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Investigators Look into Plane Fire; Toyota Announces First Operating Loss; Obama Planning Stimulus Package; Church Attendance Grows as Economy Sinks

Aired December 22, 2008 - 13:00   ET

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

(BEGIN VIDEOTAPE)
BETTY NGUYEN, HOST (voice-over): Still dreaming of a white Christmas? Hope you asked Santa for a shovel, some snow tires, maybe a generator? Or, you could just fly to Miami, if you can get a flight.

It isn't just Detroit. Japanese car makers are in a ditch, too. Toyota says it's in the red, and that is uncharted territory.

ARWA DAMON, CNN CORRESPONDENT: What is it you said you want to be?

UNIDENTIFIED MALE: A doctor.

DAMON: A doctor. Why do you want to be a doctor?

UNIDENTIFIED MALE: (UNINTELLIGIBLE) So I can help.

DAMON: So you can help?

NGUYEN: A little boy with a big future. That's a lot more than anyone expected when Youssif was set on fire in Baghdad two years ago. Today he's in first grade and doesn't look back.

(END VIDEOTAPE)

NGUYEN: Hello everybody. I'm Betty Nguyen, live from CNN world headquarters right here in Atlanta. And you are in the CNN NEWSROOM. So let's get right to it.

From Portland, Maine, to Portland, Oregon, on this first full day of winter, check it out. Some big storms are spreading a lot of misery across much of the country. Snow, ice and bone-chilling temperatures are making for some dangerous travel conditions. And there are delays, as well as cancellations, at some of the nation's biggest airports. And deadly pileups on ice-coated highways.

In Michigan, around 100 vehicles were involved in a series of pileups on Interstate 94. And it is so cold -- listen to this -- so cold in Boston that public schools are closed.

Our Chad Myers is keeping track of what is happening outside right now.

What's happening is a lot of people are freezing, Chad. Any chance they're going to get a little thaw in this?

(WEATHER REPORT)

CHAD MYERS, CNN METEOROLOGIST: But look at this. This is KOMO, our affiliate there out in Seattle. The roof of that building wasn't strong enough to hold up the snow that was on top of it. You would think that they would know better, because that building makes sheds. You think they could probably make some stronger roofs on their sheds.

NGUYEN: Ironic, isn't it? Well, you know, just a sign of the season, I guess.

MYERS: Exactly. Careful out there.

NGUYEN: Thanks, Chad. No doubt.

OK. Well, let's talk about this. You know, that wreckage still sits where it did Saturday night off the side of a runway at Denver International Airport. The Continental jet burst into flames sometime during an aborted takeoff. As NTSB teams continue to work at the scene, passengers, they are getting their heads around exactly what happened and how they actually survived it.

(BEGIN VIDEO CLIP)

JEB TILLY, PASSENGER: It was incredibly violent. It was a big left-hand turn. And we sort of started bouncing a lot, as if we were in a roller coaster, you know, just getting tossed around in your seat. And then there was kind of a lot of silence all of a sudden. And we took a big drop. And when we hit the ground, that's when the thing really got kind of screwy. It -- you know, I think the plane cracked in half at that point. And all the overhead baggage compartments broke open and fell down and stuff.

(END VIDEO CLIP)

NGUYEN: Goodness. All right. Let's get the latest now from our Susan Roesgen on the ground in Denver.

Susan, are investigators any closer to finding out exactly what went wrong?

SUSAN ROESGEN, CNN CORRESPONDENT: Well, they probably will be later this afternoon, Betty, when hey really get to analyze the two black boxes, the voice recorder and the data recorder. They recovered both of those. They were intact. They're actually going to analyze them in Washington, D.C., later this afternoon.

At the same time, they are out right now at the wreckage. Five of the six runways here are open. The sixth, where that plane had the trouble, is closed. The investigators are actually there, going through the wreckage, looking for things, looking for clues to what happened, and also, trying to make sure that they preserve what they call the perishable evidence.

(BEGIN VIDEO CLIP) ROBERT SUMWALT, NTSB: Well, for example, skid marks on the runway. People's memories, people's memories fade and change with time. Anything that can go away or change with the passage of time, we want to go out and document the aircraft conditions. The configuration that things are right now before weather moves in or something like that. So anything that could change with the passage of time.

(END VIDEO CLIP)

ROESGEN: The investigators are also talking to the pilot and the copilot, the flight attendants and the passengers. You just heard from one about what a scary situation it was on that plane.

Other passengers say that at least one person was screaming that the plane was going to blow up. There was the fire that they could see off the right side of the plane. There was a mad scramble to get out. Some of the luggage bins overheard were actually melting from the heat, melting onto the passenger seats. So there was a really difficult time getting off that plane.

The investigators want to find out if the flight attendants did everything that they should have done and how this chaotic evacuation actually worked, Betty, in that everybody did get off of that plane.

Thirty-eight people were injured, two of them critically, two women. And we've been told that they are still in the hospital, these two women. One now in fair condition. And the other in serious condition -- Betty.

NGUYEN: All right. Thirty-eight injured but no fatalities. Susan Roesgen, joining us live. Thank you for that, Susan.

All right. So faster, wider, deeper. The worldwide plunge in auto sales. That's what we're talking about, as seen by the president of Toyota. Detroit, it turns out, hasn't cornered the market on economic misery. Toyota says it will end Fiscal 2008 with its first ever loss, as much as $1.7 billion. When you talk about that loss, that is nine cents in two weeks.

Another big price break at the gas pump, as tracked by the Lindbergh survey. Lindbergh says regular unleaded now averages $1.66 a gallon. That is a nearly five-year low.

And don't ask, don't tell. The Bush administration never asked the bailed-out banks exactly how they would spend their billions of taxpayer dollars, and the banks, well, are not telling. The Associated Press did ask, though, 21 bailout beneficiaries. None gave specifics.

Let's talk about the woes of Toyota. The auto company says that it seemed on top of the world, but right now can't outrun this global meltdown.

CNN's Kyung Lah has more from Tokyo.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): Adding to the season of stormy economic news, Toyota Motor Corporation announced for the first time in its modern history, it will post an operating loss. Slashing its forecast dramatically for the year, Toyota says it will operate at $1.7 billion in the red, stunning analysts around the globe.

KOJI ENDO, AUTO ANALYSIS, CREDIT SUISSE: First time in history. The worst ever.

LAH: What a difference a year makes. Last year, Toyota posted a record operating profit. This year, Japan's largest car maker says profits hit the skids amid weakening global demand and a crippling rise in the yen. And if Toyota cannot do well, economists warn, smaller and weaker economies around the world will fare even worse.

ENDO: Toyota is supposed to be the winner. Even the winner has to lose money. Everybody else in this market has to struggle. Not just this year but for the next few years.

LAH: The bad news extended to Japan's overall economy. For the second month in a row, Japan announced a trade deficit. Last month, posting a decline of 26 percent in global exports and a 33 percent decline in U.S. exports, as consumers around the world shied away from electronics and cars, the very engine of Japan's economy.

(on camera) So if that engine is sputtering, there's expected to be more trouble ahead. Analysts say nothing can run smoothly until the global consumer feels like buying made-in-Japan products again.

Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

NGUYEN: And we are going to talk more about the industry's uphill battle with the executive director or editor, I should say, of "Car and Driver" magazine. Mark Gillies is going to join me in the NEWSROOM at the bottom of the hour.

The bigger the problem, the bigger the solution. And with economic problems getting bigger by the week, it seems, solutions being planned by the president-elect are getting bigger, too.

CNN's Ed Henry is following the process.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT (voice-over): Home to Hawaii for President-elect Barack Obama and his family. Twelve days of relaxation to ring in the new year. But there's no rest for his economic team, which has been ordered to think bolder after the president-elect received dire private forecasts suggesting the nation could lose 4 million jobs next year without drastic action.

SEN. JOE BIDEN (D-DE), VICE PRESIDENT-ELECT: What have we learned is the economy is in much worse shape than we thought it was in. It is -- this is a spiraling effect. There is no solution, other than keeping the economy from absolutely tanking.

HENRY: So transition aides are now huddling with Democratic leaders in Congress to craft a stimulus plan of up to $775 billion to try and jolt the economy.

Republicans are wary about the price tag, on top of Friday's rescue of automakers, the latest in a string of taxpayer bailouts.

REP. ERIC CANTOR (R-VA), MINORITY WHIP: What I'm concerned about when we hear these staggering numbers, close to a trillion dollars right now in spending, where is that going to take us over the long run?

HENRY: Team Obama argues the short-term spending will reap dividends long term. The emerging plan includes billions for backlogged transportation projects, to beef up construction jobs and improve the nation's infrastructure; modernizing crumbling public schools to create jobs while also investing in education; and weatherizing one million homes, money to upgrade furnaces, fix windows and seal leaky air ducts, to boost the industry while also cutting energy usage.

REP. BARNEY FRANK (D), MASSACHUSETTS: If we don't do this, it will cost us even more. This economy is now in the worst shape since the Great Depression. And if we do not respond in a very firm way, it gets worse and worse.

(END VIDEOTAPE)

NGUYEN: And Ed joins me now from Honolulu.

Tough gig out there for you, Ed, as we freeze back here. Let me ask you this. Tell us a little bit more about what Obama is doing as he works on this vacation.

HENRY: Well, Betty, I'm sorry to hear that you're freezing right now out east.

NGUYEN: No, you're not.

HENRY: But it's pretty nice on the beach right now, I'll admit.

NGUYEN: Thanks for rubbing it in.

HENRY: But it is a working vacation. I decided to take one for the team.

NGUYEN: Sure.

HENRY: And wanted to be out here. And in all seriousness, the president-elect is getting daily intelligence briefings. So he's staying on top of the national security situation, as you saw in the piece. He's also trying to stay on top of the financial crisis. But yes, there's some fun, as well. Yesterday he was playing golf. We got some pictures of that. And he started getting a little frustrated with the media continuing to sort of follow him around the golf course.

And at one point, he sort of jokingly said, "Why don't you go into the clubhouse and get some beer?" And one of the reporters said, "Well, you pick up the tab." And the president-elect said he would. The reporters who were there, though, did not take him up on it. They did not drink any beer on the job. We want to be clear. And they didn't charge it to the president-elect, either, whether it was soda or anything else. Obviously, we don't want any charges of favoritism out there.

But I think it just shows that, in all seriousness, he's trying to recharge his batteries now. This is really his last chance to get a vacation after what has been, you know, a very grueling campaign, obviously, to win the White House. And he's got all these monumental challenges ahead, Betty.

NGUYEN: Yes, and not only that, you know, these challenges ahead, this transition team, but also this. Want to know -- any idea when we're going to know what Obama actually knows about his team's contact with Illinois's governor?

HENRY: That's right. Two transition aides now say that we can expect that on Tuesday, tomorrow. We'll finally get this internal investigation from the Obama team about their contacts with Rod Blagojevich, Illinois's governor, his staff and everything, about the Senate seat, the controversy and all the allegations.

You see we have some new poll numbers out this hour from CNN, where we asked people what they think about the Obama team's contacts. And basically, 12 percent say that they think there was something illegal here. Thirty-six percent say there was something unethical. Forty-three percent say nothing wrong. So you see, a clear majority in this CNN/Opinion Research Corporation poll believe that the Obama team did nothing wrong, you know, that a large number of people believe that there was really nothing wrong.

And that's why it's probably in the interests, politically, of the Obama team to get this out as soon as they can. They say they've been waiting because a prosecutor urged them not to jump out too quickly. But they've been facing some pressure to tell the whole story.

But we need to be clear, as well, that this is not going to be the final word on it. This is an international investigation from the Obama team. So it should be no surprise that tomorrow, it's very likely for this report to say, yes, there was some contact between the Obama and Blagojevich's team but nothing illegal, nothing improper.

But we still have to see down the road what the prosecutor, Patrick Fitzgerald, says. That's going to be more important than an international investigation, Betty.

NGUYEN: Gotcha on that. And we'll see if you work on that tan while you're out there. Do us a favor, work on that, would you?

HENRY: Yes, I mean, I want to be rude, but can we wrap this up? I've got -- I've got some things to do.

NGUYEN: You've got some fun to do. All right, thank you so much for that.

HENRY: Thanks, Betty.

NGUYEN: So one man has no doubt that the next administration is up to the economic challenges.

(BEGIN VIDEO CLIP)

BIDEN: The truth of the matter is this new administration, our administration, has a gigantic task and responsibility but also a real opportunity. And I think Barack Obama, although the expectations at home and abroad are very high, I think he has the capacity to meet the expectations of getting this economy back on track and reestablishing our place in the world.

(END VIDEO CLIP)

NGUYEN: Vice President-elect Joe Biden speaking to CNN's Larry King. And you can see the full interview on "LARRY KING LIVE." That's 9 p.m. Eastern, 6 Pacific, right here on CNN.

And Barney Frank to the list of Obama supporters who don't like his choice of invocation speaker at next month's swearing in. The outspoken and openly gay Democratic lawmaker talked about the Reverend Rick Warren on CNN's "LATE EDITION" with Wolf Blitzer. Take a listen.

(BEGIN VIDEO CLIP)

FRANK: Mr. Warren compared same-sex couples to incest. I found that deeply offensive and unfair. And the president-elect was wrong when he said, "Well, he invited me to speak. I'm just inviting him to speak." If he was inviting Reverend Warren to participate in a forum and make a speech, that would be a good thing. We should have these. But being singled out to give the prayer at the inauguration is a high honor.

(END VIDEO CLIP)

NGUYEN: The mega church pastor and best-selling author told his congregation that opposing same-sex marriage doesn't make him a bigot.

(BEGIN VIDEO CLIP)

REV. RICK WARREN, PASTOR, SADDLEBACK CHURCH: Now, this one will shock you. I happen to love Democrats and Republicans. And, for the media's purpose, I happen to love gays and straights.

(END VIDEO CLIP)

NGUYEN: And for his part, the president-elect says the nation needs to, quote, "come together" even on the most divisive issues.

Well, tough times all around for just about everyone. So where do you turn for some peace of mind? What about church? That's what a lot of people are doing. And we're going to find out why they are looking to the pulpit for answers.

Also, his plight captured the world's attention. An Iraqi boy doused with gasoline and set afire. Now, two years later, Youssif is making remarkable progress. We are going to get an update.

(COMMERCIAL BREAK)

(MUSIC: "Come On, Feel the Noise")

NGUYEN: Feel the noise. OK, anyway, we'll talk about this important health news for head-bangers. Really get into this song. Well, there might come a day, folks, when you have to face some serious music.

(COMMERCIAL BREAK)

NGUYEN: Well, foreclosures are climbing, and so is the nation's unemployment. Times like these can test your faith. So when the economy goes to hell in a hand basket, do Americans seek comfort in church?

CNN's Susan Candiotti takes a look.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): When the economy is sagging, so is the collection basket. But pews are packed at evangelical churches and membership is growing despite an economy on the brink. Preachers say it's easy to explain.

REV. A.R. BERNARD, CHRISTIAN CULTURAL CENTER: We focus on encouraging them, trusting, having faith in spite of the circumstances.

UNIDENTIFIED FEMALE: I promise to meet all of your needs according to my riches and glory. Not the economy.

CANDIOTTI: At Brooklyn's megawatt Christian Cultural Center, attendance is up about 20 percent, and Rev. A.R. Bernard's message tailored to tough times.

BERNARD: You lose your job, you lose your home, you lose your car because it's repossessed, but don't lose your faith.

CANDIOTTI (on camera): So you're saying trust in God?

BERNARD: As long as you have your faith, as long as you have hope, you can get another house. You can get another car.

CANDIOTTI (voice-over): At the Life Christian Church and others, evangelical growth also may be a matter of style, more contemporary than main line Protestant churches.

REV. TERRY SMITH, LIFE CHRISTIAN CHURCH: It's about a denomination. It's about a building. It's about history and tradition. All those things are good and fine. But that's not what meets people's needs.

CANDIOTTI: According to a Texas State University study, during every recession cycle between 1968 and 2004, Evangelicals have mushroomed.

PROF. DAVID BECKWORTH, TEXAS STATE UNIVERSITY: If I'm someone who's lost my job, and I'm looking to feed my family and I have a choice between a church that sells me that message or one that's more intellectual, more abstract about God, I'm going to go for the one with certainty.

CANDIOTTI: Debra Mills lost her accounting job this week after 34 years. An evangelical, her trust is in God.

DEBRA MILLS, EVANGELICAL: You never put your trust in man. You always put your trust in God, even though God, per se, is not going to literally put a meal on your table. But God will provide.

CANDIOTTI: And with no economic salvation apparent in the near future, for many, spiritual salvation may be the only path to better times.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

NGUYEN: And speaking of better times, the world watched as surgeons rebuilt little Youssif's face. A year later, a progress report on the Iraqi boy and his new lease on life.

(COMMERCIAL BREAK)

NGUYEN: The U.S. military is boosting its forces in Afghanistan. An additional 30,000 troops could be sent there next year.

Afghan President Hamid Karzai is pressing for answers about what kind of operations the new troops would be performing. Now, military leaders say the troops should be in Afghanistan next summer to help reverse the deteriorating situation there in dealing with security.

Karzai's office said that U.S. military leaders are telling him that they'll be deployed in dangerous areas along the Pakistan border.

They also have new details about what is happening to the Iraqi journalist who threw his shoes at President Bush. Remember that video?

Well, the brother of Muntadhar al-Zaidi says his brother was tortured in jail and forced to write an apology letter to President Bush. Thousands of Iraqis and Arabs around the world have rallied on al-Zaidi's behalf, demanding his release. His trial is scheduled to begin at the end of the month.

Al-Zaidi is charged with assaulting a foreign leader. And, if convicted, he faces up to two years in prison.

Well, two years ago, the world cringed in horror at news that an insurgent set a little Iraqi boy on fire. And since then, many of you have closely followed Youssif's recovery.

CNN's Arwa Damon has a progress report.

(BEGIN VIDEOTAPE)

DAMON (voice-over): Youssif loves going to school, and for good reason. The little guy already has a very serious goal in mind.

(on camera) Do you remember when we were talking and I asked you what you want to be when you grow up? What did you say you want to be?

UNIDENTIFIED MALE: A doctor?

DAMON: A doctor. Why do you want to be a doctor?

UNIDENTIFIED MALE: So I can help.

DAMON: So you can help?

(voice-over) Nearly two years ago, masked men in Baghdad doused Youssif with gasoline and set him on fire. He was just 4 years old at the time. Slowly, he's putting that behind him and inspiring everyone in the process.

MARIO DALEY, YOUSSIF'S TEACHER: I worked with children of all levels of ability. And for Youssif, with what he's gone through, his motivation, his -- what he produces is fantastic.

DAMON: He's loving the first grade, making friends like Brandon. Youssif has gone through more than a dozen surgeries.

UNIDENTIFIED MALE: There's a lot of things that we've moved forward and done.

DAMON: And there is still a lot more to be done. The bulge in Youssif's cheek is a tissue expander, meant to stretch out his healthy skin so Dr. Peter Grossman can use it to replace the scar tissue.

UNIDENTIFIED MALE: The problem that we have with Youssif is that every operation we do tends to heal well after surgery but then about a month after he starts forming these really thick scars. And it's probably best at this time to let him and his body relax, let scars mature over a period of a year or two years.

DAMON: It hasn't just been a physical transformation.

UNIDENTIFIED MALE: He talks to people. He plays. He does everything. Before... DAMON (on camera): It was very different?

UNIDENTIFIED MALE: He wouldn't talk to anybody.

DAMON (voice-over): Now Youssif is definitely doing most of the talking.

UNIDENTIFIED MALE: Can you do one for me?

DAMON: Yes. Here, what do you want me to do for you?

(voice-over) And I'll do anything for this kid who's touched all of us.

Keely Quinn of the Children's Burn Foundation stops by for some extra reading lessons.

(on camera) What's the biggest change that you've seen in him in the last year?

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

KEELY QUINN, CHILDREN'S BURN FOUNDATION: Starting to read and learning English. I think the change in confidence and his ability to handle himself in special situations.

DAMON (voice-over): And from the looks of it, that ability is only going to be getting better.

Arwa Damon, CNN, Los Angeles.

(END VIDEOTAPE)

NGUYEN: What a story. OK. You can read so much more about Youssif online at CNN.com/Impact. You can also track his progress and learn about his new wish for his future. We do wish him the very best.

Well, the wheels, they haven't fallen off just yet, but they are wobbly. Toyota bracing for a big and unusual operating loss.

(COMMERCIAL BREAK)

NGUYEN: It's 31 past the hour on this Monday and here are some of the stories that we are working on in the CNN NEWSROOM.

Bundled up in the Midwest and across the east, frigid temperatures plus falling snow add up to a messy Monday. Weekend flight delays and cancellations left lots of travelers camping out in airports.

Investigators still combing the wreckage of a Continental jet for clues to Saturday's accident. The plane veered off the runway after an aborted takeoff from Denver. The NTSB will hold a live briefing at 4:30 Eastern. And Toyota gives a sneak peek at earnings and it ain't pretty folks. The Japanese car maker says the fiscal year is expected to post its first operating loss in decades. The company points to sagging auto sales worldwide.

Nearly two million Americans have lost their jobs this year. So will 2009 be a fresh start? Susan Lisovicz is on the floor of the New York Stock Exchange with a look at what we can expect. I sure hope it's a fresh start Susan, especially after what we've been through.

SUSAN LISOVICZ, CNN CORRESPONDENT: No question about it. We've been through a very tough year and it should continue into the new year. No question about that either Betty. A new forecast from Challenger Gray and Christmas, which is an outplacement firm says job cuts next year, well, they'll be great, a million jobs. That's not quite as big as two million. But no question that the pain would continue. The recession has hit just about every sector of the economy hard.

Two bright spots have been energy and education. But the study says those two are going to be hit. Why? Energy, for instance, oil prices have collapsed since July, down more than $100 per barrel with oil prices. So you're seeing a lot of delays in projects, whether it's exploration or research and development. In terms of education, we have seen so many communities, whether it's local or state, that have been hard hit from the downturn in business and tax receipts that they are hurting as well. So you may see some cutbacks there as well. Betty.

NGUYEN: All right, so as we look to the future, what about the incoming administration? President-elect Obama has been very vocal about creating jobs, making that his priority. Is there a lot of hope there?

LISOVICZ: There is a lot of hope there and a lot of economists say that that's what needs to be done despite the enormous deficit we already have, that we need to have a big, big stimulus plan. And the president-elect has said he's talking about saving or creating three million jobs. Even if that were to be successful, it takes a while for that to ripple through the economy.

It's an enormous project and it would take a while. Not only that, layoffs are a lagging indicator. It's the last thing employers do to either stay afloat or stay competitive. So for instance, after the last recession in 2001, the unemployment rate kept going higher even after the - technically after the expansion began.

So those are things to consider. In the meantime, what we're seeing receding is the market. The Dow industrials right now down just modestly, 33 points. The NASDAQ is down by a similar margin and oil prices by the way are down more than a buck, $41 a barrel, just to have highlight the incredible decline that we've seen in that commodity this year, this incredible year Betty.

NGUYEN: Incredible. That's one way to put it. OK, thank you Susan. So you better fasten your seat belts for a new sign of global reception. You ready folks? Toyota, the world's largest auto maker is forecasting an operating loss for the first time since it began reporting results back in 1941. Mark Gillies is the executive editor of "Car and Driver" magazine. He joins me now from Ann Arbor, Michigan. First loss since they started even tracking those numbers back in 1941. Is this a bit of the shock to the industry?

MARK GILLIES, EXEC. EDITOR, CAR AND DRIVER MAGAZINE: I think it's a huge shock to the industry in some ways, but in others it's very expected because the markets worldwide are in complete disarray. Compounding the problem for Toyota is the fact that the yen has gone up 25 percent in the past four months. This means that for every car that Toyota sells in its most profitable market, which is the United States, is actually losing 25 percent in terms of yen going back to home base.

NGUYEN: A lot of people have really said, OK, the big three, you need this bailout because people aren't buying your cars. Let's look at Camry for example. It's been one of the best-selling cars out there on the market. Yet we're seeing Toyota post a loss. So is this indicative of the fact that it's not really about the product. It is more about the whole market in general?

GILLIES: I think it is. I think it's indicative of the fact that people just aren't going into showrooms to buy new automobiles. If you look at the rest of the world, for instance, Europe lost 25 percent sales in November. The U.S., it was down 36.7 percent in November. So it's not just people in the United States aren't buys cars. It's people around the world, period aren't buying cars.

NGUYEN: Will this loss have the same effect have the same effect in Japan as the big three situation has had here in the U.S.?

GILLIES: I think in some ways it's more dramatic because the Japanese have always looked at Toyota as a pillar of their manufacturing establishment. Remember, Toyota has not lost money since 1941. So this is a real blow to Toyota and it's a colossus in Japan. I think in the U.S., we're almost used to the Detroit three going through boom and bust. I think the Japanese industry has been a bit more robust over the past 30 or 40 years in that regard.

NGUYEN: But what does it mean for those U.S. workers who build for Toyota? Is this going to affect them?

GILLIES: I think it's already started affecting them because some of the plants around the country, they haven't actually laid people off as yet, but people have been idled on building cars. They've actually been doing other things around the factory. But they haven't been making cars and there's got to come a point in which Toyota says we're going to have to idle people and send them home. I don't think at the moment they would think about shutting any factories, but we know that their plans to build a plant to build the Prius have been put on hold.

NGUYEN: OK, let's play off of that for just a second. So what does Toyota's loss really say about the future of this industry?

GILLIES: I think it tells you that unless there's a rebound in the world's economy, then the industry faces some massive problems. The obvious one is there is huge overcapacity and there are probably too many big car makers to satisfy the demand. I think one of the other things that you noticed is that it's being fueled by cheap money. The car industry success is being fueled by cheap money and it's being fueled by rising home prices and people using equity in their homes to buy a new automobile.

NGUYEN: It's all connected in one way or the other. Mark Gillies, executive editor of "Car and Driver" magazine. Thanks so much for your time today.

GILLIES: Thank you.

NGUYEN: So you've got to give them credit. It is creative. Apparently some credit card companies are analyzing where you pay with plastic and they might cut your credit limit if they don't like what they see. That's right. Some Amex customers have gotten this letter. Take a look. It says, quote, other customers who have used their card at establishments where you recently shopped, have a poor repayment history with American Express. All right, so the company says it is just trying to manage its risk. Consumer advocates though charge this is unfair and it is guilt by association.

Talk about the weather. Look at that, kind of nasty out there. The big chill from coast to coast, snow, ice, below zero temperatures all across the weather map on this first full day of winter. Can you believe it, just the first full day? Parts of Maine are buried under more than three feet of snow. One town actually got under 42 inches. This nasty weather has made driving extremely dangerous and it is snarling air traffic and some of the country's major airports including Portland, Oregon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We are getting out earliest was December 25th, Christmas day in the evening.

(END VIDEO CLIP)

NGUYEN: Our Chad Myers is tracking all of this bone-chilling weather for us. And Chad, bone chilling, gosh, that's really the best way you can describe it out there, because it is not very pretty.

CHAD MYERS, CNN METEOROLOGIST: No it isn't. I just checked PDX, which is the Portland airport code and only five planes are in the sky now from Portland and one of the reporters about an hour ago said over 120 have been canceled for today. So they are just -- it's a slow process of trying to get planes back in. Twenty planes are in the air to Portland but only five are in the air away. So they have to get planes there and get people on them and then try to clear that mess out. It's going to take a while. Here's the wind chill in Kansas City, six below, Chicago, 17 below. The wind chill factor slowing down the airport workers as well today. You're going to have to be patient with your bags and your checked bags may take a little longer because it's going to take longer for those people out there to deal with 20 and 30 degree below wind chill factors. It's cold in the east. It's snowy in the west.

Have a lot shot from LAX where it has been raining a lot of the morning. This has not helped with the traffic. The airport's doing OK, 130 planes in the sky out of LAX. But I think we still had that shot from K-Cal (ph). It's a shot where you can just see cars just backed up and you're waiting to get in line to hurry up and wait some more. Because the TSA lines there are getting longer and longer as we speak. Doing as best as they can. But you've got to make sure that you're not packing stupid stuff that takes them time. That 3311 rule, whatever it is. You can't have anything more liquid than in that one quarter zip lock or equal container and people don't do it very well. That slows the guy in front of you down and behind you. It turns into a big old domino effect. So do your due diligence. If you don't know what to do, you got to just go on and find the TSA web site and they'll tell you what you need to do and how you're supposed to pack for this Christmastime.

NGUYEN: I'll tell you what to pack, some patience because you're actually going to need it out there. Thank you, Chad Myers.

And we do have this just into CNN. We have learned that a jury has convicted five men accused of plotting an attack to kill soldiers at Ft. Dix in New Jersey. On the phone with us is Sunny Hostin, our legal analyst here at CNN. Sunny, so when we look at this conviction, I mean what kind of evidence did they have? Was this a strong case?

SUNNY HOSTIN, LEGAL ANALYST: It was obviously a very strong case. I mean, initial leap this was a Circuit City store clerk that told the FBI about footage of seeing them, the defendants, firing assault weapons and screaming about jihad on the video that they had asked the store clerk to transfer to a DVD. So they actually had that sort of visual. They also, Betty, interestingly enough, had a confidential, undercover FBI cooperative that set up a sting and tried to get them and got them to purchase guns. And so the evidence was obviously very compelling and this jury took over six days to deliberate. So this was not an easy thing for them to come to, but they obviously reviewed all the evidence and came down with guilty verdicts.

NGUYEN: So now that five of them are convicted, want to say there were actually six people who were arrested, but the sixth defendant actually pleaded guilty last October to a reduced charge of providing firearms to illegal aliens. But when you look at these five convictions, what do they face when it comes to sentencing?

HOSTIN: They face life in prison. I have to tell you, they were charged with conspiracy to kill military personnel, possession of machine guns, possession of weapons by illegal immigrants and that charge, conspiracy to kill military personnel, they were found guilty of, carries a life in prison sentence. That's very, very serious. We know in this climate, most judges look at this extremely seriously. We're talking about, you have a group of people that are willing to kill armies, military personnel, what else would they be willing to do? And I would save it's a very good chance, a very likely chance that these men will spend the rest of their lives in prison. They are in their 20s. That's going to be a long, long time.

NGUYEN: When we look at this plot to attack and kill soldiers at Ft. Dix, do you know how close they were to actually going about and carrying that out?

HOSTIN: My understanding is that they went so far as to practice to shoot, to scope out Ft. Dix. Apparently one of the men was very familiar with the base and chose that one because he had been delivering pizza for his father's business to the base. They scouted it out and then tried to purchase the guns. They were fairly far in their plan to execute military personnel.

NGUYEN: Today a jury has convicted those five men accused of plotting that attack. That is the latest news that we have. Of course we'll continue to follow this, because the sentencing phase is next. Sunny Hostin joining us on the phone. Thank you for that Sunny.

There's much more to come right here in CNN NEWSROOM.

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NGUYEN: OK, that's a head banger talking about those heavy metal bands. Listen up folks because a new study suggests all that head banging and this kind of stuff it's hazardous to your health. Can you believe it? My head kind of hurts already. CNN senior medical correspondent Elizabeth Cohen is here to break it down for us, but I do have to let you know, that she was listening to Simon and Garfunkel while we were probably watching head bangers ball.

ELIZABETH COHEN, CNN CORRESPONDENT: Try to learn about this.

NGUYEN: You got to read up on it right.

COHEN: And I have to say, what you were just doing now, I don't know if that qualifies for head banging. We'll talk about range of motion in a minute, but first different techniques. First, I want to talk about why this pair of Australian scientists decided to start researching head banging after all these years.

They said that they noticed that people who were going to heavy metal concerts were, as they put it, dazed, confused and incoherent and they wondered why. I assumed it was all the drugs they were doing, but apparently, that's not the real answer. They said that it might be because - look at that -- the head is banging against the skull repeatedly and they said that that seems to be causing the problems.

They actually went to an Ozzy Osbourne and Motor Head concerts to look at this. When they watched people banging their heads at these concerts, they actually developed, scientific equations, the science of head banging. Let's take a look at these. Betty, I'm sure you can solve these equations easily.

NGUYEN: I don't even know what that says.

COHEN: neither did I. I asked my husband, who is an engineer. He explained basically it's taking into account acceleration, velocity, the center of gravity of the brain inside the skull, trying to figure out could head banging do brain damage.

And what they found is that head banging is a definite risk for mild to traumatic brain injury. That was their conclusion. And the faster you bang, the worse it gets. The bigger the range of motion, the worse it gets. As a matter of fact, if you can put me on camera for a second. I will show you what I mean.

NGUYEN: Are you going to rock out?

COHEN: I'm going to rock out. This kind of head banging is not nearly as dangerous as this kind of head banging. It is all about the range of motion.

NGUYEN: You need the whole range of motion.

COHEN: That's where you can do damage apparently.

NGUYEN: So now that we've done all this research, I can't believe we've sent guys to this concerts and they created this formula for it. But OK, since they did, any remedies when it comes to it?

COHEN: Sure. They did come up with some remedies and actually they are quite humorous. So let's go through the list. They are actually funny. First of all, they said let's have some formal training programs before the concerts to teach people how to head bang safely.

NGUYEN: Oh, please.

COHEN: I know, exactly, like safe sex, safe head banging. I believe they're joking. Secondly, they said you could always bang your head only to every second beat. That would minimize the damage I would guess by about 50 percent.

NGUYEN: You would get off rhythm.

COHEN: That's extremely difficult. This one was my favorite because I happen to like her. Instead of playing heavy music at these concerts, they could play Celine Dion.

NGUYEN: This is a joke, taking a bunch of nerds to a heavy metal concern and then you get these kinds of answers?

COHEN: I have to say, this was in the edition of the British medical journal that comes out at Christmastime. They often do light- hearted stuff. But we checked with the British medical journal.

NGUYEN: Is this legit? COHEN: They said it was legit and serious.

NGUYEN: All right Elizabeth.

COHEN: OK.

NGUYEN: If it's legit, let me ask you this. Can someone actually render themselves unconscious?

COHEN: These research said there are two ways that you could render yourself unconscious. If you head bang against the stage itself, you could render yourself unconscious or if you head bang against someone else's head, you could also become unconscious and I guess the other guy could, too.

NGUYEN: These answers seem so self-explanatory. Duh.

COHEN: Exactly (INAUDIBLE)

NGUYEN: Want to try it? No, no, I'm kidding. All right, thank you, Elizabeth.

COHEN: Thank you.

NGUYEN: They are down and out on themselves. And still though, listen to this story, true examples of the golden rule. Men from a homeless shelter raising money to help needy families at Christmas. We have a live interview next hour that you don't want to miss.

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NGUYEN: A look at why the fat one delivered Christmas a little early to thousands of folks and we're not talking about Santa Claus.

But first, with the end of the year around the corner, now is a good time to make sure you're on track to meet your financial goals. Christine Romans has advice from an expert on how to get financially fit in 2009 and it's right on your money.

(BEGIN VIDEO TAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): There are just enough days left in 2008 to get your 2009 budget in check. After all, keeping your household budget in the black should be your number one resolution.

HILARY KRAMER, AUTHOR, "AHEAD OF THE CURVE": When it comes to budgeting especially in 2009, look for these big expenses that you are incurring but you don't realize what a hit it is to your bottom line.

ROMANS: The first step in developing a budget, know where you're spending your money now.

KRAMER: The beauty of credit cards, the beauty of a debit card, is that you're able to sit down and look at an extended period of time and review your spending habits and your patterns and pick up on certain expenses that you didn't realize are adding up over the long-term.

ROMANS: Cutting back is helpful, but big monthly costs like an expensive car loan or high credit card bills can create the biggest drain on your bank account.

KRAMER: The most important part of your budget planning is to get rid of those big, huge expenses that are really dragging down your portfolio and the value of your personal accounts.

ROMANS: And that's this week's "Right on Your Money."

(END VIDEO TAPE)

NGUYEN: Well, Christmas came a little early for thousands of people in Spain today. They each got a share of El Gordo or the fat one as it's called, which is Spain's national lottery. More than $3 billion in prizes were handed out. Nearly 2,000 people took home a slice of the big money, $418,000 apiece, not too bad. The Christmas lottery began in 1812 and quickly became a holiday tradition. Spaniards who didn't win today, well, they're looking forward to January 6th when the El Nino lottery is held. The next hour of CNN NEWSROOM, you don't have to wait very long, because it starts right now.

The winter weather outside is frightful. Coast-to-coast, a winter whiteout. Frozen roads and flight delays mean a lot of people won't be home for the holidays.

Searching for clues to the crash. Investigators download flight data and search the body of the crippled jet that careened off a runway in Denver.

And usually on the receiving end of charity, some homeless men team up to help families down on their luck at Christmas.