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American Morning

Mideast Fighting Intensifies; Obama Back in Chicago; What Madoff Really Owns; Woman Gives Birth During Flight; Mass Death Bomb Plot Uncovered in Aspen, Colorado

Aired January 02, 2009 - 06:00   ET

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


(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Breaking news. New Israeli air strikes. A 2,000 pound bomb taking out a top Hamas leader as Hamas rockets continue to terrorize Israeli citizens.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: That was the explosion. We just had one explosion going off.

CHETRY: Plus, making the transition. Barack Obama goes to Washington and hears, sorry, we're booked.

UNIDENTIFIED MALE: There certainly was a lot of whispers when that came out.

CHETRY: Where the president-elect will be staying in the meantime on this AMERICAN MORNING.

(END VIDEO CLIP)

And welcome. It's Friday, January 2nd. I'm Kiran Chetry along with Joe Johns.

JOE JOHNS, CNN CO-ANCHOR: And I'm in for John Roberts.

CHETRY: In for John Roberts.

JOHNS: It may look like the weekend. It may feel like the weekend but we still got one more day to go.

CHETRY: Yes. And for the Obamas, one more day in Chicago and then they're getting ready for their big move to Washington this weekend.

JOHNS: Absolutely. So it's the beginning of a big deal there in the nation's capital.

We begin though with breaking news in Israel's newspapers reporting the country's top military brass are recommending a short but major ground invasion of Gaza. Thousand of Israeli troops stand ready at the border and more heavy artillery fire from the air.

Israel's top guns taking out a top Hamas official and a mosque that Israel says was being use to store missiles, rockets and other weapons. We'll have a live report from the border in a moment. The National Transportation Safety Board is looking into why a small plane crashed and burst into flames killing two people. It happened last night at a small airport in Joliet, Illinois, about 55 miles southwest of Chicago. A witness who saw the charred wreckage said there was nothing left of it. Officials say it appears the plane took off from New York.

Aspen, Colorado held its New Year's party a day late because a bomb threat was in effect New Year's Eve. Police say local resident, James Chester Blanning, delivered threatening notes demanding $60,000 and left four bombs made of gasoline and cell phone parts across the resort town. Blanning was later found dead in his car. Police say he shot and killed himself.

CHETRY: Well, this morning the vacation is over for President- elect Barack Obama. In just 18 days, he takes the oath of office at the U.S. capital.

New pictures from overnight of Mr. Obama returning to Chicago from Hawaii. The quick stop before moving his family to Washington this weekend and then it's down to business. Monday he meets with House Speaker Nancy Pelosi to discuss a stimulus package aimed at jumpstarting the economy.

CNN's Jim Acosta is live in Washington and certainly no time being wasted. He certainly has a lot to take care of, but this stimulus package is going to be front and center, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Absolutely, Kiran. It is a sign of how quickly Barack Obama wants to get started. He's not even president yet, but he's collaborating with congressional leaders on Monday to plan for a huge stimulus package to jumpstart the economy. But before he can deliver change, he has to change his address.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): Their vacation may be over, but the Obama family has its sights set on the trip of a lifetime. America's next first family lands in Washington this weekend. Their first digs, the city's historic Hay-Adams Hotel. No stranger to presidents, this 80- year-old landmark according to local legend, also happens to be haunted by a ghost from the 19th-century.

The traditional residence of presidents in waiting, the Blair House won't be available until the 15th. No worries, the Hay-Adams is just steps from the White House.

MAYOR ADRIAN FENTY (D), DISTRICT OF COLUMBIA: It is exciting.

ACOSTA: D.C. Mayor Adrian Fenty says the Obamas return to Washington will usher in a new era on the nation's capital.

FENTY: He's shown a concern for Washington, D.C. I think it goes above the average federal politician that you may see just drives through the streets but ignores city issues. He's going to care. ACOSTA: The Obamas are moving in early because daughters Sasha and Malia start school next week at the elite private institution, Sidwell Friends. A ride to class this town hasn't seen since the Clintons.

REP. ELEANOR HOLMES NORTON (D), DISTRICT OF COLUMBIA: But when he comes this weekend, we're going to say he is here. We're going to say he's here.

ACOSTA: D.C. congressional delegate, Eleanor Holmes Norton, says Mr. Obama could make history in the district by signing into law a bill he co-sponsored in the Senate, a measure giving D.C.'s delegate full voting rights in the House, something city leaders have long sought.

NORTON: We think the stars are aligned now for the D.C. voting rights act.

ACOSTA: And for years we have known the District of Columbia has the place with a license plate that says taxation without representation. Does this mean you'll get rid of the license plate?

NORTON: Yes. He may even you use that license plate as he goes down Pennsylvania Avenue. We don't know for sure.

ACOSTA: Perhaps they can make a pit stop at D.C.'s gastronomic hotspot, Ben's Chili Bowl, which has the welcome mat out saying the Obamas can eat for free.

(END VIDEOTAPE)

ACOSTA: As for why the Obamas cannot move into the Blair House early, the White House says it has previously scheduled guests staying there. A spokesperson says it is not a question of outranking the Obamas -- Kiran.

CHETRY: All right. Jim Acosta for us in Washington. Thanks.

Well, he's jumping over every roadblock and going to Washington despite what may turn out to be a little bit of a fight. Senate Democrats say they expect Roland Burris to show up Tuesday for opening day on Capitol Hill, and he's the man that Illinois Governor Rod Blagojevich picked to fill Barack Obama's vacant Senate seat. Blagojevich, of course, has been accused of trying to sell it.

Senate Democrat aides say that Burris won't be allowed on the floor if he does show up. Burris told the "Chicago Tribune" that he's "not going to create a scene." He's still hoping that things get worked out and ironed out before he shows up.

Rahm Emanuel plans to resign his congressional seat today. He's officially becoming Barack Obama's White House chief of staff in 18 days. Emanuel also wrote a resignation letter to the Illinois governor. Illinois's fifth congressional district will have a special election to replace him. JOHNS: A bus driver in New York City has been charged with first degree reckless endangerment for allegedly leaving a man with cerebral palsy locked in a bus for 19 hours. It happened Wednesday night as the wind chill hovered near zero.

Investigators say they found Edwin Rivera yesterday morning still strapped in his seat right behind the driver's seat. He was taken to a hospital where he was treated for hypothermia. The driver of the bus could face seven years in prison if convicted.

This morning nine passengers who were removed from a flight to Orlando claimed they were the victims of racial profiling. The Muslim family and one friend say they were escorted off an AirTran flight in Washington after they were overheard discussing the safest place to sit. The group was eventually cleared by the FBI but had to pay for seats on another carrier.

(BEGIN VIDEO CLIP)

ATIF IRFAN, FAMILY REMOVED FROM FLIGHT: The airline told us that we can't fly their airline, that basically what they're saying to us is that they wouldn't book us on any flight even though the FBI agent went to the counter and recommended to them that we're completely safe. Their company or corporate policy, basically, is to not allow them -- anyone that I guess has been in the situation to be allowed onto the plane.

(END VIDEO CLIP)

JOHNS: AirTran officials say they were simply following security procedures.

Toyota already the leader in green rides reportedly has secret plans for a futuristic solar car. Japan's Nikkei newspaper is reporting that the company is rolling the dice in an effort to turn around its struggling business. The first models would reportedly have solar cells on the vehicle and also be recharged through solar cells on roofs of homes, but it won't be available for years.

CHETRY: Breaking news now out of the Middle East. The Israeli military appears poised for a possible ground invasion of Gaza. Israeli TV reporting that hospitals near the border have been evacuated to make way for mass casualties. Right now tanks are gathering and troops mobilizing apparently just waiting for word.

This buildup comes as the fighting continues in the air for a seventh straight day. Yesterday, Israeli warplanes killed a top Hamas leader.

Meanwhile, Hamas rockets are still flying and causing destruction in southern Israel. In all, four Israelis and more than 400 Palestinians have died.

CNN's Paula Hancocks is live for us on the Gaza-Israel border. We talk about these troops being poised, waiting for word. Any signs though that a ground battle could be coming soon, Paula? PAULA HANCOCKS, CNN CORRESPONDENT: Well, what we saw today which was quite interesting is about 280 foreign nationals being taken out of Gaza. Now, this is something that Israel wanted to do. They said all foreign nationals were able to leave. And so that could be another possible step forward before they actually carry out this ground operation.

Now an interesting point I should make is they didn't allow the traffic the other way. Journalists from international media still not allowed into Gaza to report what is happening there, even though the Israeli Supreme Court says the government should allow this international monitoring inside.

Certainly, on the Israeli side of the border, which we are on we're seeing on the horizon, tanks, armored personnel carriers, bulldozers still lined up, all facing in the direction of Gaza. The tanks are there. The soldiers are there. They are just waiting for the order.

CHETRY: And, Paula, why would Israel take the risk of losing ground soldiers, not keeping this an aerial operation?

HANCOCKS: Well, the problem for the military is they can only do much from the air. Certainly, there have been hundreds of sorties via fighter jets and by helicopters taking out weapons, warehouses, weapon caches, rocket launches. As soon as a rocket is launched, they go and find that launcher and try to destroy it.

They can't do it all from the air. They can't see everything from the air. And if something is being launched from right inside a residential area and there were a lot of civilians around, Israel says that it would not go ahead with that air strike, even though many civilians have been killed.

So they need if they want to get every single rocket to go in on the ground and almost search house by house to try and root out Hamas operatives who are hiding underground so that they get targeted. We're hearing from Shinbet (ph) many of them are even hiding in hospitals.

CHETRY: Wow. All right. Paula Hancocks for us. Keep us posted throughout the morning on this developing story out in the Middle East. Thank you.

JOHNS: Bernie Madoff accused of pulling off what may be the biggest scam in Wall Street history. Investigators are examining his list of assets to find out exactly what's left and where his money is. Christine Romans is "Minding Your Business."

And a rocky mountain resort town on edge after a man threatens mass carnage. Find out what he was planning and what police say he wanted in exchange.

It's nine minutes after the hour.

(COMMERCIAL BREAK) JOHNS: "Fiddler on the Roof" never sounded so good. Welcome back to the "Most News in the Morning."

Here's something that caught our eye overnight. A sign Americans may be getting serious about saving money one penny at a time. Lots of retailers reported a spike in sales of coin counters and piggy banks over the holiday season. That news coming on the heels of reports that show a jump in the amount of money people are putting into savings each month. So --

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: UnAmerican.

JOHNS: Oh, I know.

ROMANS: Americans just don't save money, but they're starting too, aren't they?

CHETRY: Maybe they're learning the lessons. We all are, right?

ROMANS: You know, the best thing for the economy is for you to save your money and hope all your neighbors spend their money. That's the best thing for the economy.

JOHNS: Right. Christine Romans is "Minding Your Business."

ROMANS: I am. I'm here with Madoff -- all things Bernie Madoff. He is -- wow, I tell you -- this is an alleged scam that has really caught a lot of people by surprise. Every day we find out new people who are embroiled in this, who have lost money. A lot of very famous, wealthy people who don't really want to talk about how they met Bernie Madoff and how much money they may have lost in this scam.

And the SEC and prosecutors right now are going over details of just what he has and try to figure out where he has it. He was ordered by prosecutors, ordered by the judge actually to tell the SEC this week exactly what his assets are, his real estate, what he has in checking accounts, investments, what his firm's assets are. So prosecutors and investigators are going over every single detail here. They're not telling us what he has, but this is what we do know.

We do know that, of course, he has a big place in Palm Beach. This is where that $10,000 lifeguard statue was stolen from so famously. A lot of people saw the irony in this $10,000 statue being stolen and then found dumped in a hedge. There it is right there courtesy of the Palm Beach Police Department.

JOHNS: Wow.

ROMANS: Then dumped in a hedge with the sign that basically said something. You can barely make it out but a sign that basically said, swindler Bernie, you know, returns stolen property to its rightful owner. Signed by the educators. There's somebody trying to give him a little bit of an education.

Anyway, $10,000 as Kiran keeps pointing out is such a drop in the bucket compared with what is expected to be missing. I mean, I think some 30 billion is what they've got up to that people think that they might have lost. 50 billion is the whole --

This is what else he has. He's got this New York City apartment that he bought in 1990 for just over $3.3 million that's on Park Avenue. That's where he is staying right now under house arrest. He also has a huge spread out in Montauk that he bought back in 1981 with his wife Ruth. So he's got these properties he's had for a while.

JOHNS: Right.

ROMANS: Prosecutors say that, you know, he's real estate rich. They're trying to figure out what else? Where is it? Where is it? And they're not publicly saying much, I can tell you that.

JOHNS: You don't just go and list your assets with the SEC when you take up a big job like this.

ROMANS: No.

JOHNS: I've got this, this and this so if you ever want it, just -- you know where to find it.

ROMANS: Right.

JOHNS: It doesn't happen.

ROMANS: No, it doesn't happen. And so now, the SEC, they'll all trying to figure out what he has and what can it possibly cover and what of people's gains over the past few years were fake, weren't even real. You know, people may have thought they had a certain amount of money, some many millions with him but they never really did. Those are paper returns.

The friends that we're counting that will be involved in this is just incredible. Trying to unravel all of this really something else. And again, prosecutors are not saying really anything publicly. They're not telling us what's on that list that they're going through and Bernie Madoff and his lawyer aren't saying anything publicly either. So this could last a while, could really last a while. So it's quite interesting.

CHETRY: All right. Thanks, Christine.

There's also some new details about Charles Barkley's run in with the cops. Police say he was running a stop sign drunk for an encore sexual encounter? Details.

It's 16 minutes after the hour.

Baby on board. A mother goes into labor over the Atlantic.

(BEGIN VIDEO CLIP)

DR. NATARAJAN RAMAN, ONCOLOGIST: The spirit of America is alive and there was everybody there to help.

(END VIDEO CLIP) CHETRY: Details of the daring mid-air delivery. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." We want to tell you right now about fast forwarding some stories that you'll be hearing about a bit later today.

Israeli troops massing on the Gaza border. Protests to ends the siege are being planned across the U.S. Palestinian groups will hold demonstrations in Philadelphia, Washington, Chicago, as well as Springfield, Missouri.

The gas tax back in the news. Only this time politicians want to raise it not eliminate it. Right now, a federal commission is working on a report recommending a 50 percent increase in the tax to help fund highway construction and repair. That would increase the cost of gas by about 10 cents.

And some airlines issuing a reminder for pregnant women who want to fly. They recommend that pregnant moms in their third trimester wait until they deliver their baby before taking a long flight. It all comes after a mom gave birth while flying over the Atlantic Ocean.

CNN's Dan Lothian has more on this incredible story.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN BOSTON BUREAU CHIEF: This newborn landed in Boston on time but arrived into the world way too early.

UNIDENTIFIED MALE: How's the baby doing?

UNIDENTIFIED FEMALE: He's doing perfect. He's doing great.

LOTHIAN: Her mother, Susan, believed to be a Ugandan national went into labor went into labor about six hours into the flight. They were somewhere over the Atlantic Ocean on Northwest Airlines Flight number 59 from Amsterdam to Boston.

DR. NATARAJAN RAMAN, ONCOLOGIST: Even though we didn't have a labor room delivery set up, things were just perfect.

LOTHIAN: He's just one of two doctors who fortunately were on board and answered the pilot's call for help.

DR. PARESH THAKKAR, FAMILY PHYSICIAN: The pilot (INAUDIBLE), you know, the baby was coming out, so I pulled the head.

LOTHIAN: A Boston area physician said he delivered countless babies but always on the ground.

THAKKAR: The baby was immediately crying, though. It was wonderful. Then we cleaned the baby.

LOTHIAN: Some of the 124 passengers began to pitch in.

RAMAN: The spirit of America is alive and there was everybody there to help. People brought baby food. People brought things.

LOTHIAN: An unforgettable ride for passengers who burst into applause once the captain announced that mother and baby appeared to be doing well.

UNIDENTIFIED FEMALE: Very, very nice. It was very nice.

UNIDENTIFIED MALE: Exciting?

UNIDENTIFIED FEMALE: Yes, yes.

THAKKAR: It's a wonderful happy new year for everybody in the family.

LOTHIAN: Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

CHETRY: Wow. Amazing. I always still find it amazing that you could go into labor and give birth that quickly.

JOHNS: Yes. Well --

CHETRY: It was 17 hours for me. I could have flown back and forth three times.

JOHNS: Right. Exactly. And just the risk of, you know, being that late and getting on a plane.

CHETRY: Getting on a plane, yes. You do. You do run the risk. But all's well that ends well. How lucky, two doctors on that flight.

JOHNS: Yes. It's incredible. All right.

Fresh from his vacation, President-elect Barack Obama now getting down to work. But with an economy still in crisis and escalating violence in the Middle East, what will Mr. Obama take on first when he returns to Washington?

And a night of terror in a popular ski resort town. A bomb plot shuts down Aspen. We'll tell you what the police say the would-be bomber was after.

It's 21 minutes after the hour.

(BEGIN VIDEOTAPE)

ROB MARCIANO, CNN METEOROLOGIST (voice-over): When powering the green car of the future, one man is turning to Fred Flintstone for inspiration. Charles Greenwood is the creator of the human car, an automobile powered by you and me and maybe a few of your friends.

CHARLES GREENWOOD, INVENTOR, HUMAN CAR: There we go. All the way forward all the way back.

It's just exactly like an engine firing around a four cylinder cycle. So in this case, we can see we got one, two, three, four -- you're firing a round a firing (INAUDIBLE).

MARCIANO: The vehicle is made entirely out of recycled plastics and can reach speeds of up to 60 miles per hour. The rowing handles produce electricity that moves the car forward. And if you don't feel like rowing, well, an electric motor takes over. And it's more than just a vehicle. Designers say it can also be a power supply for your home.

CHUCK GREENWOOD, CEO, HUMAN CAR: This is the imagine PS power station. Theoretically, you could operate 100 of these vehicles to create a 100 kilowatt mobile power station.

MARCIANO: The human car costs a little more than $15,000 and a final design is set to roll out on earth day 2009.

Rob Marciano, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

JOHNS: The Colorado Rockies, an ideal vacation spot for skiers. But over the New Year's holiday it was anything but happy trails in the town of Aspen. A bizarre bomb plot forced downtown homes, restaurants and bars to evacuate. Police say the suspect threatened mass death if his demands weren't met. Here's CNN's Thelma Gutierrez.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): This is 72- year-old James Blanning captured on a bank surveillance camera just as he is about to deliver a plastic tub with two packages wrapped in Christmas paper to a Wells Fargo bank.

ASST. CHIEF BILL LINN, ASPEN POLICE DEPARTMENT: Those packages contained notes threatening detonation of devices contained in those tubs and "mass death if his demands were not met."

GUTIERREZ: And this chilling warning, "You had better be a very cool individual and not start a panic or many in Aspen will pay a horrible price in blood."

The bank employee immediately calls Aspen police. Then 12 minutes later, they received a second call. This time from the Vectra Bank, which also received identical notes.

LINN: He claimed that devices each contained what he called a big firecracker made of unique chemicals and electronics. The notes which are exactly the same at both banks seemed to indicate that four banks in Aspen were targeted. The notes also indicated the author had a problem with the Bush administration and wars in the Middle East, and he declared this to be "a suicide mission." GUTIERREZ: By late afternoon just as New Year's Eve preparations are getting underway, downtown Aspen is evacuated. The bomb squad and federal officials move in.

In the evening, the bomb squad detonates the device at Vectra Bank. It explodes in a fireball. On the steps of the "Aspen Times," this handwritten note is found by an employee indicating Blanning was planning on taking his own life.

Then in the pre-dawn hours New Year's day, James Blanning is finally found inside his car dead from what police say was a self- inflicted gunshot wound.

(on camera): When the surveillance photograph of Blanning was developed, the sheriff immediately recognized him from an incident back in the '90s when Blanning threatened to hang himself at the courthouse over issues he had with the way in which Aspen was growing. Police also say that Blanning served time in prison in the '90s for fraudulent land sales.

Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

CHETRY: Twenty-eight minutes past the hour now. Breaking news this morning.

New air strikes right now hitting Gaza less than a day after war planes killed a top Hamas official and some members of his family. And while troops and tanks sit at the border's edge, Israeli media reporting military commanders are recommending a brief but major ground invasion of Gaza. Palestinian medical sources say the death toll now tops 400, and Israel is indicating that it will only consider a truce if international monitors were brought in.

Fidel Castro, the leader of the Cuban revolution, was a no show during the 50th anniversary of the uprising. Yesterday's celebration included musical performances and a documentary of the revolution. Castro's brother and current president, Raul, spoke from below the same balcony where Fidel declared victory back on January 1st, 1959. Fidel Castro as seen there has not been in public since undergoing surgery back in July of 2006.

Well, gas prices up slightly this morning but still more than 60 percent less than what they were over the summer. According to AAA, the national average is $1.63 a gallon. The last time prices were that low for a gallon of gas was back in February of 2004.

Turning to politics now, Senate Majority Leader Harry Reid and Democratic leaders are planning to take on Roland Burris. Now he is the man that embattled Illinois Governor Rod Blagojevich appointed to take Barack Obama's vacant Senate seat. Well Burris says he's going to be showing up for work next week when they new Congress convenes, yet the Democratic leaders have plans to block him from even entering the capitol building. So how far will we see this fight go? Joining me is John Avlon, a contributor to "The Daily Beast" and the author of the book "Independent Nation" and also from Atlanta, Patricia Murphy, an editor for citizenjanepolitics.com. Thanks for being with us.

Patricia, let me pose that question to you, first of all. It seems like an unprecedented situation that's going on with incoming, appointed senator, Roland Burris, and people -- leaders of his own party saying we have to block this. So, this is really not a legal appointment. So, how far will we see this fight go?

PATRICIA MURPHY, EDITOR, CITIZENJANEPOLITICS.COM: I think that Harry Reid would be incredibly unwise to physically block Roland Burris from entering the United States Senate, really literally or physically. There is no way that they can, again in front of him, if he shows up at the doors, there's no worse image for Senate Democrats to have than to block this gentleman, an African-American, who is very well-respected in Illinois, who is otherwise qualified.

There are even some constitutional questions as to whether the Senate has the authority to do that. To get the year started on that note, I think, would be a politically, incredibly damaging for the Senate Democrats and they shouldn't go there.

CHETRY: And, John, what do you think about the situation? I mean, in terms of Blagojevich -- I mean, this embattled governor with very few allies right now, he's under investigation for trying to sell the Senate seat and it's almost as if he put the Democrats, the leadership in this perfect conundrum that they really don't have a good answer to get out of.

JOHN AVLON, AUTHOR, "INDEPENDENT NATION": That's exactly right. I mean, this entire situation is unprecedented. And Governor Blagojevich calculated that he could be defiant and try to force the situation in part by picking an African-American to succeed Barack Obama. This would be the only fourth African-American to serve in the Senate since Reconstruction. And already, Congressman Bobby Rush and Blagojevich are sort of playing the race card on this and saying that it would be a lynching of Burris if he were denied the seat.

And, you know, the political use of the term "lynching" is so offensive. But this is the kind of rhetoric we're going to see. And there's so many different steps that Senate Democrats are going to try to take to block him. They're looking at procedural grounds.

But the bottom line is, this is unprecedented. Even the Supreme Court has never dealt with a case like this, where the corruption allegation is not to the candidate but to the process -- on the governor who allegedly tried to sell the seat before he appointed Burris. So, he's created an incredibly complex difficult situation intentionally to get this traction off him.

CHETRY: You know, and the unbelievable thing about this, Patricia, is that it's going to distract Senate Democrats from something that they really have to start getting to work on, along with their Republican counterparts, and that is this proposed stimulus plan that they were hoping would be on the desk of Barack Obama when he was there. Right now, there seems to be a lot of back-and-forth, perhaps some horse trading going on about who's going to be the beneficiaries of some of this money if, indeed, this multibillion dollar stimulus is passed.

How does this turn into something -- how do we make sure that it doesn't turn into just a project loaded with pork where you have lobbyists trying to curry favor to get money for their interest?

MURPHY: Well, this is going to be very difficult for the House and Senate leadership. They are going to have to go through each project line by line. It is an excruciating process that they cannot afford to have the quality of these projects undermine by even two, three, four projects that shouldn't be in there.

CNN has even done some reporting that Miami came forward with their shovel-ready project. One of them was a water slide in Miami. You cannot have projects like that in there like that and not have it be very damaging, you know.

(LAUGHTER)

CHETRY: So, I want to ask, you know -- so, we're going to have to keep our eye on that situation to see what happens with that.

AVLON: Sure.

CHETRY: You know, they wanted to make a little bit more progress than they've made right on hammering out this stimulus at their hands (ph) right now.

AVLON: That's right.

CHETRY: Is it going to be ready when Barack Obama takes office?

AVLON: Well, Pelosi has said that she wanted it ready by Inauguration Day. That looks like it was maybe too optimistic. We're talking about another $700 billion, the largest public works program since the New Deal.

But you're right. The key is going to be selling it to the American people as not just another big government boondoggle. And I think the ways to do that are to really embrace accountability and transparency -- something Obama talked a lot about on the campaign trail -- and really put these projects online. Let taxpayers see how their money is being spent.

What's incredibly important is -- this is just not a stimulus package but there's a sense of accountability and transparency in the dispersal of the money; has not existed with TARP. That's going to be key to being accepted by the American people (INAUDIBLE).

CHETRY: TARP, speaking about the bailout.

All right. The last thing -- the last topic to talk about right now is the candidates for the chairmanship of the RNC. They're going to be meeting on Monday. And candidate Chip Saltsman, as you know, has come under fire for sending out this CD to RNC committee members. One of the songs on there was "Barack, the Magic Negro." He said it was a parody and it was supposed to be for fun.

Now, some are saying, interestingly enough -- and I'll ask about this first, John -- that it could actually help his chances because there are some who feel that he's been unfairly piled on by the media.

AVLON: Politico is reporting that some Republican committeemen could be more likely to vote for Saltsman because of this and that folks who've condemned him maybe seen as capitulating to the liberal media. This would be the worst possible signal that the GOP could send about their viability for the future -- a total tone deafness on race and a, fundamentally, resistance to the fundamental diversity of America in the 21st century.

If this kind of a rebellion pro-Saltsman against the media for reporting the story occurs, it would be the worse on the GOP could send about how ready they are to deal with American in the 21st century.

CHETRY: And last word on that, Patricia?

MURPHY: Yes, I agree. And this, actually, is the embodiment of the problem that the Republicans have. They have some old school Republicans who think that they just haven't articulated their conservative values out enough. They have new school Republicans who want to reach out to African-Americans, to Latinos and younger voters.

And to have Chip Saltsman who is very well like actually within the Republican Party on both sides, but to have this kind of a controversy and to have both sides split on it so early, represents the kind of problems they will have going forward.

CHETRY: All right. Patricia Murphy and John Avlon -- always great to talk to both of you. Thanks so much.

AVLON: Thank you.

JOE JOHNS, CNN ANCHOR: Kiran, you heard of Charles Barkley known for not knowing when to shut up, and wait until you hear what he told the police about the woman in his car when he was pulled over for DUI.

Plus, from texting and traffic to smoking marijuana. New state laws are going to effect coast to coast. Tips how you can stay out of trouble.

It's 35 minutes past the hour.

(COMMERCIAL BREAK)

(MUSIC)

JOHNS: Well, he was apparently looking for a good time. New details coming out about Charles Barkley's run in with the authorities in Arizona. It turns out it wasn't exactly what police would call your routine traffic stop. CNN's Brooke Baldwin has the latest.

BROOKE BALDWIN, CNN CORRESPONDENT: Kiran and Joe, good morning.

According to this latest Gilbert police report, an officer found a handgun and a woman in Charles Barkley's SUV. As for the reason Barkley blew through the stop sign, well, let's just say he provided the police with one very explicit answer.

(BEGIN VIDEOTAPE)

LT. ERIC SHUHANDLER, GILBERT POLICE DEPT.: It was a very routine, typical DUI arrest.

BALDWIN (voice-over): Police may call this arrest routine, but new details indicate a more colorful conversation between NBA Hall of Famer Charles Barkley and his arresting officer. TMZ cameras captured these photos of the arrest. According the latest Gilbert police report, Barkley, who is married, had just picked up a woman in his SUV when he ran a stop sign. Police pulled him over and eventually arrested him for suspicion of DUI.

The officer then asked where the former Phoenix Suns star was going. According to police, Barkley responded that he was in a hurry. "You want the truth?" -- he's quoted as saying -- "I was going to drive around the corner" -- and to paraphrase Barkley -- have a sexual liaison. Sir Charles went further saying the same woman had performed a similar sexual act one week ago and that it was the best he'd ever had in his life.

The report also described how Barkley joked with the officer, telling him that if he could get him out of the DUI, a quote, "I'll tattoo your name on my -- well, we don't need to get any more specific.

SHUHANDLER: The Gilbert Police Department didn't treat him any differently than we would treat anybody else.

BALDWIN: This is the Dirty Pretty, the Scottsdale nightclub where Barkley was reportedly partying earlier that night. Chad Landa (ph) was there and said Barkley didn't appear to be stumbling around.

UNIDENTIFIED MALE: It was a bad decision and hopefully, it won't happen again. So, it's unfortunate example that has to be made.

BALDWIN: Barkley, a commentator for TNT which, like CNN, is owned by Time Warner released this statement through Turner Sports, quote, "I am disappointed that I put myself in that situation. The Scottsdale Police were fantastic it. I will not comment any further as it is a legal matter."

(END VIDEOTAPE)

BALDWIN: The handgun, which may or may not belong to Barkley, and the SUV have both been impounded. He did take a routine test to determine his blood alcohol content. And, Joe and Kiran, we're told the results from that test should be back sometime in the next couple of days.

CHETRY: Brooke Baldwin for us -- thanks.

Well, snow in the cards for people across the country today. So, could it put the brakes on your weekend travel plans? We're going to check in with Reynolds Wolf.

Also, mad at Madoff. The accused swindler quickly becomes one of the world's most hated men. Did he finally get a taste of his own medicine?

It's 41 1/2 minutes after the hour.

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CHETRY: Welcome back to the "Most News in the Morning."

Temperatures were in the teens but baiting suits the order of business up in Boston, as hundreds of people rang in the New Year with a dip in Boston harbor. You are brave, folks, because it was so cold. The so-called "polar bear plunge" is one of dozens held around the country. The one in Boston has been going on every New Year's Day for more than 100 years.

Well, Rob Marciano is off today. Our Reynolds Wolf is at the weather center in Atlanta. I don't know, are you one of the guys that would jump into the water like that on New Year's Day? What do you think?

REYNOLDS WOLF, CNN METEOROLOGIST: I don't know. With a few shots (INAUDIBLE) anything is possible.

(LAUGHTER)

WOLF: You know, I mean, it's just crazy times. And they've been doing it over 100 years. I mean, you'd think that they learn something. I probably hold off on it to say the very least. But you never know.

Hey, take a look what we have around the nation. We've got two big weather stories we're following. One potential snowstorm that's going to be moving into the east and half of the country, the Northeast mainly, the other one to the Pacific Northwest, could bring some heavy snowfall in parts to high elevations, the Rockies and back in the Cascades. But, a light dusting of snowfall to parts of the Northeast, including New York City which may call some delays. Also, we'll look for some scattered showers in the parts of the Southeast.

Now, in terms of temperatures, notice Texas. Texas is going to be looking great. In Dallas and Houston, high temperatures are going up in to 70s; Kansas City with 51; 27 in Chicago, your high for the day; and Salt Lake City, 37; 54 in San Francisco. Back in New York, the high 38 degrees. Now, in terms of your travel, I know many people are trying to head home for their weekend, going, say, to any of -- rather leaving into the New York Metro as you're going to have the issue with snow showers, wind, low clouds, same story in Atlanta in terms of the delays but not the snowfall -- just low clouds and rain showers. And then back into San Francisco, you could see some issues due to some clouds and rain. And in Los Angeles, and San Diego, and Houston, fog might be an issue. You could see a delay of anywhere from 15 to 30 minutes.

That's a quick check on your forecast. Let's send it right back to you, (INAUDIBLE).

CHETRY: Sounds good. I'm with you, Reynolds. I don't see myself jumping into the water in January unless it's a hot tub.

WOLF: There you go.

CHETRY: Thanks, Reynolds. Joe?

JOHNS: Are you mad at Bernie Madoff? If so, you're not alone. We'll tell you how the world is reacting to the accused billion dollar scam artist.

CHETRY (voice-over): You pay your taxes but what about some of America's richest executives?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: These are the highest paid people of the company. They ought to be able to pay their own taxes.

(END VIDEO CLIP)

CHETRY: So, why aren't they? CNN investigates and what we found will make your blood boil. You're watching the "Most News in the Morning."

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JOHNS: Accused swindler Bernard Madoff quickly became one of the world's most infamous characters and it seems he might have gotten a taste of his own medicine. Someone made off with one of his expensive possession which was later returned but with a moral message. CNN's Jeanne Moos has rants, rage, jokes, even thief inspired by the alleged $50 billion fraud.

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JEANNE MOOS, CNN CORRESPONDENT (voice-over): Sure, you can rant at the accused swindler -- or you can educate him, educate him by first stealing his $10,000 statue of two lifeguards from Madoff's Florida estate. Then returning it, leaving it in some hedges near his home with this note addressed to Bernie the swindler -- lesson: Return stolen property to rightful owners, signed by the educators. Apparently, a reference to a 2004 German film about an anti- capitalist gang that broke into rich people's houses and rearranged the furniture. They stole nothing, just left a note saying your days of plenty are numbered.

Some folks sound like they wish Bernie Madoff's days were numbered.

UNIDENTIFIED MALE: (INAUDIBLE) so that people like this with Madoff character can go to it.

UNIDENTIFIED MALE: I can't believe that you're walking on the earth you piece of garbage.

MOOS: Detractors on YouTube have transformed him into the devil -- depicted him struck by lightning. When he got shoved by a photographer as the press swarmed him. The video went into reruns on the Web. "Don't push me," Madoff said. The commentators weren't feeling much pity.

UNIDENTIFIED MALE: It's almost like somebody throwing a shoe at Bush.

MOOS (on camera): But folks aren't just mad at Bernie Madoff, they are also mad at people whose money he allegedly made off with.

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MOOS (voice-over): All is fair when it comes to late night comedy takeoffs on Madoff.

ANNOUNCER: That's why Bernie would like to give anyone who wants one, a personal hand-inscribed apology. Simply send a check for $59.95 for Bernie Madoff apology request.

MOOS: Go ahead and vent.

UNIDENTIFIED MALE: Maggot like this (BLEEP)

UNIDENTIFIED MALE: You (BLEEP) greedy (BLEEP).

MOOS: Darn tooting they are mad.

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MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CHETRY (voice-over): The transition is over. Barack Obama moves to Washington. The neighbors are ready.

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UNIDENTIFIED FEMALE: (INAUDIBLE) he's here.

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CHETRY: But are his new digs?

Plus, a snowmobiling trip turns deadly.

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UNIDENTIFIED MALE: We had to make a gut-wrenching decision to leave our eight friends.

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CHETRY: A 15-foot wall of snow moving faster than a car.

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UNIDENTIFIED MALE: And as I turned and looked at the mountain, the whole center of the mountain came down.

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

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JOHNS: Welcome back to the "Most News in the Morning."

Every year right around this time we have it -- a lot of new laws officially going on the books across the country, and with a look at some of the biggest ones. And what they could mean for you, I'm joined by legal analyst, Sunny Hostin.

Thanks so much for coming in. Happy New Year to you.

SUNNY HOSTIN, CNN LEGAL ANALYST: Thank you. Happy New Year!

JOHNS: Absolutely, I guess we probably should just start with Georgia. There's this new law targeting sex offenders, and essentially the point of it is, you have to give them your email addresses and other online information. But there are some privacy advocates who have a problem with that. Why?

HOSTIN: They have a big problem with it. I mean, the new law forces sex offenders to hand over their Internet passwords, screen names, and email addresses to authorities for monitoring purposes. While federal law does require authorities to check Internet addresses, Georgia is going a step further, and Georgia does have 16,000 registered sex offenders.

Now, a similar law was struck down in Utah. A Utah judge ruled that it violated the offender's First Amendment right to unanimous online speech. But I want to make clear, the judge stressed that that ruling only applied in that case and that the constitutionality of the law would be different for people who are on parole for their sex crimes.

So, my guess is, this is a law in Georgia that will be challenged.

JOHNS: OK. On the Massachusetts. It sounds like they are almost legalizing marijuana.

HOSTIN: They are not.

(LAUGHTER)

JOHNS: OK.

HOSTIN: They are not. It does sound like that but starting today, if you are caught with less than an ounce of marijuana in Massachusetts, it will result only in a $100 civil fine. That means you will not face time in jail.

But critics are saying that that law has many, many loopholes in its present form, and one of the main complications they cite is that Massachusetts state law bans police from demanding ID for civil infractions. And since this would now be considered a civil infraction, law enforcement is concerned that people will refuse to identify themselves when they are caught.

Now, proponents argue, the new law would free law enforcement officers to focus on more serious crime. But, I, as a former prosecutor and, you know, law enforcement, obviously, disagree. They consider marijuana a gateway drug and they say the law will get in the way of their ability to arrest drug traffickers and other criminals who often first become suspect because of marijuana position and I think that that is true.

JOHNS: And here's another one. I figure you want to call it in California what -- DWT, driving while texting?

HOSTIN: Yes, Joe. And, you know, we spoke about it. I am such an offender. And as of last July, California drivers were already banned from talking on hand-held cell phones. The new law, though, expands that with a ban on text messaging while driving, which includes cell phone, BlackBerrys, and laptop computers. I don't know why people have left house in their cars.

JOHNS: Yes.

HOSTIN: But the law is very specific. If you are behind the wheel and the motor is running, it is illegal to text message. That means, even if you're at a stoplight, Joe, or stuck in traffic, don't think about text messaging or else you can face a fine. And in case people are wondering if this applies to passengers in the car, it's OK for them to text message. This law only affects the drivers.

JOHNS: What I need is a whole keyboard where I can just sit inside my car, and, you know, just go -

HOSTIN: I know. I need something. I mean, we're talking, Kiran mentioned the same thing which just -- it's tough. You want to stay connected.

JOHNS: There's some cars out there right now you can even put a DVD in the front screen and -

HOSTIN: Yes.

JOHNS: But I don't know if you can drive and watch a movie, but there's all kinds of distractions.

HOSTIN: Well, I will say, I was (INAUDIBLE) a car and there was a television set. I wasn't watching, though.

JOHNS: That's pretty amazing, you know.

HOSTIN: Yes, it is.

JOHNS: And when are they going to outlaw watching DVDs.

HOSTIN: They should. They should.

JOHNS: Yes.

HOSTIN: I mean, the text messaging, it is dangerous. That's why you shouldn't be texting while you're driving.

JOHNS: That's true, but there's a stoplight. Come on.

HOSTIN: I know.

(LAUGHTER)

JOHNS: OK. OK. I know. I know.

CHETRY: And in New York, it's a $250 fine.

HOSTIN: Yes.

JOHNS: Is that right?

CHETRY: California is getting off easy.

HOSTIN: Kiran, you seem to know about the $250 fine.

JOHNS: Yes.

CHETRY: My husband always says you're going to get busted.

(LAUGHTER)

(CROSSTALK)

CHETRY: Not yet. It's good to see you, Sunny.