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American Morning

Obama to Assemble White House Team; Job Losses at the Forefront; Marriage Ban Challenged in California; Race Under Obama: Impact on How Obama Will Govern

Aired November 06, 2008 - 06:00   ET

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


(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Transition to power. Turning the page.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: No matter how they cast their ballots, all Americans can be proud.

CHETRY: And writing a new chapter.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Remaking this nation block by block, brick by brick, calloused hand by calloused hand.

CHETRY: Barack Obama takes new steps toward filling his cabinet. And the CIA sits down the president-elect. The rush of history stopped by a wave of reality on this AMERICAN MORNING.

(END VIDEO CLIP)

CHETRY: Well, welcome to AMERICAN MORNING. Nothing like a last minute earring. It's Thursday, it's November 6th. And today is going to feel like a blink of an eye after yesterday's marathon election coverage.

JOHN ROBERTS, CNN ANCHOR: So much fun to do that.

CHETRY: It was.

ROBERTS: I see so many women in traffic doing their makeup, so for you to be putting on an earring disregarding (ph) on air.

CHETRY: Multi-tasking.

ROBERTS: Good morning. Thanks for being with us.

Down to business for president-elect Barack Obama as he begins to build his presidency today. He plans to spend the rest of the week at home in Chicago meeting with his transition team. Obama will receive a CIA briefing on al-Qaeda, Iraq and Iran today. This will be the first wartime transition in 40 years making it that much more critical.

President Bush has promised to keep Obama in the loop on critical decisions and make sure that there is a smooth transition to power. A little more an hour from now, we'll talk with Mac McLarty, who is Bill Clinton's first chief of staff, about the importance of this transition.

U.S. military announcing roughly 3,000 troops will be withdrawn from Iraq by the end of the year. That is six weeks earlier than originally planned. Military leaders say they are making the decision based on a decline in violence there. In addition, another 3,000 troops are already scheduled to leave this month. There are currently about 150,000 U.S. troops in Iraq.

And for the 50th straight day, gas prices have drop. This morning the national average down $2.34 a gallon. That is down more than two cents overnight. Gasoline has not been this cheap since last February.

CHETRY: I was looking at -- we always get that e-mail from AAA and it said down $1.77, and I thought it said gas prices were $1.77.

ROBERTS: It might be if they keep going this way.

CHETRY: You know, you'll never know. Fifty more days and we'll see.

Well, after a grueling campaign and a thrilling election victory there is no time for president-elect Barack Obama to bask in this win. He's planning to start his new government preparing for inauguration. That's just 75 days away.

And Obama also gets his first top secret intelligence briefing today. It's the same presidential daily brief that the president receives each morning, our President Bush right now. He's also putting his White House team in place.

CNN's Suzanne Malveaux is live in Chicago this morning.

What are you hearing about the behind the scenes workings about who Barack Obama might tap for some of these key positions, Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kiran, it's a very busy day. I'm sorry I'm getting a little bit of echo. Let me take this out of my ear. But very busy days for Barack Obama. Clearly, he's getting his intelligence briefing today, highly classified. But also, he's got a transition team of folks that have been put in place to figure out who's going to be in his cabinet.

John Podesta, a former chief of staff under Clinton, is heading that effort. Valerie Jarrett, who's a confidante, a close friend, who is also going to be a part of that team as well as Pete Rouse. He's Obama's chief of staff on the Senate side. They're all going to be in charge of actually vetting and taking a look at some of those positions.

Obviously, treasury secretary is going to be key, chief of staff that we already know. Rahm Emmanuel is one person that they're seriously considering and discussing this with -- Kiran.

CHETRY: So, a look at where he's spending his time between now and January, in Chicago or will it be in Washington? MALVEAUX: Simply a little bit of both. Obviously, he has a downtown office that's set up here. The campaign has been taking down the posters. They've got a lot of staffers, so they're going to be here in Chicago.

He's going to be spending time with his family, but also in Washington as well. You've got the long-time experience of Rahm Emanuel, John Podesta. Those are long-time Washington associates, political operatives. Clearly, there's going to be some back and forth in both those places.

CHETRY: He has to move a young family, you know, out of one city and into another. At least they don't have to go house hunting. That's the good news, Suzanne. Thanks.

All right. We'll check in with you throughout the morning.

Meantime, transitions are known to be possibly dangerous at times. It's a message from Homeland Security Chief Michael Chertoff, who says that America has to be extra focused on security during periods of change.

Chertoff says that there's an element of distraction during this transition process that could make the U.S. more vulnerable to a terrorist attack. He points to the terrorist attacks in Glasgow as well as Madrid. Both of them occurred during transfers of power.

Well, Governor Sarah Palin is back in Alaska this morning. She told reporters before leaving Phoenix yesterday that she's looking forward to working with president-elect Barack Obama on energy policy. Palin also dismissed Republican critics who claimed that her presence on the ticket cost John McCain the election.

(BEGIN VIDEO CLIP)

GOV. SARAH PALIN (R), ALASKA: I have absolutely no intention of engaging in any of the negativity because this has been all positive for me, for what I believe in, the values that I represent, and the progress that I want to see America be able to make with just absolutely no time for the pettiness. And that's kind of just the way I'm wired. I don't have time for that.

We'll reach out to Barack Obama and to the people we need to consult (ph) with. A united effort that we certainly will be making here in order to secure our nation and allow us to be more prosperous, and we look forward to this.

(END VIDEO CLIP)

CHETRY: And as for her own political future, Palin says right now that she can't imagine running for national office in 2012.

ROBERTS: President-elect Barack Obama is going to inherit a very difficult economy. After the best election days surge in the Dow's history, it plunged yesterday nearly 500 points, more than five percent amid fears of a deep and perhaps long lasting recession. The Nasdaq and the S&P also fell more than five percent.

The world markets reacting to the selloff on Wall Street. In Asia, the major indexes are down. Japan's slumping more than six percent. Hong Kong closed down more than seven percent. European stocks also sharply lower, and London is down about five percent.

Happening this morning, new data which may show just how fragile the U.S. economy is. New unemployment numbers will be released this morning. The news comes as Barack Obama has tough decisions to make right now about the economy.

CNN's Christine Romans is "Minding Your Business." After a couple of days of being all politics all the time...

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right.

ROBERTS: ... we get the (INAUDIBLE) we've still got some difficult times in the economy.

ROMANS: That's absolutely right. I mean, he has a big job ahead of him and it's all about jobs. And we're going to get a reading of that this morning with weekly jobless claims. And then tomorrow, a big jobs number which is likely to show a lot of jobs lost.

In fact, economists say another half million jobs could be lost between now and inauguration. So what you're seeing around the world in the stock market is a reality check here. That now the election is over and there's some big work to be done over the next year. And there's a lot of gauging about just how deep a recession will look and how worldwide it could be.

That puts a lot of pressure on president-elect Obama. We're all going to have to get used to saying, right? President-elect Obama to pick a transition team.

A lot of people think that his economic brain trusts will be unveiled quite quickly. There is a global emergency summit at the White House in just about nine or ten days, so they're hoping that there'll be somebody in place by then.

And the Treasury Department tells us there's already a suite of offices set aside for the treasury team, the new incoming treasury team, if they choose to use it. So all of these things are what the markets are watching. They're waiting for some kind of transition, waiting for it to happen quickly. But in the meantime, we're going to be watching a barrage of steady -- a steady drumbeat of negative economic news.

ROBERTS: And the president-elect is invited to that economic summit, right?

ROMANS: That's absolutely right. And a lot of people are telling me they hope that there's a whole brain trust in place for the Obama team by that time and they will be working side-by-side with the treasury secretary. And the Treasury Department says, look, they're willing and ready, ready and expecting to be working very, very closely with this new team because this is in the best interest of everyone.

CHETRY: A glimmer of hope. See that.

ROMANS: Yes. Dow futures are down this morning.

CHETRY: Thanks to Christine.

ROBERTS: So much for your glimmer.

ROMANS: You know, this is a tough road ahead and he's got a lot of work to do. And he's got a Congress, a Democratic Congress and Democratic president. We'll see what kind of stimulus package they might come up with. We'll see what kind of works program they might come up with.

There's a lot of things that he's already announced and short- term things that he can get them done with this Congress, might help in the very near term, you know. Unemployment claims right now with the jobless claims, you have to pay taxes on them. They like to pull that back at least temporarily. Some other short-term measures that they could be a little better (ph).

ROBERTS: A lot of stuff will be coming on the transom in the next little while.

ROMANS: Yes, I'm sure. I'm sure.

ROBERTS: Thanks, Christine.

CHETRY: Still ahead, California's ban on same-sex marriage spurring protest and now legal challenges to the ballot measure known as Prop 8. So what does it mean for gay couples already married in the state? Our Sunny Hostin is here to break it down for us.

And right now, a dangerous situation unfolding in the Caribbean. It's Tropical Storm Paloma strengthening. Watches are now posted. The latest on the storm's track in a moment and whether or not it could become a hurricane.

It's eight minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Ten and a half minutes after the hour. Let's fast forward now to stories that will be making news later on today.

Secretary of State Condoleezza Rice meeting with outgoing Israeli Prime Minister Ehud Olmert in Tel Aviv. It is an attempt to secure a peace deal by the end of the year. This is Secretary Rice's eighth trip to the region since last November.

The chief executives of Detroit's automakers will meet with House Speaker Nancy Pelosi. They are expected to sound new alarms about the industry's need for a second $25 billion loan. Earlier this week, the industry reported its worse sales month in 25 years. And the firing of the presses. Newspapers across the country are reprinting yesterday's edition declaring Barack Obama the nation's next president after they sold out at least a couple of printings yesterday. Both the "New York Times" and the "Chicago Tribune" say they are now producing hundreds of thousands of extra copies. There were lineups as you can see there in New York City outside of the "New York Times" building that stretched for like a block or so.

CHETRY: Yes. That's right. We blinked until we came back and ours were gone too. So I guess left --

ROBERTS: Yes. Whoever took my newspaper, give it back.

CHETRY: All right. Well, It's 11 minutes after the hour right now. Rob Marciano is at the weather center in Atlanta watching a new tropical storm in the Caribbean, Paloma.

Good morning, Rob.

ROB MARCIANO, AMS METEOROLOGIST: Hey, Kiran. You know, we're getting towards the tail end of hurricane season. A lot of people don't realize it goes all the way through the end of this month and we can't get things to flare up. And certainly this is one of them.

Just to the east of the Honduras-Nicarauga border, this is Tropical Storm Paloma. Right now, winds of 40 miles an hour. This is a favorite area this time of year for storms to develop. It's just difficult to get them into the Gulf of Mexico. Strong jet stream typically will shoot them out to sea.

What does the National Hurricane Center think this is going to do? Exactly that, make a right turn, scoot over Cuba. But it is forecast to develop not only in a Category 1 but a Category 2 hurricane. So Cuba has just felt the brunt of some of the action this hurricane season.

All right. Not a hurricane but certainly a weak nor'easter that brought over five inches of rain in Cape Hatteras the last couple of days. This now scooting up the Delmarva. It will be rotating in some waves, some wind and some showers across the I-95 corridor throughout the day today.

Severe weather last night over 80 reports of hail and wind west of the Mississippi Valley. Now this front is moving to the east. Not only hail and wind but also snow.

We've got blizzard warnings that are posted for a good chunk of the upper Midwest. Rapid City, the Black Hills will get a good chunk of this as well. North Dakota in through parts of Nebraska, we could see several inches of snowfall but the big story is going to be the wind and the blinding visibility. So blizzard warnings are posted for that.

Forty-seven degrees in Denver. Meanwhile, 75 degrees in Atlanta and 60 degrees in New York City. So quite a difference in temperatures from west coast to east coast. All right. Let's talk a little bit about global warming, what some companies are doing about it. Here locally alone, UPS, well, big brown, their trucks are going green. Check it out.

(BEGIN VIDEOTAPE)

MARCIANO (voice-over): The transportation industry consumes two- thirds of the oil that you use in the United States. UPS is trying to change that with their new hydraulic hybrid vehicles.

DAVID ABNEY, UPS CHIEF OPERATING OFFICER: This vehicle to my right may look like a brown package car that you would see every day in your neighborhood. But under the hood, it's a completely different story.

MARCIANO: Under the hood are two hydraulic tanks. A pump motors takes high pressure fluid from one of these tanks to move the truck up to 30 miles per hour. The engine will kick on once the fluid in these tanks drops below a certain level.

SANDY CUTLER, EATON CORPORATION CHAIRMAN AND CEO: When the vehicle brakes, the hydraulic system also stores kinetic energy in the accumulator for later use in propelling the vehicle.

MARCIANO: Each vehicle will cost approximately $7,000 more than the standard diesel engine UPS truck.

CHRIS GRUNDLER, EPA OFFICE OF TRANSPORTATION: With that type of incremental cost, we estimated that a typical large global delivery firm might get a payback in three years or less.

MARCIANO: This prototype designed for stop and start urban environments currently is being used in Detroit, and UPS said it's saving 40 to 50 percent in fuel costs and 30 percent in carbon dioxide emissions.

ABNEY: We plan to deploy seven next year, the first one in the first quarter.

MARCIANO: This will bring a number of UPS alternative fuel vehicles to over 2,000.

Rob Marciano, CNN, Atlanta.

(END VIDEOTAPE)

ROBERTS: Marriage court.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The people have already spoken.

(END VIDEO CLIP)

ROBERTS: Thousands of same sex marriages left in limbo as opponents go to court to overturn a vote at the polls. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

LORRI JEAN, CEO GAY LESBIAN CENTER: We will regain our right to marry in this state. We may do it in the courts. We may do it in the legislature. We may do it at the ballot box. But you mark our words, we are coming back and we will crush discrimination.

(END VIDEO CLIP)

CHETRY: Dramatic reaction to the decision by California voters to ban same sex marriage in the state. Late last night a rally taking place in west Los Angeles and today there are at least three legal challenges now pending in court. On Tuesday, voters approved Proposition 8 by 52 percent, meaning the marriages of up to 18,000 same-sex couples are now in limbo.

But California's attorney general says that the constitutional amendment is not retroactive and San Francisco's Mayor Gavin Newsom says he will continue to marry people until someone sues him to stop.

So here to talk about this is AMERICAN MORNING legal analyst Sunny Hostin. She's been looking into this for all -- looking into all of this for us. Thanks for being with us this morning.

SUNNY HOSTIN, AMERICAN MORNING LEGAL ANALYST: Thank you.

CHETRY: So what does Prop 8 mean first of all to people who want to get married in the state of California?

HOSTIN: Well, we already know in Los Angeles they are no longer issuing marriage licenses to same-sex couples. So in Los Angeles, it's a no go. In San Francisco, as you mentioned, the mayor is saying, "We're still going to be doing it." So for people that aren't married yet, it's really an illegal limbo.

CHETRY: All right. And what about people who from the time that they allowed same sex marriage, this was in May until November, some 18,000 couples decided they were going to do it. What happens to them? Is their marriage still valid?

HOSTIN: It's still valid right now. But really they are also in a legal limbo. The bottom line it's all over the place. The law is really unclear here.

Last night, I was poring over these legal papers. I was also discussing this with a lot of law professors, a lot of different lawyers, and everyone is all over the place. Some folks said, you know, the bottom line is when you look at the language of Proposition 8, it is very clear that it was meant to be retroactive and that means that all the marriages will be invalidated.

Then another law professor that I spoke to said that is absolutely fundamentally ridiculous. The bottom line is this is a fundamental right that was given to couples and this is a right that is not going to be given away. I think we're going to see a lot of litigation here, Kiran, and the bottom line is everyone is in a legal, legal limbo.

CHETRY: It's very interesting the grounds for which they are challenging. At least in one of these lawsuits is they said that it was a constitutional revision rather than an amendment. And what that means it would need two-thirds approval of the House in the legislature. So do we think it could go to the state house in California as well as being fought in the courts?

HOSTIN: I really think this is going to be a legal issue. I think this is going to go before the California Supreme Court. And we already know as you mentioned (INAUDIBLE) that there are three cases pending before the California Supreme Court. And what is interesting to note is that it's the very same court that allowed these marriages in the first place.

And so, my guess is that that court is going to weigh in, probably reinstitute the right to marry for same-sex couples and then that's going to be likely based on the U.S. Constitution and our Supreme Court is going to weigh in.

What is I think extremely interesting here is that we now know that we have a president-elect Obama. He's going to get the opportunity likely to appoint Supreme Court justices. So we don't even know which type of court or the make up of the court that we'll hear this. But I think the Supreme Court will likely weigh in on this issue.

CHETRY: This was such a hot button issue in the state. More spending on either side, $35 million, $37 million on both sides.

HOSTIN: Yes.

CHETRY: It was the highest funded campaign on any state ballot.

HOSTIN: That's right.

CHETRY: They say it trumped every other campaign except the presidential.

HOSTIN: People care about this issue. I mean, they're talking about discrimination, equal protection. It's an issue that's a hotbed issue.

We also know, Kiran, that in Arizona and Florida that this ban was implemented. And so, you know, it's all over the place. People care about this issue, and this is an issue that is really present. And I think that it's something that, we, of course, have to watch because we're talking about equal protection, we're talking about discrimination. People care about these issues.

CHETRY: Sunny Hostin, great to see you. Thank you.

HOSTIN: Thanks.

CHETRY: It's 21 minutes after the hour.

ROBERTS: Global challenges.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I fear that perhaps the international expectations of what can realistically be accomplished will be too high.

(END VIDEO CLIP)

ROBERTS: The expectations game as the president-elect prepares to confront the demands of the world.

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: It's 25 minutes after the hour. Barack Obama's historic election was an emotional moment for African-Americans of all ages. Throughout the campaign we heard the question, is America ready for a black president?

Well, now that's a moot point, another question is being raised. How will it affect the way that president Obama governs?

Joining us now is Smokey Fontaine, the chief content officer of Blackplanet.com. Good morning to you.

SMOKEY FONTAINE, CHIEF CONTENT OFFICER, BLACKPLANET.COM: Good morning.

ROBERTS: You know, there are some events in history that have the ability to sort of lift up a whole people. Is this one of those events?

FONTAINE: Oh, absolutely. I mean, Obama's win has seen young people, especially, in this country mobilize themselves and have a sense of pride that we haven't seen I think in 30 or 40 years. Not since Martin Luther King Jr. has there really been a palpable sense that change is on the way, that change is real, and that we're part of something that we can affect ourselves as citizens.

ROBERTS: You know, a couple of weeks running up to the election, the kids in the Ron Clark Academy had that YouTube video...

FONTAINE: Sure.

ROBERTS: ... a rap song where they were encouraging people to come out and vote, saying, whether it be McCain, whether it be Obama. We caught up with one of those kids. Let's show a little bit of the video and then hear from one of them. Listen to this.

(BEGIN VIDEO CLIP) RON CLARK ACADEMY STUDENTS, ATLANTA, GEORGIA: You can vote however you like. I said you can vote however you like.

UNIDENTIFIED MALE, RON CLARK ACADEMY STUDENT: You can't let anybody tell you that you can't do this and that because if Barack -- if Barack Obama can become the first American president, that means I can too.

(END VIDEO CLIP)

ROBERTS: Kind of says it all, doesn't it?

FONTAINE: I mean, look at the emotion on that kid's face. I mean, we had some comments that came into Black Planet who folks said young African-Americans said I'm making a commitment to my country as a citizen. I vow today to be the best person I can possibly be to my family, to myself, to my community.

These are the thoughts that Obama always said that he would kind of generate if he won the election. Now we're seeing that come true today.

ROBERTS: Ralph Ellison once famously wrote that to be black in America is to be the invisible man. Did all of that change?

FONTAINE: All of that has permanently changed. No longer will African-Americans have that sense of invisibility. We will have a sense of independence and pride and confidence moving forward because everything is possible.

ROBERTS: OK. So here's a question. So, this is the first African-American to become president. He was criticized during the campaign for not focusing on some of those issues that were very important to African-Americans, particularly inner-city problems. Will there be expectations among black Americans that he address those problems? And if he doesn't get right to those because he's got so many other things in his plate, could there potentially be a disappointment?

FONTAINE: Well, look, Obama received 95 percent of the African- American vote. That's up from Kerry's totals. That's up from Gore's totals. Of course, there's going to be unbelievable expectations. However, we need to repackage African-American cultural issues in a class base way.

I think that you heard him say that in Obama's acceptance speech in Chicago the other night where, you know, there are going to be issues that affect large, you know, populations of this community and of America. It will also benefit African-Americans, and that's a real challenge for us to be able to accept that.

ROBERTS: You know, I don't know if we could say that we are in post-racial America just because of this one event. But remember Martin Luther King's "I have a dream" speech, where he said, "I hope that one day my children will be judged not by the color of his skin, but by the content of their character"? Are we at least a whole big step closer to that than we were before?

FONTAINE: I think we're very close to that. I mean, I believe that African-Americans have always been on the forefront, the kind of cutting-edge of pushing this kind of, you know, appropriation through that. We feel in a cross cultural way. You see it in entertainment. You see it in economics. You see it in a lot of various African- American life where we're really representing that true American spirit.

And let's remember, this was, you know, often people describe Obama's base as being African-American. His base is also young people, and young people online in so many ways. And he's used that, the power of the Web to really mobilize and to communicate with them directly.

ROBERTS: Smokey Fontaine, it's great to talk to you this morning. Thanks for coming in.

FONTAINE: Thank you so much.

ROBERTS: Kiran?

CHETRY: Well, we're just about 20 minutes past the hour now. Checking your top stories.

President-elect Barack Obama gets his first real taste of the presidency today with his initial top secret intelligence briefing. He'll be briefed by national intelligence director, Mike McConnell, and CIA officials. It's the same daily brief that President Bush gets every morning.

"Newsweek" is reporting both the Obama and McCain campaigns are victims or were victims of sophisticated cyber attacks. The FBI and the Secret Service are investigating these security breaches. The Feds say that they believe an unknown foreign entity or organization tried to gather information on each campaign's policy position.

Lehman Brothers disgraced CEO, Richard Fuld, will step down. Fuld led the investment bank as it tumbled into bankruptcy. His attorney announced that he will leave the company by the end of the year and forsake all bonus and severance payout. Fuld will, however, stay on Lehman -- on as Lehman's board chairman.

The U.S. economy not the only priority for president-elect Barack Obama in these transitional days. He also has tough decisions to make right now with the next commander in chief who will inherit a laundry list of pressing global issues.

CNN State Department correspondent Zain Verjee joins me now with more on this. A lot of expectation as well as Obama gets ready to take office.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Exactly. Good morning, Kiran.

Global expectations for the president-elect are sky-high. How is he going to navigate the competing international demands for his attention?

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: The new dawn of American leadership is at hand.

VERJEE (voice-over): The President-Elect set the bar high.

OBAMA: To those who would tear the world down, we will defeat you. To those who seek peace or security, we support you.

VERJEE: The world shed in America's historic moment, but now has great expectations. Nicholas Burns is a former undersecretary of state.

NICHOLAS BURNS, FORMER UNDERSECRETARY OF STATE: We have to be engaged. We have to kind of win back the confidence of some people around the world who have lost confidence clearly in American leadership.

VERJEE: The world wants the U.S. to fix the global financial crisis, and for Barack Obama to deliver on campaign pledges to withdraw from Iraq, to confront terrorists in Afghanistan and Pakistan, and to fight global warming.

BURNS: I fear that perhaps the international expectations of what can realistically be accomplished will be too high.

VERJEE: As he rides a wave of global goodwill, the President- Elect will have to reduce those expectations and prioritize. Already, Russia's President Medvedev has greeted the Obama election by blasting the U.S. on the Georgia conflict, blaming it for the financial crisis and threatening to deploy Russian missiles against the U.S. missile defense shield.

Candidate Obama promised to make Mid-East peace a priority on day one. Israelis and Palestinians are looking to the U.S. to lead them out of the dead look.

(END VIDEOTAPE)

VERJEE: President-Elect Obama will have to balance repairing the U.S. image with standing firm on U.S. interest. He's promised better relations with the world, but not all of his policies, Kiran, are going to please U.S. allies.

CHETRY: You know, (INAUDIBLE) gets lost and a lot of criticism of this current administration, of President Bush, is he was very committed to Africa...

VERJEE: Yes.

CHETRY: ...and gave a lot of money to aids outreach, as well as other things. What are the expectations for Africa when it comes to Barack Obama? VERJEE: President Bush did more for Africa than even President Clinton. Very successful HIV, AIDS and malaria programs as you rightfully point out. That gives something for President Obama to build on. But the expectations are really -- many people are saying, you know, this is good for us. This is good for Africa. It will improve our lives. But the majority of people are saying this isn't really going to make a difference.

There are more intangible benefits, you know. It puts Africa on the map. It shattered racial barriers. It sends a signal to old dictators like Robert Mugabe, sitting over there in Zimbabwe, to, you know, get out in his twilight years and not hang on to power. So, it sends that kind of message.

CHETRY: Zain, great to see you this morning. Thanks.

VERJEE: You, too.

CHETRY: It's 32 minutes after the hour.

JOHN ROBERTS, CNN ANCHOR: Issue number one.

(BEGIN VIDEO CLIP)

OBAMA: We must do more to help innocent home buyers.

(END VIDEO CLIP)

ROBERTS: Delivering on the campaign promises. A detailed look at the President-Elect's plan to fix the economy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's not going to be overnight.

(END VIDEO CLIP)

ROBERTS: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: It's 37 minutes after the hour. Welcome back to the "Most News in the Morning."

Happening today, Treasury Secretary Hank Paulson opening up offices in the Treasury Department for President-Elect Barack Obama's incoming economic team. The transition comes as the Dow plunged nearly 500 points, another reminder of the economic and financial crisis facing this country. So, how will Obama tackle these problems? Here's CNN senior correspondent Allen Chernoff with that.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice-over): Aoah and Ecquintal (ph) Middleton are fighting foreclosure on their home after cancer treatment expenses for their 8-year-old daughter forced them to miss mortgage payments. They voted for Barack Obama. Now, they are hoping to get help from the President-Elect.

AOAH MIDDLETON, FIGHTING FORECLOSURE: I would like for Barack Obama to find some way to, you know, bail the homeowners out of this situation. My husband and I work, you know -- we feel that, you know, if you're able to work you should have a home, you should have a backyard.

CHERNOFF: Obama may help the Middletons. He wants banks to give a 90-day moratorium on foreclosures. He wants to create a foreclosure prevention fund and allow bankruptcy judges to make mortgages easier to pay off.

OBAMA: Make no mistake, we must do more to help innocent home buyers.

CHERNOFF (on camera): Beyond addressing the mortgage crisis, President-Elect Obama says he'll take quick action to help Americans who are suffering from the economic slump.

(voice-over): The Obama plan calls for extending unemployment benefits. Temporarily exempting those benefits from taxes, emergency loans for small businesses, and a tax credit for every new job a company creates. Barack Obama says he'll keep a close watch on the bailout program to help banks that invested in risky mortgages.

OBAMA: I support the Treasury's effort to buy up troubled mortgages but we need to do it in a responsible way.

CHERNOFF: Aoah Middleton, though, does not expect immediate results from Obama.

MIDDLETON: It took us a couple of years to get into this mess. So, it's not going to be overnight. So, you know, I'm willing to wait to see what Obama is going to do.

CHERNOFF (on camera): But for your home?

MIDDLETON: Well --

CHERNOFF: Do you have a couple of years?

MIDDLETON: I don't have the answer to that question. I can just only hope and pray.

CHERNOFF (voice-over): Allan Chernoff, CNN, New York.

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CHETRY: Sarah Palin's next move. The governor on her plans for 2012, and a possible backdoor way to get to Washington.

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UNIDENTIFIED MALE: Such things are entirely possible.

(END VIDEO CLIP) CHETRY: You're watching the "Most News in the Morning."

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OBAMA: Because of what we did on this day, in this election, at this defining moment, change has come to America.

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CHETRY: Well, Barack Obama after his big win Tuesday night, and come January, Barack and Michelle Obama will be a full time residents in the White House. Michelle has joked in the past that her title would be mother-in-chief, and like all first ladies, she will define the role and make it her own. Our own Erica Hill looks up close at what's next for Michelle Obama.

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OBAMA: I would not be standing here tonight without the unyielding support of my best friend for the last 16 years, the rock of our family, the love of my life, the nation's next first lady, Michelle Obama.

ERICA HILL, CNN CORRESPONDENT (voice-over): She may be the rock behind the man, but Michelle Obama has never stayed in the shadows.

AUDIENCE: Yes, we can! Yes, we can!

HILL: On the campaign trail, Mrs. Obama drew crowds in the thousands.

UNIDENTIFIED MALE: I think her greatest asset is her natural charisma. Unlike most first ladies, she seems comfortable being in public.

HILL: Passionate, intelligent, independent. This Harvard- educated lawyer says her most important title is mom.

MICHELLE OBAMA, WIFE OF SEN. BARACK OBAMA: I'm a mother first. And I'm going to be at parent-teacher conferences in where I'm going to be the things that they want me to attend. I'm not going to miss a ballet recital.

HILL: Michelle Obama knows the challenges of working parents and has pledged to make their needs and those of military families a priority.

M. OBAMA: You're just asking for a Washington that understands what's happening to our military family.

HILL: Raised in a tight-knit, middle-class family, on Chicago's south side, she was taught to believe anything is possible if you work for it. UNIDENTIFIED MALE: It is surreal to think of my sister as being the First Lady. You know, astronaut, maybe, or, you know, first woman to swim around the world or something. But, First Lady? That would have been at the bottom of my list.

HILL: It's impossible not to mention the historic nature of this election. And of this First Lady. But not for the reasons you might expect.

UNIDENTIFIED MALE: I do not think that Michelle Obama will be held to different standards because she's a black woman. I think that she can't help but be a role model.

HILL: Michelle Obama will likely be calling on her role models, her parents, who started her on this path.

Erica Hill, CNN, New York.

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ROBERTS: The Western White House.

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UNIDENTIFIED FEMALE: It's one thing to live in a small town and have different views on this or that, but when the small town has become a focal point in the national and international media, it becomes quite another thing to disagree with your neighbor.

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ROBERTS: After years in the political spotlight with President Bush, Crawford, Texas, looks to return to normal. You're watching the "Most News in the Morning."

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UNIDENTIFIED MALE: Hello, Dottie, it's me, Pee-Wee.

UNIDENTIFIED FEMALE: Where are you calling from?

UNIDENTIFIED MALE: Texas.

UNIDENTIFIED FEMALE: Where?

UNIDENTIFIED MALE: Honest. Listen, I'll prove it. "The stars at night are big and bright..." "Deep in the heart of Texas."

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ROBERTS: Pee-Wee Herman there saluting the Lone Star State, when President Bush took office eight years ago. The small town of Crawford, Texas was thrust into the national spotlight. Now, Crawford is the subject of a documentary film just as residents there prepare to say goodbye and good riddance to the hubbub surrounding the Western White House. Here's Brooke Anderson with that.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: John and Kiran, the new documentary, "Crawford," examines a tiny town that exploded with the arrival of a high-profile neighbor.

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UNIDENTIFIED FEMALE: And a new citizen of our great City of Crawford, George W. Bush.

ANDERSON (voice-over): Crawford, Texas, dubbed the Western White House. A place many had never even heard of until this man moved in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Really grateful for the warm welcome we've received in this community.

ANDERSON: President George W. Bush. Right before announcing his candidacy in 1999, Bush then governor, purchased a 1,600 acre ranch in this heavily conservative community.

DAVID MODIGLIANI, DIRECTOR, "CRAWFORD": The day that Bush announced that he was moving to Crawford, every store on Main Street, which had been boarded up was bought or rented in a single day.

ANDERSON: Filmmaker David Modigliani's new documentary "Crawford" examines the city's transformation over Bush's presidency with a colorful cast. The media, --

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Crawford, Texas.

ANDERSON: Residents, both anti and pro-Bush, and war protesters.

UNIDENTIFIED MALE: You got those low lives setting up here, running down our troops.

ANDERSON: In 2005, anti-war activist Cindy Sheehan staged a month long protest in the Texas town that drew thousands and raised tension.

NANCY BECK YOUNG, UNIVERSITY OF HOUSTON: It's one thing to live in a small town and have different views on this or that, but when the small town has become a focal point in the national and international media, it becomes quite another thing to disagree with your neighbor.

ANDERSON: CNN's Suzanne Malveaux who has covered the President for the last eight years says things also became strained between the media and residents.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You had media that was lined up on the street, on the grass, trying to keep off to people's property. There's one guy comes out with a shotgun and he shoots into the air, and it just frightened a lot of people. ANDERSON: Over the years, as the wars unpopularity grew, Modigliani says businesses also declined.

MODIGLIANI: And I think that as the term comes to an end that they are ready to move on.

ANDERSON: And return to normal says Modigliani, even after spending nearly a decade in the political spotlight.

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ANDERSON: Many Crawford residents say they will be forever tied to President Bush.

John?

Kiran?

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OBAMA: After decades of broken policy -

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CHETRY: From a grueling campaign...

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OBAMA: Change has come to America.

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CHETRY: ...to the burdens of office. The voters invest in Barack Obama

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UNIDENTIFIED MALE: A real change in economic direction.

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CHETRY: Whether he can pay them back.

And, Sarah Palin, heading home. But for how long?

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GOV. SARAH PALIN (R), ALASKA: Don't know what the heck is going to happen in 2012.

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CHETRY: Whether campaign 2008 will be her 15 minutes of fame or the start of her road to the White House? You're watching the "Most News in the Morning."

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JAY LENO, HOST, "TONIGHT SHOW WITH JAY LENO": How many saw the hologram? Did you see it? It was -- oh, yes. You know, it was a great idea. Apparently still haven't worked out all the kinks. I guess they had some kind of intergalactic glitch earlier in the day.

UNIDENTIFIED MALE: Intergalactic?

LENO: Yes. Show what happened when they did the hologram the first time.

UNIDENTIFIED MALE: Right now, I want you to watch what we're about to do because you've never seen anything like this on television.

(LAUGHTER)

LENO: Intergalactic, intergalactic. Oh, yes.

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CHETRY: It's not exactly how it happened, of course. Though, maybe. Could have seen how surprised Wolf was when he found his head. Jay Leno having a little laugh at our election night technology. But CNN is the first network to bring you interviews by hologram. We all love it as well and, hopefully, you'll see more of it here.

Well, the election coverage tops our "Political Ticker." We want to say thanks to you, our viewers. CNN's election night coverage had a bigger audience than any other cable or network. 13.3 million people tuned in to CNN to see Barack Obama's victory. And a lot of you woke up early with us the next morning. AMERICAN MORNING numbers also at 92 percent yesterday. We tried very hard to bring you every angle to do the best job we could. And a big thank you to you and for everybody here who worked tirelessly and around the clock on our election coverage.

Well, America's new president-elect finds himself with a good problem to have. Barack Obama has extra cash after his hard fought campaign. There are some strict rules, though, on where that money can go. Some options -- it can be returned, it can be donated to a charity or kept for a potential re-election bid. It's a good problem to have and one not many of us have right now.

Right, John?

ROBERTS: Yes, absolutely. John McCain's bid for the White House may have ended but the campaign's political sniping has not. Three senior McCain aides tell CNN that Randy Scheunemann, the candidate's senior foreign policy adviser was fired last week for taking Governor Palin's side and, quote, "trashing the campaign staff." But both Scheunemann and the campaign press aide deny that.

And for more up-to-the-minute political news day or night, it's on our newly enhanced Web site where you can check out all of the results from Tuesday's history-making election. Just head to CNN.com/ticker.

CHETRY: Well, Oprah Winfrey lets loose on her show yesterday. Winfrey cheered on Barack Obama's victory and she talked about having to hold back her enthusiasm for him all these months.

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OPRAH WINFREY, TALK SHOW HOST: I kept my mouth shut and supported Barack Obama as a private citizen. And today, though, the election is over. And I'm unleashed.

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CHETRY: Oprah certainly holds a lot of power. As we know, she can take an unknown writer and turn him into a best-selling author overnight with her book club. So, how much did her early support mean to Barack Obama's presidential campaign? Well, our Alina Cho looks at just how much credit Oprah Winfrey deserves.

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WINFREY: I mean, it brought tears to my eyes because I thought, yes, that is it. It feels like America did the right thing.

ALINA CHO, CNN CORRESPONDENT (voice-over): No doubt, Oprah Winfrey has the proverbial Midas touch. But can she? Did she actually persuade Americans to vote Obama?

UNIDENTIFIED FEMALE: I think anything and everything Oprah does affects America, really the world.

UNIDENTIFIED MALE: You know, she gave him an audience. It helped get him off the ground.

CHO: It was May of 2007 that Oprah officially helped Obama get off the ground. By the end of the year --

WINFREY: And there's only one choice we get for president of the United States. And if you're going to choose that choice ought to be Barack Obama.

CHO: Her first foray into politics, but not everyone was happy about it. The blogs went crazy, calling her a traitor, accusing her of choosing race over gender, hypocrisy at its finest.

WINFREY: I knew that this was the moment for me to stand up, regardless of, you know, whatever kind of, you know, heat I had to take or what people's responses would be.

CHO: Two Maryland graduate students even came up with a formula, looking at subscriptions to "O" magazine and sales of Oprah's Book Club. They compared the data with votes cast for Obama and surmised Oprah's endorsement was worth more than a million votes. A million votes? ERIC OLIVER, UNIVERSITY OF CHICAGO: Whether or not she gave him half a million or a million or two million votes, it's just impossible to say.

CHO: Others call Oprah the "queen of kingmakers."

REP. JESSE JACKSON JR. (D), ILLINOIS: Oprah, in her own way, is not only part of the culture of America, she's also part of the body politics of America.

CHO: So the question, with President-Elect Obama heading to Washington, will the "Queen of Talk" follow him?

UNIDENTIFIED FEMALE: You've got this little thing called the "Oprah Show", but would you consider an ambassadorship?

WINFREY: Would I consider an ambassadorship? That is -- I have the "Oprah Show." I can honestly say this, I had no agenda. I had no agenda.

CHO: Alina Cho, CNN, New York.

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ROBERTS: Two minutes to the top of the hour. And here are this morning's top stories for you on this Thursday morning. Right now, President-Elect Barack Obama is moving closer to making some key appointments. A report in "Politico" says he is strongly considering Robert F. Kennedy Jr. to head the Environmental Protection Agency. Less than a day after a two-year campaign, he was already putting a transitional team into play, seen joking with reporters about how rest may have to wait another four years.

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OBAMA: (INAUDIBLE)

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