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American Morning

Holiday Travel Hampered by Weather; Naughtiest Politician of '08 Named; Obama's Rock Star Status

Aired December 24, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: And here are this morning's top stories.
The Christmas travel rush is under way right now. And unless you got a flying sleigh, you could be in for a rough time. Snow, ice, and fog leading to delays and cancellations at airports and train stations coast to coast. Hundreds of flights have been canceled in Chicago. And Amtrak also canceling service out of the windy city.

You saw it live right here on AMERICAN MORNING, commuters outside Washington trapped in their cars, swamped by a massive water main break.

Earlier on AMERICAN MORNING, we talked to Herbert Derienzo and his fiancee that had to be rescued.

(BEGIN VIDEO CLIP)

HERBERT DERIENZO, RESCUED FROM CAR AFTER WATER MAIN BREAK: Finally, we saw a wall of raging water coming down on the car stop. All the cars that were on River road stopped. And then the mud and the rocks and the debris started to make our car skid sideways.

(END VIDEO CLIP)

ROBERTS: Nine people had to be saved including one child. At one point the water was flowing at 150,000 gallons a minute.

Well, even in this recession, there is no shortage of cash at one place. Yankee Stadium in New York, first baseman Mark Teixeira, added to the Bronx boys line-up. The deal reportedly worth $180 million over eight years. That's $22.5 million a year. That's on top of last week's signing of pitcher CC Sabathia's and AJ Burnett. Combined those two deals cost another $243.5 million. They built a new stadium. They got a bunch of new players.

They haven't won a World Series since, what, 2000?

COSTELLO: Something like that.

ROBERTS: They are trying hard.

COSTELLO: Well you know, I just to point out that the Detroit Tigers had one of the highest payrolls in baseball and they finished in last place. Sometimes spending a lot of money doesn't help. Because team chemistry matters, right? ROBERTS: Yes. Absolutely.

COSTELLO: It's not all about the money.

ROBERTS: No, it's how it all work together.

COSTELLO: I hate the Yankees just like much of the country.

ROBERTS: And what about those Detroit Lions? Any more Detroit Lions jokes?

COSTELLO: Stop that.

ROBERTS: They were great by the way.

COSTELLO: What? What do you mean the Detroit Lions were great?

ROBERTS: No, your jokes about the Detroit Lions were great. Like, how do you keep a Detroit Lion out of your backyard?

COSTELLO: Put in a goal post.

ROBERTS: There you go. That's perfect.

Returning to our top story this morning, one of the busiest travel days of the year. But Old Man Winter not taking a break this Christmas Eve.

Ice and snow from the Northwest all the way to the Midwest causing travel chaos. Hundreds of flights and several Amtrak trains have been canceled in Chicago. Icy roads also being blamed for 12 deaths from Kentucky to Kansas.

Bonnie Schneider tracking the extreme weather for us from CNN Weather Center in Atlanta.

(WEATHER REPORT)

CAROL COSTELLO, CNN ANCHOR: A new poll out says that Illinois governor Rob Blagojevich is the naughtiest politician of 2008. And he didn't even have to commit adultery to do it. Check out the competition. This is the competition he beat out.

Voters had three political figures to choose from, and over half picked Rob Blagojevich. Twenty-three percent chose former New York governor and alleged client number nine, Eliot Spitzer. Nineteen percent picked John Edwards, who, of course, admitted he cheated on his cancer-stricken wife, Elizabeth.

Today, after all the hype, we're getting our first look at the long-awaited Obama report detailing the transition team's contacts with Governor Blagojevich.

CNN's Kate Bolduan joins us now live from Washington to fill us in.

Hi, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Carol.

Well, you could call it the Obama transition investigation into, well, itself. Obama's choice for White House counsel wrote this internal report, which shows, as expected, that there was no wrongdoing on the part of the president-elect or his aides in their contact with embattled Illinois governor Rob Blagojevich. The report states there is, "no indication of inappropriate discussions with the governor or anyone from his office about a 'deal' or a quid pro quo arrangement in which he would receive a personal benefit in return for any specific appointment to fill the vacancy."

That vacancy, of course, is Obama's vacant Senate seat. The report concludes that Obama had no contact with the governor or his staff.

His incoming chief of staff, Rahm Emmanuel, however, had one or two phone calls with the governor and several conversations with the governor's aide about the vacant Senate seat. But they do maintain that that contact was not unusual, and there was no deal-making going on.

And the final word, of course, on all of this will come down to the U.S. attorney handling this case. But this does attempt, Carol, to answer some of the questions people have been asking since this scandal broke, which is, who spoke to the governor, and what did they discuss.

COSTELLO: I'm sure more details will be leaking out eventually. But I'm sure the Obama team wants to turn its attention towards the inauguration. And I know that you've been hearing new details about Obama's swearing in, details that have been leaking out.

BOLDUAN: Yes. Things are slowly coming out. Not only is there quite a list of celebrities that will be attending the inauguration. The Obama transition team announced yesterday that the president-elect will be using the same Bible that President Lincoln used during his first swearing in for Obama's historic swearing in.

Now, right now it's being held, we're told, in the Library of Congress. And Obama will be the first president since President Lincoln to use this historic Bible. So, a little bit of history from one Illinois -- from one Illinois president to the next.

COSTELLO: Absolutely. Kate Bolduan, live in Washington this morning.

Thank you.

ROBERTS: Well, the push is on. Mounting pressure on the New York governor to make the call on Caroline Kennedy. Will she wind up with that Senate seat?

And they are the littlest victims of the housing crisis, and they can't even speak up. When holidays and hard times collide, a spike in abandoned pets and what you can do.

And New Year's financial resolutions. You've been flooding Gerri Willis with your e-mails all morning. She's answering your questions to help you out of debt in 2009.

We'll have all that for you straight ahead. Six minutes now after the hour.

(COMMERCIAL BREAK)

ROBERTS: Live pictures this morning out of Seattle. And you can see why they're having some problems there in terms of travel. The snow is coming down.

COSTELLO: Come back nice man.

ROBERTS: Yes.

(LAUGHTER)

He went away. He didn't like the camera there. I guess this is Sea-Tac Airport. People ...

COSTELLO: There he is.

ROBERTS: ... trying to get home for the holidays. Folks wandering around trying to catch an early flight. It is early there. It's just a little bit after 5:00, but they do have some snow coming down.

COSTELLO: It's a local reporter in Seattle. You can see what we do in between live shots. Now, just walk around like a crazy person.

ROBERTS: Walking back and forth, walking back and forth.

But that's snow there. That's probably the leading edge of that big storm that's coming in. It's going to cause a lot of problems. We've got trouble all across the northern tier of the country, as well, as people are trying to get home for Christmas.

COSTELLO: I'm sorry, (INAUDIBLE).

(LAUGHTER)

ROBERTS: He's up early. It's 5:00. He probably is in his first live shot for a few minutes. Just kicking back, passing the time.

Well, this is not a nation of scrooges, at least according to a new poll out that asks Americans how they really feel about Christmas.

Twenty-seven percent of Americans say they feel gung-ho about the holidays, and believe that Christmas is the best time of year. Thirty-two percent say ho-ho-ho. Twenty-five percent say ho-hum, meaning that they like Christmas, but they're not wild about it.

And 12 percent say bah, humbug. COSTELLO: Twelve percent?

ROBERTS: Twelve percent.

COSTELLO: That's a lot.

ROBERTS: Yes.

COSTELLO: Oh, I feel sad for them. Well ...

ROBERTS: It's not a time to be feeling jolly for those folks.

COSTELLO: That's a sad, sad thing. You've got to fix that.

We did find someone in full holiday spirit. I-Reporter W.J. Woods in Murray, Utah, sent in pictures of a house all lit up for the holidays. And it's surely making the local power company really, really happy. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... Rudolf the Red-nosed Reindeer. You've really got to watch him.

(END VIDEO CLIP)

COSTELLO: (INAUDIBLE) go to CNN.com/am and send us your holiday i-Reports.

ROBERTS: Hey, I can top that. Let's go back to the guy walking back and forth in front of the camera.

(LAUGHTER)

COSTELLO: For some reason, that struck me as so funny.

ROBERTS: Exciting stuff.

COSTELLO: Yes, it was really quite exciting.

You know, it's been spend, spend, spend. But remember, you will be paying later. CNN's Gerri Willis has some great tips on how to get your debt under control.

She's been blogging all morning.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.

COSTELLO: People have been sending you questions like mad.

WILLIS: Like mad. And I'm not saying don't enjoy the holidays. Enjoy the holidays. Just, you know, don't spend every last dime you're ever going to make this year, because the economy is really bad.

Let's go to the first question. I got lots of questions. This one from Mark. He says, "I have a lot of consumer debt and recently got laid off. What do you think about the credit restoration programs?"

I am not a fan of this programs. They're sometimes called credit repair programs. And I'm not the only one who doesn't like them. The Better Business Bureau similarly has big questions about these services.

Complaints about them are on the rise. And the reason is, these services, they charge you a fee for doing things you could do yourself, like setting up a payment schedule with a creditor. Second, they may encourage you to stop making payments on your debt. Bad idea. You just don't want to go there.

There's no shortcut to fixing your credit -- on your own, the old-fashioned way. And nobody -- look, nobody can remove anything from your credit report that's not -- that's true.

So, you know, look out for these guys. They're bad news. You definitely don't want to go there.

Next question comes from Jim who asks, "In the last month I've received notice from three different credit card companies canceling my account, because I haven't used it in two years. Is this a new effort by the banks to reduce their potential risk?"

Well, Jim, yes, that's pretty much what's going on here. Credit card companies are pulling in their horns. Not only are they canceling old cards that aren't used, they're reducing the limits they even spend. They're raising interest rates.

What I suggest that you do, if that's an old card that really makes your credit history look long, is call them up. Ask if they'll reinstate it. Even if you're not going to use it all the time, you want to have that on your credit history. It makes you look like a good payer.

Question number three is from Barbara. She asks, "My husband and I are in our 70s. We're thinking of selling stock and applying the proceeds to our mortgage loan in order to reduce our monthly payment. Is it a good idea?"

Well, I'd have to say that selling stocks right now in the teeth of a bear market is probably not a great idea. You're going to take at least a 40 percent haircut here. If you only waited a little while longer, it might make more sense then. But I hate to see people sell stocks when you've had stocks trade down so dramatically.

ROBERTS: Yes, because you're just locking those losses now. Right?

WILLIS: That's right. That's right.

COSTELLO: So, you're still blogging, right. So ...

WILLIS: I'm still blogging. And I have to tell you, some folks are answering each other's questions.

COSTELLO: Oh, that's cool. Who needs Gerri?

(LAUGHTER)

ROBERTS: She's the ...

COSTELLO: But we do need you.

ROBERTS: She's the moderator.

COSTELLO: She's the moderator.

ROBERTS: To some degree.

COSTELLO: So, cnnam.com.

WILLIS: Right.

COSTELLO: OK.

WILLIS: You've got it.

COSTELLO: We'll see you later.

ROBERTS: Thanks. It's, I think, cnn.com/am.

Got it. Here we go.

COSTELLO: Well done.

ROBERTS: We'll let you get back to work. I have it up here. There's a lot of interesting stuff in here.

WILLIS: Yes, yes. It's great.

ROBERTS: Thanks, Gerri.

He's the man with all the toys, and he's only got 24 hours to deliver them all. So, where is the big guy in the sky right now?

We're tracking Santa Claus with the help of NORAD. And my sources tell me that we do have a spotting.

And they didn't just lose their homes to foreclosure, they lost their whole families. A spike in abandoned pets, and how you can help out these little critters.

It's 13-and-a-half minutes now after the hour.

(COMMERCIAL BREAK)

ROBERTS: Sixteen minutes after the hour. That's a live look from inside the Boston SPCA, there in Massachusetts.

That's one of the many residents of the SPCA up for adoption. A lot of animals coming in this year, because people have lost their homes. They can't keep their pets anywhere, and so they're turned over to the Humane Societies.

A lot of little critters looking for homes this Christmas. Maybe you can help out. And we'll be talking more about that coming up in just a couple of minutes here on the most news in the morning.

In the meantime, turning to politics, former first daughter Caroline Kennedy wants Hillary Clinton's Senate seat. And the political friction is really heating up.

CNN's Mary Snow joins us now. Good morning.

MARY SNOW, CNN CORRESPONDENT: Good morning, John.

You know, we haven't really seen much from Caroline Kennedy in the past couple of days -- not speaking publicly, but a lot being said about her.

One prominent New Yorker is speaking out about the timing of an appointment. And the man who will ultimately make the decision is expressing some frustration.

(BEGIN VIDEOTAPE)

SNOW (voice-over): New York Governor David Paterson has been visiting U.S. troops overseas, but couldn't escape questions about Caroline Kennedy thousands of miles away.

In a conference call from Germany, he was asked about political rumblings in New York over Kennedy versus other contenders for Hillary Clinton's Senate seat.

GOV. DAVID PATERSON (D), NEW YORK: What I'm trying to keep away from is the lobbying, coercion and distracting information.

SNOW: One opinion on timing is coming from New York City mayor, Mike Bloomberg.

MAYOR MICHAEL BLOOMBERG (I), NEW YORK CITY: Talk to the governor. And I think the governor should make a decision reasonably quickly, because this is just getting out of control.

SNOW: Bloomberg says he's not endorsing Kennedy, who worked for the city's Department of Education, but defended her.

BLOOMBERG: The fact that she comes from a family with an illustrious history of service to this country, you certainly shouldn't hold it against her.

SNOW: Bloomberg's comments come as New York Democratic Congressman Gary Ackerman stepped up his criticism of Kennedy, taking aim at her on CBS's "Face the Nation" for not facing the press.

REP. GARY ACKERMAN (D), NEW YORK: They have basically Sarah Palinized her, if I can coin a phrase. SNOW: Kennedy has only taken a few questions from reporters. She submitted written answers to some news organizations, including the "New York Times." But she declined to provide the "Times" with information about financial disclosures -- something that would be required, if she were running for election.

A Kennedy spokesman says, "If Governor Paterson were to choose Caroline, she would, of course, comply with all disclosure requirements."

The watchdog group, Center for Responsive Politics says, Kennedy would only be subjected to disclosure rules, if she is appointed.

But other people being considered hold elected office and have a public financial record.

MASSIE RITSCH, CENTER FOR RESPONSIVE POLITICS: And so, she may want to put herself on an even playing field with them by submitting to this sort of disclosure, even though she doesn't really have to right now.

SNOW: And one veteran New York political reporter sees the scrutiny only growing.

FREDRIC DICKER, "NEW YORK POST" STATE EDITOR: This has galvanized the New York political establishment. Democrats, interestingly enough, are not rallying to Caroline Kennedy's side.

(END VIDEOTAPE)

SNOW: And New York's governor, David Paterson, says he feels no rush to appoint a replacement for Hillary Clinton, of course, until she vacates her seat. That's only after she's confirmed by the Senate as secretary of state -- John.

ROBERTS: So, that seat could remain vacant for another month, then.

SNOW: Exactly. And what the governor's office has been saying is that they don't expect, obviously, to fill that seat until after the inauguration.

ROBERTS: Yes. He doesn't like to be pushed on this.

SNOW: No. And you could sense a little pushback from him.

ROBERTS: Yes. And there are some people who are upset with the sense of entitlement, as well. So, we'll see where this goes.

Fascinating story. Mary, thanks so much for that.

SNOW: Sure.

ROBERTS: Carol?

COSTELLO: When hard times and the holidays hit at the same time, you know, it means some negative things sometimes. There's a surge in the number of families in foreclosure simply abandoning their pets.

What's being done about the animals left behind? We're taking you live to a shelter in Boston. In fact, we're there right now, and we'll return right after this.

Also, a Christmas travel nightmare. As of 8:30 last night, 500 flights were canceled out of Chicago's O'Hare Airport. We'll check on the status of the worst of other delays.

It's 20 minutes past the hour.

(COMMERCIAL BREAK)

ROBERTS: Coming up, and 23 minutes after the hour, and the top videos right now on CNN.com, most popular, you saw it happen live here yesterday on AMERICAN MORNING. Absolutely amazing video of people being rescued from their cars just north of Washington, after a massive water main break turned roads into raging rivers.

Also, a Christian concert by a Palestinian rock band, trying to keep Christmas spirits up in Bethlehem. The city's Christian population has dwindled, and the town is now mostly Muslim.

And again, you saw it here on AMERICAN MORNING. The paparazzi nabbed new pictures of a chest-baring president-elect. The pictures of Barack Obama were taken on a Honolulu beach near the Obama's vacation house.

And those are the most popular videos on CNN.com.

COSTELLO: You know, foreclosures displaced families, but there are other victims as well. And these victims can't even speak up. The numbers tell the story.

Pet abandonment is up all over the country, with over 3,000 animals dumped this year in Boston alone.

Joining us live from Boston is Brian Adams. He's the spokesman for the MSPCA.

Good morning, Brian.

BRIAN ADAMS, SPOKESMAN, MSPCA: Good morning, Carol.

COSTELLO: So, tell us about the surge in animals you're seeing at this time.

ADAMS: We're actually seeing quite a few more animals coming in due to economic reasons, such as foreclosure, cost of care. And these are rising by a pretty high percentage over the last few months.

COSTELLO: And what do people tell you when they turn over -- because, you know, the thought of, like, giving up my dog, it would kill me. But what are people telling you when they have to turn over their animals? ADAMS: Basically, people are coming in and telling us that it's becoming a financial burden on them. A lot of people are actually becoming foreclosed on, and people who have been surrendering due to straight cost has risen 65 percent over last year.

COSTELLO: And not only that, you're finding that a lot of people are not -- they don't have the guts to actually walk into the shelter, but they're abandoning animals outside. Tell us about that.

ADAMS: Exactly. That's a bit of a mystery, because we are open 24 hours a day, seven days a week. And last year, for instance, we had 16 cats abandoned on our property, basically left outside in carriers, or loose.

And this year alone, since September, we've had 39. They've been left in sacks in the rain, outside of the front doors.

There was one, actually, who someone dropped off and just stayed in front of the hospital doors until someone went out and got them.

COSTELLO: Why do you suppose they're doing that? Why not just come into the shelter, since you say it's open 24 hours a day?

ADAMS: Well, I think one of the reasons for that is, they might not just want to do it themselves. It might be too tough for them to do.

And what we're doing is urging them to come in, because they have valuable information that provides us with the entire history of the animal. Without that history, it could take days or weeks longer for us to evaluate the animal, and then put it up for adoption. So, they save us tremendous time, tremendous resources with a 20-minute conversation.

COSTELLO: Right, right. And then, that helps you adopt the animals out.

Let's talk about adoptions for a minute. Are they down, too? Are people coming in to adopt these animals?

ADAMS: People are. Our adoptions are fairly strong. However, they're being quickly outpaced by the amount of surrenders.

We do have a lot of animals in foster care. We do have a lot of animals going to new homes around the holidays and beyond. However, the rate that they're coming in, so many an hour, is simply amazing. It's not unlikely that we might see anywhere from 50 to 100 animals come in in a given week.

COSTELLO: Wow. You know, you talk about the cost of having an animal. And, you know, if your animal gets sick, it really is expensive to have those animals treated.

Is there anything people can do to kind of defray those costs?

ADAMS: What they should do is find out from their veterinarian if they do have any specific programs for anyone who is going through economic turmoil.

One of the programs that we have here is the Pet Care Assistance Fund through our Angel Animal Medical Center. That actually helps people who are going through tough times and could cover up to half of their veterinary bills.

In addition, we offer low-income spay-neuter programs throughout the state, where people can receive up to half off on that. And if they happen to live in the Boston area, you could do a spay or neuter for $50 to $80, if you qualify.

COSTELLO: Excellent. OK. We have to say goodbye now, but I didn't ask the name of your friend. I'm sorry about that. That was rude.

ADAMS: Oh, that's OK. This is Rosalyn here. Rosalyn was given up due to foreclosure. And, yes, wants to find a new home as soon as she can.

COSTELLO: I bet she does. She wants to crawl all over you now, too.

(LAUGHTER)

Thank you, Brian ...

ADAMS: Exactly.

COSTELLO: ... for joining us this morning. We sure appreciate it.

For more information on the pets available for adoption in Massachusetts or nationwide, go to mspca.org/housing. And remember, you can also contact your local SPCA or Humane Society shelter.

ROBERTS: Looks like a very cuddly kitty. He's got a good way with cats, too.

COSTELLO: He does.

ROBERTS: It's coming up on 28 minutes after the hour. Here are this morning's top stories.

Bad economic news from the United States and a sell-off of Toyota stocks, and Tokyo's main index down 2.4 percent this morning. Hong Kong's Hang Seng also lost two-and-three-quarters of a percent during overnight trading. Europe's main markets in a shortened Christmas Eve session are down, but they're down just slightly.

And big news for Lance Armstrong and his girlfriend, Anna Hansen. I know you're saying, "Who?"

COSTELLO: Who?

ROBERTS: Anna Hansen. Anna Hansen. They're expecting a baby. The news is stunning, because doctors thought that Armstrong, a testicular cancer survivor, would not be able to have children naturally after chemotherapy, radiation, operations. The cycling legend has three kids with his ex-wife. They were conceived by in vitro fertilization from banked sperm.

Armstrong's new baby is due in June.

COSTELLO: Congrats.

If you're looking for an easy holiday getaway, forget about it. Snow, ice and fog expected to delay Christmas Eve travel from coast to coast, on the roads, on the rails and on the runways. That means more passengers stranded at airports, like Chicago's O'Hare, where some 500 flights were canceled yesterday alone.

Old Man Winter throwing air traffic into a tailspin. Bonnie Schneider tracking it all from the CNN Weather Center in Atlanta.

(WEATHER REPORT)

COSTELLO: We will be ready and we will be careful.

Bonnie Schneider, many thanks.

ROBERTS: Well, the picture that was worth 1,000 words and at least two or three days of coverage, a shirtless Obama seen all over triggered new names for our president-elect, Ab-bama, Beach Barack. Is Obama getting rock star treatment from the press? The so-called celebrity in chief. We'll have that story for you coming up. 31 minutes now after the hour.

ROBERTS: Renting out her womb.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I've had the power to take a couple, a loving couple and transform them from just a couple to a family.

(END VIDEO CLIP)

ROBERTS: Women who help other women become moms, for a hefty price. Kiran Chetry is on the "Baby Quest."

You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

COSTELLO: And this just in to CNN. New data out on the economy, weekly jobless claim numbers out just moments ago. Gerri Willis is tracking that for us.

Tell us what they are, Gerri.

WILLIS: Hi there, Carol. Important numbers this morning and dramatically negative, weekly jobless claims. These are new applicants, 586,000 folks applying for new jobless claims in the week ended this past Friday. Up dramatically from the previous week which was 554,000, that is. And if these expectations, much bigger than expectations.

Remember, in a healthy economy there's some 100,000 jobs that are created each and every week. And the threshold for what's a bad economy and what's just an anemic economy, the loss of some 400,000 jobs a week. So, you can see this is important and really negative. Let's talk a little bit about some of the more -- some of the other economic numbers coming out right now.

Durable goods orders. These are heavy-duty orders coming in for industry, and it was expected to be down three percent. It was only down one percent. That's slightly better than expectations. And we are also seeing some numbers on personal income, coming in negative here, not a big surprise from what we've seen, what's going on with consumers. Down 0.2 percent, 0.02 of a percent negative. So the big headline here, obviously, is the weekly jobless claims, which are so negative. 586,000 Americans applying for new jobless benefits in the week ended last Friday.

So, not a happy Christmas, Carol, for some folks out there.

COSTELLO: No, not at all. Thank you, Gerri.

WILLIS: My pleasure.

ROBERTS: Well for many people having a little one in their house is one of their fondest dreams. But sometimes having a child in the good old-fashioned way just isn't possible. So all this week we are looking at the ways that people are trying to have a child, we call it "Baby Quest."

COSTELLO: That's right. And today, we are looking at a family that became complete with the help of a surrogate mom.

Kiran Chetry has her story.

(BEGIN VIDEOTAPE)

KIRAN CHETRY, CNN CORRESPONDENT (voice-over): Writer Alex Kuczynski has a life so charmed she sometimes resembles the well- heeled subjects of her pieces, social status, beauty and the wealth to buy what's missing. Now she has something even money can't buy.

What was it like to be living that and being unable to have the one thing that you wanted?

ALEX KUCZYNSKI, WRITER: I think writing for the "New York Times" or living in New York City or, you know, going skiing in the winter doesn't mean that you're inured from tragedy in your life.

CHETRY: After 15 attempts to have a baby, Kuczynski holds in her arms her own biological child carried by a surrogate at a cost of $25,000.

KUCZYNSKI: This is a miraculous. And it's about love. And it's about human generosity.

CHETRY: That surrogate is Cathy Hilling, a Pennsylvania school teacher who has three children of her own. Then carried two for other women. She also had 17 foster children over the years.

CATHY HILLING, SURROGATE MOTHER: It's the most incredible feeling to know that I've had the power to take a couple, a loving couple and transform them from just a couple to a family.

CHETRY: No hard figures are kept on U.S. surrogate births. Some states ban the practice or make surrogates use donated eggs so they are not biologically connected to the child.

RON POOLE DAYAN, SURROGACY CIRCLE: When you come to us you have a 99 percent chance of having a baby and 100 percent of keeping it.

CHETRY: Alex Kuczynski is not just any wannabe mom. She wrote a prominent magazine article about how she felt enjoying the spoils of her own life while a woman of lesser means carried did the labor of bearing her child.

KUCZYNSKI: When Cathy was pregnant with our baby, I did go skiing and whitewater rafting and I went to the Super Bowl. And I did a lot of things that actually, frankly for the six years prior to that I hadn't been able to do. You know, I spent a good part of a decade in doctor's offices.

CHETRY: Explain, if you will, because you talked about people being able to criticize with what they are unfamiliar with. For people who charge, it must be easier to be able to pay somebody to have your baby.

KUCZYNSKI: I'd rather have been pregnant 10 times than gone through 11 IVF cycles and four miscarriages any day. I was very disappointed not to be able to be pregnant to term. And to carry my son.

CHETRY: Cathy received just $18,000 while another $7,000 went to medical costs.

HILLING: It's much more than a financial transaction. It's a life experience.

CHETRY: Kiran Chetry, CNN, New York.

(END VIDEOTAPE)

COSTELLO: And while many people are turning to science to have babies, right now thousands of children are in foster care in the United States, hoping to get adopted. Some agencies are turning to the web to help find families for children, including the Michigan Adoption Resource Exchange. They post videos of children hoping for a new family. Here's 13-year-old Nick from Michigan telling his own story.

(BEGIN VIDEO CLIP)

NICK, AGE 13: I am missing my friend Victor. I would like someone to take me and my family and I could act nice and stuff. So, Victor, what do you have to say? OK. He says that he would like me to go to a home and take all his friends with me. And stuff like that.

(END VIDEO CLIP)

COSTELLO: So, listen to Victor and find Nick a home. So sweet and heartbreaking.

ROBERTS: Wow.

COSTELLO: I know, imagine having to do that when you're a child, sell yourself to try to get a mom and dad.

ROBERTS: I can't imagine.

COSTELLO: Yes, so there are a lot of nice people I know waiting to give Nick a home. If you're interested in adopting Nick, go to mare.org. The agency said Nick's friendly. He's eager to please. But he needs guidance and encouragement in expressing his feelings and frustrations. A patient and committed family who can provide a safe and structured environment would be best for him. Again, you can go to mare.org to learn more about Nick and you can find the link at cnn.com/am.

ROBERTS: Yes, the one thing we find about the "Baby Quest" series, a lot of people go to extraordinary length to have their own child but for some it's an impossibility and there are a lots of kids our there like Nick who are looking for their own home.

COSTELLO: And sadly it's very difficult for older kids to get adopted but it can be so worth it.

Coming up tomorrow on our "Baby Quest" series, rolling back the biological clock. Herbal remedies, acupuncture, in vitro fertilization, just some of the treatments that women try who actually are beyond the age of 40. Alina Cho shows us their chances of success that's tomorrow right here on AMERICAN MORNING.

ROBERTS: Well, run, run Rudolph. Santa has got to make it to town. Where is the big guy now? Well, you know what we're talking about. Time to track Santa Claus, get the kids and we'll show you where the sleigh has been spotted already this morning. There he is live. And you know who's bringing that toys? None other that the folks at NORAD. We'll tell you where he's heading coming up next.

War of the windows.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Good economy, bad economy, we have to create desire in the consumer.

(END VIDEO CLIP)

ROBERTS: Trying to turn tourists into shoppers. How far famous department stores will go to entice gawkers to come inside and buy.

You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

ROBERTS: This just in to CNN, sure, he's got 24 hours but he's got a lot of ground to cover today. So, where is Santa Claus right now? Check this out. After searching for the big guy in the sky, operation Santa tracker has spotted him on the northeast coast of Australia. Australia And he's headed to a home near you. In case, you think it's easy keeping track of St. Nick. Here's a look at just what it takes.

The North American Aerospace Defense Command usually keeps an eye out for potential threats to U.S. security. Right now more than 1,200 volunteers are gathered at Peterson Air Force Base in Colorado Springs to answer thousands of phone calls and e-mail from people searching for Santa all around the world. For more on Santa tracker, I'm joined by General Gene Renuart. He is the commander of NORAD in the U.S northern command.

General, good to have you with us this morning. Explain what's going on in the operation center there.

GEN. GENE RENUART, NORAD COMMANDER: Well, thank you, and Merry Christmas to all.

We have, as you said, 1,200 great volunteers through the course of the 24 hours before Christmas morning. They're tracking Santa as you said, now in Australia. He'll make his way around the world. We're going to answer some 140,000 e-mails and phone calls today. And 10 million hits on the Web site. So, this is a big production, and we're just proud to do it.

ROBERTS: It's really, really good work you're doing there. I know it's something that's pretty much ongoing since back in 1955. Describe the technology that you use there to keep an eye on Santa. Is the same sort of stuff that keeps a watchful eye over North America?

RENUART: Well, you know, from that very first phone call in 1955, we have continued to adapt our radar technology, our space-based technology. Today we use global positioning systems, it's all integrated together with our friends from Google Earth who have helped us to do this. And we have put together, as you know, a 3D picture so that youngsters from all over the world can see where Santa is. It is a highly technical operation.

ROBERTS: And we just want to put some information up here on the screen, General, so folks at home know where to go to get this information. First of all, you've got this fabulous Web site, it's www.noradsanta.org. You can track Santa in real time all around the world. You also got a phone number if people want to call in for information, that's 1-877-HI-NORAD or you can also send an e-mail at noradtracksanta@gmail.com. We should say general, you've got an illustrious career under your belt.

At one point you were one of the top officers at the Central Command. You were responsible for overseeing a lot of the operations in Iraq and Afghanistan. How difficult is it tracking Santa as he makes his way around the world?

It looks like we - despite all of the fabulous technology -

RENUART: Well, we got you back.

ROBERTS: We got you back. OK. General, I was saying that when you were at the Central Command down there in Tampa, you were overseeing operations in Iraq and Afghanistan. How difficult is it keeping track of Santa around the world?

RENUART: Well, it's - it takes a lot of effort on the part of both sensor operators and technologists from around the world to help make this work. Much more complicated in many ways than running those air operations in Iraq and Afghanistan, but it's one that's a lot more fun, I will tell you.

ROBERTS: So, what do you use, infrared technology to detect Rudolph's nose, you use radar technology to figure out where the sleigh is?

RENUART: We have space-based sensors, as you said, infrared that can track Rudolph and those hardworking reindeer. We have ground- based radars. Santa is a great partner in this as well. He collaborates with us very carefully, and so we're able to keep a pretty good eye on him and make sure he travels safely.

ROBERTS: And general, tell us if you will, we mentioned this just a second ago this program goes back to 1955. Give us just a little bit of the history on how the U.S. military and NORAD got involved in tracking Santa.

RENUART: Well, it's a great story. By accident a wrong number led to the beginning of this program. Back in those middle '50s, Sears had put an advertisement out with a number where kids could call and talk to Santa. Unfortunately, they missed one of the numbers on there, and when it rang, it rang in our Cheyenne Mountain Operation Center. Lieutenant Colonel Choop answered the phone and he just started the tradition from there and we really couldn't stop. Once you began it, it's such an enjoyable and worthwhile operation that we've continued over the years.

ROBERTS: Well, General, it's great to talk to you this morning. Good work that you're doing there.

Thank you to you and your folks there at the operation center, and we look forward to Santa making his way here to the United States. Thanks for being with us here this morning. RENUART: Thank you very much, and Merry Christmas to all.

ROBERTS: And the same to you, sir.

COSTELLO: I'm glad Santa cooperates with NORAD and it makes me feel good. CNN NEWSROOM is just minutes away. Alina Cho is at the CNN Center with a look at what's ahead.

Good morning.

ALINA CHO, CNN CORRESPONDENT: Hey there, Carol. Good morning to you.

Here's a check of what we're working on in the CNN NEWSROOM.

Miserable weather from coast to coast. You guys have been talking about it. Stranded travelers, rising tensions and a Christmas eve on edge.

Holiday in paradise. Barack Obama basks in Hawaii, and the glow of a new ratings poll. We'll tell you about it.

And hello Dolly! A scrapbook of stars and a century of living, so why is that woman there ready to rumble over a prime piece of real estate? We're talking about a rent control apartment at Carnegie Hall. A lot to talk about. We get started at the top of the hour on CNN. Carol, back to you.

COSTELLO: We'll stick around. Thanks, Alina.

From the window to your wallet, how far some stores are going to get you to stop look at their windows and come inside to buy something. The window wars. It's 50 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: We're looking at a live picture of Chicago, where it's supposed to be really cold and, of course, there will be more airport delays. I'm sorry to be the bearer of bad news, but you must be warned. Please call your air carrier. Merry Christmas, everyone.

You know, the clock is running out. It is Christmas eve, retailers hoping for a Santa Claus rally are keeping their doors open later than ever to draw in last-minute gift buyers. Some stores never closed last night. Others are extending their hours tonight. Experts predict this will be the weakest holiday shopping season since at least 1969.

But, if you're looking at the world's famous window displays in New York, you may be hard pressed to find any signs of a recession. But the elaborate and lavish winter wonderlands are actually the battleground in the war over your money.

Here's CNN's Alina Cho.

CHO: John and Carol, if you've ever been to New York around the holidays, surely you've seen some of the elaborate window displays. Department stores love to show them off. But did you know that holiday windows are also important to business? How much? You may be surprised.

(BEGIN VIDEOTAPE)

CHO (voice-over): 'Tis the season to shop until you drop. Or maybe not. These tough economic times are making it tough on retailers. So, department stores are doing everything they can to attract shoppers. The way to get them inside? Spectacular holiday window displays outside.

SIMON DOONAN, CREATIVE DIRECTOR, BARNEYS NEW YORK: Good economy, bad economy, the mandate is the same. We have to create desire in the consumer.

CHO: Department stores like Bergdorf Goodman and Barneys are known for their holiday windows. Tourists stand in line to see them. With Macy's it's a tradition that dates back more than 130 years.

ORLANDO VERAS, SPOKESMAN, MACY'S: The windows do draw a lot of attention. They bring us a lot of customers. It's one of the key elements of getting customers in the door.

CHO: It doesn't come easy. Store designers begin working on the displays a year in advance. Keeping them shrouded in secrecy, until the big unveiling.

DAVID HOEY, VISUAL PRESENTATION, BERGDORF GOODMAN: We're trying to entertain and inspire, and we're doing that, then we're doing our job.

STEPHANIE ROSENBLOOM, BUSINESS REPORTER, "NEW YORK TIMES": This has been one of the most difficult holiday shopping seasons in decades. When the November sales came out and the International Council of Shopping Centers said it was one of the weakest sales in 35 years, you know, for November.

CHO: And if projections hold true, December won't be much better. Why holiday windows are so important for business, why the mantra in this case is spare no expense.

JIM GOLD, PRESIDENT & CEO, BERGDORF GOODMAN: For now, the windows are considered sort of sacred.

CHO: And while some tourists are happy to gawk and move on, others say a well-designed holiday window can make all the difference.

DANIELLE HAIR, HOLIDAY SHOPPER: It puts us close to the store and lured in from wherever we might be coming from. So, it probably increases the odds of getting more business.

(END VIDEOTAPE)

CHO: According to Macy's, 7,000 people per hour come to the New York flagship to see their holiday windows. They say, even if a fraction of those people come inside and buy something, then the windows are well worth the time and expense. John and Carol.

ROBERTS: Alina Cho for us this morning. Alina, thanks so much.

Well, they did nothing wrong when they snapped a shirtless Obama photo that everyone was talking about, but is it right that the president-elect is chased down by the paparazzi? We'll look at the potential price of being celebrity in chief.

It's 56 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Well, the picture is everywhere, Barack Obama on the beach escaping the frosty Chicago Christmas, but could things like this hurt his ability to lead, or might they just add to the cachet?

Here's CNN Joe Johns.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): Take a good, hard look. A bare-chested photo that made its way around the world hours after it was taken. At first a big question, did the photographer breach security to get the shot? Turns out the answer is no. But there was lots more to talk about.

Here's the front page of today's "New York Post." "Fit for Office" is the headline, and there are plenty more lines about Ab- bama and Beach Barack. Is this just more of the so-called rock star treatment some say Obama had during the election. The celebrity McCain used against him.

ANNOUNCER: He's the biggest celebrity in the world. But is he ready to lead?

JOHNS: And during the campaign, Obama certainly used magazines like "US Weekly" and "People" which regularly features celebrities on the cover to help him win the election. He appeared on the cover of "Time" magazine 14 times this year. Now, the election is over, and the questions remain. Is Obama getting great coverage because of his celebrity status?

BARACK OBAMA (D), PRESIDENT-ELECT: How many shots of us do you need?

JOHNS: It's not like he hasn't courted the coverage, and generally the star treatment benefits a politician who can handle it.

ALEX CASTELLANOS, CNN CONTRIBUTOR: It's such a great gift, Reagan had it. John F. Kennedy had it, and it's become very valuable to a country when it's uncertain about its future. How does he use it? Look at the way he's using it now. You inspire. You don't stop campaigning just because the campaign is over.

JOHNS: But on the other hand, right here in "The New York Post" next to the beach photos is a report that 45 percent of Americans believe either Obama or one of his top campaign aides is tied up in the Illinois governor's scandal. That's no political honeymoon.

Being a celebrity president really cuts both ways, when you compare the kind of media Obama's gotten to, say, Bill Clinton. His saxophone playing made for some sexy shots, but you'll probably find that the guy appeared on the front page of the tabloids a lot more than Obama, particularly when Monica Lewinsky surfaced.

So, given all that, why did this photo generate so much fascination? Pretty simple, unlike some other presidents or presidents-elect, this guy is young, fit, trim and he looks pretty good in a bathing suit. Go figure.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Coming from Joe Johns that means a lot. Barack Obama should take that as a high compliment.

ROBERTS: Pretty good?

COSTELLO: Well he looks great.

ROBERTS: He looks great in a bathing suit.

Boy, I should so lucky.

COSTELLO: Like I said, though, I just don't like to think about my president --

ROBERTS: We have to go.

COSTELLO: OK, we do.

So thanks for joining us on AMERICAN MORNING. We'll see you back here tomorrow.

ROBERTS: All right. Right now here is CNN NEWSROOM with Alina Cho.