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A Look at South Carolina's Winners and Losers; Honoring Civil Rights Icon Martin Luther King Jr.

Aired January 21, 2008 - 10:00   ET

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


HEIDI COLLINS, CNN, ANCHOR: South Carolina today. Our guests on this weekend's winners and losers.
Sour economic time. Gerri Willis tells us why these days can be a sweet time for deals.

And two planes collide leaving five people dead. Investigators trying to figure out what went wrong, today, Monday, January 21st. You are in the CNN NEWSROOM.

Honoring civil rights icon Martin Luther King Jr. People all across the country are paying tribute to the civil rights leader on this King holiday. One service getting under way right now here in Atlanta at King's former church. CNN's T.J. Holmes is there this morning. Good morning to you, T.J.

T.J. HOLMES, CNN, CORRESPONDENT: Hey, good morning to you. You say service just got under way. That service actually just started seconds ago. We can hear it - it's on the jumbo-tron for people in the overflow area for people who couldn't get a seat inside the Horizon Sanctuary, to come out here and watch it from outside.

But we can hear the service just got under way. It's called really the "Spiritual hallmark of the King holiday" weekend. Of course, a weekend of observances. Actual birthday was last week, on Tuesday, January 15th. But of course today, the federal holiday. Now, of course, the legacy and the dream really of Martin Luther King is what we're here to celebrate and celebrate his legacy but you can't help but have a little politics thrown in there.

And of course, we saw Barack Obama, a presidential candidate. The first really viable black candidate. He was here yesterday speaking in front of the service, the Sunday service. Also we have Bill Clinton here today and also we have republican Governor Mike Huckabee, who is here as well who just entered the sanctuary as well. But the service is just getting underway and is expected to last a couple of hours.

We did see Bill Clinton a short time ago actually lay a wreath at the tomb of Martin Luther King Jr. So, all of that, of course, with the backdrop of Martin Luther King. It can't be lost, you can't ignore the fact that people have said for many years that Martin Luther King is good politics for these politicians and they're used to it down here on Auburn Avenue and Ebenezer Baptist Church, Martin Luther King's church to see a parade of politicians come through on this commemorative weekend. As I mentioned, Barack Obama here yesterday, delivered a message yesterday during the Sunday service and talked about one of Dr. King's themes, unity. Listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: That's why I ask you to walk with me and march with me and join your voices with mine and together we will sing the song that tears down the walls that divide us and lift up an America that is truly indivisible with liberty and justice for all. May god bless the memory of the great pastor of this church, and may god bless the United States of America.

(END VIDEO CLIP)

HOLMES: And we did see, again, republican Mike Huckabee walk in a short time ago. And of course, for the republican or rather the democratic party for so long, the black voters have been a voting block that the democrats have been able to depend on. So, I asked Mike Huckabee as he was going in, I said, why is it that republicans have not been able to make any inroads with the black community? Why don't we see more republicans showing up to events such as this? He said he couldn't speak for all those other republicans, he can only speak for himself and why he is here. It's not about black or white. It's really just about Dr. King's message and that legacy we all talked about.

And Heidi, again, as we mentioned, the theme really of the day is to remember, celebrate, act. The day is a day on and not a day off. So, Heidi, as you know as so many friends and co-workers and we know that they hear that the Martin Luther King holiday is coming up, so they think, hey, I got a three-day day weekend, I'm going to take some time off and take the day off but they're really pushing the theme here, Heidi, that this is the time to act.

COLLINS: All right. Very good. CNN's T.J. Holmes in Atlanta for us at the Ebenezer church. Appreciate that. Thanks, T.J..

A new week and new worlds to conquer for the presidential candidates. For democrats all roads lead to South Carolina. Their next big test is there on Saturday. Hillary Clinton arrives fresh off this weekend's win in the Nevada caucuses. And this morning Clinton, Barack Obama and John Edwards celebrate Martin Luther King day at the South Carolina state house. Tonight, they square off in a debate right here on CNN.

Republicans turning their attention to Florida. That primary is one week from now. Excuse me, one week from tomorrow. John McCain will try to build on his weekend win in South Carolina. Mitt Romney, the winner in Nevada. Both parties are knotted at the top with no clear front-runner emerging on either side.

We do have correspondents following both parties, of course. We want to begin with the republicans in Florida. And that brings us to CNN's Mary Snow who is in the conservative stronghold of Jacksonville. Mary, John McCain, Mitt Romney, coming off this win this weekend. So, is that going to help them with their momentum? MARY SNOW, CNN, CORRESPONDENT: Absolutely, Heidi, with this race so wide open. It really is a crucial state here in Florida. But also adding into the mix is Rudy Giuliani who is really staking his claim on Florida. Hasn't been effectively competing in those other states. So, this is a real battleground. Pretty noisy you probably hear behind me. We are in Jacksonville at a Martin Luther King parade. Republican Mitt Romney made a stop here just a few minutes ago. I caught up with him. I asked him what he would do if he is elected president to break down racial barriers in the U.S.. Here's what he had to say.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: The civil rights issue of our time is making sure that intercity schools are up to the task, and I think they have failed way too many of our kids. The other observation that we have is teach kids to get married before they have babies and encourage the formation of families. It's an enormous advantage for kids to have the blessing of a two-parent home. I think Bill Cosby is speaking about that with some courage.

(END VIDEO CLIP)

SNOW: You may remember a couple of months ago it was an issue with Mitt Romney, Martin Luther King. He said his father while governor suggested that his father marched with Martin Luther King, when questioned about that later he kind of retracted that, saying that he meant that in a figurative sense. One of the other big themes though here is the economy. And Mitt Romney is also stressing that as he campaigns here in Florida as well as the other candidates. Rudy Giuliani will be in this area later on. Also Senator John McCain. Will be in Jacksonville.

And as the economy takes the forefront, all of these candidates are really stressing it as well as Mike Huckabee, as T.J. pointed out a little while ago, he started his day in Georgia but he will also be coming here to Florida. He was hoping to win South Carolina. Kind of got a win taken out of the campaign sail as bit but he is vowing to go on and go through this contest through February 5th. That's what he was saying over the weekend. Heidi.

COLLINS: Got to ask you about Rudy Giuliani. We've been looking at some video when you were talking here, Mary. And I'm sure a lot of people are wondering if this strategy of getting into this race so late is going to work out for him.

SNOW: Yes. I mean, he is really riding on, has the stakes riding on Florida. You know, he yesterday was telling a crowd, this is the race that everybody's been waiting for. Certainly, it's the one that he has been waiting for. Will the fact that he hasn't been a factor in these early states really put a dent in his candidacy or will he be able to really pick up momentum because he has spent so much time here in the state getting a jump start on Florida than his competitors. That is the big question. And then, Heidi, as we have learned by now there's absolutely no predictions being made because anything could happen. COLLINS: No, and we will have the results of at least that contest coming up very soon. All right, thanks so much, Mary Snow. Appreciate it.

We turn now to the democrats and get to South Carolina. Jessica Yellin is standing by in Columbia for us. So, Jessica, the candidates are out and about, I'm sure, today.

JESSICA YELLIN, CNN, CORRESPONDENT: Heidi, I've lost my - I couldn't quite hear you but I will tell you what's going on here. The democratic candidates are going to be converging on the South Carolina state house here behind me as part of a march to recognize Martin Luther King day. It's also part of a larger effort by all these candidates to reach out to the African-American electorate. They could make up fully 60% of the voters here on Saturday. Now, Barack Obama got things kicked off as T.J. Holmes reported with the speech yesterday at Ebenezer Church in Atlanta, Martin Luther King's church, talking about the King legacy. But he wasn't the only candidate talking about that legacy. Let's hear what the others had to say.

(BEGIN VIDEO CLIP)

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: We came for the purpose of honoring the legacy of Dr. King. And yesterday I had the privilege of meeting with Martin III in Atlanta and we spent a great deal of time talking about the legacy of Dr. King, and particularly the issue of economic justice, which has been central to my presidential campaign and central to my life.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We are about to once again commemorate Dr. King's birthday, but more importantly, his holiday, to reflect upon his legacy and his continuing challenge to all of us.

(END VIDEO CLIP)

YELLIN: So the candidates are going to compete aggressively in this state. Senators Clinton and Obama, in something of a tie. Senator Clinton having won the popular vote in Nevada but Barack Obama winning the most delegates. And John Edwards, he is from South Carolina. He had a very weak finish in Nevada and he wants to show that he can have a stronger finish in this state to show that he should even stay in this race going ahead to super Tuesday.

The candidates are talking high-minded themes but they're also sniping at each other. A new fight erupting between the Obama camp and Clinton's camp. This time Senator Obama is attacking Bill Clinton. He says he's going too far and making distortions of Obama's record. So a lot of fiery back and forth between the campaigns as they seek to win this election just a few days from now, on Saturday. It will be something to follow. Heidi.

COLLINS: All right. CNN's Jessica Yellin reporting live for us from Columbia, South Carolina. Thanks so much for that, Jessica.

A presidential log jam. Both parties knotted at the top. When will a front-runner emerge? Political insiders in the NEWSROOM coming up just minutes from now.

And tonight, South Carolina, the democrats take part in the congressional black caucus debate. You can see it live only on CNN 8:00 Eastern. CNN, your home for politics.

A huge fire north of Boston to tell you about this morning. It broke out overnight in a vacant nightclub and quickly spread. Investigators remain on the scene this hour searching for the cause. But the city fire chief calls the fire, suspicious. At least 14 buildings were destroyed. One of the buildings, a home for special needs residents. Everyone did get out safely though. Temperatures in the teens affected firefighters. Some fire hydrants even froze. One person was treated for smoke inhalation. About 200 people who live in the area were evacuated. The Red Cross is helping out.

We want to make it over to the severe weather center now where Bonnie Schneider is standing by with the weather. Coast to coast, and I bet you I can tell you what the weather is, cold?

BONNIE SCHNEIDER, CNN, METEOROLOGIST: That's exactly right, Heidi.

COLLINS: I'm good. I'm on it.

SCHNEIDER: You are. And looking at this map, it doesn't say it's five degrees, let's say, for the southeast. What it's showing is a departure from normal because pretty much wherever you go coast to coast you're saying, it's not usually this cold. That's especially true in the upper Midwest, in the northern plains where temperatures are about 30 degrees below normal for what they normally are this time of year. That windchill factor is absolutely brutal. We saw it yesterday in Green Bay. We're seeing it again. Right now it feels like it's negative 25 in Duluth, Minnesota. And current temperatures in the northeast aren't even that much warmer. The temperature in Boston is 17. You mentioned the frigid temperature last night. It's also colder in New York at 16. Chicago checking in at ten degrees right now. It's certainly cold enough for a lot of snow in and around the upstate New York area.

I want to show you how we had Arctic air sliding over warmer waters of the Great lakes that caused tremendous snowdrifts. This is Syracuse, New York. Twenty-five inches of snow. Literally route 81 near Oswego County had to be shut down because there was too much snow. The snow was falling at a rate of two inches per hour. And it's not over yet. We still have six inches to a foot of snow north of Syracuse in the forecast. So more lake-effect snow will continue in this region. And if you're wondering how does travel look with all those frigid weather and light snow falling for example in Chicago. The airport delays are numerous since it's the holidays. So a lot of people are traveling. Ground delays in Chicago, an hour and 45 minutes. And low clouds in San Francisco. So, not the best weather for a holiday. Just cold and snowy in many places across the country. Heidi.

COLLINS: Hey, Bonnie, I got to tell you real quickly about a pal in Minnesota. You mentioned 15 below in Duluth, I think you said? He went out ice fishing, that is, just to say he could do it. Actually I don't think they fished. I think they sit there and smoke cigars inside with their buddies.

SCHNEIDER: That must be tough to stay warm.

COLLINS: And really fun. Doesn't it sound like fun? All right. Bonnie, thank you.

SCHNEIDER: Sure.

COLLINS: So, if you're thirsty, you could try a long sip of this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Yes.

REPORTER: How does it taste?

UNIDENTIFIED MALE: It tastes like distilled water.

REPORTER: How long was that sewage?

UNIDENTIFIED MALE: Probably about two days ago.

(END VIDEO CLIP)

COLLINS: Fabulous. Toilet to tap. One community's answer to a water shortage.

(COMMERCIAL BREAK)

COLLINS: The presidential log jam. More than half a dozen candidates still in the hunt for the White House. So, what now? Let's turn to a couple of political insiders. Sherry is a republican strategist. Good morning to you, Cheri Jacobus

CHERI JACOBUS, REPUBLICAN STRATEGIST: Good morning.

COLLINS: And for the democrats, we have strategist Keith Boykin. Hi, there Keith. He is also a host of the B.E.T. television show "My Two Cents." All right. You both get to put in your two cents today. Of course, let's talk about the republicans first. First, we've got McCain who won South Carolina. Mitt Romney won in Nevada. We got Giuliani coming into the fray now in Florida. It seems like because there isn't really a front-runner at least in the republican party, We'll get to the democrats in a minute, there might just end up being spoilers for each other. Is that possible, Keith?

KEITH BOYKIN, DEMOCRATIC STRATEGIST: Well, anything is possible in this race. I think that this has been a dramatic turnabout from a month or two ago when it looked like we had a clear front-runner in the republican and the democratic side. We thought Romney or Giuliani was going to win. Romney is going to do well and Giuliani was going to do well better. But now it looks like we don't know what's going on because it keeps splitting things everywhere. And anything could happen. I think that's a good thing though for America. It's good that we have a chance to have this choice, to have different opportunities. And it's a great thing for democrats, quite frankly, because we get to watch it all and be happy about it.

COLLINS: And what about for the republicans, Cheri?

JACOBUS: You know, I'm going to agree. I think it's a very good thing. It's good for the candidates. It's good for the party. It's good for America. I think it was actually very good for Hillary Clinton when she no longer was the inevitable candidate there and Barack Obama actually won one. I think this is very good for the entire process.

On the republican side, look, we have an embarrassment of riches. We have a very, very strong bench. And the reason we haven't settled on just one person is we have several very strong candidates. I think that's what you're seeing. So, it's exciting but I think a hard- fought primary is good for everybody.

COLLINS: You know, looking at some of your notes here before we began the segment. And I thought it was interesting, especially when we're talking about no front-runner. Who then becomes sort of the candidate or the possible candidate for vice president? And you're kind of talking a little bit about McCain/Huckabee.

JACOBUS: Well, you know if you listen to Mike Huckabee's comments the other night when he was giving his very gracious concession speech, he was extremely kind and friendly towards John McCain and he praised him on running a clean campaign. And so you think, well, OK, he wants to make sure that there's some friendly lines.

Geographically, it would be a good balance and you know having a former governor and a very strong senator would be a good ticket. So I'm not saying that's going to be the case. But you start, now is when we start looking at these possibilities. And so I thought it was a pretty good indication that Huckabee would not rule out the possibility. He gave a very kind speech towards John McCain.

COLLINS: Yes, they're all nice right now. I don't know. Let's get to the democrats for a moment here. Keith, you know, it's pretty much been a dead even race there as well. Obama finished only points behind Clinton. But now as we move into South Carolina, could we see the largely African-American vote really play in his favor?

BOYKIN: Absolutely, I think 50 percent and some people are saying up to 60 percent of the turnout in South Carolina could be African- American voters. Jesse Jackson, of course, won that state in the past. And Obama needs to win this state, very important state for him. But it's also important that he win the state and then go on and transcend race because this campaign has not been about race. And so, he's had this whole conversation for the past week and a half with the Martin Luther King comments made by the Clinton folk and the response to that and then Bob Johnson's comments and now today is Martin Luther King's birthday. This is a competition about race, basically for the past few weeks which is not where Barack Obama wants to be. But he needs to get past this and he can do well once he does. I think he has a good opportunity to go from there.

COLLINS: Yes, there's a bit of a scuffle obviously between him and Hillary. And now there's something new as well. Kind of seems like there's this good cop/bad cop thing going on with Bill and Hillary Clinton. Will that, you think, ultimately hurt Hillary's campaign?

BOYKIN: I think it already is hurting Hillary's campaign. Because, in think what we're seeing right now is that a lot of Obama supporters are having a negative reaction to Hillary Clinton's campaign approach and to Bill Clinton as well. And it create a difficult position because these two guys have got to unify at some point.

One of them is probably going to be the democratic nominee and when that happens they have to be able to support the other person. I'm not sure if the Obama people will be able to support Clinton as easily because they don't necessarily feel like she's running a campaign that they can be proud of. I hope that Bill Clinton of all people - you know, I've worked for Bill Clinton in the White House. I hope he does cool it down because I think some of the language that we've seen is a little bit unseemly for a former president who may have to go to the democratic convention in Denver and speak on behalf of Barack Obama if he's a nominee. That would be a difficult thing.

COLLINS: How about that? Yes, maybe a difficult thing. Cheri, what do you think? Do the republicans benefit from any type of scuffles like these in the democratic party?

JACOBUS: Well, to the degree that Bill Clinton is hurting his wife's candidacy and hurting the democratic party, I suppose that it does benefit the republicans in the long run. Bill Clinton definitely is better when he's in soft focus. He's too much of a sharp focus in the past week or so. Hopefully he'll get the message because it's been pretty loud and clear. There's been nothing subtle about what party leaders have been saying about his involvement. We'll see if he can suck it up and listen.

COLLINS: All right. Very, very quickly from both of you. Bloomberg, Michael Bloomberg, got to run? Cheri?

JACOBUS: Who knows. He says that he won't but he has all the signs that he will. I hate to say it but it just looks like sort of an ego, you know, we're going to float this in.

COLLINS: Ego?

JACOBUS: Yes. Ego in politics, shocking.

COLLINS: What do you think, Keith? Quick.

BOYKIN: I agree with Cheri, and I also think that he should not run but I don't think he will. Unless he feels like the two candidates are so polarized and he feels like he has an opportunity. I don't think he wants to waste a billion dollars of his money, at least I hope not. I could think of a few things he could use his money for instead.

COLLINS: Yes. You got a lot of people who can think off some stuff you could use that for. All right. We appreciate both perspectives today. Cheri Jacobus, republican strategist. And Keith Boykin, our democratic strategist. Thanks so much, guys.

JACOBUS: Thanks.

BOYKIN: Thank you, Heidi.

COLLINS: Tonight, just a reminder, South Carolina, the democrats take part in the congressional black caucus debate. You can see it live only on CNN 8:00 eastern. CNN, home for your politics.

Bad economy, good opportunities, how you can cash in on a down market.

(COMMERCIAL BREAK)

COLLINS: Well, we've been hearing how bad the economy is. How a recession may be looming but there are opportunities for us in a down market. Gerri Willis is here now with top tips on how we might find those bright spots. I'm so excited about this, Gerri. It's time, isn't it?

GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: Shed some light, yes, please.

Well, let's start with the silver lining for people who want to buy houses. You know housing prices have come down dramatically and it's likely those prices could go lower. So, if you're in the market to buy, now is the time to start the process. Start to look at markets that interest you. Gauge your local real estate market. And there's other good news, too. 30 and 15-year fixed rate mortgages are at their lowest levels in nearly 2 1/2 years. It's good news for renters as well. Rent prices aren't really moving up as they normally do. In some cities like Washington, Phoenix, and Miami, rents actually fell dramatically. Very interesting. There's good news out there.

COLLINS: The only thing I can think about though is when we're talking about buying house, is usually you have to sell a house first so in order to buy them.

WILLIS: Well, it's first-time home buyers that have been sidelined for this housing boom. Now is the time that those folks really need to plug in and start thinking about what they can do.

COLLINS: Yes, absolutely. All right. So any good news out there for investors?

WILLIS: Well, we know how scary it is if you have a 401(k). You're holding mutual funds, you've been watching the market tank. But don't try to time this market. History shows that stocks start to rise during the recession. Bottom line, the stock market is a forward-looking indicator. If you're a long-term investor you have to ride out the bumps. The stock market will move ahead of the economy.

COLLINS: OK. So what's the best bang for our buck then?

WILLIS: You know the fed's in rate cutting mode. And it seems to be recently that interest rates on CDs go down. But guess what that's not happening. The subprime issue is getting in the way of what you typically expect. And this could be good for you. Short-term CD interest rates. We're talking three-month, six-month CDs. Now pay the same as one year or five-year CDs. That's because banks are trying desperately to raise some money. But this is good news for you if you don't want to keep your money tied up for years, you can have it tied up for a few months. Also consider high-yield money accounts. Some internet banks are offering rates close to 5 percent. Bankrate.com is a great place to go to compare offers.

COLLINS: OK. Any other good deals out there that you want to tell us about?

WILLIS: Stocks are on sale.. I know they're down. But you know, when they're cheap, that's the good time to buy. The easiest way to get into the market is through index funds or ATFs. Check out Vanguard or Fidelity for low-cost options.

Some people are very excited about the Magellan Fund, a long-term fund a lot people know about it. It was a members-only mutual fund for a decade. This one is up almost 19 percent. Last year that beat out the S&P 500 by 13 percent. But of course you want to do your homework before investing in any mutual fund. Talk to your financial adviser or go to morningstar.com. Of course if you have any questions send them to us at toptips@cnn.com. We love hearing from you.

COLLINS: All right. Gerri, very good. Nice to see you as always. CNN's personal finance editor, Gerri Willis. Have a great day, Gerri.

WILLIS: Thank you.

UNIDENTIFIED MALE: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: You are in the CNN NEWSROOM. I'm Heidi Collins. Tony Harris has the day off. Crews in southern California plan to peel open the crashed airplane today. They're checking of other victims might have been on board. It's a small plane collide with another one in the sky southeast of Los Angeles. At least five people were killed. A witness tells a local TV station he saw bodies falling from the sky.

JEFF HARDIN, CRASH WITNESS: It's a smaller aircraft, this one here. It just disintegrated into a million and 50 pieces coming down. The other aircraft pretty much stayed intact and started spiraling down right behind the Nissan dealer.

(END VIDEO CLIP)

COLLINS: One of the victims was killed when plane wreckage pierced the roof of that car dealership.

Searching for the killer of a border patrol agent in Southern California. Agents are on the lookout for two vehicles involved in the death. Luis Aguilar was hit and killed by a hummer fleeing agents a mile from the Mexican border. He was laying down a spike strip when he was hit. The border patrol says the suspected drug smugglers fled into Mexico. Mexican military is now helping in the search. There have been no arrests.

He did the time, but not the crime. A suspect for 12 years, a prisoner for 10. His long journey to innocence ahead.

(COMMERCIAL BREAK)

COLLINS: New sketches and a possible lead in the search for Madeleine McCann. Her parents say this man might be linked to the girl's disappearance. Madeleine was 3-years-old when she van fished last May during a family vacation in Portugal. Police say a British tourist saw the man hanging around the resort.

The McCann's say the sketches are similar to an earlier drawing of a man seen carrying a child the night their daughter went missing. Colorado, February 1987, Peggy Hettrick stabbed and sexually mutilated is found dead in a field. Police immediately focus on a 15-year-old boy who lived nearby, though no hard evidence links Tim Masters to the crime.

A dozen years would pass before police arrest him. A jury convicts largely based on violent drawings he made. Now, after nine and a half years in prison a stunning DNA discovery. CNN's Drew Griffin is keeping them honest.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): When she heard that after 12 years Tim Masters had finally been charged with murder, the former lead investigator Linda Holloway was thrilled. Until she saw the new evidence that broke the case.

HOLLOWAY: I kept thinking, there's no way he's going to get convicted. They don't have any evidence against him.

GRIFFIN (on-camera): But what prosecutors did have were these, Tim Masters' own drawing. One of them a body, bleeding being dragged across a field. Another showing what could be a stabbing, a wound. A diagram of the field, the spot where the body was placed.

GRIFFIN (voice-over): A forensic psychologist hired by prosecutors told the jury these all add up. Whoever drew them was the killer and worse could kill again. That psychologist, Dr. Reid Malloy, wouldn't talk to CNN for this report, and by the way, never interviewed Tim Masters. And remember this, 12 years had passed. Tim Masters was no longer 15 years old and skinny. He was a grown man.

FISCHER: The basic gist of what we understood from the jurors was, again, what I said before. They were afraid to let him go. GRIFFIN: But the testimony on the drawings wasn't the only damaging testimony. Linda Holloway was also called to the stand. She was asked by Eric Fisher point blank, you don't believe Tim Masters is guilty, do you?

Holloway froze, afraid her answer would throw away years of detective work. She said nothing. Masters was convicted of first degree murder and sentenced to life.

So doesn't it bother you that when you were there and had the chance to defend an innocent man, you didn't?

HOLLOWAY: By answering that one question, yes.

GRIFFIN: Now Holloway is back on the case, this time on the side of the defense. The defense says new DNA testing they conducted proves Masters never even touched Peggy Hettrick, let alone stabbed her to death and drag her into a field.

And keeping them honest, we found a special state prosecutor assigned to review the case says the original prosecutors and police failed to disclose four significant pieces of evidence that pointed away from Tim Masters. Including the surveillance of Masters produced nothing suspicious.

That an FBI profiler hired by police told them Masters' sketches prove nothing, and a plastic surgeon hired by police who said it would be difficult for a 15-year-old to make such skillful incisions to the woman's body.

Significant pieces of evidence?

DON QUICK, SPECIAL PROSECUTOR: Yes. How significant is something that still needs to be determined.

GRIFFIN: And you're a prosecutor, right? Would it be significant in a case you were prosecuting?

QUICK: I think that's why we stipulated to those.

GRIFFIN: Late Friday night in a stunning development, special prosecutor Don Quick went beyond just stipulating withheld evidence. He announced new evidence, DNA tests pointing to a new suspect, not Masters, as the more likely killer.

QUICK: The results of this comparison was to confirm the presence of DNA consistent with the alternate suspect and inconsistent with Tim Masters. It is our belief as special prosecutors in this case that this new evidence meets the constitutional requirements of rule 35C that requires a vacation of the original conviction and sentence and entitles Mr. Masters to a new trial.

GRIFFIN: Tim Master's next court appearance is Tuesday when it is expected he will be freed from prison. The alternative suspect, Masters' attorney tells CNN, is an old boyfriend of Peggy Hettrick and Fort Collins police only briefly suspected 21 years ago. Drew Griffin, CNN, Fort Collins, Colorado.

(END VIDEOTAPE)

COLLINS: Wow. Thirsty? Try a long sip of this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Yes.

KARA FINNSTROM, CNN CORRESPONDENT: How does it taste?

UNIDENTIFIED MALE: Tastes like distilled water.

FINNSTROM: How long ago was that sewage?

UNIDENTIFIED MALE: Probably about two days ago.

(END VIDEO CLIP)

COLLINS: Toilet to tap. One community's answer to a water shortage.

(COMMERCIAL BREAK)

COLLINS: Hey, how about a cold glass of recycled sewer water? Sounds pretty disgusting, right? Well, it will be coming out of the tap soon in Orange County, California. Here now is CNN's Kara Finnstrom.

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN CORRESPONDENT (on camera): Clean, clear water. It is in short supply here in Orange County. So, any new source like this one is warmly welcome. That is, if you can get past where this water comes from.

(voice over): That's right. What's now destined to become Orange County's drinking water started out as sewer water -- brown waste water from toilets, dishwashers, bathtubs, you name it.

PHIL ANTHONY, ORANGE CO. WATER DISTRICT: We will explain from the beginning, this is actually sewer water that's been treated by the sanitation district and then purified even more by us until it's really almost distilled water.

FINNSTROM: To do that, Orange County launched a first of its kind facility -- a nearly $0.5 billion reclamation plant that can turn 70 million gallons of treated sewage into drinking water every day.

ANTHONY: It's going to become a model for the entire world. Singapore has already built a smaller version of our exact plant and there are several others around the United States that are being planned.

FINNSTROM: The plant runs sewage that would have been discharged to the sea through a three-step purification process. First it heads through micro-filters to sift out solid matter.

MICHAEL MARCUS, ORANGE CO. WATER DISTRICT: Any solid particle larger than one/300th the size of a human hair would remain on the outside -

FINNSTROM: Then it runs through another filter to remove any viruses or pharmaceuticals, and finally the water gets a purging bake in high intensity light, breaking down anything that's left. The result?

UNIDENTIFIED: Yes.

FINNSTROM (on camera): How does it taste?

UNIDENTIFIED MALE: It tastes like distilled water.

FINNSTROM: How long ago was that at sewage?

UNIDENTIFIED MALE: Probably about two days ago.

FINNSTROM (voice over): Soon, water officials won't be the only ones tasting it. This water will now mix with groundwater and should run out of Orange County taps in as little as six months. The water must meet safety standards. One environmental group has reservations about what they call the limits of such tests.

RENEE SHARP, ENVIRONMENTAL WORKING GROUP: It brings up concerns of what are we looking for, what we are not looking for, what we don't know.

FINNSTROM: While there is no doubt Southern California needs more water, some say, this is a little hard to swallow.

UNIDENTIFIED MALE: Even though I know that they've filtered it three times, it's just kind of is creepy.

FINNSTROM: But many say the benefits just may outweigh the creepiness.

UNIDENTIFIED FEMALE: I think it's about time we recycled everything.

FINNSTROM: That's due in part to a massive campaign touting the benefits of less discharge to the sea and more water for a thirsty Orange County. Kara Finnstrom for CNN, Orange County.

(END VIDEOTAPE)

COLLINS: Stock markets are closed, but wall street is still reverberating over last week's big slide. Susan Lisovicz is in New York now with details. Good morning to you.

(STOCK MARKET REPORT)

COLLINS: Not a top priority for some.

(BEGIN VIDEO CLIP)

DENIS LEARY, ACTOR: I gave up on ever hoping that politicians in this country local, state or federal would step in to help these guys.

(END VIDEO CLIP)

COLLINS: New Orleans firefighters not getting any help from the government. Now a Hollywood actor is coming to the rescue.

(COMMERCIAL BREAK)

COLLINS: Looking for a pierced pelican. Time may be running out for a bird with an arrow through the beak. That's ahead in the CNN NEWSROOM.

It's time for us to take a look at some of the most clicked on videos on cnn.com. Several states are looking at vans and what's been dubbed, "DWT," driving while texting. AAA says, as texting becomes more and more popular, it's also becoming more of a problem on the roads.

Recycling TVs. Everyone has to go digital by February of next year. And that means millions of useless older TV sets. Environmentalists don't want them to end up in a landfill. In a CNN Fit Nation success story, Patty Hill lost more than 100 pounds after finding an alternative to gastric bypass surgery.

For more of your favorite video go to cnn.com/mostpopular. And, of course, don't forget, you can take us with you anywhere you go, on your iPod with the CNN daily podcast. See some of the stories that will certainly have you talking. CNN NEWSROOM podcast available 24/7, right on your iPod.

A tidal wave of timber washing ashore in southern England, beaches all along the coast had to be closed, in fact. Look at that. The wood comes from a cargo ship that sank in English Channel. So far, over 22 tons of wood has washed up on the beaches. That means there's still around 3,000 tons floating in the channel. People have been hauling off some of the water-logged wood. But police warn they could be arrested.

Firefighters with no place to call home. It's a post-Katrina reality in New Orleans. But now, one Hollywood actor is leading the effort to change that. Sean Callebs has the story.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice over): Number seven is coming back finally. Katrina destroyed 22 of 33 fire houses in New Orleans. In the months and years that followed the storm, the city rebuilt exactly zero. So entered Denis Leary who stars a firefighter on a TV show called, "Rescue Me," and has a foundation to assist firefighters.

With Leary's help, volunteers from New York's carpenters union and New Orleans bravest had rebuilt five fire houses. LEARY: I gave up on ever hoping the politicians in this country, local, you know, state or federal would step in to help these guys.

CALLEBS: After the storm, FEMA estimated it would take ten years and millions of dollars to rebuild the devastated stations. In the interim, New Orleans firefighters are working and living in trailers attached to decimated fire houses.

CHUCK BROKMEIER, FIREFIGHTER: (INAUDIBLE) and having spent time in the house personally, it's - you walk in and see it, and you can't believe it.

EDWARD BLAKELY, DIRECTOR OF NEW ORLEANS RECOVERY: This is more inviting environment.

CALLEBS: Doctor Edward Blakely is a New Orleans recovery czar. The city only days ago reopened its police headquarters. That was New Orleans' top priority. Rebuilding fire stations he says, will take about two more years.

BLAKELY: We say to citizens, look, we'll have a better city. You don't want us to put it the way it was. We're going to improve it, that's we're going to do that takes a little more time but it's worth it.

CALLEBS: District chief, Tim McConnell says, rebuilding fire stations is essential to bringing New Orleans back.

TIM MCCONNELL, DISTRICT FIRE CHIEF: I mean, people look around and they see the fire house not done, if I have an insurance check in my hand, I will spend it.

CALLEBS: He says where they'll feel protected. It's a said commentary, Leary says, when actors and artists are leading the way in New Orleans.

LEARY: We have the edge, you know, an Irish musician coming over here to help you know, solve the problems in New Orleans, but can't get FEMA or you know, our own president to respond. It's not shameful, it's just funny.

CALLEBS: Every time they pound (INAUDIBLE), workers want to drive home a point. If the city can't bring fire houses back sooner, someone has to.

Sean Callebs, CNN, New Orleans.

(END VIDEOTAPE)

COLLINS: This disaster started in the sky. It ended at a Chevy dealership. What caused two planes to collide.

(COMMERCIAL BREAK)

COLLINS: Suspicious fire early today. Homes destroyed, lives disrupted, downtown inferno. A child's body found off a Louisiana coast yesterday. The sheriff says he thinks the child is this man's. Police say the man initially confessed to throwing his four children off a bridge near Mobile, Alabama, almost two weeks ago. The bodies of the three other children already recovered. Medical examiners are now trying to identify the child found yesterday.

A pelican in distress. The search is on in southern California for this bird. He's easy to spot. He's got an arrow in his face. Wildlife experts say the arrow has sealed his beak shut. They are trying to catch it before it starves to death. And now, a bird rescue group is offering a $2500 reward. Not for the bird, but for information on who shot it.

You're with CNN. You're informed. Hi there, everybody. I'm Heidi Collins.

Developments keep coming in to the CNN NEWSROOM on Monday, 21st day of January. Here's what's on the run down.

They're flocking to Florida. Swarming over South Carolina. We size up the next big contest in the race for the White House.

And he drives a jeep and wears Western chic. Osama bin Laden's son. The CNN interview.

New developments about a British missing girl. Does this man know what happened to Madeleine McCann? The case updated, in the NEWSROOM.

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