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Republicans are Stumping in Florida; Obama Boast Endorsements from Two Candidates; Fire Indiana State University Dorm; Screen Actors Guild Hands Out Its Awards
Aired January 28, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Tongue twister.
ROB MARCIANO, CNN ANCHOR: Yes.
WHITFIELD: You know that.
MARCIANO: Oh it is. While the B team is in, Heidi and Tony's off, and Heidi's feeling (INAUDIBLE).
WHITFIELD: Maybe we're A minus.
MARCIANO: Maybe.
WHITFIELD: How's that?
MARCIANO: If I had an A minus in school, I'd be happy.
Good morning. I'm Rob Marciano. Tony has the day off.
WHITFIELD: And I'm Fredricka Whitfield. Good morning, everyone. In for Heidi Collins this morning. Watch events come in to the NEWSROOM live this Monday morning. It's January 28th. And here's what's on the rundown.
New sell-off signs. Wall Street opens for business at the bottom of the hour. We're watching "Your Money."
MARCIANO: Also, he had to stay to his wing column. Today he pockets a key endorsement. Barack Obama makes strides on the campaign trail.
WHITFIELD: And keeping you safe. Testing the scanners of covert government operations runs a fake bomb through airport security.
You are in the CNN NEWSROOM.
And breaking news this hour. A school hostage standoff in northwest Pakistan. We're just getting word that it may have ended a short time ago. Gunmen running from police had stormed the school in a rural area. The Associated Press reports that Pakistan's Interior Ministry says the gunmen have released all of the children and the teachers. CNN has not confirmed that. The gunmen had grabbed up to 30 hostages. Tribal elders had been negotiating with the hostages' release. And police there say the hostage-takers are not al Qaeda or Taliban militants. We're keeping tabs on this story. We'll bring you, of course, details as we get them.
MARCIANO: Here at home, the road to the White House. The southern leg of that journey for Republicans -- it's sun, it's surf and it's stumping. They're in their final full day of campaigning in Florida. The state carries a windfall of delegates. It can also delivery a fatal blow to Rudy Giuliani's presidential campaign. He's focused most on his efforts on the state and his bid seems to be faltering. Right now polls show him running third.
Democrats have no delegates at stake in Florida. So they're looking ahead to super Tuesday. The contestant -- contest that happens on February 5th. Barack Obama has momentum from his big win in South Carolina over the weekend. He routed Hillary Clinton way 2-1 margin of victory.
Now let's get the latest from the Republican battleground state of Florida.
Dana Bash is in Orlando.
Dana, there's an ongoing battle between Mitt Romney and John McCain. Where does it stand right now?
DANA BASH, CNN CORRESPONDENT: It is incredibly bitter right now because of the fact that it is so incredibly tight between the two of them, just one day before what could be a very decisive primary here in Florida.
Before the sun even came up this morning, Rob, Mitt Romney was going after John McCain. You know he has been talking about the fact that he's an insider, that John McCain is an inside Washington person, and that is why he is not appropriate at this time to be the commander in chief, particularly when it comes to the key issue of the economy.
Well, this morning, it was very, very pointed, what Mitt Romney said. He accused John McCain of sponsoring three key pieces of legislation during his years and years in Washington. All of which looking like Democratic policies.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Senator McCain is noted for three major pieces of legislation. I think all of them were badly flawed. And if somebody wants to know where he would lead the country, you simply need to look at the three pieces of legislation with his name at the top. \
McCain-Feingold has not reduced the impact of money in politics. It's made it worse. McCain-Kennedy is viewed by virtually all as an amnesty bill. And McCain-Lieberman would cost the families of America as much as $1,000 apiece.
(END VIDEO CLIP) BASH: So there you see Mitt Romney tried to do a couple of things. First of all making the case, as he has done time and time again, that John McCain is not the right man to lead the country when it comes to the economy, but also trying to -- tried to sort of hit John McCain's sweet spot, if you will, with conservative voters, trying to make the case he is simply not the right kind of conservative to be the Republican nominee.
On the other side, John McCain -- we are waiting to see him today, although he has a jammed packed schedule. He's going to be all across the state. But in general what he is trying to say to Florida voters is that he thinks the issue at hand here is national security, and he says that for that reason, he is the best person to be the next commander in chief.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATES: I'm running for president of the United States because I believe the transcending challenge of the 21st century is ripe for Islamic extremists and I agree with General Petraeus that the central battleground is now the war in Iraq.
(END VIDEO CLIP)
BASH: So there you really see the way this debate is playing out, again, in a very intense almost bitter way as we get closer to tomorrow's primary, Rob.
You have Mitt Romney saying that the economy is the transcendent issue and that help is the man that should lead at that time and you have John McCain saying, no, no, no. It's national security and the war in Iraq and he says that for that reason he is the man who should be the nominee.
It's going to be fascinating to see which of these two arguments Florida voters choose tomorrow -- Rob?
MARCIANO: It's funny, Dana, we're talking about Mitt Romney, we're talking about McCain. They're still in the headlines here, but Florida, a lot of transplanted New Yorkers there. Giuliani has been banking on it, spending all of his time there.
Is that strategy going to pay off? It seems like he's running third now. What do you think?
BASH: You know, he is running third. It is -- it's really pretty stunning to see what's been happening to Rudy Giuliani and his campaign here near Florida because it was just a couple of months ago, you know, Rob, that he was riding high in the polls and really banking on a big Florida win to sort of propel him into the super Tuesday contest of February 5th.
But you're right. He is now pretty much in third place, according to almost all of the polls here and he is struggling to get into the narrative. And the way he's been doing it, he's been trying to say, you know, you've seen Mitt Romney saying I'm Mr. Economy. You see John McCain saying I'm Mr. National Security. So Rudy Giuliani is kind of -- trying to wedge himself into the debate is saying, well, you should pick me, because I'm both.
So it's interesting just to hear him shift here and we'll be -- also interesting, Rob, to see if that has any kind of success as Florida voters have had a lot of time to pay attention to Rudy Giuliani, because he has been here so much, so much more than the other candidates, and at this point, there are so few undecided Florida Republicans.
You talk to pollsters here. They say, you know, it's unlikely they're actually going to know for somebody that they know so well, someone like Rudy Giuliani. But we'll see --Rob?
MARCIANO: It certainly hasn't been dull this primary season.
BASH: No, It hasn't.
MARCIANO: Dana Bash live for us in Orlando. Thanks, Dana.
WHITFIELD: And it gets even more interesting with this, Rob. Name-dropping and attention getting. Some candidates are boasting pretty big endorsements today. Barack Obama wins the backing of a liberal icon in a Washington rally scheduled for noon eastern today.
Senator Ted Kennedy will announce his support. It is the second Kennedy endorsement in as many days. John F. Kennedy's daughter Caroline endorsed Obama in an op-ed piece for "The New York Times." It was entitled, quote, "A president like my father."
And Republican John McCain goes into the Florida primary with the endorsement of that state's governor. McCain says the support of Charlie Crist gives him momentum.
MARCIANO: A fresh trading well less than 30 minutes away. And nervous investors prepare for what could another white-knuckle ride. U.S. stock futures are down right now after Asian and European markets tumbled overnight. The buzz the street, another possible rate cut when the Fed meets Wednesday.
Just last week they slashed a key interest rate, three quarters of a percentage point.
We'll watch when the Dow when the market opens at 9:30 Eastern.
WHITFIELD: And news on Countrywide Financial morning, America's largest mortgage lender, in trouble over a bad subprime loan. Well now its CEO says he will forego millions in severance pay and other perks.
Personal finance editor Gerri Willis in New York this morning with more on that. So what can we expect?
GERRI WILLIS, CNN PERSONAL FINANCIAL EDITOR: Well, Fred, Angelo Mozilo, the counter of Countrywide, says he is forfeiting giving up $37.5 million of severance pay, a very big price tag indeed.
He is the controversial founder of Countrywide. He's controversial both with investors in the stock, that company lost over a billion dollars in the third quarter alone. He's also controversial with consumers for his role in the mortgage meltdown. Critics say that he was instrumental in using some of these loans that were so controversial, the so-called toxic loans.
Here's what he had to say about forfeiting this money.
"My primary focus today is to do what is in the best interesting of Countrywide's employees, customers and shareholders. I believe this decision is the right thing to do as Countrywide works toward the successful completion of the merger with Bank of America."
Now I have to tell you, he is not alone in this. As a matter of fact, we've seen several important figures in the mortgage meltdown also leave their companies and also leave some severance on the table.
Stan O'Neal, as you can see right here, walked away with $161 million. Charles Prince walked away with $29, and despite the fact that Angelo Mozilo is leaving some money on the table he's also walking away with $40 million.
Fred, these executives all have incredible pay agreements. They give them benefits no matter how they perform in the marketplace. It's really pretty eye opening when you get a look at this. The real numbers out there.
WHITFIELD: Well, it is eye opening just seeing that the figures that he's willing to toss away but yet at the same time, the figures he's still getting a chance to walk away with.
All right. Well, let's talk about tomorrow morning, Fed meeting. What exactly might be expected out of that?
WILLIS: Well, the Fed meets tomorrow and Wednesday to discuss another possible rate cut. As you remember last week the Fed reacted to the economy's problems with a whopping three quarter point emergency cut and the current Fed funds rate is 3.5 percent you should know.
The street is betting that this week's cut could be as much as a half a point. We'll have to wait until tomorrow to find out but we can expect the cut to occur Wednesday. Possible that the Fed could come in early.
You should know that the Fed chairman Ben Bernanke has been severely criticized for not reacting quickly enough to the economy's problems while others on his case were catering to falling stock markets. He really can't win and his credibility with investors is suffering for it.
But we will be following that rate cut and let you know what happens as soon as we get the news.
WHITFIELD: All right, Gerri, thanks so much.
WILLIS: My pleasure.
WHITFIELD: Rob?
MARCIANO: Fred, (INAUDIBLE) happening in London right now, afternoon for them, morning for us, between Prime Minister Gordon Brown and Pervez Musharraf, president of Pakistan, and Gordon Brown commenting on the release of the hostages in Pakistan.
Take a listen.
(BEGIN VIDEO CLIP)
GORDON BROWN, BRITISH PRIME MINISTER: We're pleased to hear the news that 200 or more children who were held hostage in Peshawar have been released. Hostage-taking in any instance is wholly unacceptable and it is reassuring that the children are as we believe safe and have been released.
(END VIDEO CLIP)
MARCIANO: Confirming the release of those hostages in Pakistan. We'll continue to watch that as it develops here in the CNN NEWSROOM.
Meanwhile, President Bush delivers his State of the Union address tonight. The word from the White House, don't expect any bold new initiatives in the president's final year. At the top of the to-do list pushing Congress to pass an economic stimulus package. He's also expected to take aim at congressional earmarks. Well, that's your money set aside for special projects. We're looking for him to talk about progress in the war in Iraq and also the Middle East peace process.
Our coverage of the president's State of the Union address gets underway tonight at 8:00 Eastern. What does it mean to you and the race for the White House?
If you can't watch it on TV, catch it online at CNN.com/live.
WHITFIELD: Well, it's a pretty nasty weather out there. Soggy mess from central to southern California. Forecasters say the storm is beginning to move out. But the risk of mudslides is especially high because of last year's wildfires. This storm has knocked down trees like dominoes like you see right there. Check out this video from San Diego. A giant hole in the roof, and the rain made the roads pretty slick as well.
In Los Angeles, a car swerved off the freeway and into that canal. And two people had to be rescued from the rushing waters. And in higher elevations, they got lots of snow. Looks good, but it's pretty hazardous, too. And they also got the wind that you see associated with it. Those winds are also responsible for knocking out power to about 7,000 customers in the bottom half of the state.
Let's check in with Reynolds Wolf. Boy, it's nasty out there. Isn't it?
(WEATHER REPORT)
MARCIANO: Well, testing airport security, a CNN exclusive. We follow the path of a phony bomber as he tries to get past the screeners.
Stay with us.
(COMMERCIAL BREAK)
ANNOUNCER: Breaking news, revealing developments, see for yourself in the CNN NEWSROOM.
MARCIANO: Well, on the CNN security watch this morning, a critical security lesson. Investigators strapping on phony explosives highlighting vulnerable spots in our airport.
CNN's Homeland Security correspondent Jeanne Meserve has our exclusive report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: This is a back support, I am putting a detonator into the plastic explosive.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice over): It isn't an actual improvised explosive device. Just a very good copy that should set off alarms just like the real thing. The very latest intelligence has been used to create it and conceal it.
UNIDENTIFIED MALE: Slide it in to get it deeper in there so that it is more difficult, concealed better.
MESERVE: This undercover team from the Transportation Security Administration applies a chemical that mimics explosive residue.
(CROSSTALK)
UNIDENTIFIED MALE: Yes, I can see.
UNIDENTIFIED MALE: OK. (INAUDIBLE). I think we're ready to go.
MESERVE: Then they head for Tampa International Airport. No one knows they're coming, until the airport's top security official gets a call five minutes before the test begins.
UNIDENTIFIED MALE: But I would ask that you not speak to anyone on your staff to alert them of this test.
MESERVE: At the checkpoint the tester is wanted and padded down right where the fake IED is concealed, but the screener does not catch it. If this were a real bomb, it just made it past security.
TSA won't give exact numbers but screeners fail these tests more often than they pass them. DAVID HOLMES, TSA ASSISTANT ADMINISTRATOR: We're designing our tests not so much to indicate or to show or highlight performance or absence of performance at a particular airport, but we're highlighting where the vulnerability exists at the airport.
MESERVE: At Tampa, the team breaks cover immediately to show the screener his mistakes.
UNIDENTIFIED MALE: Have you do it again and we'll go over everything so I can show you exactly what you -- what you did wrong.
MESERVE: Again, wanding and padding misses the fake IED. Only when the tester tells the screener to go a step further and lift up the shirt, does the screener find it.
UNIDENTIFIED SCREENER: Oh, I see it now.
MESERVE: Apparently aware of the consequences if this had been the real thing, the screener appears devastated, but every screener at this checkpoint will be taught today's lessons.
UNIDENTIFIED MALE: And we all have to be sharp to stop them from coming into the sterile area. You know that.
(END VIDEOTAPE)
MARCIANO: CNN homeland security expert Jeanne Meserve is live at Reagan National Airport in Washington this morning.
Jeanne, fascinating report. Are these tests continuing?
MESERVE: They do them every day. More than a dozen every day. Thousands every year, and the idea of the TSA says this isn't to score their screeners but rather to teach their screeners and also hopefully find holes in the system, things they aren't addressing properly so those holes can be plugged.
MARCIANO: A lot to be watched this reporter and they say, you know, hey, we're just giving the terrorists more ideas, a blueprint to how we do business with security What do they say to that?
MESERVE: Well, actually, it's the other way around. As I mentioned in the report, this device that this individual pull on for the test is something that was developed using current intelligence. Things they have picked up in the chatter, that terrorist are looking at. So instead of us giving terrorist ideas, the terrorists in fact are giving the TSA ideas which is incorporates into its testing protocols -- Rob?
MARCIANO: All right. Jeanne Meserve live for us at the Reagan National Airport. Thanks, Jeanne.
Remember, CNN is your best source for news and information about your security.
WHITFIELD: Coffees, teas and colas. Too much caffeine can spell trouble for diabetics. The story, straight ahead.
(COMMERCIAL BREAK)
WHITFIELD: Trouble brewing for diabetics. That morning cup of coffee could affect your body in ways you never imagined.
Medical correspondent Elizabeth Cohen in New York this morning. So what could a cup of coffee or tea have to do with diabetes?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Right. It does seem strange, doesn't it, Fred? It seems strange but caffeine can affect levels of glucose in your blood. And what's amazing is the doctors found that it really has a huge affect. They looked at type II diabetics and they gave them capsules that were the equivalent of four cups of coffee and they found that it their made blood glucose levels shoot up. Look at these levels.
WHITFIELD: Four cups, though.
COHEN: Four cups, right. I'll get to that part in a second, but it went up 8 percent on a daily level and after breakfast, it was up 9 percent. After lunch, 15 percent and after dinner, up 26 percent.
WHITFIELD: Wow.
COHEN: Now you might say what Fred just said, well, four cups. I mean, golly, not that many people drink four cups of coffee a day. But if you saw those kind of increases with four cups, it means that you might also see increases in glucose levels with maybe only one come or two. Doctors aren't sure but that's something they need to research.
WHITFIELD: All right. So let's talk about type II diabetes, because usually if you have that caffeine perhaps you're also taking medication. So how might the caffeine impact that?
COHEN: Well, unfortunately, it appears that the caffeine sort of does a double whammy. Not only does it increase the amount of glucose according to the study but it also appears that it might interfere with the way that the drugs work. So not only do you have higher glucose levels but it is also harder for the drugs to do their job of getting the glucose levels down.
WHITFIELD: And so if you don't have diabetes, need you worry?
COHEN: You know, we asked the doctor that and he said, look, if you are young and fit and healthy, caffeine may not really have an affect on glucose levels and you're fine. But if you're like many people, where you're hovering around type II diabetes, you are on your way t
All right. Elizabeth Cohen. Thanks so much. Great tips.
WHITFIELD: Tips -- Rob?
MARCIANO: Just a head screams from a man who fell into an icy pond.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I'm slowing down, I can't breathe. You can't see how everybody's going.
(END VIDEO CLIP)
MARCIANO: Water temperatures in the 20s. How rescuers saved the man. That's ahead.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
MARCIANO: Welcome back to the CNN NEWSROOM.
The opening bell just a minute away.
Good morning, I'm Rob Marciano. Tony Harris has the day off.
WHITFIELD: And good morning, everyone. I'm Fredricka Whitfield in for Heidi Collins.
Well, the unthinkable in Kenya. Women and children slaughtered as tribal violence spreads through new parts of the country.
CNN Zain Verjee has more from Nairobi, Kenya.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN CORRESPONDENT: The political tension and the political maneuvering is happening here in the capital city of Nairobi, but the bloody violence is happening in the parts of the country known as the Rift Valley.
Tribes are beginning to turn on one another. Neighbors that have lived together for years are now beginning to kill each other. There are people dying, being hacked to death, being struck by poison arrows. There was one instance in a place called Naivasha where women and children were hurled into a house and just burn alive because they were from a different ethnic minority.
We actually made our way to Naivasha, we took the main road from Nairobi which we've been traveling on for years here and what we saw was street gangs, really blocking the streets, they were burning tires and barricading the roads. The police have to fire a teargas and ultimately take out the stones and let people go through. But it was a very frightening, a very dangerous situation.
But one has to understand, when looking at the tribal fights here in Kenya; it's that it's not just about tribes. It's also about a very serious and volatile issue and that is one of land. See what happened decades ago is that one tribe here got more land in the rift valley through political patronage and the other tribes are mad and say this is our land and that land is the basis for this fight.
Zain Verjee, CNN, Nairobi.
ROB MARCIANO, CNN ANCHOR: On the campaign trail, presidential candidates seeking southern exposure and, of course, all-important votes.
Republicans are stumping in Florida. The site of tomorrow's big primary. Over the weekend, John McCain won the endorsement of the state's governor. They're in their final poll day of campaigning in Florida. The state carries a windfall of delegate. And it could mark the final stand for Rudy Giuliani. His presidential campaign has focused most of its efforts on the state and that bid seems to be faltering. Right now, polls show him running third.
Meanwhile, Democrats have no delegates at stake in Florida. So they're focusing instead on next week's Super Tuesday contest. Barack Obama has momentum from the weekend win in South Carolina. He routed Hillary Clinton with a 2-1 margin of victory.
And Obama boast endorsements from two candidates. Yesterday, JFK's daughter Caroline and today Senator Ted Kennedy. A big win for Barack Obama in South Carolina, but will he keep that momentum going heading into Super Tuesday? Here's CNN's Jessica Yellin.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN CORRESPONDENT (voice-over): For Barack Obama, not just a victory, a route.
BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: Thank you, South Carolina.
YELLIN: He won more than half the votes, according to his campaign, proof that Iowa was no fluke. And his message of a new kind of politics is breaking through.
OBAMA: We have the most votes, the most delegates -- and the most diverse coalition of Americans that we've seen in a long, long time.
YELLIN: Hillary Clinton made a show of moving on, getting to Nashville to declare.
HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: Now the eyes of the country turn to Tennessee, and the other states that will be voting on February 5th.
YELLIN: And despite finishing third yet again, John Edwards insists he's staying in the competition.
JOHN EDWARDS, (D) PRESIDENT CANDIDATE: We're giving voice to all of those Americans whose voices are not being heard, and they're voices were heard today.
YELLIN: The Democratic contest took a bruising turn in South Carolina.
OBAMA: While I was working on those streets watching those folks see their jobs shift overseas, you were a corporate lawyer sitting on the board of Wal-Mart.
CLINTON: I was fighting against those ideas when you were practicing law and representing your contributor Resco in his slum landlord business in inner city Chicago.
YELLIN: First Clinton, then Obama, pulled down ads the other campaign called misleading. Then there was the Bill Clinton effect.
BILL CLINTON, FORMER U.S. PRESIDENT: They both said that Hillary was right and the people who attacked her were wrong. And that she did not play the race card. But they did. So I don't have to defend myself.
YELLIN: It heightens interests in the role Barack Obama's race would play in South Carolina. In the end, exit polls show Obama won 80 percent of the African-American vote, and about a quarter of the white vote. The crowd at his victory party offered an unusual chant. Race does not matter, they say. Already the Clinton campaign is looking ahead to states in which Latino voters will weigh in. It's a constituency that has been good to the Clintons.
(on-camera): The Clinton campaign says the next primary that matters is on Tuesday in Florida. It's a state that a large Latino electorate. The Democratic candidates had agreed not to campaign there because of an inter-party squabble. Still, Clinton expects to win that primary and her campaign is hoping that will break Barack Obama's momentum before the race goes nationwide on Super Tuesday. Jessica Yellin, CNN, Columbia, South Carolina.
(END VIDEOTAPE)
MARCIANO: All this week, CNN is bringing you special coverage of the presidential candidates as they crisscross the country ahead of Super Tuesday. It's the CNN "BALLOT BOWL" from noon to 1:00 Eastern. Join us for a live coverage of the candidates as they make their pitches to you the voters. Remember, CNN equals politics.
FREDRICKA WHITFIELD, CNN ANCHOR: And a look right now to opening bell just moments ago. The Dow opened up at about 29 points up, not bad there. But the NASDAQ down slightly. We, of course, are going to continue -- now you see the Dow up about eight points. But we're going to continue to watch the market, and we also expect to hear from the president this evening in his State of the Union address commenting on the economy and other things, of course, we're encouraging you to watch on that as well.
MARCIANO: And we'll watch those numbers, no doubt, change quickly throughout the day.
President Bush delivers his final State of the Union address tonight. One big focus, pushing Congress to give a jolt to the sluggish economy. Live now to CNN's Brianna Keilar on Capitol Hill. Ahead of this big speech, Brianna, we're hearing the president may be getting some pushback now on this stimulus plan from the Senate. What do you know? What can you tell us?
BRIANNA KEILAR, CNN CORRESPONDENT: Well, you know, the House has come to an agreement on this. The senate has not at this point. They still need to take this up, and senators, Democrats and Republicans, floating a lot of ideas of things they may want to add on to this package.
Democrat, for instance, talking about extending unemployment benefits and food stamps. Republicans, one of their priorities is lowering the corporate tax rate. This is an independent legislative body from the House. They really want to put their two cents into this and not just rubber stamp the House plan. However, they're facing a lot of pressure both from Democratic and Republican leaders here on the Hill to get this passed quickly. They are also facing a lot of pressure from the Bush administration and specifically Treasury Secretary Henry Paulson.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: Now, the Senate needs to take action and I'm optimistic here. I don't think the Senate's going to want to derail this program, and I don't think the American people are going to be anything but impatient if we don't enact this bipartisan agreement quickly.
(END VIDEO CLIP)
KEILAR: And with Americans out, they are really kind of feeling the pinch in their pocketbooks. Democrats and Republicans run the risk of, if it appears that they're slowing this process down, slowing down getting this economic stimulus package out the door, it could really be a political misstep for them, Rob.
MARCIANO: You know, Brianna, Earmarks. You hear every politician talking about getting rid of them and they seem really never able to do that. Now the president himself is saying he is going to take a strong stand on Congressional Earmarks. What are you hearing about that on Capitol Hill?
KEILAR: Oh, that's right. Well, in the State of the Union tonight, President Bush, as you said is going to talk about the economy. He's also going to talk about the Iraq war and how troops should not be pulled out too quickly, but he's also going to be talking about Earmarks.
Earmark reforms that he's going to undertake. Basically, what he is saying to Congress is when you send me bills that fund this spending bills, that fund the Federal Government later this year, you need to cut your Earmarks in half, or I am going to veto it. Now the other thing, basically, the way Earmarks work, and just to refresh people's memory. Earmarks basically the money, the members here on Congress gets to pay for projects in their home districts or states. Now, the way that earmarks work is there is legal language in a spending bill, and a lot of times, you may be surprised, Earmarks are not in that legally binding language. They're in kind of a second section, an explainer section, and what President Bush is also going to be doing is issuing a presidential order tomorrow saying, if those Earmarks are not in the legally binding section, they don't need to be honored. They don't need to be paid for and that could really ruffle a whole lot of feathers, Democratic and Republicans here on Capitol Hill.
Rob?
MARCIANO: You mean, not everybody's getting along up there? Is that what you're trying to tell me?
KEILAR: Well, of course, you know, there's a lot of bipartisanship on this economic stimulus package. But when you're talking about things like Earmarks, you know, some refer to it as pork, but these are valuable projects for many of these members and a lot of them are very protective over them.
MARCIANO: Well, everybody certainly wants their piece of the pie. Brianna Keilar, we'll look for that speech tonight. Thanks very much.
Well, our coverage of the president's State of the Union address gets underway tonight at 8:00 Eastern Time. What does it mean to you and the race for the white house? And if you can't watch it on TV, well catch it online at cnn.com/live.
WHITFIELD: Also, in the headlines this morning. A fire forces students at an Indiana State University dorm to get out fast. It happened last night. School official say it looks like somebody left a candle burning unattended and that's probably what started the fire on the 11th floor of the 12 story dorm. The top three floors of the Bloomberg Hall are now considered unsafe.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I just got up the elevator on the 11th floor and the R.A. came out of his room, looked panicked. Open the door to the room next to us, says fire alarm is going off in the room and the end of his bed was on fire.
(END VIDEO CLIP)
WHITFIELD: Four people were treated for smoke inhalation. Hundreds of students had to be evacuated.
MARCIANO: In Massachusetts, a desperate cry for help. Rescuers risking their own lives in icy waters. More now from Grant Greenberg our affiliate WHDH in Boston.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Help! GRANT GREENBERG, WHDH REPORTER (voice-over): Look closely. You could barely see this man's head bobbing in and out of Whitman pond in Weymouth. But you can't miss the panic and fear in his voice.
MICHAEL CROWLEY, WEYMOUTH, MASSACHUSETTS FIRE DEPARTMENT: Going down, I can't breathe. It gets your heart rate going.
GREENBERG: Captain Michael Crawley led the rescue after a 27- year-old man fell through the ice around 2:00 a.m.
CROWLEY: That water had to be in the 20s. I don't know if you've ever been in water, it takes the breath right out of you.
GREENBERG: Before crews could even get the right equipment in place, two firefighters commandeered canoes and very slowly cut through the ice as others hold the lines. Firefighters finally pull the panicking victim out of the water, then load him into an ambulance to be treated for hypothermia. The rescue taking nearly 30 minutes.
CROWLEY: It was a go, no-go call. He had no backup. He had no ice boat. And it was a grave decision. It was a right decision and it worked out well.
(END VIDEOTAPE)
MARCIANO: A lot of dramatic stuff. The man who fell in and several other firefighters were treated for hypothermia. All of them are home this morning, thankfully.
The rescue may have come quicker, but as "The Boston Globe" reports, a fire station just half mile away, had a rescue boat and that fire station was closed.
WHITFIELD: Wow, some dangerous stuff, scary moments, chill.
MARCIANO: And it's cold. It tingly cold just about everywhere, Reynolds. And you got your hands full in the weather center, don't you?
(WEATHER REPORT)
WHITFIELD: All right. Tea, coffee, sandwiches and cigarettes -- even camels. A hawker's paradise in no-man's-land straight ahead.
(COMMERCIAL BREAK)
MARCIANO: Some sad news this morning. The leader of the Mormon Churn has died. Gordon Hinckley was 97. And a spokesman for The Church of Jesus Christ of the Latter-day Saints says he had been in failing health for many years. They attribute Hinckley's death last night to old age. Hinckley led the church through a period of enormous growth.
The Associated Press reports presidential candidate Mitt Romney plans to attend Hinckley's funeral. Romney is trying to become the first Mormon president of the United States. WHITFIELD: In overseas now, to the border between Gaza and Egypt, commerce is replacing chaos as thousands of people who have been without are now buying and selling. Here's our Ben Wedeman.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN CORRESPONDENT (voice-over): It's a hawker's paradise.
UNIDENTIFIED MALE: Egyptian.
WEDEMAN: A raw and adorned, chaotic catalyst free-for-all, where everyone is selling goods and services with Gusto (ph). Overnight, a pleasantly open-air market string up in no-man's-land between Gaza and Egypt. Wherever, however, there's money to be made, they're making it.
Eleven-year-old, Martes(ph), tells me he had already made 200 Israeli shackles, more than $50 in just a few hours. Charging one shekel, just over 25 cents, to use his ladder to climb over the wall to Egypt. Allah (ph) is finally back at work selling tea, coffee and cigarettes.
Things here were really bad, he says. Now, thank God, it's great. We're making a living, before I didn't have a shekel in my pocket. Gaza's once withering economy has suddenly bloomed into an orgy of buying and selling. Everything that can be log, push and shag is entering Gaza. At Nain (ph) sandwich stall, the devil will find no idle hands, its all hustle, bustle, and badly needed cash.
Let them open the border, he says. Open the world and let us live again. It's not exactly happiness all around, but even this camel bought in the Sinai may soon find something to smile about. He's not headed to the slaughter house but rather will be sent out to stud. Seems everyone is a winner here.
(on-camera): But so many people busy on the border, ordinary life in Gaza is on hold. Less people are attending mosque. There haven't been the usual noisy demonstrations and rocket fire from Gaza into Israel is way down.
(voice-over): As long as it lasts, the people of Gaza seem eager not to go back to what passes for ordinary life. Ben Wedeman, CNN, in no-man's-land between Gaza and Egypt.
(END VIDEOTAPE)
MARCIANO: In entertainment news, the show goes on, this time with stars. The Screen Actors Guild hands out its awards and there's a Swan song for "The Sopranos." The highlights coming up in the NEWSROOM.
(COMMERCIAL BREAK)
MARCIANO: Well, finally, Fred a party with some real star power. The Screen Actors Guild Awards go on with some help from the striking writers. CNN's Kareen Wynter has the winners.
(BEGIN VIDEOTAPE)
KAREEN WYNTER, CNN CORRESPONDENT (voice-over): For one night at least, glitz and glamour returned in Hollywood. Finally an awards show with star power. Unlike the Golden Globes and the upcoming Oscars, the STAG Awards didn't face the threat of picketing writers. Instead, the Screen Actors Guild which supported the strike had their blessing as everyone was out in force on the red carpet.
UNIDENTIFIED MALE: It's been 10 years, it's an honor. That's all I can say. Thanks.
WYNTER: Inside the Shrine Auditorium, it was a sweet Swan Song for "The Sopranos," which swept the drama category, Best Ensemble and honors for James Gandolfini and Edie Falco. MTV comedy "The Office" won the Ensemble Award while "30 Rock" garnered trophies for Alec Baldwin and Tina Fey.
TINA FEY, BEST ACTRESS, TV COMEDY: It's really encouraging and also anything that just reminds people that we have a show. I'm all for it.
WYNTER: Both Supporting Actor honorees were first-time winners. Ruby Dee for her work in "American Gangster" and Javier Bardem for his performance as the cold-blooded killer in "No Country For Old Men."
JULIE CHRISTIE, BEST ACTRESS WINNER: It's lovely to receive an award from your own union. Especially at this time when they're being so forcefully reminded how important unions are.
WYNTER: Julie Christie also took home her very first SAG Award for her work in "Away From Her" while Daniel Day-Lewis' performance as an obsessed oil man in "There Will Be Blood" earned him Best Actor honors.
Day-Lewis use his acceptance speech to honor the late Heath Ledger.
DANIEL DAY-LEWIS, BEST ACTOR WINNER: I would like to dedicate this to Heath Ledger.
WYNTER: The Cohen Brothers' crime drama "No Country for Old Men" solidified its Oscar prospects by winning the biggest prize of the night, Outstanding Ensemble.
UNIDENTIFIED MALE: There were 47 people in this cast each and every one making this the movie that it has become.
WYNTER (on-camera): Usually the SAG Awards don't get quite as much attention as the Golden Globes or the Oscars, but if the writers' strike isn't settled soon, well, this could end up being Hollywood's biggest night of the year. Kareen Wynter, CNN, Los Angeles.
(END VIDEOTAPE) WHITFIELD: And it was a pretty big night and big weekend for Barack Obama celebrating South Carolina a win there, basking in the glow of Camelot now. Why the Democrat is beginning the week with a huge smile.
MARCIANO: But first, want to start or expand a business? Chances are you'll need a loan. But in developing countries, that can be almost impossible. But there's one organization that's trying to change that, and if you have just $25 and an e-mail address, you can help. Christine Romans is right "On Your Money."
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Nyanga (ph), Kenya, it's about as far as can you get from a major stock exchange. But that hasn't stopped Matrin Wandera (ph) and her cereal business from attracting investors.
DAN BEEBE, KIVA LENDER: About a year ago we lent $25 to Matrin in Kenya to expand her cereal business.
ROMANS: Dan Beebe, the project manager for a manufacturing company in Chicago. He found Wandera through KIVA, a nonprofit helping people in developing countries. Here's the way it works. Loans are offered interest-free to people with a business plan and a dream in the most impoverished countries. The loans as small as $25 or $100 can change the course of a life.
UNIDENTIFIED FEMALE: I have two children, a boy and a girl.
ROMANS: Wandera needed just $150 to increase her product line and raise profits. Her earnings sent her children to school.
DR. JEFFREY SACHS, COLUMBIA UNIVERSITY EARTH INSTITUTE: These modest investments help people to get on the first rung of the ladder of economic development.
ROMANS: Dr. Jeffrey Sachs is a United Nations adviser and leader in the fight against poverty.
SACHS: If microfinances combined with investments in community infrastructure such as safe water at the clinic, and the school and the road, and combinations, it's very powerful and it can help lift a whole village out of poverty.
ROMANS: Many lenders share their wealth again and again.
BEEBE: When a loan is repaid to us, we reinvest it and re-loan it to another borrower.
ROMANS: KIVA warns lenders that they may lose their money, but very few have. The loan default rate is less than one percent. While lenders don't make a profit, the emotional return is impossible to quantify. Christine Romans, CNN.
(END VIDEOTAPE) (COMMERCIAL BREAK)
MARCIANO: Off the coast of Australia. The fisherman becomes the bait. And in fact, he was the one who had real man. A medical helicopter raised more than 100 miles off shore to rescue this tuna fisherman. Seems he caught a Mako Shark but once aboard, he accidentally stepped on it. Shark bit down and didn't let go.
(BEGIN VIDEO CLIP)
ADRIAN PARK, CAREFLIGHT PILOT: The head of the shark had to be cut from the body of the shark in order to extricate the shark's teeth from the patient's knee.
(END VIDEO CLIP)
MARCIANO: The shark's teeth went all the way down to the bone but somehow missed the major arteries. The 20-year-old fisherman had emergency surgery and is said to be doing fine.
WHITFIELD: All right, good morning, everyone. I'm Fredricka Whitfield. I'm still thinking about that shark story. Like, he's both lucky and unlucky.
MARCIANO: Yes. Biting down to your leg and then watching the shark gets his heads off. Anyway, I hope you're enjoying your coffee. I am Rob Marciano.
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