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American Morning
Obama on Auto and Housing Crisis; Dems Looking for Action from Obama on the Economy; First Vietnamese-American Wins a Seat in Congress; Obama Reveals Jobs Plan; Key Vacancies Left to Fill in Obama Cabinet
Aired December 08, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Over the weekend, President-elect Obama talking about all aspects of the economy including another possible stimulus package, the housing crisis and he gave Congress a thumbs up on the way it's handling the auto crisis. Elaine Quijano is live with the Obama transition team. She joins us from Chicago.
And Elaine, Obama says he wants automakers to start making some tough choices. Is he right along the lines of Chris Dodd actually calling out these CEOs.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: You know, not calling out by name, Kiran, but what the president-elect is mainly talking about is restructuring when he talks about these tough business choices. He says that's something that in his view the U.S. automaker should have done decades ago. But when it comes to this issue of top managers being unwilling and some people's opinion to make those tough business choices, well, that's who Barack Obama says needs to go.
(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 really raised the ire of then-defense secretary, Donald Rumsfeld, by saying that several hundred thousand U.S. troops would be needed for post-war Iraq -- Kiran.
CHETRY: Elaine Quijano for us in Chicago, thanks.
JOHN ROBERTS, CNN ANCHOR: Well, with two wars and a slew of problems here at home, Barack Obama is walking a tight rope until his inauguration 46 days from now. You know, how much action should the president-elect take when there's an administration still in office? But when it comes to the economy, a lot of Democrats are looking for action from the president-elect and they don't want it on January 21st. They want it now.
Jason Carroll is following the story for us. Good morning.
JASON CARROLL, CNN CORRESPONDENT: Good morning to you, John. I think they want him to get out in front of this a little bit more is what they're asking for. But some of his supporters say Barack Obama has proposed a stimulus package and put together his economic team. But some of his critics say in these troubled times he should be doing even more.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): When it comes to dealing with the housing crisis, the president-elect says the current administration is doing enough.
BARACK OBAMA (D), PRESIDENT-ELECT: My team has had some conversations with the administration about that. If it is not done during the transition, it will be done by me.
CARROLL: Some are questioning why he isn't doing more now.
REP. BARNEY FRANK (D), MASSACHUSETTS: He's going to have to be more assertive than he's been.
CARROLL: Especially since Obama says the country has not yet seen the depths of the economic crisis.
OBAMA: Things are going to get worse before they get better.
CARROLL: Some financial analysts argue more immediate action is needed, but action from the current president, the incoming one or both, Obama has said there can only be one president at a time. ROSS DOUTHAT, ATLANTIC.COM: Barack Obama doesn't want to be responsible for anything that goes wrong between now and the moment that he takes office.
CARROLL: Obama has assembled an economic team and says he'll jumpstart the economy by creating jobs through an ambitious infrastructure program.
FRANK: My problem is at a time of great crisis with mortgage foreclosures and all those, he says we only have one president at a time. I am afraid that overstates the number of presidents we have.
CARROLL: Ed Rollins is a long-time Republican strategist.
ED ROLLINS, REPUBLICAN STRATEGIST: In fairness to Barack Obama, he's off to a very, very fast start picking his team. I think what it really tells you though is he may end up having more trouble with Democrats in the Congress than he's going to have with Republicans.
CARROLL: Some Democrats say Obama has already taken more of a lead on dealing with the crisis than the president.
DONNA BRAZILE, DEMOCRATIC STRATEGIST: He is providing leadership at a time when some of the other people are missing in action. So I think it's important that President-elect Obama continue to focus on the transition and to really make sure that he has all of the right solutions or the right answers.
(END VIDEOTAPE)
CARROLL: Obama's critics say he could use his bully pulpit to push his economic agenda even more or push Congress to do what he thinks is best for the country.
ROBERTS: Again, though, it's that fine line between how much do you do as president-elect because the signals that you send are picked up by markets, other countries and things like that.
CARROLL: It can have a big impact.
ROBERTS: Good. Definitely.
Jason, good piece. Thanks.
CARROLL: Thank you.
CHETRY: Well, workers in a Chicago window factory are getting some high profile support from President-elect Obama. The company gave three days notice for layoffs. Union regulations require two months notice or two months pay. So the employees staged a peaceful sit-in saying they're just asking for what's theirs.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's no insurance for my wife. There's no money. There's nothing. I lose everything right now. UNIDENTIFIED MALE: I'm hoping to gain just what's owed to us.
UNIDENTIFIED MALE: We're going to stay here as long as it's going to take.
UNIDENTIFIED MALE: My fight now is for all of the other people that may not have faith, you know, that still have small children and medication that they need every day. You know, so that's what my fight is about.
(END VIDEO CLIP)
CHETRY: Union leaders are now meeting with the plant's major creditor, Bank of America, later today.
ROBERTS: Well, it's coming up now on six minutes after the hour. Time for your Monday political ticker. Will she or won't she?
The buzz around Washington and New York is that Caroline Kennedy might be appointed to take over Hillary Clinton's Senate seat. New York's governor says Kennedy did call him to ask a few questions about the job but did not directly express interest.
And we have warned you again and again and again. Don't post any photos on the Internet that you wouldn't want to see on the front page of your daily paper. Right? And here's the reason why.
Pictures of the man behind Barack Obama's speeches, Jon Favreau posted on Facebook showed Favreau dancing with a Hillary Clinton cutout and with his hand groping the cardboard senator's chest. The pictures were pulled within two hours, but the damage already done. So far, no comment from Favreau.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Welcome to my hanging.
(END VIDEO CLIP)
ROBERTS: President Bush having a little bit of fun at the hanging of his presidential portrait. The painting by artist Mark Carter was unveiled at a swanky gathering in Philadelphia and shows Mr. Bush in the White House Treaty Room.
CHETRY: It's amazing that he can do those. I mean, why are you smiling like that?
ROBERTS: It's one of those things that requires no comment whatsoever.
CHETRY: No. I mean the artistry involved in being able to paint like that is unbelievable.
ROBERTS: Certainly.
CHETRY: Welcome to my hanging.
Another history-making win, the election was delayed by a hurricane but America has its first Vietnamese American representative. Louisiana Republican Joseph Cao is with us live this morning.
Also looking for a job, well, President-elect Obama has five high profile positions still open. Help wanted. We'll break down the five Obama cabinet posts that still remain unfilled.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JOSEPH CAO (R), LOUISIANA CONGRESSMAN-ELECT: When I came over here when I was 8 years old, I had absolutely nothing, did not speak any English. So never in my life would I be -- would I thought I could be a future congressman in the United States.
UNIDENTIFIED MALE: What does that say about the American dream?
CAO: You know, the American dream I believe is well and alive.
(END VIDEO CLIP)
ROBERTS: Well, welcome back to the "Most Politics in the Morning." America's 111th Congress will have a first for this nation, a Vietnamese-American representative. Louisiana Republican Joseph Cao beat out indicted Democrat, William Jefferson, over the weekend. That election was delayed for a month because of Hurricane Gustav.
Congressman-elect Cao joins us this morning from his district, the second district in New Orleans. Correct me if I'm wrong but I believe you're the first Republican to represent the New Orleans area since 1980. William Jefferson, the indicted incumbent, lost to you over the weekend.
This is a district that's heavily Democratic. I think 66 percent, 60 percent African-American, and yet you won. Many people say, congressman, because of this dismal turnout among Democrats. Would you have been able to win this seat if that didn't happen?
JOSEPH CAO (R), LOUISIANA CONGRESSMAN-ELECT: I'm not sure about that, John, because as you know the people of the second district are ready for change and ready for a new direction. So if more Democrats were to come out, I'm not sure of the outcome.
ROBERTS: Right.
I mean, I think it was 11 percent of the second district counts itself as Republican. But now, you're the congressman from that area. You have vowed that rebuilding New Orleans is going to be a big part of your focus. What are you going to do that hasn't been done so far in putting New Orleans back together after Hurricane Katrina?
CAO: Well, I read in the local newspaper about two days ago that the levee protection has been delayed again. So my first order of business would be to work with other Louisiana congressmen and senators to push the issue of levee protection through as quickly as possible.
ROBERTS: And you're somebody who knows what it's like to lose a lot during Katrina because you're an attorney in New Orleans. You lost your business. You also lost your home, so you had some rebuilding to do yourself.
CAO: Yes. Actually, I have to rebuild my home twice in the last three years. We had eight feet of water from Katrina and then Gustav sent in another foot and a half. So we just finished rebuilding our house for the second time in three years. So I know of the struggles and the inconvenience and the hardships of rebuilding.
ROBERTS: Right. You know, as we said, this is a first for America. We got a lot of firsts this year. We've got our first African-American president-elect. We now have our first Vietnamese- American member of Congress. Do you think that this will be a new dawn for politics among Vietnamese-Americans? I know particularly down there in Louisiana, Vietnamese-Americans haven't really been that active in politics?
CAO: That is true and I hope that this will be a new day for Vietnamese-American politics. I hope that more of the young Vietnamese-Americans will become more interested in political action, in social issues and hopefully in the near future we can bring more Vietnamese-Americans to Congress.
ROBERTS: We should point out to our viewers that you escaped after the fall of Saigon in 1975. I believe you and one or two siblings were the first to come over. You left I think five members of your family there, your mother, your father. What's happened with the rest of your family? Have they all settled here in the United States or there are still some in Vietnam?
CAO: I only have one sister left in Vietnam. My oldest sister came to emigrate to the United States about two months ago. My father and mother and two of my sisters came in 1991 under the H.O. program. And the one of my younger sisters was killed right after the war.
ROBERTS: Oh, sorry to hear that.
CAO: So there's only one person left in Vietnam.
ROBERTS: Right.
And you have -- you said after you won actually that you want all Vietnamese-Americans to work toward the democratic development of Vietnam. Not a democrat country at this point. Does it bother you that the United States has full diplomatic relations with Vietnam under its current system of government?
CAO: No, it doesn't bother me because obviously there are many ways to achieve a peaceful democracy. So I'm pretty sure that in many ways, we will be able to communicate, to converse so that, you know, in the near future we can try to encourage Vietnam to allow people more freedom of religion, more civil rights and hopefully to turn the country into a democracy.
ROBERTS: All right. Well, Congressman Joseph Cao, the first Vietnamese-American elected to Congress, good to talk to you this morning. I guess we'll be seeing a lot more of you in Washington. Thanks for joining us.
CAO: Thank you, John.
CHETRY: Well, there's a lot of anticipation around the world about Barack Obama's presidency. But how does he win over the complicated Muslim world?
State Department correspondent Zain Verjee has today's "Memo to the President."
It's 16 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: There's somebody who's recession proof -- Madonna, right? I wish the rest of us were.
Gerri Willis is "Minding Your Business" right now, more on creating jobs.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.
CHETRY: If you can't be a backup dancer for Madonna, what else can you do, Gerri?
WILLIS: That's such a sad question. All right.
Let's talk a little bit about Barack Obama's plan to fix this economy. He is saying as of Saturday that he wants a new stimulus plan, possibly a very expensive stimulus plan. Here are the elements.
First of all, he wants to upgrade federal buildings. He says the federal government pays more in its energy bill than anybody else on the planet. He wants to repair the nation's crumbling roads and bridges. He wants to modernize schools.
He wants to increase broadband access. He says the nation ranks 15th in the world. In terms of broadband adoption, he says that's not good. And he wants to upgrade health care technology.
He's not saying how much this is going to cost, but some folks out there say it could cost as much as $1 trillion to achieve these goals and it's no wonder he's focused on this. We have some very bad numbers just Friday about the economy. The jobless rate higher. Some 533,000 people without jobs. Very big numbers, we now have 1.9 million folks total without jobs in this country for this year.
And the housing numbers, he said we haven't been aggressive enough in this country in terms of solving the housing problem. We found out Friday one in ten folks are delinquent or in foreclosure. An astonishing number. Foreclosures are up 76 percent. It's no wonder then the folks are saying they're going to spend less on the holidays.
Check this out. This is a new CNN poll released just today. Holiday gift spending, let's say 67 percent of us say we're going to spend less on holiday gifts. Sixty-five percent will spend less on leisure activities across the board here. You can see folks are pulling in their purse strings, and it makes all the sense in the world.
ROBERTS: Yes. You know, we talk about a green economy and we're talking about a green CNN bug.
CHETRY: That's right.
ROBERTS: Because the CNN logo here that's at the bottom of your screen -- don't adjust your set -- it has turned from its traditional red to green. That's because the second installment of CNN's award- winning series "Planet in Peril" debuts. It's on this Thursday 9:00 p.m. Eastern time. So we'll leave that little green CNN bug up for you between now and then just to remind you to watch "Planet in Peril." It's a great series.
CHETRY: Yes. A lot of great stories. CNN.com/planet if you want to get a little bit of a preview.
Meanwhile, help wanted. We're breaking down the five important cabinet posts President-elect Barack Obama still has not filled. Which spots are empty? Who's still in the running? Yes.
ROBERTS: Say that five times fast.
CHETRY: Exactly. There are some posts still open. Apply now.
Barack Obama on the hot seat over quitting smoking. Has he or hasn't he? Because his new residence doesn't have a smoking section.
It's 22 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE")
AMY POEHLER, PLAYING HILLARY CLINTON: But the question isn't is my new job better than being president or is it better than being a senator from New York? The question is, is my new job better than being governor of Alaska? And the answer is yes. Yes, it is.
(END VIDEO CLIP)
CHETRY: Just when Amy Poehler thinks she's out, Hillary Clinton pulls her back in. The comic pulling Tina Fey coming back to "Saturday Night Live" now that Hillary Clinton is on track to become the next secretary of state. But, you know, Barack Obama still has several important positions to fill. They all deal with critical issues, and there are still vacancies for energy secretary, labor secretary, chief technology officer, CIA director and director of national intelligence.
So we're going to go through a few of them right now with Democratic strategist Lisa Caputo, why the jobs are important and who may possibly be on the short list for them. Welcome, by the way. Good to see you.
LISA CAPUTO, DEMOCRATIC STRATEGIST: Nice to see you.
CHETRY: Let's start with energy secretary. He announced a few, new initiatives over the weekend including making federal buildings more energy efficient. All of this part of the infrastructure plan. Who would be a person to tap that could help see this through?
CAPUTO: Well, I think there are several great candidates. I think Carol Browner, who was Bill Clinton's EPA administrator and is working on Obama transition team is certainly a front-runner. Governor Schwarzenegger is somebody who in California has a great energy record. And then Jennifer Granholm is somebody, governor of Michigan. And I think that's important because the auto industry is going to play a key role here. And energy policy and economic policy have to go hand in hand.
And when we are talking about an auto industry bailout, it's important to consider alternative fuels. And I think that that's something that will be a centerpiece of President-elect Obama's energy policy. He's talked about the greening of America. He's also talked about green technology, and that's where I see the energy secretary and the chief technology officer working hand in hand around this green technology initiative. And then he announced over the weekend, the energy efficient buildings policy that he wanted to --
CHETRY: It's a shame that our country spends so much on energy.
CAPUTO: Right. Right. And he's hoping it will save billions of dollars.
CHETRY: Let's talk about the labor secretary position, because this also is going to be a critical pick right now given the recession and given the job losses that we've been seeing. Who are some of those who might be up for this job?
CAPUTO: Well, I think I would advice to look to the state of Michigan, obviously, because you can't look at a labor secretary without recognizing what's going on with the auto industry bailout. And that's why I look at Governor Granholm again for this position, but also former Congressman David Bonior, somebody who spent a long- time in the House of Representatives.
What is key here is that you want somebody who really knows how to navigate the labor unions. The labor unions delivered big time for the president-elect, and you're going to want somebody who can advocate for them but also navigate them at the same time. And remember you've got an economic team who I wouldn't say is over the top pro-union. So you're going to want somebody who can kind of navigate those waters in a time that's, you know, very critical and at the same time, you know, fight for, you know, better workplace standards and the like. So --
CHETRY: It's very interesting that you're bringing a couple of these things up. Michigan is hurting. There's no doubt.
CAPUTO: Absolutely.
CHETRY: Do we want to pluck a governor out of a state that's hurting and put them in the cabinet? I mean, that seems like it's something that has to be weighed as well?
CAPUTO: I think because Michigan is hurting to pull somebody out from that state is absolutely key because they know first-hand the challenges that Americans are facing. It's a microcosm of the larger picture that's going on across the country.
CHETRY: Right. I got you.
All right. Let's talk about two others. CIA director. These are two big national security posts that we haven't heard a buzz of being filled yet, and the director of national intelligence. Why have we not seen these picks or at least heard buzz about these picks when they're such key positions in his cabinet?
CAPUTO: Well, I think what the president-elect was doing was waiting to get his big three announced -- Gates, Clinton and Jones as national security director. And so, I think that now you're going to see him put forth two people to round out the team. And I think what's critical here is that he wants to send a message that there's going to be a change in interrogation policies from the Bush administration and I think that's an important point.
Also, I think he's going to look to somebody who knows how to deal in a post-9/11 world and you have somebody like former Indiana Congressman Roemer, who was on the 9/11 commission. Jane Harmon, who was on the House intelligence committee. So you're going to want to send a message here I think, and also have a team that's going to be able to work with this big three.
CHETRY: All right. The last one, this is your favorite. And this is a newly-created cabinet position, right? The chief technology officer.
Throughout the campaign, we talked about how Barack Obama harnessed technology and the Internet and other technologies and ways that we have not seen before. What would this chief technology officer be doing first of all?
CAPUTO: I think this is such an interesting job. As I said earlier, this person I think is going to work with the energy secretary around green technology certainly. But this, I believe, is pivotal to the way Barack Obama will govern.
This is the way he's going to keep that grassroots movement alive. Remember, this campaign revolutionized how campaigns are run. They mobilized a base unlike we've ever seen through the youth vote using the Internet. They raise more money over the Internet than ever before. And I think they're going to use the internet to build that grassroots movement and to govern.
Let's remember, he's posted jobs in his administration on the Internet. He is inviting people, his supporters to come in and to apply for jobs. And I just think this is a great way to make the White House the people's house...
CHETRY: Right.
CAPUTO: ... and to continue to build his grassroots political movement.
CHETRY: But also, if it could spread to key industries like medical -- the medical industries, the hospitals. I know it's easier said than done. But...
CAPUTO: Absolutely.
CHETRY: ... that would be wonderful.
CAPUTO: Absolutely.
CHETRY: So -- we'll keep an on eye this chief technology officer position and see exactly how that, how that goes as his administration moves along. It is fascinating for sure.
Lisa Caputo, always great to see you.
CAPUTO: Nice seeing you, too.
CHETRY: Thanks for being with us -- John.
ROBERTS: Thirty and a half minutes after the hour. And there's breaking news to tell you about right now.
Police in Pakistan have reportedly have arrested a suspected mastermind at the deadly terrorist siege in Mumbai. A government official tells the Associated Press at least a dozen people were arrested yesterday when police raided a camp run by a banned militant group in Pakistani-controlled Kashmir.
A protest by some 200 laid-off factory workers in Chicago is drawing national attention and support from the president-elect. Since Friday, the workers have held what they called a peaceful occupation of the Republic Windows & Doors plant.
The workers say they received just three days' notice that they were losing their jobs. Federal law requires 60 days' notice. They're vowing to stay put until they get severance and vacation pay.
And gasoline prices now close to 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. Prices have not been this low since March of 2004. She once called President Bush an alien sent here to destroy the earth. Last night, Barbra Streisand gave him a kiss. Don't believe it? Take a look again here in slow motion. Streisand was among last night's Kennedy Center honorees. The president hosted the ceremony for the final time. Perhaps that's why Streisand was so happy.
Well, presidents have been trying to solve the Middle East crisis for 60 years now. So how can President-elect Barack Obama convince the Muslim world that we are not at war with Islam.
State Department correspondent Zain Verjee has today's "Memo to the President."
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (voice over): Mr. President, 1.3 billion people in the Muslim world are watching.
IMAM FEISAL ABDUL RAUF, FOUNDER, CORDOBA INITIATIVE: The son of a Muslim. All -- the whole narrative of Obama put together is what gives us hope.
VERJEE: But experts say fulfilling hope in the Muslim world boils down to one issue, peace in the Mideast. Other presidents have teed up agreements between Palestinians and Israelis but have failed to close the deal.
EDWARD DJEREJIAN, DIR., BAKER INST. RICE UNIVERSITY: The Palestinian issue remains the core political issue in the Arab world and the larger Muslim world.
VERJEE: And the Mumbai terror attacks were just the latest reminder of the threat of extremists.
RAUF: The political problems are the ones that have fueled the cause of radicalism within, within the Muslim world.
VERJEE: A new president must keep up his guard and dare to reach out.
DJEREJIAN: The ones that have to be reached before they become radicalized because of unresolved conflicts in the region, no jobs, social injustice, corruption, bad education systems, so it's a huge task.
VERJEE: Not to Muslim by faith, but Muslim roots, even the name Barack Hussein Obama was a mixed blessing in the campaign.
UNIDENTIFIED FEMALE: He's an Arab.
SEN. JOHN MCCAIN (R), ARIZONA: No, ma'am. No, ma'am.
BARACK OBAMA (D), PRESIDENT-ELECT: And I got my middle name from somebody who obviously didn't think I'd ever run for president.
VERJEE: Analysts say the Muslim world will be looking for reassurance in your inaugural address, in your choice of where to travel as a new president. Victory has already sent a message.
DJEREJIAN: The photo of President Bush and President-elect Obama at the White House did volumes in the broader Middle East and throughout the world to show what America is.
(END VIDEOTAPE)
VERJEE: The main challenge for President-elect Obama will really be, John, how to conduct foreign policy amid a struggle of ideas within the Muslim world between the forces of moderation and the forces of extremism -- John.
ROBERTS: Definitely going to be a difficult line to walk.
Zain Verjee for us this morning. Zain, thanks so much.
Tomorrow's memo, rebuilding America from crumbling roads to a bridge collapse. Is there any money left to invest in America's infrastructure.
And we want to hear from you. Send us your "Memo to the President." Go to CNN.com/am and click on the iReport link, give the president-elect your concerns or, if you like, just a piece of your mind.
CHETRY: Well, Barack Obama says he won't be bringing his bad habit to the White House. Tom Brokaw really grilled him about the smoker-in-chief on "Meet the Press" yesterday. Here's what the president-elect had to say about it.
(BEGIN VIDEO CLIP)
TOM BROKAW, HOST, MEET THE PRESS: The White House is a no- smoking zone and when you were asked about this recently by Barbara Walters, I read it very carefully, you ducked. Have you stopped smoking?
OBAMA: You know, I have, but what I said was that, you know, there are times where I've fallen off the wagon. What can I do?
BROKAW: Wait a minute. Does that means you haven't stopped?
OBAMA: Well -- fair enough. What -- I would say is that I have done a terrific job, under the circumstances, of making myself much healthier and I think you will not see any violation of these rules in the White House.
(END VIDEO CLIP)
CHETRY: Now Barack Obama last month told men's magazine, "Men's Health" magazine that he occasionally bummed a cigarette on the grueling campaign trail but he cut himself some slack because he was running for president.
ROBERTS: Can I attest it? Brokaw is a zealot about this. He saw me in Normandy with a cigarette a few years ago. CHETRY: He gave you a lecture about it?
ROBERTS: And oh, he gave me hell. And every time I see him he says, have you stopped, Robert?
CHETRY: So is he an ex-smoker himself? Because those were always the ones that have the most zeal about quitting.
ROBERTS: Most people of his generation are.
CHETRY: Yes.
ROBERTS: So mine, too.
CHETRY: You're an ex-smoker.
ROBERTS: Yes. And you, too.
CHETRY: Yes. No more.
ROBERTS: No more. No mas.
CHETRY: So Barack Obama is listening to us this morning.
ROBERTS: Yes, there we go.
CHETRY: It's just better to give it up.
Well, look who's moving to the neighborhood. Details on the $3 million house that George and Laura Bush just bought. What are the new neighbors have to say about it?
(BEGIN VIDEOTAPE)
CHETRY (voice over): It was the other sensational murder trial where the husband defendant walked free.
UNIDENTIFIED FEMALE: The jury finds the defendant Claus von Bulow...
CHETRY: 28 years later.
DOMINICK DUNNE, WRITER: Nobody really knows what happened still.
CHETRY: What you probably don't know about the case of the comatose socialite.
You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: Sunny von Bulow, the beautiful heiress who spent the last 28 years in a coma has died. She was the subject of one of the most sensational criminal cases of the past century, the story that Hollywood couldn't avoid.
CNN's Susan Candiotti has more about the mystery that will live on.
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: John, Kiran, good morning. I spoke with two men with intimate recollections of this case. A writer and a lawyer who says to this day, people still ask him whether his client really did try to kill his wife.
(BEGIN VIDEOTAPE)
CANDIOTTI (voice over): She was blonde, beautiful and incredibly wealthy and sad to say, remembered most for how she spent the last 28 years of her life.
DUNNE: What they're going to remember is the coma.
CANDIOTTI (on camera): Right.
DUNNE: Because nobody really knows what happened, still.
CANDIOTTI (voice over): What happened to Martha "Sunny" von Bulow captured the international spotlight when her husband Claus was twice tried for trying to kill her by injecting her with insulin. Prosecutors claimed he was after her insurance policy.
In the '80s, the trials had everyone taking sides.
DUNNE: The people were so rich.
CANDIOTTI (on camera): That simple?
DUNNE: I think it's, I think it's that simple.
CANDIOTTI (voice over): Writer Dominick Dunne sided with prosecutors. Her children allowed him into the bedroom where she collapsed.
DUNNE: To see the Christmas gifts that had never been opened, and I remember sitting in there and thinking what happened, what happened, what happened here?
CANDIOTTI: In the first trial, Claus von Bulow was convicted.
UNIDENTIFIED FEMALE: The jury finds that the defendant Claus von Bulow guilty.
CANDIOTTI: He asked famed Harvard law professor Alan Dershowitz to lead an appeal. Von Bulow was tried again and acquitted.
To this day, Dershowitz is convinced the second verdict was just.
ALAN DERSHOWITZ, ATTORNEY: It's a sad ending to a sad tragedy. Unfortunately, it was a self-inflicted medical tragedy that two of her children tried to turn into a crime.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You're a very strange man.
JEREMY IRONS, ACTOR: You have no idea.
(END VIDEO CLIP)
CANDIOTTI: Jeremy Irons starred as von Bulow in a Hollywood movie "Reversal of Fortune." It was based on Dershowitz's book but he claims the film left a different impression.
DERSHOWITZ: There's no question that Jeremy Irons played him kind of guilty, if not of the crime, at least of life. And she, of course, in the movie comes off in an extremely sympathetic sense of being a victim.
(END VIDEOTAPE)
CANDIOTTI: Dominick Dunne says Sunny's children and grandchildren regularly visited her bedside over the years. As for Claus von Bulow, he lives in London and, according to Dershowitz, is very sad about his ex-wife's death. He said to live modestly writing theater and book reviews.
John, Kiran?
(BEGIN VIDEOTAPE)
CHETRY (voice over): Welcome to the neighborhood.
UNIDENTIFIED FEMALE: We're glad to have them back in Dallas.
CHETRY: George and Laura Bush are coming to town, but is everyone excited about their new neighbors?
SKIP HOLLINGSWORTH, TEXAS MONTHLY MAGAZINE: There are going to be just as many people sticking their fingers out the window at him.
CHETRY: You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ROBERTS: All right, it's not the White House, but it will do. The president and Mrs. Bush have a new place to call home after President-elect Barack Obama's inauguration on the 20th of January. And it's already attracting traffic and generating a little local pride.
CNN's Ed Lavandera talked to some of the president's new neighbors.
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. And 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 FEMALE: Get your hot chocolate.
LAVANDERA: The current homeowners aren't talking but they're 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 as they need it. So I think that's probably where he'd 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 idyllic vision of me kind of with a little apron.
LAURA BUSH, FIRS LADY: Yes, exactly. With a new barbecue tools.
BUSH: Says "Barney's dad" on it, you know?
(LAUGHTER)
BUSH: Flipping burgers.
LAVANDERA: The five-bedroom, 8500 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.
HOLLINGSWORTH: The big rumor in town is where is Cindy Sheehan going to live?
LAVANDERA: But Skip Hollingsworth who's written several profiles of the Bush family for "Texas Monthly" magazine says Bush isn't coming hope to the same Dallas he left 14 years ago.
HOLLINGSWORTH: 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: 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?
CHETRY: Ed Lavandera for us, thanks.
Well, talk about the great get. He's the little boy who interviewed Caroline Kennedy and as if that wasn't enough, he also interviewed Joe Biden, but now he wants the top dog. He's a kid on a quest to interview Barack Obama. And he's with us live in just a few minutes.
It's 47 1/2 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Looks like our very own meteorologist Rob Marciano is bringing sexy back. In "People" magazine's "Sexiest Men Alive" issue they've listed one honorable mention for every letter of the alphabet. So we fast forward to W. W is for weatherman, Rob Marciano, the CNN weather man. Get in the middle of all the big storms.
There's his picture. Don't look so thrilled.
Congratulations, Rob We love it.
ROB MARCIANO, CNN METEOROLOGIST: Thank you. It's -- it's a lasting legacy and the Marciano brood, it's a proud day for sure.
CHETRY: Exactly.
MARCIANO: Yes.
CHETRY: And hold on, we're not done yet, because just in case you missed this one, "V Man" also did a little cover, little spread.
MARCIANO: Oh come on.
CHETRY: Can we some of those? I love this one. Love the hairdo there.
MARCIANO: Yes, the do and the hood.
CHETRY: And there's more. And there's more.
MARCIANO: Uh-huh.
CHETRY: There's one right there. I love the scarf.
MARCIANO: That night was cold, yes.
CHETRY: And I love this. The map is in color but you're in black and white, adding to the mystery.
MARCIANO: You'll notice the CNN weather map behind. OK.
CHETRY: I love it. But you know what, I'm apparently surrounded by sexy men, because not only did Rob get this honor, back in 2000, "People" magazine had sexiest newsman, and guess who won the top honors?
There we go. Mr. John Roberts as well. I feel left out of this equation. Am I -- not sexy enough to be on this show?
ROBERTS: You don't even need to be in a magazine. We all just know it. It's intrinsic.
MARCIANO: Yes.
ROBERTS: It's intrinsic.
MARCIANO: And...
CHETRY: I was fishing for a compliment there.
How about it, Rob?
MARCIANO: You're gorgeous, you're sexy all over.
CHETRY: Yes, yes, yes, yes.
MARCIANO: And you know, don't take this the wrong way, but it seems from that photo spread, John's picture is bigger than my picture.
(LAUGHTER)
MARCIANO: All right. Here...
ROBERTS: By the way, certainly bigger than your hair, that's for sure.
MARCIANO: Looking great. And thank to my mom's quilting group for a lot -- making that lobbying effort to get me in there.
(WEATHER REPORT)
MARCIANO: Good to be back from vacation. I thought being away from nine days maybe have buried that little piece of publicity, but thanks for putting it out, guys.
CHETRY: No, we were waiting every single day.
MARCIANO: I'm sure you were.
CHETRY: We were waiting. Poor, Reynolds.
(LAUGHTER)
CHETRY: Just teasing. All right, Rob, thanks.
MARCIANO: All right. See you guys.
(BEGIN VIDEOTAPE)
ROBERTS (voice over): The jobless door and window factory workers who refuse to budge.
UNIDENTIFIED MALE: I am hoping to gain just what is owed to us.
ROBERTS: Pay or they stay.
Plus a dangerous new pirate threat. Now the worry is where they are.
UNIDENTIFIED MALE: That is the route in and out of the Middle East with all its oil supplies and that's what makes these shipping lanes so important.
ROBERTS: Pirates in the oil lanes.
UNIDENTIFIED MALE: How many pirates?
UNIDENTIFIED MALE: Hundreds, thousands.
ROBERTS: You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ROBERTS: This morning a brand new and troubling report that shows the war against the Taliban in Afghanistan is going badly. According to the International Council on Security and Development, the Taliban had a presence in 54 percent of Afghanistan last year.
That's a permanent presence. That report now says the Taliban's footprint has spread to 72 percent of the country.
Joining me now from London is Norine McDonald. She is the president and the lead field researcher for the International Council on Security and Development.
Just want to talk to you a little bit more about this, Miss McDonald. You say in the study that, quote, "the Taliban's political military and economic strategies are now more successful than the west in Afghanistan."
Why are they succeeding?
NORINE MCDONALD, INTL. COUNCIL ON SECURITY AND DEVELOPMENT: Well, as you mentioned, what we've seen in the last year is this dramatic change from a 54 percent of Taliban permanent presence to a 72 percent Taliban permanent presence and they're closing in on Kabul.
And in our report, what we've analyzed that, in fact, their grassroots strategies are part of the key to their success. They work at a village to village, district to district level. And that's been one of the failings of the international communities' efforts in Afghanistan, and we've recommended a really dramatic change in our approach to learn from the Taliban excesses and try and turn around this dramatic towards Kabul.
ROBERTS: So you say that it's been a failure in the west and NATO, the U.S. military's approach. What has the U.S. military and NATO been doing wrong?
MCDONALD: Well, to be clear it's not a failure of the military who are on the ground. It's a question of what's been going on up at the political level. We've recommended for sometime now a doubling of troops in Afghanistan, the non-fighting NATO troops join the fight in the south.
But what the military needs is the proper political development, an aid support behind their effort. So what we've said is that we have to start looking at things like employment and food aid as security instruments, alongside traditional security instruments, like military intelligence, but we've got to give them the same financial and political support that we must necessarily continue to give to the military actors.
ROBERTS: Now the U.S. military, Miss McDonald, does agree with you that there needs to be more than a military solution. And General David (INAUDIBLE) has long said that there is no military solution to Afghanistan. There needs to be other elements to it as well.
But they disagree with your report. We've got a statement from Colonel Greg Julian from U.S. forces in Afghanistan. He's a public affairs officer.
He said, quote, "We don't agree with the assessment that the Taliban have a permanent presence in 72 percent of Afghanistan. A few spectacular attacks have created the perception of increased insurgent capability and overall insecurity as well."
Afghan and British officials say they don't agree with the methodology used in your report. What do you say to these -- those disagreements?
MCDONALD: Well, the methodology is quite clear. What we've done is we've tracked on a daily basis since last year every publicly reported attack that has been attributed by a third party to the Taliban and then we've compared that to what the Afghans are telling us on the ground, where they believe the Taliban presence is.
And it would be fair to say that from a political and military point of view, nobody is moving outside of Kabul city. Three of the four doorways to Kabul City are now closed. They're compromised.
And almost every single actor in the international and military community is either flying around Afghanistan or if they're traveling on the roads they're traveling in armed vehicles -- armored vehicles with armed escorts.
So the facts on the ground really are telling a different story. But a lot of this, I think, is coming from a political context where at the political level there is an acknowledgment of the dramatic circumstances, the dramatic change in circumstances in Afghanistan.
And as I've said, we're not putting this at the doorstep of the military at all. It's a question of our overall security architecture in Afghanistan.
ROBERTS: So what's behind all this? Is it because the United States? Because this administration took its eye off the ball in Afghanistan and focused, instead, on Iraq?
MCDONALD: Well, in this case, you can't just blame the United States, because NATO forces, NATO countries, NATO at the political level, unanimously committed to go into Afghanistan to try and build a democracy and support the government there, but there are only a few NATO countries who were actually fighting in Afghanistan or contributing in any way to a resolution to this situation.
We also point out that we don't see any other regional actors there. We don't see other Muslim countries there. So that's what I mean when we're talking about a wholesale change of our security architecture there. It's not correct to say that the problem was created by the United States and it's not correct to say that the problem will be solved by a new U.S. administration.
ROBERTS: No question it's an eye-opening report.
Norine McDonald, from the International Council on Security and Development, thanks for joining us this morning. Good to see you.
MCDONALD: Thank you.
