plenty of snow all over the ground. Right now, though, skies you can see behind me are blue. It's a beautiful day here but still very cold. And there is that distinct possibility they may be dealing with another round of rain, maybe freezing rain, sleet, and even some snowfall. Some parts of New England could get up to a foot of snow, back into western New York easily a foot if not more in Buffalo and Syracuse. But that is what might happen. Today what we have is the snow and we have people out having fun. Not only people but also some dogs.

Take a look at this great video we have, a couple of dogs, a golden retriever named Tucker that was out digging in the snow, having a wonderful time. Not quite sure what he's looking for in the snow. Don't know if his owner is down there somewhere. Maybe a Frisbee, maybe a bone. Who knows? It's a mystery we may never find the answer to.

Anyways, the big mystery in terms of the forecast today is we're going to see conditions here in Boston begin to deteriorate. Sunshine now, but later today more clouds and then we're going to see that nor'easter possibly strengthen and give us that precipitation. It's going to be very interesting to watch what happens over the next six to 12 to 24 hours in that forecast and see how this is going to shape up.

But there's no question millions will be impact by rain or snow and it will cause a massive amount of delays from Sunday and into Monday. Let's send it back to you, T.J.

HOLMES: All right. Kind sir, we appreciate you as always. We'll check in with you again here soon. NGUYEN: Meantime, we're going to check this out. Video from Max Codax in Massachusetts. Take a look, that car swerving on the snow, it almost hits a bus. He was watching this from his apartment window in Boston on Thursday and couldn't help but grab the camera.

And I-Reporter Ben Vouk said traffic was backed up all over the City of Worcester. He took these photos for us. He said people abandoned their cars because they couldn't get up the snow and ice- covered hills.

HOLMES: We'll now turn to our meteorologist standing in the weather center keeping an eye on everything coast to coast. But really we've got one coast we're kind of worried about this morning and also the midsection of the country.

KAREN MAGINNIS, CNN METEOROLOGIST: Absolutely. There are probably more places that we're concerned about than you might expect, beginning all the way from Oklahoma and Texas into towards Illinois, Michigan, all the way up towards Maine. We've got some live pictures out of Chicago. Take a look at the O'Hare Airport. Poor visibility, snow coming down. The temperature is below zero. They're reporting delays on the order of two hours and 20 minutes. That may lengthen as that snow continues.

Let's go ahead and show you where the precipitation is presently located. We have lots of snow from the Ohio River Valley right around Cleveland, also that interstate between Chicago and Indianapolis, Interstate 65. That's going to be an area that may be a bull's eye as far as the snowfall amounts go, between four and eight inches possible. But you see there's kind of a dry slot here, but don't be fooled. There's going to be more on the way. On the back side of the area of low pressure where the coldest air materializes, that's where we're going to see the heaviest snowfall. We've got this thin line of ice. It looks like St. Louis, you just dodged a bullet. Then over here toward Kansas City, a little more in the way of snowfall. Also more around Tulsa and Oklahoma City. If you've got an I-Report, we've got some pictures, be careful but you can send it to us at cnn.com/ireport. A different perspective, there's a little piece of energy moving across north central and central Oklahoma, interior sections of the northeastern New England, Betty and T.J., could expect on the order of one to two feet as we go into tomorrow. Now back to you.

NGUYEN: All right. Thank you, Karen.

Weather not the only emergency in Massachusetts now. Look at this, a huge eight-alarm fire in downtown Gloucester destroyed an apartment building and a synagogue and then killed at least one person. Many apartment building residents are still unaccounted for. And as many as 20 families were left homeless. The cause of that fire, well, that is still under investigation.

RUDY GIULIANI, (R) PRESIDENTIAL CANDIDATE: Middle-class families ...

HOLMES: As we told you a little earlier, Rudy Giuliani in Tampa campaigning today. Expected to make this major speech he just got going. Let's listen in.

GIULIANI: They're worried this may be the time where the next generation of Americans doesn't do as well as the last generation. It doesn't have to be that way. We -- we, you and I -- can decide America's direction. We can determine America's future. After all, that's what an election is all about. So let's decide for optimism, not pessimism, for hope, not despair, for strength, not weakness, for victory, not defeat.

We can't afford a crisis of confidence at the time we need our confidence the most. Because our country does face real crisis right now. We're at war. The American people want to see victory in Iraq and Afghanistan, not humiliation and defeat.

They want their children to live free from the fear of terrorism. They're telling us, get it done. And we will.

Washington's culture of wasteful spending is out of control. Everyone knows that. The American people want to see real fiscal discipline. They're telling us, get it done. And we will.

Americans have heard presidents talk about energy independence for three decades. Now they're paying more at the pump and they're seeing their money go into the pockets of some of our enemies. They're telling us, get it done. Get energy independence done. We will.

The American people are angry that the federal government has failed to protect and secure our borders. And they're telling us, get it done. And we will.

What America needs in 2008 is a proven leader who will get things done. I've been tested. I'm ready. And the time is right now.

CROWD: Rudy, Rudy, Rudy!

HOLMES: You're hearing the chant of Rudy, Rudy, Rudy. And you're seeing the theme he's going with, "Tested. Ready. Now."

Rudy Giuliani there in Tampa, Florida, the Republican presidential candidate in Florida where he's spending a lot of time and resources, not so much in Iowa and New Hampshire and south Carolina, some of those early caucus and primary states where some of the other candidates are spending their time. But he's choosing to spend his time on electoral-rich Florida right now. But we're going to monitor his speech and bring you anything that pops out of that for you.

Also, we're keeping an eye on John Edwards who is also going to be speaking today. We'll keep an eye on that. Actually making an appearance with Kevin Bacon. 'Tis the season for celebrity endorsements. So we're keeping an eye on him, monitoring him as well and bring you parts of his speech as well today so you can. Stay right here with us for live coverage of the candidates on the campaign trail.

CNN, your political headquarters.

NGUYEN: We are also following Senator John McCain, he's a decorated war veteran himself. But when you're campaigning in South Carolina, you can never line up too much military support. At a news conference in Columbia just a short time ago McCain announced he's been endorsed by more than 100 retired admirals and generals. A CNN poll released yesterday shows McCain running fifth in South Carolina's upcoming Republican presidential primary, he is trailing Huckabee, Thompson, Giuliani and Romney in that order.

HOLMES: The polls. Always talking about polls. We've been talking about polls for a year in the race for the White House. Well, do these polls even really matter?

NGUYEN: And which ones do you trust? And when you look at the numbers, are they telling the truth in those polls? We're keeping them honest on this much-talked about factor in the campaign.

(COMMERCIAL BREAK)

HOLMES: And you're getting another live look at Rudy Giuliani, the Republican presidential candidate, former mayor of New York, making what he's called a major speech in Tampa, Florida, today, hoping to make some inroads in his campaign in that crucial state of Florida. We are monitoring this speech. If we hear anything jump out, we'd like to bring it to you. Also, if you'd like to watch it, you can watch it live at cnn.com.

Well, polls, everybody talking about polls, the lifeblood of politics. One survey can raise hopes or it can dash those dreams. Right now everybody is watching the polls in Iowa. But can you trust the numbers in Iowa? Josh Levs, Mr. Reality himself, keep it real for us here. Some of these numbers are just all over the place.

JOSH LEVS, CNN CORRESPONDENT: I know.

HOLMES: But sometimes they kind of get consistent. Then on Election Day polls are out the window.

LEVS: That's the thing. You can't really know. And the thing is, we follow them very closely and the candidates follow them very closely. You can see when they adjust based on what's going on that way.

But what I wanted to do is take a look at history and show you whether, in fact, at this point, just a few weeks out, the polls can really predict what happens in Iowa.

(BEGIN VIDEOTAPE)

MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: There we go.

LEVS: The final weeks before the pivotal Iowa caucuses, and if you believe the latest polls, Mike Huckabee is in the lead on the Republican side. While on the Democrat's side, Obama is neck in neck with Clinton. SEN. HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: I always knew it would be hard. There's no surprise about that.

LEVS: Could we easily see a surprise, such as John Edwards winning, or do the polls a few weeks out accurately predict the facts? Let's look back. In 2004 just two weeks before the caucuses, Howard Dean lead these polls followed by Dick Gephardt, then John Kerry, who went on to win in Iowa while Gephardt dropped out and Dean, well ...

HOWARD DEAN, FORMER VERMONT GOVERNOR: Yeaaarrgghh!!!

LEVS: But tat doesn't mean the polls missed entirely. The week before the caucuses, these polls were showing Kerry having pulled up or even edging ahead. The polls follow the trends as many undecided caucus-goers pick their candidates.

But this year's contenders face a whole new challenge. The caucuses are more than two weeks earlier than last time. The January 3 date means candidates have to contend with Christmas and New Year's. Nobody wants to be the Grinch by calling houses or knocking on doors during a respite Iowans are used to getting from the election onslaught.

So if campaigning slows down just days from now, do the feelings of caucus-goers freeze in place? If so, the candidates know the latest polls might not be so far off.

(END VIDEOTAPE)

LEVS (on camera): Now of course, there are also other factors that we want to point out. For example, here's a big one. The weather. Let's say there's a blizzard, right, on January 3. Then the results will be affected by who has the best infrastructure to go and help supporters make sure they get to the caucuses. And T.J., either way, Americans are keeping a close eye because victory in Iowa can ultimately really help propel somebody all the way to the nomination.

HOLMES: People love to be everybody's number one. Vote for me, I want to be your number. It's also important to be number two as well in people's minds. Explain that.

LEVS: This is another reason it reminds me of how wild it is that Iowa has all this power because these candidates are all fighting in a system that is really tricky.

On the Democratic side, if you want to win in Iowa, not only do you have to be one number one, but you have to be number two. Because in these Democratic caucuses, in each caucus if a candidate doesn't get a certain number of people, generally 15 percent of those there, then that person gets nothing and the people who are there for that candidate break up and go somewhere else, which means ultimately if two candidates are really fighting, let's say you like Obama and you're considering maybe Clinton, but they're going at each other's throats too much, you vote for Obama and he doesn't get the 15 percent, you may not like Clinton anymore because you feel she's gone negative, you may go over to Edwards. So that's why they have to play this game carefully to try to not only be number one but also number two.

HOLMES: We get it now. Makes perfect sense.

LEVS: Didn't I make that so simple to understand?

HOLMES: It makes perfect sense.

LEVS: People are, like, I need more cup of coffee now.

HOLMES: Mr. Reality. Thank you for confusing us this morning.

Folks, check this out. The election express bus, you can look for me behind the wheel of that thing. Right here. I'll be anchoring from Iowa in the election express where it has warmed up to a balmy 20 degrees, I believe. Of course, that's our state of the art studio and production studio on wheels. Just part of our effort to bring you the most complete political coverage on television.

(COMMERCIAL BREAK)

NGUYEN: Let's head across America to see what's up or maybe should we say down? This apartment building in Savannah, we're going to show it to you right here, bit the dust this morning. It took all of eight seconds for it to fall.

The apartment building was home to seniors until it flooded three years ago. No worries, no seniors were inside at the time.

Nobody abandoned these two babies behind the strip club in Phoenix. Police say -- Somebody has. Police say they have found the mother, but they haven't said what her involvement may be. Surveillance tape showed the children, a toddler and nine-month-old were left around 4:00 in the morning. A garbage collector found them in 40 degree weather.

This dog made for a happy ending in Arkansas. Fire breaks out at a home. A mom finds her two-year-old but could not get her 17-month- old who is really choking from smoke, couldn't get the 17 month hold out. Well, the pooch charged in and saved the day. Can you believe it? A dog came in, grabbed the baby and pulled the baby to safety.

HOLMES: We're going to tell you about Saturday shake-up in South Asia. A moderate earthquake in Indonesia's eastern islands tipped off chairs and TVs, sent panicking people into the streets, the quake was 60 miles deep. But U.S. experts put the magnitude at 6.3.

NGUYEN: It is over in Pakistan. President Pervez Musharraf ended a six-week state of emergency today. But first sources say he tweaked the constitution in his favor. Critics say Musharraf achieved two goals with emergency rule -- ensured his reelection and purged the judiciary.

Parliamentary elections are set for January 8. They will determine who forms the next government. The Bush administration pushed Musharraf to lift his decree before the vote. There were explosions in Afghanistan today, in the capital, actually, five people dead, five others wounded. One blast a rocket that hit a crowd outside of Kabul police headquarters. Another, a truck bomb nearby. Officials say it had five rockets rigged into a bomb. The rockets were hidden under hay.

NGUYEN: The Bali climate conference ends in a deal today, but, boy, was it two weeks of heated talks? The pact calls for nations to come up with a replacement for the Kyoto Global Warming Protocol by 2009 but U.S. delegates brought the conference to the brink of collapse in a standoff with Europe. The U.S. resisted specific targets for greenhouse gas reductions. After boos and shouts of lead or get out of the way, there was a compromise.

(BEGIN VIDEO CLIP)

PAULA DOBRIANSKY, SENIOR U.S. NEGOTIATOR IN BALI: Mr. Chairman, let me say to you that we will go forward and join consensus in this today.

(END VIDEO CLIP)

NGUYEN: There you hear the cheers. The tone in Bali changed after this week's scathing address by Al Gore. The new Nobel laureate accused the Bush administration of obstructing a deal.

HOLMES: The baby, the baby is coming. So is the snow. The race is on to get to the hospital. What do you do?

NGUYEN: Can you imagine that? Not only that, but millions have just been spent. A new report says an important project in Iraq has little to show for it. So what happened with your tax dollars?

(COMMERCIAL BREAK)

HOLMES: Ah. 11:30 here this morning. Happening around the world right now, another winter storm rolling across the country. Not quite around the world yet. Warnings, watches and advisories are in effect from Oklahoma all the way to New England. Now we'll head out a little bit to Pakistan. The president there Pervez Musharraf today lifted his six-week-old state of emergency but says he reinstated Pakistan's Constitution. He also made several changes to that Constitution.

Well, some sad news now we need to pass along here about Representative Juliet Carson, the first black and first woman to represent Indianapolis in Congress, she has died of lung cancer. A family spokesperson said this of the 69-year-old -- we got word about a month ago when she announced she did have terminal lung cancer and even said herself the situation was grim. But now word that she has died of terminal lung cancer.

She has not been in DC since September, really. She was hospitalized with a leg infection and then word came out about her lung cancer and the condition there. But again, Julia Carson, who was the first black and first woman to represent Indianapolis, there she is, in Congress died today at the age of 69, a woman who had championed children's issues, women's rights, efforts to reduce homelessness and as well was an opponent of the war in Iraq. But dead now at the age of 69 of terminal lung cancer.

NGUYEN: Now we want to get you a look at the aftermath of the storm that just rolled across the country earlier this week, warming temperatures in Oklahoma now producing a new hazard -- you're heard it right there. You're going to see it now. Falling ice. Ice just plunging from an Oklahoma TV tower. Also, tens of thousands of Oklahomans remain without power in the wake of this ice storm. And adding to that, more snow fell there today.

HOLMES: They're also continuing to clean up in the Boston area. But Sorboni Banerjee of CNN affiliate WHDH reports on one couple's ordeal during the height of the storm.

(BEGIN VIDEOTAPE)

SORBONI BANERJEE, WHDH CORRESPONDENT: They're doing great now, but with most of Boston locked in snow, when Eileen Ponce (ph) went into labor, if not for the help with these police officers, the baby could have been born in a pickup truck here at the intersection of Tremont and Columbus Street.

UNIDENTIFIED FEMALE: I was, like, stop, I'm in pain.

BANERJEE: One mile to go, 100 cars or more in the way.

OFFICER TIM COUGHLIN, BOSTON POLICE: A black pickup truck pulled up. Husband said, my wife is in labor. Can you help me?

BANERJEE: Traffic across the city looked like this at the height of the storm so police had to help on foot.

OFFICER BOBBY WARD, BOSTON POLICE: Some vehicles we actually had to physically push. They were stuck in the snow. Pushed them out of the way.

RAMON PEPIN, FATHER: They all led the way. Some were getting out of the car in traffic, coming back in. Driving down the block, they'd get out again and they'd clear traffic.

BANERJEE: With a cruiser leading the couple's truck, the officers banged on windows yelling this ...

OFFICER TIM CRUZ, BOSTON POLICE: Woman in labor, woman in labor. They kind of figure it out when they see three officers running behind them. What's going on?

BANERJEE: The officers going the extra mile on foot in the snow to get this couple to the hospital on time.

UNIDENTIFIED FEMALE: They did a great job. They were really helpful. I'm really grateful for that.

(END VIDEOTAPE) NGUYEN: Above and beyond the call of duty.

HOLMES: They say to protect and serve. It's nice when we see the service part of that come in as well.

NGUYEN: Great story.

HOLMES: Very nice story.

Karen, we're so happy to be talking to you. We're just all pleasant over here.

NGUYEN: Unlike Reynolds Wolf, who is standing out there where it's so cold.

KAREN MAGINNIS, METEOROLOGIST: It's beautiful, though.

NGUYEN: He's having a good time.

MAGINNIS: It's not going to look that way tomorrow. Show you quickly what's going on as far as our winter storm warnings that start all the way from Maine, back across Ohio, extending into Missouri. We've got winter weather woes and roads. Let's go ahead and show you some pictures out of Oklahoma and our affiliate there. We have Enid, Oklahoma, KWTV out of Enid, a little snowfall there. You're not finished just yet, but I don't think you're going to see a lot more in the way of accumulation. Let's show you what we do anticipate as far as accumulations are concerned. Along that I-70 corridor between Kansas City and St. Louis, you might expect on the order of four to maybe eight inches of snowfall. But where you see the deep purple into the great lakes right around Detroit, just to the north of Cleveland, on the order of eight to 12. Now, I will tell you I checked the weather conditions in Alaska. Some of the temperatures are not as cold as they are in Minneapolis and Duluth where we've got single digits. Duluth is reporting 5, Minneapolis reporting 4.

And the wind chill factor, it feels like minus 12 in Duluth. Even Casper, Wyoming, it feels like minus 5. Here is the core of that area of low pressure, the big nor'easter that is going to be gearing up. More so into tonight going into Sunday. Deep area of low pressure now depending on if it's further out into the Atlantic it's going to throw more snowfall in some of these nearer coastal regions. If it stays further inland, then the majority of that snow, the heaviest snow, will be interior sections of New England and for the Northeast. Speaking of the Northeast, the eastern Great Lakes, the St. Lawrence River Valley, for T.J. and for Betty, we could see one to two feet is possible. Back to you.

NGUYEN: Just keeps piling up. Okay, Karen. Thank you.

It's Washington's version of a game of chicken. This hour, President Bush again demanding Congress send him a bill to pay for the wars in Iraq and Afghanistan before the holiday break. Democrats have offered bills, but the president complains they're filled with gimmicks. Everything from withdrawal timelines to pork to unrelated spending. (BEGIN AUDIO CLIP)

GEORGE W. BUSH, U.S. PRESIDENT: Congress has had plenty of time to consider the emergency funds our troops need. Time is running out, and Pentagon officials say that continued delay in funding our troops will soon begin to have a damaging impact on the operations of our military. Congress' responsibility is clear -- they must deliver vital funds for our troops and they must do it before they leave for Christmas.

(END AUDIO CLIP)

NGUYEN: Well, Democrats say the president is hyping any immediate impact on the military, but the Pentagon says 100,000 civilian workers could get furlough letters next week.

HOLMES: Well, the U.S. is spending billions of dollars to rebuild Iraq. Today another example of your tax money squandered. Here's senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The U.S. Congress authorized more than $5 billion back in 2005 for the vital task of building the Iraqi Army. But millions of those U.S. tax dollars have been stolen or wasted, according to the latest report from the Pentagon's inspector general.

SEN. BYRON DORGAN, (D) ND: Having been at this for about four years, I have not ever seen the waste, fraud and abuse that now exists. And I think it is shameful.

MCINTYRE: Take the case of Ellis World Alliance Corporation based in Gainesville, Florida, which was supposed to build Iraqi army barracks in Ramadhi. According to auditors, "The contractor did not renovate or build any new facilities, yet collected 31.9 million of the 34.2 million total."

Turns out the project was cancelled because the Iraqi Defense Ministry couldn't get rights to the land. The Pentagon watchdog agency sharply criticized the Air Force Center for Engineering and the Environment which administered the contract for a lack of oversight. But an Air Force spokesman insisted to CNN that taxpayers were not bilked, and for one thing they did get 15 million dollars worth of equipment and supplies.

MICHAEL HAWKINS, SPOKESMAN, AIR FORCE CENTER: Along the way, work was done. Materials and equipment were purchased. We have the materials and equipment in hand to be used down the road when they're needed. I believe that the business process that we have in place is working.

MCINTYRE: A spokesman for Ellis World Alliance did not return CNN's phone calls. The Pentagon I.G. did say the company operated a construction camp and procured raw materials but that cost vouchers submitted did not support the claim. And it said it may require litigation to get some of the money back.

(on camera): In a separate development, dripping with irony, some of the Pentagon's investigators are themselves under investigation. Law enforcement sources confirm to CNN that the FBI is looking into allegations that the office of the special inspector general for Iraq reconstruction may have engaged in some questionable practices.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

HOLMES: Volunteers are placing Christmas wreaths at graves at Arlington National Cemetery today for the 16th year. A Maine company donated 10,000 balsam fir decorations. Holiday wreaths were also placed at the Tomb of the Unknowns.

NGUYEN: Well, your children are dreaming of the perfect toy for Christmas. I know they are and they're probably writing it down on a list for you right now. But finding one that's not listed as dangerous is often a nightmare. The search for safe toys. That is ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: That'll wake you up.

HOLMES: That was scary. It was sweet music for a second.

NGUYEN: We are just 10 days until Christmas. And Santa's elves are hitting the stores today.

HOLMES: Trying to find a toy China-free. It's a challenge, as our Kara Finnstrom found out.

(BEGIN VIDEOTAPE)

LISA BUCK, MOTHER: I actually called my mom saying, I do I have to get rid of everything for my older kids because I don't know what has lead in it, what's been tested.

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Mom Lisa Buck is in the swelling ranks of shoppers searching for toys without made in China labels.

How hard has it been for you to find toys that don't have that label on it?

BUCK: Except for one catalog that I know about, it's very difficult.

FINNSTROM: Difficult because about 80 percent of toys in American stores are made in china. So parents inundated with the recalls of Chinese toys containing lead, other toxins and dangerous magnets are looking for alternatives. Buck found this store. SOLEIL MOON FRYE, SHOP OWNER: We're looking around and realizing, what is in our children's toys? What are the toxins in our? And it's a time in this country where we need to ask questions.

FINNSTROM: Expectant mom and actress Soleil Moon Frye and mom Page Toymac (ph) just opened this store which touts toxin-free toys.

UNIDENTIFIED FEMALE: Things like play dough they're going to end up putting in their mouth, put their hands in their mouth. It's non- toxic, it's absolutely safe for our babies to play with.

FINNSTROM: Consumer advocates charge the U.S. agency responsible for keeping watch over our kids' toys is overwhelmed.

JEAN HALLORAN, CONSUMER'S UNION: Unfortunately, our Consumer Products Safety Commission has been cut back to almost nothing. They have half the staff they had 30 years ago and twice the job.

FINNSTROM: Even the head of the commission in testimony before Congress admitted it couldn't keep up.

UNIDENTIFIED FEMALE: Do you know what percentage of the toys get tested now?

UNIDENTIFIED FEMALE: Get tested for lead paint?

UNIDENTIFIED FEMALE: Yes. Or for ...

UNIDENTIFIED FEMALE: No, I don't.

FINNSTROM: So consumer advocates encourage parents to do their own work home. Many Web sites have cropped up. Even Toys R Us now offer lists with country of origin information.

DR. ROBERT ADLER, CHILDREN'S HOSPITAL LOS ANGELES: The problem with lead is that it does accumulate in certain tissues.

FINNSTROM: Pediatrician Dr. Robert Adler said lead levels in toys alone are usually not high enough to pose a threat, but he says if children are also exposed to other lead sources, like old paint, the cumulative effect could be dangerous.

ADLER: Lead seems to have an effect on the growing brain, and because we're in growth so much of it occurs at a young age that that has its biggest impact. So lead will interfere with normal development.

BUCK: Obviously now with my newest one I'll protect him in a different way than I ever even thought I would have to do.

FINNSTROM: Buck she says when her two oldest were babies, Christmas shopping was carefree. Now she's looking for much more than the latest hit toy.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

HOLMES: Well, from Dora the Explorer to Thomas the Tank Engine, some of the hottest toys recalled, 22 million toys this year alone. Pretty big number there. The implications potentially deadly even. Lead paint, choking hazards. So this holiday season going to be a busy one for parents trying to be on top of their game make sure they're picking the right stuff.

NGUYEN: It is "Trouble in Toyland." All week long we're going to go behind the fear on the recalls and actually offer you some important solutions. Watch for our special coverage next hour in the CNN NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: All right. So next year more students will be applying to college than ever before, and that means a lot of competition and a lot of student stress. Experts say that we're going to see more substance abuse, more cheating, even higher suicide rates. They also say it interferes with actual education.

(BEGIN VIDEO CLIP)

PROF. DENISE POPE, STANFORD UNIVERSITY: These kids are afraid to get a wrong answer so they don't invent. They don't create. Even here at Stanford I've had professors say to me, 10, 15 years ago kids with would say, I'm really excited. I'm going to write the paper on this or I'm going to do my project on this. Now they say, what can I write my paper on to get the A?

(END VIDEO CLIP)

NGUYEN: Professor Pope has created a program to deal with the program, it's called Stressed-out Students, and it is up and running in 45 schools across the country. It includes yoga classes, sometimes the required classes, wellness centers, staggered class schedules, homework-free weekends. You name it. And we talked to one school where it was working. We asked you this morning, what is causing your student stress? We got quite a bit of e-mails. It stressed me out reading these. Christy Mullis in Georgia says, "To minimize the stress with my college-bound 15-year-old, I agreed to home-school her. Her studies include ancient history, geometry, Spanish, literature, biology and the Bible. There are no tests and homework. How is that for stress-free?"

HOLMES: Also we got to hear from Keith in Palm City, Florida says, "We tell our daughter to do the best she can and not worry about it. She is smart and will get in to a good school. There will be plenty of time in life for excessive stress, high school and college are not those times. In our opinion it is more important to understand people and the world than kill yourself in high school classes. Those kids who stress so much are, in fact, missing the most important learning experiences of growing up."

NGUYEN: Trust me, kids, when you grow up, there is plenty of stress to go around. So take it easy when you can. Ceal in New York says, "I let mine sleep late every weekend, often until noon. My 16 year old is dead to the world right now. He gets maybe six or seven hours of sleep each week night due to all the studying and homework he does and is terribly sleep deprived."

HOLMES: Let mine sleep late every day? Gee, thanks, mom.

NGUYEN: Every weekend.

HOLMES: I bet she's the most popular mom on the block.

NGUYEN: I used to sleep until about noon on the weekends.

HOLMES: When was that? Years ago.

NGUYEN: I haven't done that in a long time. We are up at the crack of dawn these days.

HOLMES: Well, NEWSROOM continues at the top of the hour with a stress free Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: No stress!

HOLMES: How are you doing? You got stress-free stuff for us?

WHITFIELD: Maybe I'll stress you out in the next hour, the 2:00 hour, because if you haven't completed your Christmas shopping ...

NGUYEN: I'm so stressed about that.

WHITFIELD: I know. So many of us haven't even started. That would be me. Haven't even started. Perhaps the most stressful thing about the holiday shopping season this year involves toys because of so many recalls. Well, we're going to give you some guidance and advice, and that comes by way of a mom as well as a CEO of FAO Schwartz. That's in the noon and 2:00 p.m. hour to help allay fears as you hit those toy stores and everything else.

And, how well do you guys drive in bad weather?

NGUYEN: In any weather, not so good.

WHITFIELD: Oh, really? Well, in many parts of the country, folks have a lot of experience -- well, they will have a lot of experience today in driving in bad weather, snow, ice, all that. Well, Rob Marciano, there he is behind the wheel there. He's going to hit the black ice and show us exactly what to do, how to navigate. How do you stay out of trouble on the ice?

NGUYEN: And so far no crashes?

WHITFIELD: I haven't heard of any.

NGUYEN: We don't know if our insurance covers it.

WHITFIELD: The car looks good so far. HOLMES: Rob's good.

WHITFIELD: I think he's good, too.

NGUYEN: All right. Thank you, Fred.

WHITFIELD: Good to see you guys.

NGUYEN: Shopping for that political junky on that list? How about a Larry Craig doll?

(BEGIN VIDEO CLIP)

DOLL: I am not gay. I never have been gay.

UNIDENTIFIED MALE: He's poseable. You can put him in his famous wide stance, which has been in the press so much.

JEANNE MOOS, CNN CORRESPONDENT: Bathroom stall not included?

(END VIDEO CLIP)

NGUYEN: Oh, my goodness. 'Tis the season for silly political gifts.

(COMMERCIAL BREAK)

HOLMES: We know this guy. We're used to seeing him now. He's been part of Christmas. The dancing cop, he's back.

NGUYEN: Oh, he dropped it down low.

HOLMES: Oh, my goodness.

NGUYEN: Look at him go. Yeah, my goodness is right. Tony Lapore (ph) blowing his whistle and busting some moves out there. The retired Providence, Rhode Island, police officer comes back for this annual holiday duty. Lapore has been delighting folks with his dance steps for two decades and it doesn't seem like he's lost any of those moves.

HOLMES: He hasn't, has he?

NGUYEN: He's doing pretty well.

HOLMES: I know that's your favorite move, the dropping it low.

NGUYEN: Dropping it low.

HOLMES: I know you like that. I know a lot of you folks searching for the perfect gift for that political junkie on your list maybe.

NGUYEN: Oh my. CNN's Jeanne Moos may have some suggestions.

(BEGIN VIDEOTAPE) MOOS: We couldn't find a real snow globe containing all the presidential candidates, but maybe you can bring joy to the world of political junkies on your gift list with a few of our favorite things we did find.

UNIDENTIFIED MALE: It's the talking Ann Coulter doll.

DOLL: At least when right wingers rant there's a point.

MOOS: We present the best political gifts of the season from Impeachmints to the talking Larry Craig doll.

DOLL: I am not gay. I never have been gay.

UNIDENTIFIED MALE: He's poseable. You can even put him in the famous wide stance which has been in the press so much.

MOOS: Bathroom stall not included?

Stupid questions but that's OK since many of these come from stupid.com when more than lives up to its name with things like the yodelling pickle. Liberals seem to offer more gifts than conservatives. For instance, these disappearing mugs.

UNIDENTIFIED MALE: These are the Inconvenient Coffee cup.

MOOS: When you fill it with hot liquid, coastlines vanish. Watch Florida recede before your very eyes. There's also the disappearing civil liberties mug and the democratic dream mug. Just add coffee and all those red states turn into blue states.

One item popping up on mostly conservative Web sites recently is the Mohammed bear, a poke in the eye to radical Islam because the Sudanese government threatened to punish a British teacher after her Sudanese schoolchildren named a teddy bear Mohammed.

There's the usual new doggie chew toys. Michael Moore is so popular he's sold out at stupid.com. And Huffington Post is offering a poster of famous Bush administration phrases, Axis of Evil, slam dunk, shock and awe, the Internets. And one item merits this phrase ...

UNIDENTIFIED MALE: By far the best selling political item we've ever had had.

MOOS: Ever had?

Featuring stainless steel thighs, visitors to the Hillary nutcracker Web site voted that Ann Coulter should be the next nutcracker.

DOLL: We need oil. Why not go to war over oil? What do Hollywood celebrities imagine fuels their private jets? How do they think cocaine is delivered to them?

MOOS: Imagine that under your tree, the doll, not the coke. CNN, Jeanne Moos, New York.

(END VIDEOTAPE)

NGUYEN: All right. Some of those are just outrageous.

HOLMES: Well, this might be a little outrageous tomorrow, Betty.

NGUYEN: The weather that you're going to face in Iowa.

HOLMES: Me and 20-degree weather. Don't usually get along that well. We'll give it a shot tomorrow. Election express bus as you see it right there, I've been talking about driving it. I won't drive it. But I will be anchoring from Iowa tomorrow. State of the art studio, production facility on wheels. But we have a lot of guests lined up, talking about the hot political issues in cold, cold Iowa right now. Part of our effort to bring you the most complete political coverage on television.

NGUYEN: Maybe the issues will keep you warm. About the only thing that will out there.

HOLMES: Yes. And I'm in the market for a hat.

NGUYEN: Better grab that. And some long johns because you are going to be freezing out there.

HOLMES: Yes. I hope Bill Schneider left his collection of hats at the bus.

NGUYEN: Looking forward to that but also looking forward to what's coming up on the NEWSROOM with CNN's Fredricka Whitfield. Hi, Fred.

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