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American Morning

Winter Packs a Punch; Hillary Clinton Climbing Out of Debt; Food Police Going Too Far?; Interview with T. Boone Pickens

Aired December 22, 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: A look at the top stories. When daylight breaks in Denver, federal officials will continue to investigate Continental Flight 1404. It veered off of the runway during takeoff Saturday.
The plane's left engine burst into flames as it dropped into a 40-foot ravine. The flight recorders have been recovered. Firefighters say it's a miracle that none of the 150 people on board were killed. The overhead luggage compartment literally melted from the heat of that blaze.

Meanwhile, more flights could be delayed or even canceled today as the northern half of the country digs out from a weekend of harsh winter weather. Holiday passengers were stranded coast to coast yesterday. Thousands are without power in Iowa, Illinois, Maine, all facing blizzard conditions.

Our Rob Marciano is going to be joining us live to let us know what we can expect today and throughout the week in just a moment.

The price of gas has not been this low in almost five years. AAA reporting this morning the national average for regular unleaded is down now to $1.66 a gallon. It's almost 60 percent off of the record high price of $4.11 a gallon we were paying back in July.

The longest serving openly gay member of Congress says it's a mistake for Barack Obama to invite Reverend Rick Warren to speak at his inauguration. Massachusetts Democrat Barney Frank appeared on CNN's "LATE EDITION" yesterday just as Warren was defending his views.

(BEGIN VIDEO CLIP)

REP. BARNEY FRANK (D), MASSACHUSETTS: 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.

PASTOR RICK WARREN, SADDLEBACK CHURCH: I love Muslims.

(APPLAUSE)

I also happen to love Hindus and Jews and Buddhists. 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) CHETRY: Barack Obama defended Warren's invitation to give the invocation, saying, "Dialogue is part of what my campaign is all about."

Well returning to our top story now. The passengers who survived that fiery crash during takeoff in Denver are telling their horror stories. Earlier on AMERICAN MORNING, we spoke to Maria and Gabriel Trejos who were on board with their 1-year-old son, Elijah.

(BEGIN VIDEO CLIP)

MARIA TREJOS, PLANE CRASH SURVIVOR: And actually, we felt the plane veer to the left and my husband was holding my son and we felt some bumpiness, and I thought it was just turbulence. And I looked to the side and all of a sudden, there was this giant fireball behind my husband's head and I still had the image of him just grabbing my son's head and just, you know, pulling him towards himself. And all of a sudden we felt this heat. You know, it was heat on our right side and there was a smell and it was like a mechanical smell. That's when I knew something was wrong.

(END VIDEO CLIP)

CHETRY: All 110 passengers and five crew members survived. There's no official word on the possible cause of the crash. Thirty- eight people were injured.

CAROL COSTELLO, CNN CO-ANCHOR: Guess what? If you're flying, you should brace for more possible delays and cancellations today. Hundreds of flights grounded yesterday and across the country today. More freezing temperatures and blizzard conditions. Power crews working to get service back to thousands in the dark because of the winter weather.

CNN Meteorologist Rob Marciano is looking into this early blast. Now I guess we're not alone. The entire country is having lousy weather.

ROB MARCIANO, AMS METEOROLOGIST: Yes, pretty much everywhere north of New Orleans, it's downright freezing and in some cases, like you mentioned, blizzard conditions. We probably will see some travel delays today and in the next couple of days. Winter storm watches posted already again for Chicago, but after this weekend, everybody knows and everybody has seen that winter weather has plagued this nation coast to coast.

(BEGIN VIDEOTAPE)

MARCIANO (voice-over): From Washington state to Oregon to Michigan, to Massachusetts, millions of people spent the first day of winter beaten by snow in winter cold.

UNIDENTIFIED MALE: Like I'm in the arctic somewhere.

MARCIANO: In many states, whiteout condition made a mess on the highways. So bad in Minnesota that they pulled the plows off the road. On Michigan's Interstate 94, a massive pileup involving dozens of vehicles. At least one person was killed. More deadly wrecks in Indiana.

And in Wisconsin, another chain reaction accident. More than 20 vehicles involved and about a dozen people injured there. In Oregon, travel pretty much out of the question. Buses, trains, and even the Portland airport were all but shutdown. People spent hours, and in some cases days camped out waiting.

UNIDENTIFIED MALE: It was supposed to take three hours and here I am 13 hours later.

MARCIANO: Sometimes there was a wait just to wait.

UNIDENTIFIED FEMALE: I was told I had to wait by the airlines just to get on stand-by.

MARCIANO: Similar problems in the Midwest caused ripple effects as far south as Houston which posted five hour delays. But what about the folks who delayed their holiday shopping? The rough roads didn't scare off these bargain hunters in Connecticut.

UNIDENTIFIED FEMALE: It's bad, you know. There's trouble getting here, but I made it.

MARCIANO: Or get these people to trade their tickets for a warm couch and a TV in Kansas City.

(END VIDEOTAPE)

MARCIANO: If you had a warm couch and a TV, you saw some interesting football this weekend. Monday night football, by the way, in Chicago, the Packers taking on the Bears tonight and it's going to be chilly. It's minus two right now. Tonight, game time temperatures right around 12 at best.

Twenty-seven in New York for a high 39 in Atlanta, 37 degrees in Dallas. Cold air continues to pour in across the northeast. Blizzard warnings remain in effect for parts of Maine where in some spots they got over 20 inches of snow. And another blast of storminess coming into the west coast. Portland and Seattle seeing an epic event there with their colder -- their longest cold snap in over a decade with more snow on the way for those folks.

So here's more of the weather map. Cold air remains in place across the eastern third all the way down to Florida. We will start to see a warm up but not for the next several days. And, again, winter storm watches already posted again for much of Chicago westbound for a storm that could produce several more inches of snow and possibly some ice by the time Wednesday morning rolls around.

And that is a big travel day obviously.

COSTELLO: Oh.

MARCIANO: Carol? COSTELLO: Oh, yes.

MARCIANO: Christmas eve?

COSTELLO: And you mentioned Chicago? Well, let's take you live to Chicago right now because on the Elgin-O'Hare Expressway, a multi- car accident. It's just so nasty, Rob. And the roads are so slippery and it's so bitter cold out there, you just have to be really careful.

MARCIANO: You do. Just take it slow and leave yourself plenty of room. And if you get in an accident, try to stay warm and get off the road.

COSTELLO: Hopefully you have a blanket in there and some extra gloves, extra coat, some water -- all that kind of stuff. Look at that. It's just a mess out there. We don't know if there are injuries or not. We don't have much information on this, but as you can see, there will probably be delays at that very spot in Chicago this morning. Thank you, Rob.

MARCIANO: OK, Carol.

CHETRY: All right.

Well, Barack Obama is still working during his Hawaiian vacation. The president-elect taking some time though to enjoy the weather. Hitting the golf greens with temperatures in the 80s.

Wouldn't you like to be there right now? A far cry from today's weather as we just were pointing out in Chicago. The high is 12 degrees but the real feel is way, way colder than that.

Obama's team says Vice President-elect Joe Biden will head a task force to help build the middle class. Four other cabinet members and other advisers are expected to make up this team. Joe Biden sat down to talk to our Larry King. That interview airs tonight. Here's a preview.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), VICE PRESIDENT-ELECT: You need a significant economic recovery package focused on jobs. And because the economy is pretty much in a tailspin, we're losing tens of thousands of jobs per month.

(END VIDEO CLIP)

CHETRY: And as you can see, Larry's entire interview with the vice president-elect will be airing tonight 9:00 p.m. Eastern right here on CNN.

Well, imagine being able to pay off your debt to the tune of $1 million a month. That's the enviable place Hillary Clinton finds herself in now. The nominee for secretary of state has been able to cut in half the amount that she owes on her failed campaign for president. Alina Cho has been looking into this one for us. And the clock was ticking for her because once she's appointed to this cabinet position and confirmed by the Senate, she will no longer be able to do this.

ALINA CHO, CNN CORRESPONDENT: Yes. She's recruiting donors at a fast pace, Kiran. Good morning. Good morning, everybody.

$6.4 million, that is how much Hillary Clinton still owes. Now it sounds like a lot but as you just heard, it's about half of what she owed back in June. Now that's when her campaign debt peaked at about $12 million.

And as Kiran just said, she has been paying it down about $1 million a month. Wouldn't that be great? And it may surprise you that she also wrote off about $13 million that she personally loaned her campaign. $13 million of her own money now gone.

Now most of the $6 million she still owes needs to be paid back to the man who once helped drive her campaign. Look on her screen there. That would be the consulting firm that is run by former Clinton senior strategist. Mark Penn owed some $5 million. Another $700,000 is owed on printing. Nearly $200,000 for insurance. Another $80,000 or so for direct mail -- and get this -- she also owes Sprint for telephone service and even a couple of thousand for catering.

Sixteen entities in all. Now no surprise, Clinton has been getting some high powered help paying off her creditors. President- elect Obama you'll recall asked supporters to contribute and earlier this month, Clinton held a fund-raiser in New York, the first of many, I'm sure.

Husband Bill was the warmup act, imagine that. And donors also got to rub elbows with "Ugly Betty" star America Ferrera. Now, premium seats, by the way, went for about a thousand bucks a pop. Clinton is hoping to get the final $6 million paid off before she is confirmed as secretary of state. And that is key, Kiran, because as you pointed out, after that, she will be banned from personally soliciting donations.

CHETRY: So she, $13 million -- she wrote that off. She loaned that to herself and that money she's not trying to recoup.

CHO: She can't, no. And she's not going to. I mean, think about it. You still owe $6.4 million, you can't solicit donations after you're confirmed the secretary of state. So she has a lot to pay off yet. And so that $13 million she forgave.

CHETRY: All right. Alina Cho, thanks.

CHO: You bet.

CHETRY: Carol?

COSTELLO: Oil man T. Boone Pickens had a plan for the country, you know, back when gas cost $4 a gallon. So with gas at four-year lows, now what? And what does he think of Barack Obama's energy plan?

It's 10 minutes past the hour.

Busted by the food police.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's insulting to insist that government has to tell people what's good for them or not.

(END VIDEO CLIP)

COSTELLO: Big brother takes on the Big Mac. Why some say the government patrolling your diet has gone too far.

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

(COMMERCIAL BREAK)

MUSIC: Rudolph, the red-nosed reindeer had a very shiny nose.

COSTELLO: Hold onto your seats because this could be a Christmas shocker. Could Rudolph the red-nosed reindeer actually be a girl?

Wild life experts from Texas A&M University are actually trying to figure this out. I kid you not. They are pondering the gender of all of Santa's reindeer. Experts say they're probably female because males typically shed their antlers by Christmas time, and they haven't determined how Santa's reindeer actually fly.

You knew there was something up with Rudolph.

COSTELLO: Right. However, there are others who say they were probably castrated males known as steers because they were more likely to keep their body weight and be able to, you know, pull the sleigh better because there was also a chance that these females were pregnant because it coincided with mating season.

CHETRY: You don't want a bunch of pregnant reindeer having to work overtime, you know, on Christmas eve.

(CROSSTALK)

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Maybe the Hollywood (ph) end to me is that we have never actually seen like real reindeer. Or, you know, sometimes you watch like I've been watching "Curious George" lately a lot.

COSTELLO: Why?

ROMANS: I'm very curious about the cows all have sort of what I would say of a male, you know, male horns and utters. I keep thinking is that possible? I mean, are they getting it wrong? I don't know.

COSTELLO: I think they are getting it wrong because I've never seen a cow with an utter with horns. ROMANS: So maybe it's just, you know --

CHETRY: This is utterly ridiculous, you guys.

COSTELLO: Right.

ROMANS: Rudolph the red -- maybe it's just the way that Hollywood (ph) ends.

CHETRY: In the break, they were also discussing because they both grew up on farms that they -- and never in their wildest dreams saw this. Although you did have to butcher a cow.

COSTELLO: I did butcher a cow but, you know, that's not a good Christmas story. And then I would just --

(LAUGHTER)

But now, on the one hand --

(CROSSTALK)

CHETRY: (INAUDIBLE) can dress a moose. And you?

COSTELLO: Hey, I had my own gun when I was growing up.

ROMANS: We did chicken castrations. One time, you know, doing the chickens -- and I was like --

CHETRY: Let me -- can I just add one more thing to this?

COSTELLO: Sure.

CHETRY: My family is from Nepal. In Hindu religion, cows are sacred. And so cows are pets. You would never ever eat one, ever. So you couldn't come over. I'm sorry, Carol.

COSTELLO: Don't we have business news to do?

ROMANS: I think so.

CHETRY: We're talking about these wild bonuses. We're still talking about companies that took bailout money that don't seem to be living like they're on a budget.

ROMANS: You know, and people -- people complained about this to me so much. We can't really know where the $700 billion has gone, right? And we pumped $200 -- almost $250 billion now into these banks. And it's not like every two weeks they're giving us their transparency report saying thank you American taxpayer for your money. This is how we're spending it. They're not doing that.

We put this money in these banks and we don't know how it's being spent. And what's really outrageous about it is when you look at the compensation of the executives of these companies who basically made the leadership decisions that put us in the situation we are in now. They were paid so handsomely. $1.6 million in 2007 was the CEO compensation for the top layers of management for some of these banks altogether. And it's not just the pay. I mean, the pay was incredible.

But even last year -- last year when it was clear what was going on, you had chauffeurs and you had -- let me look at the list. We've got everything. We got stock options, cash bonuses, company jets and chauffeurs. You have home security, you have private money managers. You have a country club membership. You have all of these different things that even last year, these people were paid for perfection and they gave us the farthest thing from perfection that there is.

So we're still kind of looking at these things. Yes, this was 2007 before they got the money and before the crisis was really, you know, at its peak. But they were paid for perfect decisions and they made no perfect decisions, and that's what people are so angry about. They went from that kind of behavior, pay for performance, if you will. And now, they're on the public dole.

COSTELLO: That's sick. Period.

CHETRY: It sure is.

COSTELLO: Really. Well, hopefully it will change.

ROMANS: Well, then, there's this grace --

CHETRY: We're running out of time but we have to get to the creative way that payback is being build up by some of these companies.

ROMANS: Right. Credit Suisse actually...

CHETRY: Right.

ROMANS: ... is paying some of its top, you know, investment bankers with the toxic junk that they were selling to their customers. If you guys could sell it to our customers, then it should be good enough for you to have as a bonus this year.

COSTELLO: I love that.

ROMANS: Sound interesting?

COSTELLO: I love that.

CHETRY: It is. Other creative ones as well, we'll talk about later.

ROMANS: Right.

CHETRY: Thanks, Christine.

Well, busted by the food police. Is the government going too far in patrolling what America eats? Law, nutrition and the right to eat donuts? It's 18 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: All across the country we're seeing tough new food regulations taking effect and more could be on the way. Now the so- called food police are trying to get the incoming president on board.

CNN's Chris Lawrence tells us not everyone is happy about it.

CHRIS LAWRENCE, CNN CORRESPONDENT: Some consumer groups are urging Obama to push for more food regulation in his first 100 days, while others say it's already gone way too far.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): From a California KFC to a McDonald's in Manhattan, local governments are getting more involved in what you eat. Restaurants in New York and California are already changing their recipes to comply with a ban on trans fats. And another new law requires large chains to visibly list calories on menus and signs.

UNIDENTIFIED MALE: I think it's an excellent idea. It's about time it was published.

LAWRENCE: LC Brookings (ph) knows fast food it's weighing him down but he's not alone. Of kids aged 6 to 11, the Centers for Disease Control estimates that one in five of them are overweight.

UNIDENTIFIED MALE: Being a single father with a 15-year-old kid, that's somewhat overweight. I like the idea of knowing what's going inside of her. Maybe it's too late for me, but I want to protect her as best I can.

LAWRENCE: But some pro-business supporters say what's next? Regulating portions?

UNIDENTIFIED MALE: It's just bad public policy, an example of the nanny state.

LAWRENCE: Joe Hicks says it's going too far. From schools banning bake sales to Los Angeles outlawing new fast food stores in one area.

UNIDENTIFIED MALE: It's insulting to insist that government has to tell people what's good for them or not.

LAWRENCE: President-elect Obama takes office having promised to cut the cost of health care, but some say the federal government has refused to impose regulation that would improve nutrition.

UNIDENTIFIED MALE: They either have to spend a lot of money which they don't like doing or they have to step on industry's toes and they haven't liked doing that either. Hopefully, President Obama and the new Congress will be emboldened to really promote the public's health for its own sake and to hold down health care costs. LAWRENCE (on camera): More than a dozen states are considering labeling calories like restaurants have to do here and some have researchers have even proposed banning fast food advertising on television.

Chris Lawrence, CNN, Los Angeles.

(END VIDEOTAPE)

CHETRY: Going green to boost the bottom line. Obama wants to save the environment and the economy at the same time, so does his plan have any chance of working? Oil man and environmentalist T. Boone Pickens joins us next. We're going to find out what he says about green collar jobs.

Also, how far would you go to have a baby? We're starting a special series this week called "Baby Quest." Today, meet couples going halfway around the world on vacation and then nine months later they have much more than just photos to show off.

It's 24 minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: This time has to be different. This time we cannot fail nor can we be lulled into complacency simply because the price at the pump has, for now, gone down from $4 a gallon.

(END VIDEO CLIP)

CHETRY: Well months ago, Americans were panicking as the price of oil reached historic highs and gas prices followed. We're paying $4.11 a gallon on average back in July. Well now the country is facing some economic doom and gloom with the potential for worse to come in the New Year. But Barack Obama says he wants to create jobs and to take on the energy crisis at the same time.

Joining me with his take is oil man T. Boone Pickens, from Dallas, Texas, this morning. Great to have you on the show. Thanks for being with us.

T. BOONE PICKENS, FOUNDER & CHAIRMAN, BP CAPITAL MANAGEMENT: Thank you.

CHETRY: Do you think that --

PICKENS: Glad to be here.

CHETRY: Do you think that the expectations are too high to both say you're able to take on the energy crisis and also deal with this worsening economy?

PICKENS: No. Because you brought the price of gasoline down. When I started my campaign on July 8th, gasoline prices were $4.11. Today they're one-third of that. But it's the same thing we've seen '70s, '80s, '90s and 2008 is when the price goes up, we start to talk about alternatives, and then they bring the price down again for us.

So now, it's a perfect time because we're getting the gasoline cheap and at the same time, we can start to switch over to green power. We can go to wind, we can go to solar. But more than that, we can start to use natural gas for our heavy duty trucks. And that is a key to the whole equation as far as I'm concerned. You are going to have to get off of foreign oil.

CHETRY: Make the argument though for people who are saying, you know what, I was concerned about it in July, maybe I was looking at a hybrid. Maybe I was looking at ways to conserve. But now, I'm comfortable again.

It's $1.66 a gallon. I'm not worried about it. I have other concerns. I could be laid off, could be worried about our country heading into a depression.

PICKENS: Oh, I think those -- I think people are saying just exactly that. That's OK. Just when you get ready to buy a new car, tell them that you want to use domestic fuel. And go with a hybrid, go with the natural gas, go with the electric, but don't rush to do that right now. You don't have to.

You're getting cheap gasoline, go ahead and use the cheap gasoline. Just continue to watch what I tell you that the price will be back up a year from now. We'll be back up to $100 a barrel for oil. And we'll be looking at $2.50, $3 for gasoline. But you don't have to rush to do anything about it.

CHETRY: One of the things I want to ask you about is Barack Obama's hopes to be able to get his team together and look to either create or sustain some, you know, two million to three million jobs in this country that either are going to be lost or already lost. How do you use these green collar jobs, if you will? Give us an example of how you put people to work by spending money.

PICKENS: Well, if you look at the DOE, the Department of Energy plan for adding 200,000 mega watts of power in the next ten years to the wind corridor from Texas to Canada, that if you just look at that alone, the first year would create 138,000 jobs, and at the end of ten years, you would be employing 3.5 million people in that wind corridor.

All of that can be accomplished and I think that President Obama knows that. He has said, I've heard him say it four times now, that in ten years we will not be importing any oil from the Mideast. And I think he has a plan for that. And we're getting ready to see that plan. It's going it be a good plan.

CHETRY: Have you talked to him? I mean, is he embracing your dream of these -- of getting these wind turbines and these wind farm built in many, many places in the U.S.? PICKENS: I've talked with President Obama before the election and I've talked to several of his people since that time. So I think they've got a plan and we're all going to think, when we see it, I think we're going to like it.

CHETRY: T. Boone Pickens, thanks for being with us this morning.

PICKENS: Thank you.

CHETRY: Carol?

COSTELLO: The auto bailout of the United States is not helping most world markets rally. Trade in Hong Kong closed sharply at the red, but Tokyo's Nikkei actually made some gains, even with the news that Toyota is likely to post record losses this year.

Asian markets and Europe are also seeing steady losses this morning.

Retailers across the country are slashing prices, and extending hours, trying all they can do to entice consumers. This could end up being the worst shopping season in decades, but if you have money to spend, there are plenty of bargains out there.

(BEGIN VIDEO CLIP)

JOCELYN NAHIGIAN, SHOPPER: You know, it seemed like the sales just walking through the stores today that they're like the after Christmas sales. So we're getting some really good deals. We already had to take a box full of things out to the car so we can have free hands to finish our shopping.

(END VIDEO CLIP)

COSTELLO: So imagine the after Christmas sales.

City officials in Washington are cutting their estimate on Barack Obama's inauguration crowd in half. Earlier estimates said around four million or five million or people could show up. The event is also coming with a big price tag. And Washington officials say they don't want to get stuck with the tab.

It doesn't matter where you are coast to coast. It is cold out there. Iowa, Illinois, Maine all seeing blizzard conditions and thousands of people across the country are still waiting for their power to come back on. Slippery streets could slow your morning commute and we could still see plenty of traffic delays today. Meteorologist Rob Marciano is tracking it all for us. It's just so awful outside here. I can't even explain it.

ROB MARCIANO, CNN, METEOROLOGIST: You know awful is a relative thing, Carol. Let's see. I'm not up there, I assume it's cold. We have a live shot of New York City, I think as the sun comes up over the east. There it is. It doesn't look terribly cold. The sun just looks very warm. As a matter of fact, that picture is kind of hot.

COSTELLO: You're crazy!

MARCIANO: Temperatures feel like minus 4 right now in the Big Apple. That's the wind chill. Without the wind chill, it's minus 3 in Chicago. So it feels even colder than that. So pretty much everybody north of the Gulf Coast is in the thick of this cold air. Look at some of these numbers, Maine, almost 42 inches of snow there. Lost River, New Hampshire 21 inches. Speculator, New York, 14 inches. Montpelier, Vermont over a foot and Winchester, Massachusetts, with a foot of snow as well.

With this system that came through yesterday quite quickly a lot of cold air behind it. Blizzard conditions are still up. Blizzard warning in effect for northern Maine this morning. And the next system already coming into the West Coast will bring storm watch conditions for parts of the western Great Lakes including Chicago.

Some shots of what people were dealing with over the weekend. A lot of car pileups. Boy, interstate 43, interstate 94 was all bad news. Are these live pictures now? Anyway, that's looking nasty. Temperatures today are going to be not warm enough to melt anything. 12 to 24 inches of new snow across parts of southern Colorado with this next system that will be rolling in. So we're not done yet, Carol. Try to stay warm up there.

COSTELLO: I will and everybody be careful out there. Thank you, Rob.

MARCIANO: OK.

COSTELLO: 32 minutes past the hour.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): On shaky ground.

ROBERT HUNTER, ATLANTA WATERSHED MANAGEMENT: We had some trucks falling through streets because of the water leaks.

COSTELLO: Danger ahead. One out of three roads are in trouble. A "Memo to the President" why rebuilding America could be a long and bumpy ride. You're watching the most news in the morning.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: 35 minutes past the hour. Time for today's political ticker.

Sarah Palin's daughter is due to give birth any time now but the event has already been overshadowed by a huge headache for the family. The other grandmother to be was arrested on drug charges. Authorities say 42-year-old Sherry Johnston was nabbed in an undercover investigation charged. She's charged with six counts of misconduct involving a controlled substance oxycontin. Johnston is the mother of 18-year-old Levi Johnston, who is the father of Bristol Palin's baby. He gave up his acting career to be governor of California and now Arnold Schwarzenegger said if he could, he would move to the White House next. Schwarzenegger was interviewed on CBS's "60 Minutes" on Sunday and they asked point blank if he wanted to be president.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Absolutely. I think I'm always a person that looks for the next big goal. And I love challenges. I always set goals that are so high that they are almost impossible to achieve.

(END VIDEO CLIP)

COSTELLO: Yes, well right now, that goal impossible. Schwarzenegger was born in Austria and the constitution says the president must be a natural-born U.S citizen. Kiran.

KIRAN CHETRY, CNN, ANCHOR: Well, crumbling roads, decaying bridges, America's infrastructure has been neglected for decades. And in bad weather, it's especially treacherous in our ongoing look at issues facing the incoming Obama administration, our Chris Lawrence has today's "Memo to the President."

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Mr. President, you've seen the state of American infrastructure, 12 percent of bridges structurally deficient. Only a third of our roads in good condition. And in cities like Atlanta, replacing pipes that were installed in the 1800s.

ROBERT HUNTER, ATLANTA WATERSHED MANAGEMENT: We had some trucks falling through streets because of the water leaks. Erosion underneath.

LAWRENCE: The city's halfway through rebuilding its water system, but can't finish the project if credit markets don't loosen up soon.

HUNTER: It's not just the city of Atlanta, that's everywhere across the United States right now.

LAWRENCE: You're proposing an infrastructure bank to finance the biggest investments since Eisenhower was in office. But you've also told governors the clock is ticking.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: If a state doesn't act quickly to invest in roads and bridges in their communities, they'll lose the money.

LAWRENCE: Some experts will tell you, the quick fix leads to problems down the road.

PROF. REGGIE DESROCHES, GEORGIA TECH UNIVERSITY: Often times we have to go back in and patch things up every two years, we need to be able to build infrastructure to last for the long-term.

LAWRENCE: Professor Reggie Deroches said the main goal of any project should be to fix a problem, not to put somebody to work. He says in some cases, engineers use more expensive materials that cost more now but will last longer and save money over the long run. He's speaking to Congress but says it's a tough sell.

DESROCHES: People aren't thinking about what happens in 40 years because they'll probably be out of office in 10 years.

LAWRENCE: You'll face projects that have been grid locked for years. Like New Orleans canal locks, still no completion date in sight for its repair even though Congress authorized it in 1956.

LAWRENCE (on-camera): Repairing the nation's infrastructure will take decades and multiple presidents. Your administration may be judged not on what gets finished, but what gets started over the next four years.

(END VIDEOTAPE)

CHETRY: That was Chris Lawrence reporting. We wanted to hear from you. Send us your "Memo to the President." Go to cnn.com, click on the /am, then click on the I-report link and give the president- elect a piece of your mind. 39 minutes after the hour.

(BEGIN VIDEOTAPE)

CHETRY (voice-over): Vacation, baby quest -

UNIDENTIFIED FEMALE: When we found out that I was pregnant with twins.

CHETRY: How far would you go to get pregnant? How about halfway around the world. The tour package that includes a priceless souvenir or two. You're watching the most news in the morning.

(COMMERCIAL BREAK)

COSTELLO: For many couples, having a little one in the house is a dream that may never be realized. Infertility affects about seven million women and their partners in the United States, about 12 percent of reproductive age women that we're talking about. So all this week, we're looking at the ways people are trying to have a child. The cutting edge technology, adoption, and even traveling to the other side of the world. We call it baby quest.

Today in part one of our series, a look at the so-called IVF vacation. Infertile couples now heading overseas for IVF treatments. Alina Cho joins us now. So you go over for a vacation and you can come back with a baby.

CHO: In some case, that's true, Carol. Good morning. Good morning, everybody. You know, you've heard about going overseas for plastic surgery, cheap botox, tummy tucks but going to a foreign country to get pregnant? It is happening. More and more American women are heading overseas for in vitro fertilization. Not because are better necessarily it's a money thing. IVF outside the U.S. is generally cheap. That is the big draw. The bonus? Couples seeking this treatment are also mixing in a little fun.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: This is from the top of Prague Castle in Prague.

CHO (voice-over): It's a vacation that literally changed Ellen and Bob Lavek's (ph) lives forever.

UNIDENTIFIED FEMALE: We didn't even have passports.

CHO: Their first time abroad. The Laveks' traveled halfway around the globe to the Czech Republic, but sightseeing wasn't their ultimate goal. This was their dream trip for a different reason. They came home with a special souvenir.

UNIDENTIFIED FEMALE: Then we found out that I was pregnant with twins.

CHO: They went to the Czech Republic specifically for in vitro fertilization. Ellen and Bob had been trying to get pregnant for years. She was in her early 40s. Doctors told her IVF was the best option. But the cost was huge. And Ellen said her insurance wouldn't cover it.

UNIDENTIFIED FEMALE: I literally left the office in tears when I heard what the number was and of course you know just doing in vitro once doesn't necessarily take.

CHO: And what was that number?

That was about $28,000 per attempt.

CHO: Enter IVFvacation.com, one of several web sites for women seeking in vitro fertilization overseas. Here for a fee, almost everything except air fare is booked for you and included in the cost. Lodging, medication, IVF and spa treatments. One stop shopping.

UNIDENTIFIED FEMALE: I remember being amazed.

CHO: Ellen had to go twice because the first try didn't take. Each trip cost about $12,000. Still less than one attempt in the U.S. the Laveks were lucky, but there are some risks.

UNIDENTIFIED MALE: We have local and state rules that help govern us, that help make sure that it's that patient's egg, her husband's sperm, their embryos that are put in place. We're not as sure in many other parts of the world.

CHO: Marcella and Craig Fife (ph), founders of ivfvacation.com disagree. They insist the Czech clinic is safe. Reassuring clients that they did it themselves. Marcella is from the Czech Republic and went to her home country for IVF. The Fifes now have twins. UNIDENTIFIED MALE: There's nothing quite like getting that phone call from a woman who's been trying for five years to get pregnant and she says, I'm pregnant, I'm pregnant! And she just, you can feel the tears through the phone.

CHO: Ellen Lavek gave birth to her twins a year and a half ago. The family she's always wanted with a little overseas help.

LAVEK: This is our dream. A little tiring on occasion, but joyful.

(END VIDEOTAPE)

CHO: So cute. Now it is important to point out, if you are considering this as an option do your home work there. There is no international body that regulates fertility clinics overseas and some doctors say that is a risk. Medical standards are harder to judge from far away and so are success rates.

Now having that said, the people who run ivfvacation.com they have had no problems and of the 200 women who have signed up, 80 babies are born so far. Another 50 are on the way. Carol, that's a 65 percent success rate. Now, keep in mind, that's only one web site. There are several that offer this. But you know what you can't measure are these procreation vacations, as some people call it, you can't measure how it calms women to be overseas. That's what the people who ran the web site say.

COSTELLO: Really?

CHO: They say that they've had clients say you know I'm afraid I'm going to forget to take my meds because I'm having so much fun. It does take the edge off some people say.

COSTELLO: I would be so nervous to be in another country. I don't know why, but it would make me nervous to have any surgical procedure done in another country.

CHO: I think a lot of people are concerned about that certainly some doctors are concerned about that, but one thing that is very attractive to people is the cost. I mean, think about this woman we profiled, Ellen Lavek, she went twice. It still cost less than one attempt in the United States. One attempt here can run between $15,000 and $30,000.

COSTELLO: Alina, I want you to take a look at this. Because while many people are turning to science to have babies. More than 100,000 children. Actually, one million children are in foster care in the United States and they are available for adoption right now. Some agencies are turning to the internet to help find families for these children including the Michigan Adoption Resource Exchange. They post videos of children ready for adoption. Here's 14-year-old Keitrich from Michigan telling his own story.

(BEGIN VIDEO CLIP) KEITRICH, AGE 14: Hello, my name is Keitrich. I like to do a lot of things, play football, watch football, play basketball and watch basketball. I would like to live with a family that has lots of discipline and a family that likes to have fun and that is really, really strong about school. And not to be so busy that they can't come to my school to check up on me.

(END VIDEO CLIP)

COSTELLO: It just breaks your heart though.

CHO: In New York City alone, there are 17,000 foster children looking for homes. It really is such a sad story and that's just in this city alone.

COSTELLO: Keitrich, you did a great job. Didn't he?

CHETRY: So adorable.

CHO: I hope he finds a family.

COSTELLO: If you're interested to adopting, go to mare.org. The agency says Keitrich needs a patient and loving family who can make a firm commitment as he learns to trust a two-parent family with an active and supportive father who can help him develop his interests and natural leadership abilities would be best. You can go to Mare.org to learn about Keitrich. You can also go to our web site, cnn.com/am.

And coming up tomorrow on our Baby Quest series, more and more single men are turning to adoption and surrogates in order to have children. Famous single fathers like Clay Aiken and Ricky Martin. Baby Quest is not just for women.

CHETRY: Well, shocker for rockers. New medical news on how heavy metal music could actually hurt you? We'll find out - weren't we already know this from back in the '80s. You got to be careful before you bang your head. Trust me. 49 minutes before the hour.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

CHETRY: A little quiet riot for you there. Maybe for Queens of the Stone Age, maybe some Foo Fighters, classic Metallica. But all you head bangers out there, there's a new study suggesting that a particular form of rocking out, head banging, may be dangerous to your health. Senior medical correspondent Elizabeth Cohen is live in Atlanta. I have to laugh as to why we're doing this now. I thought this was big back in the 80s when you used to sneak downstairs and watch headbangers ball on TV. But I guess they've studied this. they studied head banging and they have some conclusions.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: That's right. We're doing this because of a combination of things. One, the British Medical Journal at Christmas time likes to put out whimsical studies and a pair of Australian researchers got curious. They said we wonder why so many people at heavy metal concerts are dazed, confused and incoherent. Those are their words. Silly me, I thought it was maybe all the drugs they were doing but the said no, maybe it's the head banging.

So these researchers actually went to Motley Crew, Ozie Osborne, Motorhead concerts and they watched people's heads go back and forth. Yes, this was their scientific research, and based upon all the motions that they saw these heads doing, they came up, believe it or not, with a series of scientific equations to calculate. There they are. Don't ask me to translate them, but those are head banging equations with velocity and acceleration and from these equations they deduced that there are definitely risks of mild, traumatic brain injury from head banging and they say the risk goes up the faster the tempo of the music and the wider range of motion like this kind of head banging is not nearly as bad as that kind of head banging.

CHETRY: We actually have someone to demonstrate. This is one of our floor managers Jake, he loves Aerosmith more than life itself. He is known for his head banging. And Jake, you know, tell us honestly, do you think you have brain damage from all this head banging over the years?

JAKE: Huh?

CHETRY: You're not blaming it on the head banging, I get it. All right. Elizabeth, we got a lot of heavy metal rockers in this one, but everyone seems fine around here, but hey, I'm not going to argue with science. Thanks for joining us this morning, Elizabeth.

COHEN: Thanks.

(BEGIN VIDEOTAPE)

CHETRY (voice-over): Team Obama.

OBAMA: Because he's one of the best basketball players I know.

CHETRY: He says he has the best basketball playing cabinet ever. The starting lineup. Let's see what they've got.

Plus, story of goodwill.

UNIDENTIFIED MALE: My spirits are high and I'm hoping that I get some sort of chow, man.

CHETRY: In very bad times, on a very good week.

UNIDENTIFIED MALE: Every time god shuts a door, he opens a window.

CHETRY: How one man feeds thousands, over and over again. You're watching the most news in the morning.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

COSTELLO: Listen to the music this morning. The president-elect has a basketball jones and it appears Barack Obama's love of the game has impacted the team he is bringing with him to Washington? Really? Amy Chozick is with "The Wall Street Journal," she was part of Obama's traveling press corps during the campaign. And Amy joins us now. He does have an awful lot of basketball players in his cabinet, doesn't he?

AMY CHOZICK, WAS PART OF OBAMA'S TRAVELING PRESS CORPS: Well, he does and he said it last week in a press conference when he announced his basketball playing friend Arne Duncan as secretary of education. He said you know I will say I didn't choose these people based on their basketball skills, but I have assembled one of the best basketball playing cabinet in history of America.

COSTELLO: Not only is it Arne Duncan, it's Eric Holder, Susan Rice played basketball in high school. General James Jones played at Georgetown -

CHOZICK: That's right. And a little known fact Joe Biden was the manager of his high school basketball team. He's more of a football player, but you can just go down the list and everyone have kind of an appreciation or history of serious basketball.

COSTELLO: Now, you were really into this story, I find that fascinating. What fascinated you about this? Will they be talking policies on the basketball court?

CHOZICK: They could be. I guess golf is a much more conducive sport to be conducting policy. But I traveled with Obama and I saw the way that he, you know, just used basketball as an outlet to de- stress and during election day on the campaign trail and he used basketball to kind of destress. And during election day and in Denver before he gave his speech, he always felt like basketball was a good way to prepare. He was kind of superstitious about it. You know.

COSTELLO: Yes. Tell me about that. He was superstitious about it, in a good way I guess.

(LAUGHTER)

COSTELLO: The basketball -

CHOZICK: Well he played basketball in Iowa and he ended up with that stunning victory in the Iowa caucus. And then in New Hampshire, he did not play basketball on election day. And you know Hillary Clinton won in that come from behind victory. So after that he said, I'm playing basketball become before big days. There's a clear sign here.

COSTELLO: Now before he introduces his big economic bailout plan to the public, he should play some basketball.

CHOZICK: Maybe so.

COSTELLO: You know the bowling situation, people they're pretty upset at this basketball thing because they think bowling is going to go out the window. Because as you know, there is a bowling alley in the White House because Richard Nixon liked to bowl.

CHOZICK: That's right. Richard Nixon was an avid bowler. In 1969, put one lane underground in the White House grounds and Obama was not such a great bowler during the primaries. I think he bowled about a 37. Let's watch this horrible shot again, shall we?

(LAUGHTER)

COSTELLO: You know I'm from Ohio. And we looked at that and said oh, my god.

CHOZICK: That's right. I mean that's kind of the bowling lobby's so the whole point, these you know average working middle class Americans, bowling is a huge pastime for them. There may be arguments that kids love bowling. They could keep the lane there for Sasha and Malia and have birthday parties. So for them, it's very important that bowling still represented in the presidency.

COSTELLO: Seriously though, what could Obama actually do for this sport of basketball?

CHOZICK: Well I talked to the NBA about that as well as the Washington Wizards. And every one is just excited that basketball is going to be the presidential sport of choice. You know no one is planning to use this as a marketing ploy or anything like that but just to have this, you know, the presidential sport it's exciting for them.

COSTELLO: Yes, if I were Barack Obama though I would have pro basketball players come in and play with me.

CHOZICK: Well, wouldn't that be a lot more -

COSTELLO: Kobe Bryant -

CHOZICK: Lebron James loves Obama. So they all want to.

COSTELLO: I would like to be at that game. Amy Chozick from "the Wall Street Journal." Thank you for joining us.

CHOZICK: Thanks for having me.

COSTELLO: Kiran.

CHETRY: How about you teach him bowling and he teaches you basketball, Carol?

COSTELLO: I could give him a few pointers.

CHETRY: Exactly.

No more gutter balls this morning.

CHOZICK: I had any own ball when I was little.

COSTELLO: Me, too. Where was he?