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American Morning
Obama to Sit Down with McCain; Congress Battles Over Big Three Bailout; California Inferno, An Arson?; Hillary Clinton, a Potential Candidate for Secretary of State
Aired November 17, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Coming now to one minute before the top of the hour. And here are this morning's top stories. We begin with breaking news. Three wildfires still burning in and around Los Angeles County. The flames swallowing 800 homes across 35 square miles. California firefighters may get some relief from the infamous Santa Ana winds today. Right now, tens of thousands of residents have been forced out of their homes. And there is suspicion that one of those fires could be man-made.
The number two economy in the world -- Japan, in a recession. After two straight quarters of a shrinking Gross Domestic Product, the government made it official. But the announcement was expected. It comes just days after the European Union declared it was in a recession.
The strong yen has made investors flee Japan's currency. And global exporters like automaker Toyota and electronics giant Sony are in big slumps. And as that word recession sinks in over Japan, Japanese automaker Suzuki says it is looking to sell its stake in General Motors for $230 million. That news just making things worse for GM, which is already strapped for cash.
Well, just 64 days until the inauguration of Barack Obama as the country's 44th president. Obama now says we should expect Cabinet announcement soon. He sat down with "60 Minutes" for his first post- election interview, confirming that he talked with Senator Hillary Clinton recently. But Obama would not say whether she would be part of his Cabinet. As for the economy, Obama says it's not as bad as the Great Depression, but we could get there.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), PRESIDENT-ELECT: We're not going through something comparable to that. But I would say that this is as bad as we've seen since then. And if we don't take some significant steps then it could get worse.
(END VIDEO CLIP)
ROBERTS: Obama will also sit down with his election rival John McCain today in Chicago. That's where we find our Suzanne Malveaux this morning.
Suzanne, what are the two men going to talk about today? SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: John, they're really going to try to find some common ground here, perhaps climate change or ethics reform. The approach that Barack Obama says he is taking here is the model of the late Abraham Lincoln. That is, of course, to try to fill his cabinet with people who are the most capable, also to reach out to his rivals. John McCain, of course, being the primary one, but aides are telling us there is no job in line.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): Today, Barack Obama is meeting John McCain on his own terms, hosting his former rival on a Chicago home turf, as part goodwill, part good picture. The last time the two appeared together, Obama had to engage in the messiness of debate. Now, he gets points for just reaching out.
Obama's aides say he'll focus on their commonalities, over issues like climate change and ethics reform. In Obama's first TV interview since the election, he told CBS' "60 Minutes" the global economic crisis provides a unique opening for both men and their parties to come together.
OBAMA: You actually have a consensus among conservative, Republican-leaning economists and liberal left-leaning economists, and the consensus is this -- that we have to do whatever it takes to get this economy moving again. That we have to -- we're going to have to spend money now to stimulate the economy.
MALVEAUX: Obama also emphasized getting his national security team in place is his top priority, and he described the threat of Osama bin Laden this way.
OBAMA: Capturing or killing bin Laden is a critical aspect of stamping out al-Qaeda. He is not just a symbol, he's also the operational leader of an organization that is planning attacks against U.S. targets.
MALVEAUX: Obama also said he would use his unique power as president to issue executive orders to act quickly on Guantanamo Bay and U.S. detainee interrogations.
OBAMA: I intend to close Guantanamo, and I will follow through on that. I've said repeatedly that America doesn't torture, and I'm going to make sure that we don't torture.
MALVEAUX: As for the incoming first lady, Michelle Obama, she says their daughters, Sasha and Malia, will come first.
MICHELLE OBAMA, BARACK OBAMA'S WIFE: And I've, you know, had to juggle being mom-in-chief and having a career for a long time. The primary focus for the first year will be making sure that the kids make it through the transition.
(END VIDEOTAPE) MALVEAUX: And, John, back to that meeting between Obama and McCain, we are told that the other two who are going to be in that room is Lindsey Graham, Senator Lindsey Graham, McCain's buddy, as well as chief of staff for Obama, Rahm Emanuel. Now, friends say that they're not going to be referees but it's good to have somebody on your side in that meeting. And these two, they're good friends, long- time friends, and they worked behind the scenes to actually make this meeting happen -- John.
ROBERTS: All right. We'll look forward to what's said if we hear much about it, that is.
Suzanne Malveaux for us this morning in Chicago. Suzanne, thanks so much.
KIRAN CHETRY, CNN ANCHOR: Well, first the showdown on Capitol Hill was over whether or not to pass the $700 billion bailout. Now Congress is squabbling over how to spend it. And America's three automakers, Ford, GM and Chrysler are strapped for cash and they're trying to get in. They're looking at Congress for some of your money. Opinion in Washington is split.
(BEGIN VIDEO CLIP)
WOLF BLITZER, CNN ANCHOR: But none of that money should be used to help the auto industry?
CARLOS GUTIERREZ, SECRETARY OF COMMERCE: No.
BLITZER: Is that right, none of that money?
GUTIERREZ: None of that. If you start that, where do you stop? There's a line of companies, of industries waiting at treasury just to see if they can get their hands on those $700 billion. That is for the financial system. It's to stabilize the financial system. That should not be used.
(END VIDEO CLIP)
CHETRY: Well the CEO of GM fired back saying, "This idea that you just go into Chapter 11 and hang around for three months, this is a fantasy. This is not going to work. Most important to what is going to happen is most people will stop buying the cars of a bankrupt company."
And if you hear it from the automakers, that's just the beginning of this ripple effect that could happen if they are allowed to go under.
Christine Romans is "Minding Your Business" this morning. So where does the bailout stand because everyone has an idea of where the money should go?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Right.
CHETRY: What's actually happening? ROMANS: There's $60 billion left in that TARP, the Troubled Asset Relief Program, that original $700 billion bailout. There are $60 billion left that can be spent, that the treasury already has the authority to spend. And, of course, the auto industry wants to spend it on autos. There are a lot of other industries who would like to spend it on them and in the meantime, it's sitting there waiting to go.
That the TARP deadline to ask for money from this closed on Friday. So any of the banks or insurance companies, the bank holding companies who want more money, their deadline closed on Friday.
Meantime, you have GM with this very well-produced YouTube spot about 3 1/2 minutes long making the case, I guess, to the broader public about what would happen, the ripple effect of GM being allowed to fall into bankruptcy. Basically saying, look, the U.S. auto industry needs $25 billion, maybe more and that would prevent an even more catastrophic ripple effect throughout the economy.
It's pretty well produced, and it goes back to GM factsandfiction.com which is sort of the GM blog. So there's really kind of a multi-pronged effort here for them to try to get the money.
Meantime, you have the Republican governor of South Carolina, Mark Sanford, in an op-ed in the "The Wall Street Journal" making the case against it, saying, look, you know, we don't want your bailout. Look at all these bailouts we have. So much money, more than just the $700 billion. There's been so much money that's been spent.
And how do we pay for all of these bailouts? Well, we borrow money. He said, "There's something very strange about issuing debt to solve a problem caused by too much debt." He's talking specifically here about maybe another stimulus. Maybe auto help would be included in a big $300 billion stimulus.
So a lot of money going around and there's sort of this ideological battle here about, you know, maybe you need to let failing industries fail and something else creative destruction -- it's an economic term. Something else comes up in their stead that's either more efficient and better for the country later on but then there's this other idea that GM is pushing that it's just too catastrophic to let it go down.
CHETRY: Maybe all they need to do is wait it out. We heard in the "60 Minutes" interview that President-elect Obama saying that something -- there needs to be some help for the auto industry. So we'll see what happens.
Christine, thanks.
ROBERTS: Other stories making headlines across the nation right now. Trying to stop a steady flow of abandoned kids. A Nebraska lawmaker is proposing an age limit of 12 months on the state's controversial Safe Haven Law. It was meant to help overwhelmed parents of infants and toddlers. But parents have left more than 30 children at hospitals in the past couple of months, 28 of them are over the age of 10. One man dropped off nine children aged 1 to 17 years old.
People picking up what's left of their lives this morning after a deadly tornado flattened parts of central North Carolina over the weekend. Authorities say a cluster of storms killed two people and destroyed at least a half a dozen homes. Today the governor will get a look at the damage and meet with emergency responders.
The most popular tree in the Big Apple is ready to spread some holiday cheer. This year's Rockefeller Center Christmas tree is an eight ton 72-foot tall Norway Spruce from New Jersey. It's held up by a five-story metal support system right now while they decorate it. Too much for the average living room but certainly not too much for "30 Rock."
(BEGIN VIDEO CLIP, MGM COLUMBIA PICTURES)
UNIDENTIFIED FEMALE: Get in.
UNIDENTIFIED MALE: All right.
UNIDENTIFIED MALE: Careful with this one, Mr. Bond. She won't go to bed with you unless you give her something she really wants.
UNIDENTIFIED MALE: I think someone wants to kill you.
UNIDENTIFIED MALE: You two do make a charming couple though.
(END VIDEO CLIP)
ROBERTS: 007 is 001. "Quantum of Solace" blasting out the competition at the box office on its opening weekend, raking in more than $70 million. That's an opening weekend record for the 46-year- old film franchise.
CHETRY: How about it? You helped add to that pot...
ROBERTS: I did.
CHETRY: ... by going and seeing it on Friday.
ROBERTS: I gave $12.50 times four over the weekend.
CHETRY: Did you like it?
ROBERTS: It was good. Yes, it was good.
CHETRY: I'd watch anything with Daniel Craig in it.
ROBERTS: But you know, it's a sequel. So if you didn't see the first one, you might get a little confused. You got to see "Casino Royale" before you see this one.
CHETRY: All right. Well, I know what to do on a rainy Sunday.
Well, first Clooney and Angelina. Now another one of Hollywood's biggest stars taking a role for the world. Charlize Theron signs up with the United Nations.
It's 8 1/2 minutes after the hour.
ROBERTS: Firestorm.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We're trying to do everything as much as we can to prevent my grandparents' house from burning down.
(END VIDEO CLIP)
ROBERTS: Hundreds of homes destroyed. The desperate struggle in Southern California to fight back walls of fire driven by hurricane- force winds.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twelve minutes after the hour. Let's fast forward now to stories that will be making news today.
NASA's shuttle "Endeavour" crew begins day four of their 16-day mission at 9:25 a.m. Eastern. When mission control gives them a wake- up call, they'll start delivering new equipment to the International Space Station tomorrow. It's like the extreme makeover space edition. It includes a new bathroom and a kitchenette.
Oscar-winner Charlize Theron has a new role at the United Nations. Secretary-General Ban Ki-moon has appointed her a United Nations' messenger of peace with special focus on ending violence against women.
It's something very personal to her. Theron's mother fatally shot her abusive father in self-defense when she was just 15 years old. She'll be presented at a press conference here in New York at 10:00 a.m. Eastern at United Nations headquarters.
Former rivals trying to find common ground today at noon. The video will be released of Barack Obama and John McCain's meeting today in Chicago. It will be the first time that the two have spoken, at least since we know of, since at least that we know of since election night.
And lots of money in the room. Treasury Secretary Henry Paulson speaking this evening at a gathering of 100 major CEOs. "The Wall Street Journal" is holding the meeting of the minds to discuss what else -- the mess that is our global economy.
And that's what we're following for you this morning -- Kiran.
CHETRY: Scenes of utter destruction across many parts of Southern California. This is breaking news this morning. Authorities now investigating whether or not arson played a role in one of those massive infernos that swallowed home after home over the weekend. In all, 800 homes destroyed across 34 square miles, about half the size of Washington, D.C. The Santa Ana winds are calmer this morning but firefighters, of course, still have their work cut out for them.
Our Thelma Gutierrez is live in Yorba Linda, California, for us this morning. And you did tell us that they were getting a little bit of a reprieve from the winds but what was is this talk of arson as the cause of possibly one of these fires?
THELMA GUTIERREZ, CNN CORRESPONDENT: Kiran, this morning, investigators are looking at what could have caused the Montecito fire. That's the fire near Santa Barbara that burned down some 210 homes. They are still investigating. They're asking people who were in that area to come forth with information. But I can tell you that, yes, we are getting some good news finally out of Orange County far to the south because the winds have died down. That red flag warning has been lifted. And now evacuees, the thousands of evacuees from this area are finally able to come home. But this, after a very tough four days.
(BEGIN VIDEOTAPE)
GUTIERREZ (voice-over): Andrew Calder (ph) saw it coming, a wall of flames that raged towards him.
UNIDENTIFIED MALE: I saw it before it actually started. It was just a little ways back farther in the canyon. Within minutes, it has engulfed the entire hill.
GUTIERREZ: Fires jumped from one county to another across Southern California, charring neighborhoods and devastating lives. The firestorm began devouring homes in Montecito Thursday night. Wind-swept flames roared through the hills of multimillion dollar homes; 210 were destroyed. The cause, suspicious and believed to be man-made.
Friday night, Sylmar, north of Los Angeles, winds clocked as high as 70 miles an hour, fanned a wall of flames through the hillside destroying nine homes and mercilessly taking 500 mobile homes. Augustine Reyes lost everything.
AUGUSTINE REYES, HOMEOWNER: This is all that's left of my house. This is it.
GUTIERREZ: Saturday, fire breaks out in Corona. It quickly spread to Yorba Linda where this man stayed behind to save a home.
UNIDENTIFIED MALE: We're trying to do everything as much as we can to prevent my grandparents' house from burning down. It's been here for -- since I was a baby, so you know, this is memories here, you know.
GUTIERREZ: The flames quickly jumped to homes in nearby Anaheim Hills, then hopscotched toward the town of Brea, all set on one terrible Saturday, four fires merged as one, incinerating more than 200 homes.
On Sunday, the fire made its way to Chino Hills where 30-foot flames threatened 1,000 homes. Finally, weary firefighters got a break. The Santa Ana winds eased up allowing them to make their stand and save a community.
CHRIS GARCIA, HOMEOWNER: You know, the magnitude of the fire and then everything connecting, you know, growing together as one. These guys, you got to, you know, tip your hats to them. They're just -- they're just no way you can thank them.
(END VIDEOTAPE)
GUTIERREZ: This is just one of 200 homes that burned in what is being called the "triangle complex fire" where four fires merged south of Los Angeles and so many people today are asking exactly what caused the three major fires that were burning in this area. Investigators are taking a look at one of the fires up in Montecito. Again, looking at this as a possible arson. Back to you, Kiran.
CHETRY: These pictures are just devastating to look at. Thelma Gutierrez for us this morning. Thanks.
ROBERTS: Imagine instead of getting a BlackBerry for work, your job forces you to give it up. No e-mails, no texts, what's a president to do? That may be the fate awaiting Barack Obama. We'll tell you all about it.
Seventeen minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Lovely day this morning in Washington, D.C., the nation's capital. The thought of Senator Hillary Clinton as secretary of state is winning Barack Obama some praise from both sides of the aisle.
Our Jim Acosta is live from Washington this morning. There seems to be a serious look at Hillary Clinton. Apparently, they're vetting her husband when they're looking at all of this, Jim. And there are a lot of people saying it would be a terrific idea.
JIM ACOSTA, CNN CORRESPONDENT: Absolutely, John. It's probably not a bad idea to do some vetting at this point. If Barack Obama were to pick Hillary Clinton as his secretary of state, he would be calling upon a formal political rival who once questioned his readiness for the world stage, which may explain why some are saying it's a smart choice.
(BEGIN VIDEOTAPE)
SEN. HILLARY CLINTON (D), NEW YORK: To say that I'm not going to speculate or -- ACOSTA (voice-over): Barack Obama's first potential cabinet pick, Hillary Clinton as secretary of state, has the makings of a blockbuster. Prominent Republicans are weighing in with Nixon era Secretary of State Henry Kissinger saying she would be an outstanding appointment.
ED ROLLINS, GOP STRATEGIST: I think it's a brilliant move. I personally think that, you know, she came within 100 delegates of being president of the United States. You know, I think she's got worldwide experience.
ACOSTA: Still, there's enough baggage in the Obama-Clinton relationship to fill Air Force One, like the 3:00 a.m ad Clinton ran trying to raise doubts about Obama's ability to handle a foreign crisis.
(BEGIN VIDEO CLIP, FROM HILLARY CLINTON FOR PRESIDENT)
NARRATOR: It's 3:00 a.m., time for a president who's ready.
(END VIDEO CLIP)
ACOSTA: During the campaign, the New York senator questioned Obama's state and interest in diplomacy with countries like Iran. She gave this dire warning to the Iranians should it ever launch a nuclear strike against Israel.
CLINTON: We would be able to totally obliterate them.
ACOSTA: And Clinton once ridiculed Obama's opposition to the war in Iraq.
CLINTON: Senator McCain will bring a lifetime of experience to the campaign. I will bring a lifetime of experience, and Senator Obama will bring a speech that he gave in 2002.
ACOSTA: Then there are the political implications, analysts point to the upside thinking Clinton would reward her legions of supporters, many of them women. Downside -- passing on Bill Richardson could disappoint Hispanic voters. Also, where would Joe Biden's years of global experience fit in with Clinton at state? And then there's the matter of the former president.
JAMES CARVILLE, DEMOCRATIC STRATEGIST: She's, you know, terrific for that position and the fact that he's willing to put all of this aside and go with what's obviously the best choice for the position here says a lot and really good about him.
(END VIDEOTAPE)
ACOSTA: Barack Obama has often praised the book "Team of Rivals" written by historian Doris Kearns Goodwin. The book is about Abraham Lincoln's decision to appoint political adversaries to his cabinet. Lincoln wanted debates in his White House, not group thing (ph) -- John. ROBERTS: You'll also want them, though, when the decision is made though, Jim, to all work together, right? Not against each other?
ACOSTA: That's right. And it's going to be interesting to see. You know, Abraham Lincoln appointed rivals who said worse things about him than Hillary Clinton said about Barack Obama. So it will be interesting to see how these two get along if this is indeed what happens. But, yes, in the end, the word of the president is final and Barack Obama, I'm sure, has made that clear. This is exactly what's happening right now.
ROBERTS: All right. We'll see if it works that way because in some cases it hasn't.
Jim, thanks so much for that.
ACOSTA: You bet.
CHETRY: Well, so no announcements on the Obama cabinet. Plus, we have to wait at least two months before we know which puppy will be the next first pooch. It was a campaign promise Obama made to his two daughters after the campaign was over, they'd get a dog.
Now, Michelle Obama says though to wait until after settling in into 1600 Pennsylvania Avenue before making the addition to the family. They want a dog from a shelter, but they need one that won't trigger 10-year-old Malia's allergies.
And the words the president-elect is dreading. Sir, please, surrender your BlackBerry. During the campaign, Barack Obama always had his BlackBerry by his side, but when he takes office, security concerns and the need to document all commander-in-chief's communication may mean no texting or reading let's say CNNmobile.com in the back seat of the presidential limo.
ROBERTS: Well, he can't vote but he pushed others to get into the voting booth. And after taking his contest on online, we will talk with Noah Gray, the teen behind the Virgin Voter contest, to find out who won.
It's 24 and a half minutes after the hour.
CHETRY: Memo to the president, getting out of Iraq.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: A quick U.S. withdrawal with no diplomatic arrangements made for reconciliation could throw the country back into very substantial chaos.
(END VIDEO CLIP)
CHETRY: Michael Weir with a harsh reality check for the next president.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-seven minutes after the hour. We're back with the "Most Politics in the Morning."
Campaign trail rivals reuniting. President-elect Barack Obama and John McCain will have a face-to-face today in Chicago looking at areas where they can work together. Getting the prospective from the GOP side of the aisle now, I'm joined by Republican strategist and CNN contributor, Ed Rollins.
Ed, good to see you this morning.
ED ROLLINS, REPUBLICAN STRATEGIST: Good morning. How are you this morning?
ROBERTS: Good. Good, thanks. So what do you expect is going to come of this meeting? Will they offer him a job or will they just chat?
ROLLINS: No, I think they'll chat. I think they'll bury the hatchet. I think there was a little bit of pushing and shoving the last month of this campaign, and I think --
ROBERTS: I hadn't noticed.
ROLLINS: And I think to a certain extent to get that behind them will be very, very important. I think John McCain can serve a very important role as a liaison on the Congress to Republicans, and I think he'll be willing to do that.
ROBERTS: I can't remember in '84, did Braden (ph) get together with Mondale?
ROLLINS: I can't remember we did or not.
ROBERTS: It wasn't really much of a reason.
ROLLINS: Well, Walter Mondale was a very fine man and obviously, we appointed him to be ambassador to Japan after that. So he said to me when I was at the swearing in, he said, "No one did more to help me be ambassador to Japan than you did."
(LAUGHTER)
ROBERTS: So, I mean, what could McCain do for Senator Obama? I mean, he's probably going to be pretty marginalized in the Republican Party?
ROLLINS: I think he will. I think the key thing here, though, is that they don't get the 60, which is still a possibility. You know, he can be -- he can put five or six more moderates together to kind of go for things that are important. He certainly can play a role this week in trying to help with the bailouts and the kinds of things that they want to have. And I think just merely by the new president-elect sitting down saying, I want your help. Can you really cross, talk about bipartisanship, I need your help now.
ROBERTS: So we saw in the story, the report that Jim Acosta did a couple of minutes ago, you were in there talking about Hillary Clinton as potential secretary of state saying, you think it's a brilliant idea particularly because of how close she came in the primary campaign. Why else it would be brilliant?
ROLLINS: What else, I think it brings any ill will that still may be out there. I mean, obviously, Obama had a big victory but there's still some people who loved Hillary and 18 million who voted for her. I think it makes a Democrat Party very powerful. I think it shows Barack Obama as a bigger man than most people in the sense that he's willing to take the person who gave a real race for the money into his cabinet.
ROBERTS: Is it all political, or could she be good in the job?
ROLLINS: I think she'd be superb in the job. She's a very experienced veteran, and I think to a certain extent it says a lot about Barack Obama.
ROBERTS: So this week, we've got a battle shaping up on Capitol Hill. The Democrats are trying to go for a bailout for the auto industry. Republicans are resistant.
Barack Obama certainly is making this one of his personal causes. Let's listen to what he said about it last night in his interview on "60 Minutes."
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: For the auto industry to completely collapse would be a disaster in this kind of environment. So it's my belief that we need to provide assistance to the auto industry. But I think that it can't be a blank check.
(END VIDEO CLIP)
ROBERTS: OK. So that's a concern a lot of people have. You can't make it a blank check, and there are many out there who are saying, should we even be doing this? I mean, this is an industry that was born for decades and it's going the wrong direction. Now, it's got a very big handout.
ROLLINS: Not only a big handout, the United Auto Workers saying that they're not going to make any concessions whatsoever, I think doesn't send a good signal. I think if anything it will put the backup of some Republicans saying if you're not willing to make some concessions, why should we put billions of dollars.
ROBERTS: Do you think they'll get anything through?
ROLLINS: You know I think it's going to be a hard battle. I mean I think you know it will be easier in January when they have more democrats, but I think right now, it's going to be a real hard battle.
ROBERTS: Ed, it's always great to see you. Thanks for dropping by his morning.
ROLLINS: Thank you very much.
ROBERTS: Kiran.
KIRAN CHETRY, CNN, ANCHOR: 7:30 here in New York. A look at the top stories this morning. We begin with breaking news, three wildfires still burning in around Los Angeles county. Those flames swallowing 800 homes across 35 square miles. California firefighters may get some relief from the Santa Ana winds today.
Right now, tens of thousands of residents have been forced out of their homes. There is suspicion that one fire could have been arson.
Discouraging medical news this morning. An extensive new medical study shows that neither vitamin C nor vitamin E pills help cancer in men. The study also found that the supplements don't help ward off heart disease either.
Breaking news this morning, the world's second largest economy Japan now in recession. Americans shutting their wallets have stopped buying cars and gadgets from Japan's biggest companies like Toyota and Sony. Our Kyung Lah is live at the very latest from Tokyo this morning. So this announcement is not much of a surprise, but there, they said it, we're in recession and it is the second biggest economy in the world. So how big of a deal is this on the global stage?
KYUNG LAH, CNN CORRESPONDENT: A very big deal, Kiran, because you officially said it, the "r" word is here. The world's second largest economy for the first time since 2001 sliding into recession. Now exactly why? The reason for this, the number one reason across the board economists say is the U.S. consumer is not spending.
And specifically not buying those made in made in Japan items. Every single day when you travel down to Tokyo Bay, you'll see these giant containers. Those containers are filled with electronics and cars made by the companies that you know, Nintendo, Panasonic, Toyota, Nissan. And inside those containers, the people who purchase them are U.S. consumers. Those ships head straight to the U.S.
Well if the U.S. consumer, thanks to the credit crunch, isn't able to get a loan for the Japanese automobile, then that has a direct impact on those companies. Those companies then lose profit and that translates into job losses and a real impact on Japan's real economy and Kiran, when we talk about how long this recession is going to last, most economists will tell you, how long will the U.S. recession last? Kiran.
CHETRY: We're also hearing this morning that General Motors is selling its stake in Japanese car maker Suzuki. But what are the implications of that?
LAH: Well, certainly we're getting a snapshot of just how dire the situation is for U.S. automakers. We just told you about what's happening to Japanese companies, but Japanese automakers still have cash. Suzuki says tomorrow they could buy its shares back from GM with cash. GM trying to raise capital here. So while the Japanese automaker is certainly leading the recession here in this economy, it is certainly doing better off than the U.S. big three. Kiran.
CHETRY: Yes. That's for sure. Kyung Lah, this morning in Tokyo for us, thank you.
ROBERTS: An important and positive step, that's what U.S. officials are calling the approval of the security pact between Washington and Iraq's cabinet. The agreement will allow the U.S. forces to remain in the country for another three years. The United Nations mandate is due to expire at the end of this year. But now that the agreement is in place and we know that American troops can stay in Iraq for another three years, what does Barack Obama need to do during those 36 months? Our Michael Ware has today's "Memo to the President."
(BEGIN VIDEOTAPE)
MICHAEL WARE, CNN BAGHDAD CORRESPONDENT (voice-over): Mr. President-elect, the war in Iraq will soon be yours to command. It's a war that's weakened some of your enemies while strengthening others and though it's a war in which America has not lost a fight professor of middle east studies Juan Cole says the solution won't be found on the battlefield.
PROF. JUAN COLE, UNIVERSITY OF MICHIGAN: If I were writing a letter to the future president, I would tell him to be diplomat in chief.
WARE: And to somehow deliver a miracle by bringing Iraq's warring factions together while containing the influence of America's enemies.
COLE: It is that kind of diplomacy that's needed if a military withdrawal is to be accomplished.
WARE: Getting out of Iraq will be come at a price, perhaps including an emboldened Iran. It's already well placed to fill any vacuum left by U.S. withdrawal. From the moment of the U.S. invasion, Iran has sponsored powerful militia like this one and nurtured its ties with Iraq's most powerful political factions now running the government in Baghdad. U.S. military intelligence says Iran has contributed to the deaths of countless American soldiers. So America needs all its allies like these Sunni militiamen who systematically assassinated Al Qaeda members, mostly former insurgents now more than 100,000 of them are on Washington's payroll.
Another ally are the Kurds. They helped topple Saddam but are now in dispute with Baghdad over oil and land. 140,000 American troops have been keeping Iraq's rival militia from an all out terrible war.
COLE: There are these looming conflicts. A quick U.S. withdrawal with no diplomatic arrangements made for reconciliation could throw the country back into very substantial chaos. WARE: A problem as president you must find a way to avoid.
(END VIDEOTAPE)
WARE: So, John, that's what confronts the president-elect when he takes office. As we've heard, the Iraqi cabinet has now approved the terms of the agreement that would allow the ongoing presence of U.S. troops in that country. However, it's not entirely in the form that Washington would have liked. And it has to be said, it's sharply curbs U.S. power there in Iraq. John.
ROBERTS: Michael, what do we know about a long-term strategic relationship between the United States and Iraq? Even after major combat forces have been removed from that country under Barack Obama's plan, what could that look like going forward? President Bush has suggested you know think North Korea or South Korea and Germany when you think about how long U.S. troops could stay?
WARE: Well, that's the thing. And that's the great dilemma facing the next administration is how are you going to fill the vacuum after your troops come home? Everybody wants the troops to come home. Yet that 140,000 combat troops on the ground are what's holding the country together, by keeping the warring factions apart. So the more you address the troops, the more you leave Iraq to its own devices.
And with a firm out date imposed by the Iraqi government that means U.S. forces could be forced to leave Iraq no matter what is happening on the ground. That could include bloodshed as a civil war erupts. It may include increased Iranian influence, it could even be a return of Al Qaeda elements. Essentially, much of the question has been taken out of U.S. hands in terms of boots on the ground. So what will the president-elect and his cabinet do to put something into the breach and it's certainly not something that we could look at and consider a win or a victory at this stage.
I wouldn't be putting any champagne on ice when it comes to the signing of this agreement that the departure of the American troops and what will happen after they leave. John.
ROBERTS: The important questions still to be answered. Michael Ware for us this morning in Washington. Michael, thanks so much for that.
And tomorrow, our Carol Costello has our next "Memo to the President." Obama reaching across the aisle. How will the president- elect be a leader to Americans of all political stripes? That's tomorrow on AMERICAN MORNING.
CHETRY: And still ahead the youth vote that came out strong in this year's election. We're going to talk to one teenager who helped make it happen. It's 38 minutes after the hour.
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CHETRY: Welcome back to the most politics in the morning. Before the election, we introduced to you Noah Gray. Since he was only 16 he couldn't vote, but he found the "Virgin Voting" video contest, encouraging others to take their first time at the polls very seriously. Noah is live in Miami this morning with the winner. Hey, Noah, we're going to take a look. You put together some of the best of. So let's check it out and then after we'll talk about why you picked these submissions. Let's look.
NOAH GRAY, "VIRGIN VOTING" PROJECT: Sounds good.
(BEGIN VIDEO CLIP)
GRAY (voice-over): I asked virgin voters to never forget their first time - voting, that is. Just make an original video, two minutes or less. Be creative and post a video response on youtube.com/virginvoting.
And that they did.
DANIEL COLE, VIRGIN VOTER: I'm Daniel Cole and I'm a virgin voter.
UNIDENTIFIED MALE: It's official. I'm in the voting booth.
UNIDENTIFIED MALE: Here it is, the polling place.
UNIDENTIFIED FEMALE: I voted because I can.
UNIDENTIFIED MALE: Obama.
UNIDENTIFIED FEMALE: I voted!
UNIDENTIFIED MALE: OK. This is me taking part in history here. Here we go.
GRAY: First-time voters from all across America uploaded their first time experiences but it was time to choose the three winners. In first place, from Anthem, Arizona, 18-year-old Zack Coffee.
ZACK COFFEE: And the big day finally came. And here I am. It's early but I'm wide awake.
UNIDENTIFIED MALE: Would you like a sticker?
GRAY: In second place, from Lawrenceville, Georgia, 19-year-old Matthew Gregg.
MATTHEW GREGG: I'm 19 years old and I just did it for the first time.
GRAY: And in third place, from Suffolk, Virginia, 18-year-old Latisha Jacobs (ph).
LATISHA JACOBS: It was my first. Hopefully it won't be my last. For me it was great. And virgin voting was a blast.
(END VIDEO CLIP)
CHETRY: All right. So those are the three winners. Noah, why did you pick those three out of all the submissions you got?
GRAY: Well, I had some great submissions. I judged the videos based on - first I took the top ten, the ten videos with the most view on YouTube. And I judged them for creativity, originality and quality.
CHETRY: All right. What did they win?
GRAY: They win, first place winner wins $500 gift card to the Apple store. Second place is a $250 gift card to the Apple store and third place is a $100 Apple store gift card.
CHETRY: Wow, they can take their iPhones or their iPods with them in four more years when they vote again.
GRAY: Yes.
CHETRY: Hey, you know, we had some high expectations Noah for voter turnout, youth voting, 18 percent of people who voted this year were between the ages of 18 and 29. That was up only one percent. It was 17 percent in 2004 and 2000. And especially in this election cycle, we thought there would be a lot more young people interest. Why do you think that it's still a challenge to get a lot of people out there at that age?
GRAY: I don't even know what to tell you, Kiran. I mean, from what I saw, I saw a lot of young people, they were getting interested and involved this year. I don't know. I'm surprised to see it's only up one percent. But the young people for the most part from what I thought actually got out there and did their research and voted.
CHETRY: Yes. And you showed that in some of your videos just how excited and how eager and how informed they wanted to be. What are you doing in the future now because next election cycle, not only are you going to be trying to get more people out there but you yourself are going to be able to be a first-time voter?
GRAY: Yes. I'll be able to vote in the 2010 election. So I plan to make it "Virgin Voting" bigger and better in 2010 and 2012.
CHETRY: That's a midterm election so that's going to be even more of a challenge even.
GRAY: Yes.
CHETRY: Hey, Noah. Great stuff. And I'm very, very happy that there were so many people that responded to your call to document that. Pretty neat. Noah, good to see you.
GRAY: Yes. Thank you to everyone at AMERICAN MORNING who gave the contest exposure. It wouldn't have been possible without all of you.
CHETRY: Well, we loved having you as our special correspondent. We'll see you back in 2010. Bye, Noah.
GRAY: See you in 2010. Thanks, Kiran.
ROBERTS: And we say thank you to Noah for the key lime pies he sent us as well. A little Miami treat there he gave us last week.
Same price, smaller size. Ice cream, cereal, soap, peanut butter, skimping on Skippy. How some companies are saving money by fooling you. 45 minutes after the hour.
(COMMERCIAL BREAK)
(MUSIC PLAYING)
ROBERTS: Well, Cleveland might rock, but it also may be slip sliding today as well because you can see by looking at the traffic there that a few cars are driving by. You got snow on the roof and on the hood and there is some snow coming by on the traffic camera here. Our thanks to our friends at WEWS in Cleveland for that shot this morning. 32 degrees there right now. Later on today, more snow and a high of about 36. Rob Marciano checking the weather across the country. Rob, there's a lot happening in that monitor behind you there. Wow, a lot moving around.
ROB MARCIANO, CNN, METEOROLOGIST: Yes, yours, too.
ROBERTS: It looks like I mean looking at your map, there's a lot of snow, a lot of lake-effect snow today as well.
MARCIANO: Yes. A lot of cold air and you're feeling it all the way to New York City, actually all the way down to the Gulf of Mexico where temperatures are near the freezing marks. So over the Great Lakes certainly is cause for lake-effect snow. Quick shot just northeast of Cleveland, Ashtabula - these were shot yesterday where anywhere from four to six inches of snow fell. They could see another five to 10 inches of snow falling today. Lake effect snow warnings in from Cleveland, northeast up through i-90, up through upstate New York through tomorrow afternoon. So this will be an ongoing event with temperatures getting over those relatively warm waters and dumping that snow could be heavy at times.
All right. Mentioned the cold air down south. 33 in Birmingham. 33 degrees in Atlanta so pretty chilly here as well, but obviously where the white shows up on the radar scope notably across Oswego county here right across Tughill plateau, getting into the Adirondacks, that's where the heaviest snow is falling and we'll continue to do so later on today. Cincinnati to Dayton, you're seeing a lot of snow. Here's some of these totals though from yesterday. Ashville, New York, 15 inches, yes, that's south of Buffalo towards Erie, PA. and Edinboro, PA., seven inches.
On the hoops side, on the west coast. 96 degrees in Santa Ana, Los Angeles yesterday 88 degrees and obviously that heat not helping the fire situation but today they will see less in the way of wind, tomorrow maybe not sure when that will help things, I think dramatically.
35 degrees in Chicago, it would be 47 degrees in D.C., 46 in New York and 57 today in Atlanta, Georgia. So chilly on the east coast and certainly warm out west. John back up to you.
ROBERTS: Yes. Our Thelma Gutierrez was saying earlier today, Rob, they robbed the firefighters hope to be able to make some progress again those fires now and now that the winds are down a bit.
MARCIANO: Yes, today and then for sure I think tomorrow and Wednesday should be notably cool.
ROBERTS: That's great news. Rob, thanks so much.
MARCIANO: You bet.
CHETRY: Well the corner Santa Claus now accepting plastic this holiday season. Since many holiday shoppers no longer carry around cash, the Salvation Army says it's slowly changing its tradition to the yellow kettle. This year, five bell ringers in Colorado will be the first to accept debit and credit card donations for people who don't have spare change on them. It's 50 minutes after the hour.
(BEGIN VIDEOTAPE)
ROBERTS: (voice-over): You're incredible shrinking groceries. Don't look now.
UNIDENTIFIED FEMALE: I think they're kind of trying to take advantage of people who are not paying attention.
ROBERTS: Little sizing tricks. It cost you big.
UNIDENTIFIED FEMALE: They don't advertise that at all. So really I had to -
ROBERTS: Plus, fed up with your difficulty then.
UNIDENTIFIED MALE: And extraordinary cry for help from people across the country. If you could just dump them on the doorstep. In one state it's perfectly legal but all that could change within hours. You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the most news in the morning here on CNN and on January 20th, president-elect Barack Obama will take the oath to become the first African-American president. While his victory has been cheered by a world weary of President Bush, it has many extremists struggling to decide exactly what his election means.
Salameh Nematt is the international editor of the "Daily Beast." He is the former Washington bureau chief of "Al Hayat," and international Arab newspaper joins us this morning from Washington. Salameh, last night on "60 Minutes," Barack Obama was talking about the need to get his national security team in place quickly. Let's listen to what he said about that.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I think it's important to get national security team in place because transition periods are potentially times of vulnerability to terrorist attack. We want to make sure that there is as seamless a transition on national security as possible.
(END VIDEO CLIP)
ROBERTS: On that point of potential vulnerability to terrorist attacks, Salameh, how likely do you think it is that terrorists might try to take advantage during this time?
SALAMEH NEMATT, INTERNATIONAL EDITOR "THEDAILYBEAST.COM": Well, I think what they were planning to wage an attack at this time, then it would have been planned for several months if not longer. So I don't think if they were going to attack, it would be because Obama won the presidency because such attacks, if they are, indeed, going to be of a major kind, then it would have taken months to plan. So I'd say that it is likely - that is likely for them to strike now as it was six months ago or six months from now.
ROBERTS: In the "Daily Beast," you had an article entitled "Al Qaeda's olive branch to Barack Obama." Is Al Qaeda potentially changing its ways here. Does it see an Obama presidency different than it would a Bush administration, a Clinton administration?
NEMATT: Al Qaeda for all practical purposes - Al Qaeda in Iraq has been defeated and that's partly because all parties cooperating. The Iranians even cooperating with the Iraqi government and by extension with the American forces to defeat Al Qaeda and I think that you know they may have gotten stronger enough in Afghanistan or the Afghani-Pakistani border but in Iraq, they have been weakened and that explains a little bit the message, the kind of mild message from Al Qaeda's leader in Iraq.
ROBERTS: Right. This was from Omar Al Bagdadhi. It was a 22 minute long audiotape. He talked about if the United States was to convert to Islam or the president was to convert to Islam and basically restore the United States to its pre-World War II stance in the world that Al Qaeda would stop attacking American interests. Are they really in any kind of positions based as you said on their lack of strength particularly in Iraq to be making any kind of an offer like this? And, you know, the incoming president has suggested he's going to be just as tough on Al Qaeda as his predecessor was.
NEMATT: Well, I think the president will probably find out soon enough that Al Qaeda is not as big of a threat or an immediate threat as Iran is in the sense that the most strategically important part of the world, which is Iraq, the Gulf region, the oil region, it is Iran that is resurgent. And Al Qaeda has been defeated. The Al Qaeda ideology has been defeated, simply because they ended up over the past couple of years or three years killing more Muslims than they're killing anybody else. And so I think that Iran is strategically a biggest threat but on the other hand everybody wants to talk to Iran. And I'm not talking about only the Obama, the president elect but also the Bush administration has been talking to Iran, although through third parties.
ROBERTS: Yes, certainly they seem to have adopted the posture that he outlined during that debate almost 18 months ago now. In terms of strategic threats that the United States faces, we had this somewhat conciliatory message of outrage from President Ahmadinejad to the incoming president. Is Iran really the toughest foreign policy nut that Barack Obama will have to crack when he becomes president?
NEMATT: Absolutely. I think Iran is a major, major threat to U.S.'s vital strategic interest in the gulf region. We know since Truman that the U.S. policy has been - the U.S. doctrine has been nobody in the region is allowed to be a super power to dominate that part of the world which contains 40 percent of the oil reserves which would give them a leverage over, you know, the United States and western economies. The thing is that Iran now thinks it has reached some kind of deal with the Bush administration. They helped stabilize the situation in Iraq and in return, the Bush administration removed the threat of the use of force against that because of its nuclear program. And there is now some kind of accommodation now that we've seen in Iraq. The question for Obama is will he continue the Bush policy of some kind of stance with Iran, some kind of understanding over Iraq and the rest of the region or will he take a fresh look and reconsider policies versus Iran.
ROBERTS: Interesting questions this morning. Salameh Nematt from the "Daily Beast," thanks for being with us this morning.
NEMATT: Pleasure. Thanks for having me.
