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American Morning

Obama Vows Swift Economic Action; Clintons' Big Event to Pay Down Campaign Debt; India-Pakistan Strategy to Deal with Nuclear Enemies; Obama Reveals New Jobs Plan; Brunswick, Ohio Scales Back on Holiday Celebration; The Front Lines in the War Against Pirates

Aired December 08, 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)
JOHN ROBERTS, CNN ANCHOR (voice-over): CNN exclusive, war at sea.

UNIDENTIFIED MALE: How many pirates?

UNIDENTIFIED MALE: Hundreds. Thousands.

ROBERTS: On board a NATO warship patrolling the most dangerous waterway in the world.

UNIDENTIFIED MALE: That is the Gulf of Aden.

ROBERTS: Plus, Christmas canceled. The city in so much red that it can't afford the holidays on the "Most News in the Morning."

(END VIDEO CLIP)

ROBERTS: Sign of our economic times and troubled times and more of them ahead apparently. Got lots to talk to you about this morning.

It's Monday. It's the 8th of December. Thanks for being with us. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry. We begin with the president-elect, Barack Obama, front and center in the effort to rebuild confidence in the U.S. economy. Obama is offering a sobering assessment of the nation's finances, saying it's likely to get worse before it gets better, but he promised his administration will be ready with a stimulus package. Obama also gave his support to an automotive bailout and said Congress was doing the right thing by drafting legislation that holds Detroit's feet to the fire.

Well, today, five guards who work for the security company, Blackwater, plan to surrender in Salt Lake City, Utah, on charges related to the shooting deaths of 17 Iraqi civilians back in 2007. A sixth is now working with prosecutors on a plea agreement. Blackwater says the guards fired in self-defense after they were ambushed in western Baghdad.

And right now the world markets picking up where the Dow left off Friday. In Hong Kong, the Hang Seng surged more than eight and a half percent. Japan's Nikkei closing up five percent. And in Europe where trading is underway, the markets are in positive territory.

ROBERTS: This morning, the growing shift of presidential power under way as President-elect Barack Obama and his economic team craft a plan to upgrade or repair the nation's public infrastructure to create jobs and jumpstart the economy. Obama's promise of swift action comes as he rallies support for an automotive bailout, but he is demanding big changes in return from Detroit's big three.

CNN's Elaine Quijano is live for us in Chicago this morning. Just what are they looking for, Elaine?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, good morning to you, John. President-elect Barack Obama says U.S. automakers cannot be allowed to fail but he says any help that Detroit gets must be tied to conditions, including restructuring.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): As lawmakers gear up to try to save the U.S. auto industry, the incoming president says he approves of their approach.

BARACK OBAMA (D), PRESIDENT-ELECT: I think that Congress is doing the exact right thing by asking for a conditions-based assistance package that holds the auto industry's feet to the fire, gives them some short-term assistance but also insists that assistance leads to some very difficult choices.

QUIJANO: That approach comes on the heels of more bad economic news last week that the U.S. economy shed 533,000 jobs last month alone. Amid rising unemployment and increased pressure for another economic stimulus plan, the president-elect again avoided putting a dollar figure on a possible package.

OBAMA: The thing that we have to do right now is to have a bold economic recovery plan.

QUIJANO: President-elect Obama says his plan to create 2.5 million new jobs will include launching the biggest public works program since the federal highway system was built in the 1950s. He says modernizing schools and government buildings will be part of the plan as well. And on the troubled housing front, Obama reiterated, he believes more needs to be done.

OBAMA: We have not seen the kind of aggressive steps in the housing market to stem foreclosures that I would like to see. And my team is preparing plans to address that foreclosure situation.

(END VIDEOTAPE)

QUIJANO: Now Obama this weekend also announced his pick for veterans affairs secretary, retired General Eric Shinseki. As army chief of staff in 2003, Shinseki raised the ire of former Bush administration officials including then-defense secretary, Donald Rumsfeld, by saying that several hundred thousand troops would be needed for post-war Iraq -- John. ROBERTS: Elaine, back to this idea of this infrastructure stimulus, he didn't as you said put a dollar figure on it, but what are folks there talking about? I would expect it's got to be in the hundreds of billions.

QUIJANO: Absolutely. Certainly at this point, Obama is hesitant to commit. But as you well know, in order to create that many jobs, several hundred billion would be needed. Now the question is, how do you balance the long-term needs to keep the economy going with the short-term needs?

Obama was very cagey, if you will, on that. He certainly said he understood the need to do both, to look at both the short-term and the long-term financial picture for the United States, understanding though that what America needs right now are jobs and quickly -- John.

ROBERTS: Elaine Quijano live for us in Chicago this morning. Elaine, thanks so much for that.

While lawmakers try to hammer out a multibillion dollar bailout package for Detroit's big three automakers, a key Democratic senator, Connecticut's Chris Dodd, is calling for one of the CEOs of the big three to fall on his sword.

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), CONNECTICUT: If you're going to restructure and have a viable manufacturing sector in our country --

UNIDENTIFIED MALE: So what you're saying about GM is that Rick Wagoner, the chairman, has to go.

DODD: I think he has to move on.

(END VIDEO CLIP)

ROBERTS: Some in the Motor City are hoping for divine intervention to help the big three. One of Detroit's largest churches offering up prayers with three SUVs parked at the altar. Local car dealerships donated the SUVs for the service, one from each of the big three. The pastor said he and other Detroit ministers would pray and fast until Congress voted on a bailout.

CHETRY: Well, meanwhile, Senator Hillary Clinton is in need of a bailout of her own, if you will, to retire her campaign debt, more than $7 million worth. And she's rolling out some big names to help raise the money.

Jason Carroll joins me now to explain why the clock is ticking on this as well.

JASON CARROLL, CNN CORRESPONDENT: Yes. The clock is definitely ticking. She's going to get some big names there to help her. Hillary Clinton is no longer running for president, but she's still running a race to retire her $7.5 million campaign debt. That's because if Clinton is confirmed as secretary of state, federal law restricts what she can do to raise money. So she's rolling out her husband, her mother, even a TV star to bring in money while she still can.

"Ugly Betty's" America Ferreira will be hosting a Hillary Clinton fund-raiser in New York City next Monday. Bill and Hillary will be there of course. Tickets are just $50. Donors willing to spend $1,000 get a VIP seat and a picture with the senator backstage.

And there's more. Hillary Clinton's mother, Dorothy Rodham, has sent an e-mail urging supporters to buy a book about Clinton for $50. If donors are willing to pay $250, Senator Clinton will personally sign it.

The president-elect and vice president-elect are also helping out. Obama has long encouraged supporters to donate to relieve Clinton's debt, and Biden sent an e-mail Friday asking supporters to make a contribution. The law restricting Clinton if she becomes secretary of state is the Hatch Act. The U.S. Office of Special Counsel wrote that the act would prevent former candidates from planning and participating in fund-raisers like the one with America Ferreira. But Clinton wouldn't necessarily be banned from such events. She could attend and briefly thank supporters so long as she didn't plan or promote it.

There's always a way around these things.

CHETRY: Of course, right? The loopholes.

CARROLL: Yes.

CHETRY: How about them? Or what about the possibility of Caroline Kennedy replacing Hillary Clinton in the Senate seat?

CARROLL: Oh, yes. Well, as you know, her Uncle Robert was New York senator back in what? 1965. We do know that New York's governor, Paterson, has spoken to Caroline Kennedy about this.

And we're also -- we also know that President-elect Obama was asked about it yesterday on "Meet the Press," and you know, he said while we are friends, it's not something I want to get involved in, so no direct confirmation from anyone. But definitely there's some interest there.

CHETRY: It's interesting because the reporting was that Caroline Kennedy is the one who called the governor right...

CARROLL: Absolutely.

CHETRY: ... to just inquire? What are sort of the demands? What's asked of this position?

CARROLL: Asking some questions about the position. So obviously, there's some interest.

CHETRY: Very interesting. All right. Jason Carroll, good to see you, thanks. CARROLL: All right.

ROBERTS: We'll see what happens.

Also new this morning, a protest by some 200 laid off factory workers in Chicago is drawing national attention and support from the president-elect. The workers have held what they call a peaceful occupation of the Republic windows and doors plant since Friday. The workers say they received just three days notice that they were losing their jobs. Federal law requires 60 days notice. Probably just stay put until they get severance and vacation pay.

We get a violence in Greece. Rioting broke out after police shot and killed a teenager in Athens on Saturday. Police firing tear gas at hundreds of protestors who rampaged in Athen's main shopping district. Greek authorities have charged a 37-year-old police officer with the teen's shooting.

CHETRY: Newly released security video shows fire burning inside of Mumbai's Taj Mahal hotel as those terror attacks unfolded. Police and security staff are seen running through the hotel corridors with guns drawn, checking some of the rooms. Mumbai's deputy police commissioner says officers responded with effectiveness and guts in last month's attack.

Meantime, Pakistan's military says its troops have raided a camp used by Islamic extremist group that India claims is responsible for these Mumbai attacks.

Arizona Senator John McCain predicts the situation in Afghanistan will get harder before it gets easier. McCain making his first post- election visit to Afghanistan over the weekend. He met with President Hamid Karzai as well as coalition leaders there. The U.S. is preparing to send thousands more troops to Afghanistan. McCain will report back to President-elect Barack Obama on his trip to Afghanistan and Iraq.

CHETRY: And another return of sorts to tell you about though in far more friendly territory. Amy Poehler reprised her role as Senator Hillary Clinton on "Saturday Night Live" over the weekend. It was her first appearance since giving birth on October 25th. And during the sketch, she joked about the unflappable staying power of the Clintons.

(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE")

UNIDENTIFIED MALE, PLAYING BILL CLINTON: I just want to say how happy we are to be back in your lives, America. You voted for change, but you ain't never going to change us.

AMY POEHLER, PLAYING HILLARY CLINTON: We Clintons are here to stay. You may think we're down, but like the south, vampires and Britney Spears, we will rise again.

(END VIDEO CLIP)

ROBERTS: Some people are saying that the new Obama administration looks a lot like the Clinton administration did.

CHETRY: Absolutely. All right. Change you can believe in.

ROBERTS: See what happens.

CHETRY: Did you miss the Sarah Palin impersonations on "Saturday Night Live"?

ROBERTS: I did. You know, I was in bed early.

CHETRY: Yes. Exactly, you had to tape it or DVR it. We're never up that late, ever.

Well, you may have noticed something different on the bottom of your screen this morning. It's a CNN logo turning green. It's green because of the second installment of CNN's award-winning series "Planet in Peril." It debuts this Thursday, 9:00 p.m. Eastern time. It's going to be another great one.

ROBERTS: It's not that it's feeling woozy this morning. It's just that we're going green here for the planet.

This morning with tension rising between India and Pakistan, the U.S. eyes a new strategy for dealing with the two nuclear powers. We'll tell you what it is.

CHETRY: And back in this country, it's beginning to look a lot like Christmas, however, , not in Brunswick, Ohio. We're going to tell you why they're a little short on holiday cheer.

It's 10 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: And welcome back. Gerri Willis is "Minding Your Business" this morning.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.

CHETRY: And we're talking about Barack Obama's five-point plan to help save and/or create jobs.

WILLIS: This is a very big deal. This is the biggest plan since the Eisenhower administration to put money into public works to save the economy. Let's look at exactly what he's talking about here.

First of all, Obama says that upgrading federal buildings is a real priority here. The government spends more than anybody else on energy bills, he says. Let's make those buildings green. Repair the nation's crumbling roads and bridges, modernize schools, increase broadband access.

He says that the U.S. is 15th in the world in terms of broadband access and that's just inexcusable, upgrade health care technology. Also, introducing the Internet there in a very big way. And I have to tell you, it's no wonder that the president-elect is talking a lot about how to save this economy. We had numbers Friday that were very depressing indeed; 533,000 people losing their jobs in the previous month. Some 1.9 million people losing jobs this year alone. Some bad news in the housing market as well.

Folks out there really worried about what's going on. Now the president-elect saying we've got to spend more and be more aggressive in terms of trying to turn around this economy. That conversation in this country has moved from when is the recovery coming to how low is it going to go?

And there's a recent poll out from CNN this morning on how people are spending differently. Let's take a look at that. Economic conditions make you cut back on spending in what categories? Look at this, holiday gifts, 67 percent of folks saying they're spending less. Leisure activities. 65 percent are spending less. Driving, clothing, you name the category, Americans are spending less because they are worried about the economy here.

And I have to tell you, this is a pretty impressive lengthy plan as we were talking about it earlier in the show. There's no price tag on it yet. The president-elect not putting a price tag on it, but some folks are saying it could cost $1 trillion.

CHETRY: Right. And when you talk about where the job creation could be, I mean, besides on some of the labor jobs, I.T. as well, if they're talking about trying to increase broadband and sort of get hospitals up with technology. I mean, those are good opportunities at this point.

WILLIS: I.T., green, health care, those are all really growing areas. Not everybody is cutting back jobs. Some sectors are actually expanding.

CHETRY: All right.

ROBERTS: You know the infrastructure in this country is getting so old. We've got to do something about it at some point.

WILLIS: That's right.

ROBERTS: They just let it sit there and deteriorate.

WILLIS: Money has to be spent at some point.

ROBERTS: See if this works. Gerri, thanks so much for that.

WILLIS: My pleasure.

ROBERTS: Well, she's been seen in tree trunks and water stains, even on a tortilla. Now the Virgin Mary has been spotted in a brain scan.

A Florida woman came across her 2002 MRI seen here while going through old medical records. There in the middle of that brain scan, she claims to see the Mother Mary's likeness. So what do you do when have you an image of the Virgin Mary in your brain scan? Of course, you post it on eBay to help pay off your medical bills.

CHETRY: Did the story say why she was getting a brain scan?

ROBERTS: No, it didn't.

CHETRY: OK. It does look a little bit like the Virgin Mary. How about it?

ROBERTS: I think it looks a little like the hippocampus as well.

CHETRY: This morning, laid off workers are uniting. They've taken over a factory. They say they will not leave until they're paid in full. Live details from Chicago.

Deadly waters.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How many pirates?

UNIDENTIFIED MALE: Hundreds, thousands.

(END VIDEO CLIP)

CHETRY: It's been described as looking for a needle in a haystack. We'll take you on a destroyer in search of pirates.

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

(COMMERCIAL BREAK)

ROBERTS: This morning, Pakistani forces say they have raided a camp used by the terrorist group blamed for the deadly attacks in Mumbai. It comes as India and the United States step up pressure on Pakistan to take swift action against militants within their borders. Here's CNN's Kathleen Koch.

KATHLEEN KOCH, CNN CORRESPONDENT: John, Kiran, the U.S. is in a difficult position here. It's trying to keep the peace between these two bitter enemies while at the same time hinting at consequences if Pakistan doesn't cooperate.

(BEGIN VIDEOTAPE)

KOCH (voice-over): As authorities piece together what happened in Mumbai, Secretary of State Condoleezza Rice, fresh back from the region, says there's evidence Pakistan was staging ground.

CONDOLEEZZA RICE, SECRETARY OF STATE: I think there's no doubt that Pakistani territory was used by probably non-state actors. I don't think that there is compelling evidence of involvement of the Pakistani officials. But I do think that Pakistan has a responsibility to act and it doesn't matter that they're non-state actors. KOCH: Rice also cautioned India not to strike back despite frustration and anger over the attacks.

RICE: It felt a little bit to me like the United States post 9/11. I certainly understand that. But in this case, there are actions that India could take that could make the situation worse.

KOCH: The Bush administration is about to pass onto the Obama transition team a review offering new strategies in Pakistan and Afghanistan. "The New York Times" reports one option requiring the Pakistani military be reconfigured to better fight militants before it receives U.S. aid. President-elect Barack Obama says he backs an approach that brings all the countries together.

BARACK OBAMA (D), PRESIDENT-ELECT: We need a strategic partnership with all the parties in the region, Pakistan and India and the Afghan government to stamp out the kind of militant, violent terrorist extremists that have set up base camps and that are operating in ways that threaten the security of everybody in the international community.

(END VIDEOTAPE)

KOCH: Secretary Rice denies reports the U.S. has given Pakistan 48 hours to make arrest in the case. She did say repeatedly in her Sunday interviews that the U.S. was waiting for Pakistan to act and soon -- John, Kiran.

CHETRY: Kathleen Koch for us. Thanks so much.

Well, it's Christmas light in one Ohio City. It's trimming back on traditional holiday celebrations because they're in a real big budget squeeze. Now some are saying it's the Grinch who stole Christmas.

Twenty-two minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP, "DR. SEUSS HOW THE GRINCH STOLE CHRISTMAS")

NARRATOR: Then he stuck his head out of the fireplace flow where the little who stockings hang all in a row.

UNIDENTIFIED MALE: These stockings -- the Grinch are the first things to go.

NARRATOR: Then he slithered and --

(END VIDEO CLIP)

CHETRY: Welcome back to the "Most News in the Morning." It's not the Grinch who's stealing Christmas this year in Brunswick, Ohio, it's actually the economy. In fact, in a new CNN poll out this morning, four in ten Americans say economic conditions will make this Christmas more stressful and the same could be true for city officials in Brunswick, Ohio, where they're scaling back the annual holiday celebration, just part of a big effort to save money there.

Bob Zenkowski is the city manager. He joins us now from Brunswick, Ohio. People have been calling you the Grinch, Bob?

BOB ZENKOWSKI, CITY MANAGER, BRUNSWICK, OHIO: Yes, Kiran, they've called me the Grinch and a scrooge and a lot of names in between.

CHETRY: So what did you guys have to do? I understand you're facing a nearly $2 million budget shortfall this year. You had to tighten the budget in recent years. What are you scaling back on in terms of the holiday celebration?

ZENKOWSKI: What we've done this year is when we looked to balance our budget and try to contain costs, some of those we looked at balancing between public safety, public services and some of the holiday decorations. So what we did is we cut back on holiday decorations and the lights and the different set pieces that we have in efforts to save over $20,000. We typically had a holiday festival. We scaled back on that. Typically there were fireworks with that, but also we eliminated those which cost about $5,000.

CHETRY: And so, what was the general reaction when people realized that the town wasn't looking like it usually does around this time of year?

ZENKOWSKI: There were some interesting comments and e-mails, again went back to the different things of scrooge and the Grinch. But as several days went by, there was a lot of support from the community that really spoke up about the city making the right decision to contain its costs, especially when looking at the national economy that this was a prudent move for the city to make. And you can't spend money that you don't have.

CHETRY: Right. Unless you're the federal government. But $20,000 is what you're saving right now.

ZENKOWSKI: Correct.

CHETRY: In the big scheme of things, $1.8 million is what you're coming up short. So obviously, you're going to have to cut other things besides the holiday celebrations. What are some other things, services that you're seeing go by the wayside?

ZENKOWSKI: We've cut back on some of our salting of our streets, not only with the saving there but also with the costs almost quadrupling on that. We've cut back, we've reduced staff from 153 full-time employees to 141. We've maintained a budget of about $20.3 million operating budget, which we had back in 2003 and the budget we submitted this year to city council is $19.6 million.

So given all the increase in costs of supplies and services, utilities, fuels, we think we've done a very good job at controlling, containing our costs...

CHETRY: Yes. ZENKOWSKI: ... and at you with the submission of this budget with some additional revenues we should have a balanced budget going into next year.

CHETRY: You know, your city is not alone. A lot of cities around the country are talking about this with people losing their jobs, with homes going into foreclosure. They're losing some of that revenue. It's, you know, tough when people are moving out trying to find other jobs.

The bright side for you guys is that some of the local businesses have tried to step up, right? Fill in the gap a little bit for you. I think you have one Medical Mutual of Omaha donating $10,000 to help you guys put up some lights this year.

ZENKOWSKI: They did. They stepped up. Medical Mutual of Ohio stepped up very well for us this year. They just -- we have some residents that live in town here that work with Medical Mutual of Ohio and they thought this would be something to help out the community, which was a great donation. They wanted to try to make it anonymous but again with open records, we released the name, but I know that they stepped up real well and we're going to have some of the decorations up this year.

CHETRY: Oh, so a little bit of holiday cheer. Small bright spot in what's really tough times for many, many cities across the country.

Bob Zenkowski, the city manager of Brunswick, Ohio, thanks for joining us.

ZENKOWSKI: Thank you.

ROBERTS: Good luck to him with that budget shortfall.

Just about half past the hour right now, and here's a check of this morning's top stories.

Militants in Pakistan launching a second brazen attack in as many days, torching another 50 new NATO trucks. Yesterday, more than 160 vehicles destined for U.S.-led troops in Afghanistan were destroyed. The U.S. military says the losses will not have a major impact on operation against Taliban militants.

This morning, gasoline prices are nearing a five-year low. According to AAA, the national average for a gallon of regular is now $1.72. That's down more than a penny overnight. The last time we saw gas prices this low was March of 2004.

And at this moment, workers at a Chicago window and door company have taken over the factory that laid them off. They are demanding severance and vacation pay that they say is owed to them.

CNN's Susan Roesgen is following the story. She's live for us in Chicago this morning.

We should point out, Susan, that this is a peaceful sit-in. SUSAN ROESGEN, CNN CORRESPONDENT: It is, John. They're calling it a peaceful occupation as some 200 union workers, who got the word last week on Tuesday that they'd be out of a job on Friday, and they decided the only way to hang on to their jobs was to stay inside the building. Now they're doing it in shifts. We understand there's a couple dozen people in there this morning in an eight-hour shift. They'll have a couple dozen more after that.

And basically, they believe that the company owes them their severance. And the company does owe them their severance pay and their vacation pay. The law says that before a company can have layoffs, it's got to notify the workers, give them 60 days' notice or pay them for 60 days worth of work.

So, these workers are here saying, we're not leaving until we get our money and they're also saying that they're here to protect the equipment.

(BEGIN VIDEO CLIP)

MELVIN MACLIN, UNION WORKER: We have started to notice things like machines disappearing from the plant during the weekends under the cover of darkness. So, we began asking questions. And management assured us everything was fine.

MARK MEINSTER, NATIONAL UNION REP.: These people will be out on the street three weeks before Christmas with nothing. But what's happening here is workers have decided to stand up and say, no, enough is enough. You got that big bailout, you can make sure that we get the money that we're owed.

(END VIDEO CLIP)

ROESGEN: So, we have two points here. We've got the worker who says they're very afraid that perhaps this company is moving to another state and is taking the equipment out of here. In that case, they'd never get their jobs back.

On the other hand, there's this union feeling here that Bank of America is responsible. Bank of America is the creditor for this company. Republic Windows & Doors, this window factory here. But Bank of America says, hey, don't blame us. It's up to the company. It's the company's responsibility to pay their workers.

Now we have not seen, John, any company managers here at all, all weekend. And they have not participated in any kind of negotiations. They are still trying to force, apparently Bank of America, to fork over the money, saying well, you got $25 billion out of that federal bailout that all the banks got recently, and you ought to pay out of that. But again, John, the Bank of America is saying, no way, it's not our fault; the company has got to pay these workers.

ROBERTS: Tough times and a lot of finger-pointing going on there in Chicago. Susan Roesgen for us this morning.

Susan, thanks so much. CHETRY: This morning, NATO is getting some much-needed help in keeping pirates from capturing merchant ships and their valuable cargo. The European Union is sending six warships to the Horn of Africa. And this morning, we're tapping into CNN's global resources to bring you aboard one of those NATO warships on the front lines in the war against piracy.

CNN's Nic Robertson is live for us in Oman with more.

Hi, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hey, Kiran. Well, just if you look over my shoulder there, you will see the front line in this war against the pirates. Those merchant ships out to sea there are these very ships that the pirates are preying on.

To the right of those merchant ships, as you look at them, is the Gulf of Aden. That is the very important and strategic waterway that links the rest of the world to the Middle East and to all the oil supplies there. And it is out there that those NATO warships are trying to protect the merchant vessels.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Security, security, security. This is NATO warship Delta 560.

ROBERTSON (voice-over): Aboard a NATO warship, all eyes are on the horizon. Out of sight but not far away, pirates are searching for prey. We've been invited aboard an Italian destroyer-class warship. They've been patrolling these waters off the Somali coast for almost two months. And what the admiral of the five-ship NATO task force sees is worrying him.

ADM. GIOVANNI GUMIERO, CMDR., STANDING NATO MARITIME GROUP TWO: This threat of piracy has announced a lot in the past months.

ROBERTSON: A threat in sea lanes that carry one fifth of the world's oil supplies.

ROBERTSON (on camera): The coast of Somalia is about 150 miles, 240 kilometers that way. You swing back around, the coast of Yemen in that direction, that is the Gulf of Aden. And that is the route in and out of the Middle East with all these oil supplies. And that's what makes these shipping lanes so important and so valuable.

(voice-over): In the darkened combat control room, they wait for the next pirate sighting.

(on camera): How many pirates?

LT. ENRICO VIGNOLA, ITALIAN NAVY: Hundreds. Thousands.

ROBERTSON (voice-over): In their charts, I'm shown how merchant ships are told to stay away from the Somali coast. UNIDENTIFIED MALE: We recommend to merchant vessels and then it's up to the masters to follow our indication. We recommend to follow this corridor.

ROBERTSON: But even this is no longer enough to keep the ships safe. The men and women of this ship are due home for Christmas. They are telling their replacements to bring more helicopters. And expect they may well be back here soon.

(END VIDEOTAPE)

ROBERTSON: And what's worrying those NATO commanders out there is that they think that the pirates are getting more sophisticated. They're able to attack ships hundreds of miles out to sea. They say that means the pirates are using mother ships to support them. They're using tracking systems to position the ships that they want to target. They can be very selective to go into the most valuable ships out there. The biggest asset, these NATO commanders say they have, their helicopters that can get out, search the seas there for the pirates -- Kiran.

CHETRY: Wow. So, the pirates changing tactics as well because of this increased force and presence there. Nic Robertson for us in Oman, thank you so much. It's 35 minutes after the hour.

Welcome to the neighborhood.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We're glad to have them back in Dallas.

(END VIDEO CLIP)

CHETRY: George and Laura Bush are coming to town. But is everyone excited about their new neighbors?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There are going to be just as many people sticking their fingers out the window at him.

(END VIDEO CLIP)

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

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." Congressional lawmakers are trying to work out the final details of the financial rescue plan for Detroit's big three automakers. A vote on the bailout could come this week. And one thing is clear, any federal help will come with significant strings attached.

CNN's Kate Bolduan reports.

KATE BOLDUAN, CNN NATIONAL CORRESPONDENT: John, Kiran, after weeks of deadlock over Detroit, Democratic leaders are calling Congress back this week to try to hammer out a deal and offer ailing automakers a lifeline.

(BEGIN VIDEOTAPE)

BOLDUAN (voice-over): Auto industry supporters like Michigan Senator Carl Levin paint a dire picture of what will happen if Congress doesn't act quickly.

SEN. CARL LEVIN (D), MICHIGAN: Last month, we lost, what, 500,000 jobs in this country. So the economic impact, that would be terrible if any of the Big 3 go under. And there's that recognition, I think, that has grown across the country and here in Washington.

BOLDUAN: Friday, Democratic leaders reversed course and reluctantly agreed to fund the emergency loan using money that was reserved to help automakers produce more fuel-efficient vehicles, a plan the White House is pushing.

Sources tell CNN the loan could total between $15 billion and $17 billion to help the carmakers survive through March. However, lawmakers say it will come with a price -- restructuring and oversight.

SEN. CHRIS DODD (D), BANKING COMMITTEE CHAIRMAN: I'm not for giving these companies any money at all, short of real commitments to restructuring and reorganization and putting someone like a czar or a board with real power to make decisions.

BOLDUAN: Senate Banking Committee Chairman Chris Dodd says one condition should be a change in leadership.

DODD: If you are going to really restructure this, you've got to bring in a new team to do this, in my view.

UNIDENTIFIED SHOW HOST: So what you are saying about G.M. is the Rick Wagoner, the chairman, has to go?

DODD: I think he has to move on.

BOLDUAN: Despite growing consensus among Democratic members of Congress, Republicans with the power to block the bill remain divided.

Some like Alabama Senator Richard Shelby continued to oppose a bailout saying bankruptcy is the better option.

SEN. RICHARD SHELBY (R), ALABAMA: This has been 30 years in the making. This so-called bridge loan to nowhere will be the first down payment of many.

(END VIDEOTAPE)

BOLDUAN: A Democratic leader says the goal is to finalize the auto rescue package, to vote by the middle of the week, but it remains unclear if they have the votes and the support to pass it -- John, Kiran. ROBERTS: Kate Bolduan on Capitol Hill for us this morning. Kate, thanks so much. If you're just waking up there, there is a chill in the air. Temperatures taking a nose dive in some parts of the nation after New York sees snow over the weekend. CNN's Rob Marciano is standing by in the weather center.

Hey, Rob.

ROB MARCIANO, CNN METEOROLOGIST: If that doesn't get you into the spirit of the holiday season, I don't no what does. Temperatures in the tens and twenties, certainly cold enough for snow today. That's not going to happen, but there's a storm brewing in the Midwest. Will that bring snow to the northeast? All the details coming up. It's 41 minutes after the hour. The "Most News in the Morning" will be right back.

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ROBERTS: Well, if you're shipping up to Boston today, you better dress warmly because right now, it's clear and 22 degrees. Later on, it is going to be sunny and 27. The reason why it is so clear and those contrails from the jets are so prominent in the skies because it is really cold out there. Rob Marciano tracking extreme weather from Atlanta this morning.

Good morning to you, Rob.

(WEATHER REPORT)

ROBERTS: I mean, somebody certainly has declared winter. I was down in D.C. over the weekend as well. We got a little bit of snow down there. So --

MARCIANO: It feels good.

ROBERTS: Kids liking that. It looks like the season. Rob, thanks so much. We'll check back with you.

MARCIANO: OK.

CHETRY: Well, Washington was sparkling last night as well. Six entertainers received one of the nation's most prestigious awards, honoring their performing arts. Singer Barbra Streisand and George Jones, along with film star Morgan Freeman, choreographer Twila Tharp and musicians Roger Daltrey and Pete Townsend, all receiving the Kennedy Center Honors.

Before the show, Streisand played nice when she was greeted by President Bush at the White House for reception. She's of course not necessarily a fan, I guess you could say. She's publicly accused the president of stealing the 2000 election and also mishandling the war.

Well, speaking of President Bush, guess who's moving in. We're going to take you to a quiet exclusive neighborhood that will soon become home to President Bush and first lady. So what do the neighbors think? ROBERTS: What if your son suddenly vanished?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They were completely in disbelief.

(END VIDEO CLIP)

ROBERTS: Young men from major U.S. cities just up and disappeared. Their parents are stunned. Are they being recruited as terrorists? The FBI's disturbing new theory. You're watching the "Most News in the Morning."

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(BEGIN VIDEO CLIP)

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": President Bush and his lovely wife Laura have purchased a new home in Dallas, Texas, worth $2 million. See, this is where President Bush has outsmarted everybody. People underestimate this guy. Five months ago, he would have to have pay 10 million bucks for that house, but thanks to his economic plan, he's got it at a bargain. The man is a genius. He is a genius.

(END VIDEO CLIP)

CHETRY: There's Jay Leno on the president's New Dallas digs. A home nestled in one of the state's most exclusively enclave. In a neighborhood that was quiet until now. Here's CNN's Ed Lavandera.

ED LAVANDERA, CNN CORRESPONDENT: John and Kiran, welcome to Preston Hollow, the most exclusive zip code in all of Dallas. And in just a few months, George and Laura Bush will be calling this magnificent neighborhood, home.

(BEGIN VIDEOTAPE)

LAVANDERA (voice-over): It's the hottest tourist attraction in Dallas, an endless stream of gawkers peeking in on what's expected to be President Bush's new home.

UNIDENTIFIED FEMALE: I think it's great. We love Bush. We're glad to have him back in Dallas.

UNIDENTIFIED BOY: Any hot chocolate.

LAVANDERA: The current homeowners aren't talking but their kids are cashing in, selling hot chocolate, about $100 in profits so far. This is life when a president moves next door.

UNIDENTIFIED FEMALE: Well, thank you, sweetie.

LAVANDERA: Doug Fletcher lives across the street and says the Bush family will love the neighborhood. DOUG FLETCHER, NEIGHBOR: It's quiet, very quiet. You know, people tend to mind their own business and, you know, help out each other if they need it. So that's probably where he would like to live.

LAVANDERA: The First Family already has visions of a simpler life here.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: She's got this great idealic vision of me kind of with an apron.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: Yes, exactly, with the new barbecue tools.

G. BUSH: (INAUDIBLE), just flipping burgers.

LAVANDERA: The five bedroom, 85,000 square foot home is tucked away in a quiet cul-de-sac. The house sold for $3 million, but in this neighborhood that's considered low end. People here have estates.

The Bush's new neighbors include Mark Cuban and Ross Perot. This is a majestic cocoon of wealth. But real estate agent Doug Newby says the Bush's home is not gaudy.

DOUG NEWBY, REAL ESTATE AGENT: This is a very quiet, subtle house. It's been renovated in a contemporary fashion.

LAVANDERA: Lots of Republicans in Preston Hollow, too, which makes it safe for a president with dismal approval ratings.

NEWBY: The big rumor in town is where is Cindy Sheehan going to live?

LAVANDERA: But Skip Hollandsworth who has written several profiles of the Bush family for "Texas Monthly" magazine says isn't coming home to the same Dallas he left 14 years ago.

SKIP HOLLANDSWORTH, TEXAS MONTHLY: No matter where he goes, he is not going to be met with adoring crowds. There are going to be just as many people sticking their fingers out the window at him when the motorcade drives by, even in Dallas.

(END VIDEOTAPE)

LAVANDERA (on camera): As soon as the Bush Family gets settled into their new home, President Bush says he will begin writing his memoirs and working on his library which is just down the road, and Laura Bush says she looks forward to doing a lot of volunteer work.

John and Kiran?

ROBERTS: Hell no, they won't go.

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UNIDENTIFIED MALE: We're going stay here as long as it's going to take.

(END VIDEO CLIP)

ROBERTS: Sit-in at the window and door factory.

Plus, it was the other sensational murder trial where the husband defendant walked free.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The jury founds the defendant Clause Van Bulow --

(END VIDEO CLIP)

ROBERTS: Now 28 years later, the victim dies.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Nobody really knows what happened.

(END VIDEO CLIP)

ROBERTS: The case of the comatose socialite.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The people were so rich.

(END VIDEO CLIP)

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

(COMMERCIAL BREAK)

ROBERTS: Breaking news in the "Most News in the Morning." Police in Pakistan have arrested a man believed to be one of the master minds behind the deadly terrorist siege in Mumbai. A government official told the Associated Press, they believe the man was among at least a dozen arrested yesterday when police raided a camp run by a band militant group Lashkar-E-Taiba in Pakistani- controlled Kashmir.

More than a dozen men of Somali descent have vanished from Minnesota. Their families find passports missing, belongings pack and taken. And the FBI thinks that they have gone to Africa after being recruited by terrorists. Our Justice correspondent Kelli Arena is following this case for us.

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KELLI ARENA, CNN JUSTICE DEPARTMENT AND SUPREME COURT CORRESPONDENT (voice-over): Early November, Minneapolis, 17-year-old Berhan Hasan (ph) tells his family he's getting a ride home with a friend. He vanishes. ABDIRIZAK BIHI, MISSING TEEN'S UNCLE: We searched his room and we found out that his passport, his belongings and everything was gone.

ARENA: He's not the only one. More than a dozen young men of Somali descent, many U.S. citizens, have disappeared from Minneapolis over the last six months. And the FBI has a pretty good idea where they went.

E.K. WILSON, FBI AGENT: A number of young Somali men have traveled from throughout the United States to include Minneapolis to Somalia, potentially to fight.

ARENA: And not just any fight. Many believe these young men have gone to Somalia to fight alongside terrorists. Some even called home to tell their parents not to look for them.

OMAR JAMAL, SOMALI JUSTICE ADVOCACY CENTER: Most I talked to were completely shocked and dismayed as to what happened. They were completely in disbelief.

ARENA: The shock only magnified by what happened to one of them. A college student named Sheera Ahmed (ph). On October 29th, Ahmed blew himself up in an apparent suicide bombing in northern Somalia. Why? One answer, Somalia is the new rallying cry for Muslims worldwide. Like Iraq, Afghanistan and before that, Chechnya.

KARIN VON HIPPEL, SOMALIA EXPERT: If you go on to some these al Qaeda inspired web sites, Somalia is now listed as another place to go and fight the jihad.

ARENA: And there's a lot of concern about what could happen if they try to come home? Trained in urban warfare.

JAMAL: I don't see anything that will prevent from those kids to carry out suicide bombings right here.

ARENA: Officials say young men have also disappeared in Boston, Portland, Maine, and Columbus, Ohio. There's clearly recruiting going on and the FBI is investigating. For a community that came to America to free their families from war and fear, a terrible feeling that their children are still at risk. Even in the United States.

All those mothers in our community and all those dads in our community are feeling Deja vu again that they are not safe no matter where they go.

ARENA: Kelli Arena, CNN.

(END VIDEOTAPE)

CHETRY: We're coming up on about two minutes before the top of the hour. A look at the top stories this morning. Senate Banking Committee chair Chris Dodd implying that Congress' lifeline to the auto industry may not extend to the big three CEOs. Dodd says that GM's CEO Rick Wagoner's company is in the worst shape of all the Detroit automakers and that he should resign.

(BEGIN VIDEO CLIP)

DODD: If you're going to restructure and have a viable manufacturing sector in our country --

UNIDENTIFIED REPORTER: So what you're saying about GM is that Rick Wagoner, the chairman, has to go? I think he has to move on.

(END VIDEO CLIP)

CHETRY: Barack Obama, meanwhile, talking up infrastructure and education projects to kick start the economy, saying that he is looking for things to, quote, "get the most bang for the buck." But he warned Americans that the economy is still going to get worse before it gets better.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: When you think about the structural problems that we already had in the economy before the financial crisis, this is a big problem. And it's going to get worse.

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CHETRY: And in these lean economic times, a record number of people in Compton, California, are trading in guns for gifts. The program offers people gift cards for groceries and presents in exchange for getting weapons off the streets. Authorities say that groceries are the most popular item this year as people struggle to buy the basics.

And a new CNN poll just released says 40 percent of Americans are more stressed this holiday season because of the recession. Two- thirds of us are cutting back on buying presents. Americans are also spending less on movie tickets, restaurants, clothes and big ticket items like computers and appliances.