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American Morning

Obama Talks Up His Economic Recovery Plan As Priority Number One; U.S. Denies Iran Attack; The Underdog Wins at the Golden Globe Awards

Aired January 12, 2009 - 07:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Well, we're coming up on the top of the hour right now. A look at the top stories this morning. Later today, President Bush could ask Congress for $350 billion still remaining in the financial industry bailout. If Congress approves, it will take 15 days for that money to become available. That would then fall into Barack Obama's term.
Senate Democrats are saying the money needs to be used to help homeowners on the brink of foreclosure adding that the incoming administration is going to fundamentally alter the way the program has been managed.

Special Mideast envoy, former British Prime Minister Tony Blair, says elements are in place for a Gaza cease-fire. Israel continued bombings on supposed Hamas targets overnight, but paused for three hours to let humanitarian aid into Gaza.

You're looking at some brand new pictures now just coming in to CNN from the region. Israeli officials are also indicating that the conflict could be in its final days. Rockets from Gaza continue to hit southern Israel Sunday. A number of dead in Gaza has reportedly topped 900.

And a judge will rule today whether Bernard Madoff will be thrown behind bars. Prosecutors want his bail revoked claiming that Madoff tried to keep up to $300 million in assets from being seized. They say they want him locked up immediately.

Well just eight days now until America makes history inaugurating the first black president. And the president-elect is talking up his economic recovery plan as priority number one. In an exclusive interview with ABC News "This Week with George Stephanopoulos," Obama said that the economy could force some other campaign promises to take a back seat.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: I want to be realistic here. Not everything that we talked about during the campaign are we going to be able to do on the pace that we had hoped. Everybody is going to have to give.

(END VIDEO CLIP)

CHETRY: Well, for more on those campaign promises that Obama says will likely have to be put on hold, we're joined by Suzanne Malveaux live from the White House this morning.

Suzanne, there she is. What do you think is going to give as he puts it in terms of priorities? What's going to have to go by the way side?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kiran, you really heard a very candid assessment from Barack Obama this weekend saying look, there's some things that just aren't going to be able to be done at the pace that we talked about during the campaign.

Some of those things that they're indicating is immigration reform, repealing those tax cuts for the wealthiest before they actually expire in 2010. You're also talking about renegotiating the free trade agreement with Mexico and Canada, NAFTA.

All of these kinds of things, they may have to do in a piecemeal fashion or just put on the backburner for a while. They are really trying to be realistic about this before he even goes into office.

What they are talking about now, what they're focusing on is just putting in a lot of money in the economy so they can create lots and lots of jobs, building roads, bridges -- those type of projects.

I want you to listen to what Barack Obama said this weekend and how he believes he's got to jump start this right away.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: I would prefer spending money on things like making sure that all federal buildings are energy efficient so the taxpayers are saving money over the long-term. I want to make sure on health care, we are creating the infrastructure that can make our health care system more efficient. So, you know, we want to spend the money wisely, we want to spend it prudently.

(END VIDEO CLIP)

MALVEAUX: And, Kiran, you know, a big complaint, a lot of people looking for details in that economic plan that we heard from Barack Obama last week. Well, this past weekend, about 14 pages or so, they tried to at least outline some of those things.

It's an $800 billion economic recovery plan. They said at least 90 percent of the jobs, the four million jobs they believe will be created or saved are actually going to be in the private sector. So when you hear him talking about those projects, those are the kinds of things that they're talking about, Kiran.

CHETRY: And the other interesting thing here is that the current Bush administration is going to be asking Congress for more of that money. They need to approve it knowing that Barack Obama's administration is going to be the one deciding how it's doled out.

So that's interesting because a lot of congressmen and senators said wait a minute, we want to be much clearer about where this money is going before we give the OK this time.

MALVEAUX: And, you know, it's a very good point because that's actually why you see Barack Obama's team, Larry Summers, who's his top economic adviser, meeting with Senate Democrats over the weekend really trying to convince these guys, look, we are going to be transparent about where the money is going. We need you guys to be on board.

So when President Bush this week asked for the remaining $350 million, we don't want you guys to block it. We want you to be right on board with us and they're making some promises here saying, look, we are going to look at all of the money and try to show you this is how we're going to be responsible.

Not everybody is convinced, Kiran. In fact, Congressman Barney Frank who says I've got legislation. I'm going to make sure that about $40 billion of that money is at least trying to help people stay in their homes, Kiran.

CHETRY: And Chris Dodd from the banking committee is saying the same thing. So, yes, a lot of challenges ahead certainly as they try to get the rest of that bailout pie. Thanks so much, Suzanne.

JOHN ROBERTS, CNN ANCHOR: So we're talking just a couple of minutes ago with Lisa Caputo and Ed Rollins about campaign promises versus the reality of what you can do when you're actually governing and you're beset with recession, the likes of which we've probably never seen before.

Christine Romans here "Minding Your Business," looking at Obama's campaign promises and your bottom line on whether rubber meets the road.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right. And the reason why they're called promises is because they are promises.

ROBERTS: That's exactly where we are.

ROMANS: And every single day the economic situation is changing and so this is a president-elect who is having to deal with things that are changing on the ground but also political calculations. So let's just take a look at the money side of these promises and where the promises and the bottom line might be different here.

The Bush tax cuts on the rich. The promise on the campaign trail that President-elect Barack Obama once president would repeal those Bush tax cuts on the rich. It looks more likely that he will delay any kind of increase for the rich until 2011. The end of 2010 is when those expire. Remember, they were temporary.

ROBERTS: Yes, you know --

ROMANS: They were temporary tax cuts. They will expire.

ROBERTS: During the campaign we kept asking the question, with the economy and the shape it's in, is it time to raise taxes? Is it a good idea to raise taxes on anybody? And they kept saying yes, absolutely. We can afford it. Now, not so much.

ROMANS: Now, not so much. So backing away from that and we've been seeing as soon as he was elected really, that language started to change. I mean, this happens every time, right?

OK. Also, the tax plan on giving tax, some homeowners 10 percent tax credit. This is mostly for people who make $50,000 or less a year. They don't itemize their deductions on their taxes. Weak support in Congress right now. Looks like that might not happen. Also lukewarm support even from some housing people. So that one might have to go the way side.

Now, we'll see what it all actually shapes up to be. He's asking for the $350 billion. $800 billion maybe for the stimulus is an awful lot of money to spend, an awful lot of different programs, an awful lot of people want different things. But let me tell you that there are some -- there are some things. There's medicine, John, this economy has already taken that is starting to work.

Mortgage rates are falling. Mortgage rates are at a record low. This is the one thing that is going on the president-elect's favor here. January 8th, 5.01 percent for a 30-year fixed rate mortgage. Last year it was 5.87 percent. What does that mean for you and me?

It means on a loan, the difference in a loan from October to today is about $184 a month on a $200,000 loan. The savings.

ROBERTS: Yes. That's good.

ROMANS: So if you were to refinance or you would -- the difference between buying a house now and buying that on a 30-year fixed, that's real money and that's real progress.

ROBERTS: Yes. If you've got good credit, you can get even better rates.

ROMANS: Yes.

ROBERTS: And for some people down in the 4s.

ROMANS: That's absolutely right.

ROBERTS: Yes.

ROMANS: So all of this gloom and doom about what this president- elect is facing, but keep in mind there is some medicine that we've already taken that is starting to work in the economy.

ROBERTS: You keep buffing that silver lining.

ROMANS: I know. I have, you know, a magnifying glass. I look around for it.

ROBERTS: Thanks, Christine. Appreciate it.

CHETRY: All right. Well, switching gears here. As the number of dead climbs over 900 in the Middle East this morning, there's a report out that Israel wanted to take out Iran's nuclear sites but the Bush administration said no.

According to "The New York Times," the president last year deflected Israel's secret request for bunker-busting bombs it wanted to use in air strikes on Iran's main nuclear complex and flat out said no to request of flying over Iraqi air space. The administration reportedly feared it would trigger outrage across the Muslim world and lead to American troops being expelled from Iraq.

Instead, President Bush persuaded Israel, according to the reporting, not to proceed with the attack plan by sharing some details about covert U.S. operations that were aimed at sabotaging Iran's nuclear program.

Now yesterday on ABC, the next president talked about the urgency of dealing with Iran.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: I think that Iran is going to be one of our biggest challenges. And as I said during the campaign, you know, we have a situation in which not only is Iran exporting terrorism through Hamas, through Hezbollah but they're pursuing a nuclear weapon than could potentially trigger a nuclear arms race.

(END VIDEO CLIP)

CHETRY: Well let's bring in CNN's Barbara Starr live for us from the Pentagon. Now, how likely is it that the U.S. is trying -- I know they're not giving much in terms of this because all of it is covert but they want to sabotage Iran's nuclear efforts?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Kiran, that's a time-honored technique amongst intelligence professionals to get to the bad guys' weapons if you will.

I think it's very clear from people who watched this over the years that the U.S. has been trying to sabotage Iran's nuclear program, faulty parts, bad maintenance manuals, exact replicas of whatever it is that Iran is buying around the world but some tweaks in them to make sure that the program doesn't work the way Iran wants it to, it will slow down Iran's program, it won't stop it -- Kiran.

CHETRY: And so, if Israel still wanted to attack leaving the United States out of the equation, how could it do it? I mean, does it have the capacity?

STARR: Yes, that's where this gets very interesting. Actually we talked about bunker-buster weapons, the weapons that attack targets deep underground like the Netante (ph) enrichment plan that Iran has. Target number one if you will on that Iran list.

Israel has a number of bunker-buster weapons that it's already bought from the United States. You see some of them here, a 1,000, 2000-pound variant, a small diameter bomb which is very precise, but perhaps most interesting something called the GBU-28 with a penetrating warhead. That's a very specialized weapon to go after underground facilities.

But how would Israel get into Iran and overfly that territory to get to the Netante (ph) plant. When you look at the map, you begin to see the challenge that Israel will face if it wants to do this.

First of all, it has to get rights to overfly some country in order to get inside Iran. Netante (ph) is very deep inside Iranian territory. Iran has very capable air defense systems. Iran has very capable radar. So if Israel is going to take that risk and fly deep into Iranian air space, it has to do something to take out those radars, to take out that air defense system. It has to be able to refuel its own aircraft. It has to get in and out without being seen by the Iranians -- Kiran.

CHETRY: Yes. Certainly a lot of challenges even in practice if they wanted to try to do that.

Meanwhile, as we had talked about that reporting from "The New York Times," the United States saying no to Israel's request.

Barbara Starr for us at the Pentagon this morning. Thanks so much.

STARR: Sure.

CHETRY: And still ahead, we have some video to show you, the 60- car pile up. It was on a snowy, icy interstate in New Hampshire. You see cars wedged under buses and 18 wheelers, and the race to pull everyone out alive.

We're also going to talk more about the winter weather that caused it. Rob Marciano is tracking the deep freeze for us.

ROBERTS: And a movie about slum life in India wins big at the Golden Globes. We'll have recap of the other winners coming up on the "Most News in the Morning."

CHETRY: Make room for grandma. Michelle Obama's mother makes it official. She's moving to the White House.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FUTURE FIRST LADY: There is nothing that makes me rest more than to know that my kids are being loved and cared for by someone who is teaching them values and discipline and giving them a little extra candy every now and then.

(END VIDEO CLIP)

CHETRY: What life will be like for the first grandmother and how long she might call Pennsylvania Avenue home.

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

(COMMERCIAL BREAK)

(MUSIC PLAYING): The snow is coming down in a New England town and it's been falling all day long.

ROBERTS: Live picture this morning of Boston where they've got snow showers and 23 degrees later on today. It's going to be cloudy only going up to 28 though. A cold, cold, cold day in that New England town.

The ride to work is still treacherous in New England this morning. Hopefully nothing like yesterday though, when close to 60 cars, big rigs and buses collided on I-93 in New Hampshire.

Police say there were 10 inches of snow on the ground around the time of the wreck. The pileup sent a dozen people to the hospital. Thankfully, though, no life threatening injuries. The crash closed the interstate for five hours.

Some of the coldest air of the season impacting much of the country this week. Rob Marciano in the CNN weather center. He's got the chilly forecast for us this morning, and more problems on New England roadways, Rob.

ROB MARCIANO, AMS METEOROLOGIST: Yes. New Hampshire wasn't the only spot, John. This is a storm that encompassed a great deal of the northern, northeastern third of the country.

We're talking about temperatures that are in the teens and 20s right now, so cold today. I would say it would be seasonably cold, nothing compared to I think what we're going to see later in the week.

As you mentioned, Connecticut got some problems. Let's look at what happened just around Greenwich. I-95 yesterday also had a pileup. This one not as bad as the one in New Hampshire but nonetheless, 13 cars piled up there and two people got sent to the hospital. Obviously a slow go in that area with snow on the ground. And then, it did mix in with rain and freezing rain at times. So even though there was only a few inches of snow accumulating on the ground, obviously you don't need a whole lot of that freezing rain to make the roads slick.

All right. No precips expected today in the northeast or at least they'll be winding down. It will be cold, but blizzard conditions in advance of the next shot of really cold air that's going to be launched down from Canada. Here you go.

Blizzard warnings off for parts of the Dakotas and sliding into parts of eastern Iowa. In those areas, we'll see snow that will accumulate probably two to three, maybe four inches of snow. Chicago, Milwaukee, Minneapolis, who'd be traveling to those centers, you'll be looking at delays. Denver will also see delays with some snow. And if you're looking for maybe more of a warm rain, Miami and Tampa.

Shouldn't see a whole lot. Here's a leading edge of the cold -- of the snow itself. And again, today's temperatures not so horrible but you definitely want to bring along the winter gear. Thirty-two degrees for a high temperature in New York. Just touching the freezing marks, 29 degrees in Chicago, 18 degrees in Minneapolis, 43 degrees in Kansas City.

Daytime highs in spots with this next batch of cold air won't get above zero, and some of the big populated areas in the northeast they likely won't get out of the teens by the time Thursday, Friday and Saturday come along. So you've been warned John. Just, you know, get the thermals out, get them ready to go and make sure the oil tank is filled for heating up the house.

ROBERTS: I'm hearing pretty cold weather for the inauguration as well next Tuesday.

MARCIANO: That will -- that's true. So you're going to be right in the thick of what I assume, John, so --

ROBERTS: Yes. We'll be outside. Time to put the woolies on, Rob.

MARCIANO: Let's try to moderate that area for you. It won't be quite as bad as Friday, but it will be chilly for sure.

ROBERTS: Those fans blowing some of that warm air from Miami up here. Thanks, Rob.

MARCIANO: That would be nice. All right now.

CHETRY: Don't count on an Indian summer, John.

Well, the big winner at last night's Golden Globes was an underdog just like its main character.

(BEGIN VIDEO CLIP)

TOM CRUISE, ACTOR: And the Golden Globe goes to "Slumdog Millionaire."

(END VIDEO CLIP)

CHETRY: Well in the end, "Slumdog Millionaire" took home four Golden Globes including Best Drama, Best Screenplay, Best Director, Best Original Score. John saw it and said it was fantastic.

It follows the life of an orphan from the slums of India who gets a chance at fame on India's version of "Who Wants to be a Millionaire." Director Danny Boyle spoke backstage after the show.

(BEGIN VIDEO CLIP)

DANNY BOYLE, DIRECTOR, "SLUMDOG MILLIONAIRE": The film was made from the heart really and every moment that we made it and we never expected to be here obviously. And it's incredible that we are.

(END VIDEO CLIP) CHETRY: Other big winners include Kate Winslet. She won Best Actress for "Revolutionary Road." She also picked up Best Supporting Actress for "The Reader."

Mickey Rourke with Best Actor for his role in "The Wrestler." "Madmen" won Best TV Drama, and the late Heath Ledger won Best Supporting Actor for his role as the joker in the "The Dark Knight." A lot of people call to that one saying it was incredible performance on his part.

ROBERTS: It was. I've seen that movie about five times now.

CHETRY: "The Dark Knight."

ROBERTS: Yes. I can't get over how good he was. And "Slumdog," it's just fantastic little movie. $15 million it cost to make it and it's just -- the story is really amazing, really compelling.

CHETRY: I need to see it.

ROBERTS: People were cheering at the end of the film.

CHETRY: Really.

ROBERTS: It was great.

Still ahead, wars and conflicts across the globe as Barack Obama takes over the most powerful military in the world, we'll look at the challenges ahead.

Nineteen minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Well in just eight days, Barack Obama will be sworn in as America's 44th president. And this week, we're looking at his five biggest challenges. There are many, but we looked at the top five. Managing military conflicts in crises across the globe including the conflict in the Middle East.

Joining me now to talk about this is General Richard Myers, the former chairman of the Joint Chiefs of Staff, as well as Gary Berntsen, CIA officer and author, and Middle East analyst Reza Aslan. Thanks to all of you for being with us this morning.

And General Myers, I'd like to start with you about Israel saying that they are close to meeting their military goal in Gaza. Many believe there really is no military solution to this conflict. What is your take on what Israel is trying to do?

GEN. RICHARD MYERS, FMR. CHAIRMAN, JOINT CHIEFS OF STAFF: Well, I think that's -- I think it's pretty hard to discern at this point because I agree there's no military -- military victory is not achievable here which you have to have as some sort of political accommodation which has alluded many folks for decades. CHETRY: And, you know, as we -- when they say they're close to meeting their goal, then what are they talking about? I understand part of it is the ability to target these Hamas leaders and militants but another part of it, of course, involves really shutting down that smuggling route from Egypt.

MYERS: I think both of those are part of their objectives, also to the best they can to eliminate the caches of rockets that are being fired into Israel. So they've got to work on that. And at least impose enough force on Hamas that they are compelled to stop firing rockets into Israel. And those tunnels, I think, are really, really important so the discussions that Israel is having with Egypt I think will be key in all of this.

CHETRY: And, Gary, one of the things is the verification. How do you know for sure whether or not those smuggling routes have been shut down, whether Egypt makes promises for its part of the border or not. I mean, how key is it to get that type of intelligence and how are they getting it?

GARY BERNTSEN, FORMER CIA OFFICER: I think it's going to be very difficult to prove that. But, you know, after 2006, a lot of folks thought that the Israelis had done poorly, of course, fighting Hezbollah. Hassan Nasrallah (ph) made a statement and what that statement was after the conflict was had he known the full extent of the Israeli response to their cross border incursion that began that war, he never would have started that war. And I think that they're trying to make the same point with Hamas.

They're not going to be able to stop this completely. They're making a very, very powerful point with Hamas. They're attempting to diminish Hamas's political power. This would be the Palestinian Authority and they're trying to discredit Hamas among the population. They're going to suffer some, too, you know, in a public relation sense but this is designed to sort of diminish Hamas.

CHETRY: And you bring up a good point which I want to ask with Reza. It sounds like Barack Obama is really assembling a team that appears very "Clinton-esque," names like Dennis Ross, James Steinberg, and the president of the Arab American Institute, James Zogby, noted that saying that, "Do people in the region take note when Arab Americans are not represented in terms who's advising the president? Sure they do, a message gets sent."

So if you were advising Barack Obama, what does he need to do to convince the Middle East that he is a partner in peace?

REZA ASLAN, MIDDLE EAST ANALYST: Well, I think he needs to begin by treating this conflict between Israel and the Palestinians not as a bilateral issue but as a regional issue. For years, presidents have tried to create some kind of lasting agreement between these two sides but unfortunately, you have to think of the Middle East as a tightly woven rug.

If you pull one of these threads, other threads are going to come apart. And so in order to deal, I think, in a lasting way with the Israeli-Palestinian conflict, you have to also deal with Syria, you have to deal with Iran, you have to deal with Hezbollah.

And I think that what the Clinton people bring to the table, Dennis Ross, Martin Indyk, is that idea, the knowledge of the Middle East as a whole and the experience to know that this is a regional issue.

CHETRY: But do you think he needs to surround himself with other advisers that are Arab or Muslims so that a broader, I guess, world view can be addressed?

ASLAN: Well, I mean that's going to happen. This is an incredibly intelligent administration. I have many colleagues who are deeply woven into this administration who advise the administration. And certainly Senator Clinton, Secretary of State Clinton is somebody who frankly knows more about the Middle East than I do.

CHETRY: Well, all right. Well, we're going to continue with our panel with Gary Berntsen, General Richard Myers and Reza Aslan after the break. We're going to talking Iran, some of the conflict that the new Barack Obama administration is going to be facing both in Iran and in Afghanistan, and the icy relations between Washington and Iran.

ROBERTS: And still ahead, great expectation in a grim economic outlook. Something's got to give, right? Barack Obama is now dialing back a little bit on some of his bold campaign promises. We'll tell you what they are and what it could mean for your future. That's all ahead.

It's 27 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Ahead of inauguration day just over a week away, we're looking at the top five challenges for an Obama White House and today the military challenges he faces which could include a hostile Iran. The president-elect spoke about that in an exclusive interview with ABC's "This Week".

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: I think that Iran is going to be one of our biggest challenges. And as I said during the campaign, you know, we have a situation in which not only is Iran exporting terrorism through Hamas through Hezbollah, but they're pursuing a nuclear weapon that could potentially trigger a nuclear arms race.

(END VIDEO CLIP)

CHETRY: Joining me again, former CIA officer Gary Berntsen, former chairman of the Joint Chiefs of Staff General Richard Myers, and Middle East analyst Reza Aslan.

And we're going to start with General Myers again. President Bush last year apparently rejected an Israeli request for weapons and permission for potential air strike in Iran. According to "The New York Times," how should any military action with Iran take shape if indeed we deem it appropriate?

GEN. RICHARD MYERS, FMR. CHAIRMAN, JOINT CHIEFS OF STAFFF: Well I don't think anybody has thought seriously about military action against Iran, although that option in my view should never be taken off the option list. It always has to be an option, but clearly the question is do you have the intelligence to hit the right kind of targets that would have any impact on let's say its nuclear program or any impact on its potential export of weapons of mass destruction, which I think the President-elect has it exactly right, the things that you worry about is proliferation of their nuclear capability and their support of terrorists in the region.

And I don't know that military force at this point is wise or indicated. I think diplomacy, the work through the U.N. in terms of the nuclear program are where we Have to be. And if we can find some point of leverage, it's not clear that we can. But if we can find some point of leverage, we have to exploit that in terms of talks with the Iranians.

CHETRY: And Gary, how does intelligence and covert operations come into play here in dealing with Iran?

GARY BERNSTEIN, FMR. CIA OFFICER, 1982-2005: Well, clearly, you want to have the best intelligence you know that you can obtain, but I think you have to recognize that some of the facts are and the facts are that what we've seen in Iran in the last few years is the rise of the Revolutionary Guard Corps.

You had nine members of the cabinet now that are former IRCG members that fought on the front with Iraq. You have six or seven governors in Iran who are former IRCG members also. These people are hardening the Iranian position. It's not going to get easier for Obama as time goes by here. And Iran looks at everything through a different sort of lens.

CHETRY: Right.

BERNSTEIN: They're going to be looking at Gaza as believing the United States you know, encouraged Israel to do this. It's going to be easier for Obama. It's actually going to be harder now. And there - go ahead.

CHETRY: Well, I was just going to ask Reza, how do you get more moderate nations then if we talk about this as something that the entire region needs to take seriously like Egypt, like Jordan to help in any way they can with this process with Iran?

REZA ASLAN, MIDDLE EAST ANALYST: Egypt and Jordan are already in America's pocket when it comes to Iran. They feel just as threatened by the rise of the Iranian superpower as the United States does. But I think there's the key right there. Gary is absolutely right.

There's a militarization of Iranian politics that's taking place. Well, the good news is is that Iranian themselves are becoming more and more wary and we're seeing the kind of strange bedfellows forming between the far left and the far right. Between pragmatists and leftists like Ross and Johnny (ph). And leftist by Cartemei (ph).

So I think that Obama is going to be dealing with a different Iran than Bush did, one that perhaps might be in a position to be a little bit more open to dialogue but only if it is being taken seriously. The problem with the Bush administration is that it has continued to treat Iran as though it's a rogue nation teetering on the verge of another revolution. That's not the case. Iran is the new superpower and the sooner that we begin to treat it as such the better we'll be able to deal with it.

CHETRY: Reza Aslan, General Richard Myers, and Gary Bernstein, great to talk to all of your. Thanks for joining me this morning for this panel. And you can follow along with "Obama's Top Five" issues all week on our Web site. Just head to CNN.com/am. And there you can also send us your own questions for our panel of experts to answer.

Tomorrow we're going to be taking a look at an education system in tatters here on the most news in the morning.

JOHN ROBERTS, CNN ANCHOR: And coming up on 34 minutes after the hour here this morning's top stories. More history of Barack Obama's inauguration.

The first time a woman will give the official sermon. Barack Obama chose Reverend Sharon Walkins to lead the traditional national prayer service. That will be on January 21st, the day after Obama is sworn in as president. Watkins is the general minister and president of the Disciples of Christ Church which has 700,000 members.

350,000 resumes for just a few thousand jobs. The Obama transition team says they are dealing with a record number of applications for work in the next administration. And those job seekers are facing top spots. By comparison, just 90,000 people applied for jobs in the Bush administration. Team Obama says it has just 50 people sorting through all of those resumes.

Lottery sales rising in the depths of this recession. "USA Today" says more than half of the state's lotteries reported rising sales in the past six months. Analysts say financial insecurity may be forcing people to gamble a little bit more hoping that they will never have to worry about money or working ever again.

Eight days to go until Barack Obama becomes the president of these United States. He made some bold promises of change on his way to winning the White House, but now the economy is issue number one on his mind and it's sounding like some things are going to have to wait.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: I think we can fix it, but it's going to take some time. It's not going to happen overnight. And what we tried to do this week is first of all, explain where we are in the economy. That the jobs numbers this week were terrible. That means we've lost 2.5 million jobs last year. That's the most since World War II. (END VIDEO CLIP)

ROBERTS: CNN's Jim Acosta is live in Washington. And Jim, you know, every candidate makes promises and many of them - well of these promises, too, are made with good intentions. At least history would suggest that. But reality often creeps in and it looks like reality has kind of like dropped a piano on the incoming president-elect's head when it comes to some of his promises.

JIM ACOSTA, CNN CORRESPONDENT: Yes, John, the campaign feels so long ago does it not? And you're right, it may be promises made, promises delayed. And in style and in substance, Barack Obama sounding in some ways like a different president than the candidate Americans got to know during the campaign.

(BEGIN VIDEOTAPE)

OBAMA: This recession could linger for years.

ACOSTA: Now the change is in him. Just days from inauguration, Barack Obama is striking a different tone.

OBAMA: Not everything that we talked about during the campaign are we going to be able to do on the pace that we had hoped.

ACOSTA: The soaring campaign rhetoric.

OBAMA: America, this is our moment. This is our time.

ACOSTA: Has given way to grim reality.

OBAMA: Everybody is going to have to give. Everybody is going to have to have skin in the game.

ACOSTA: With the country mired in the an ugly recession, the president-elect is calling for national sacrifice, warning there could actually be more job losses this year than last.

OBAMA: The estimates are if we don't do anything, we could see four million jobs lost this year.

ACOSTA: The economy is also forcing Mr. Obama's team to reconsider some campaign pledges.

OBAMA: I don't believe in running up debt for the next generation.

ACOSTA: Such as reigning in deficit spending and scrapping the Bush tax cuts on the wealthiest Americans before they expire in late 2010.

OBAMA: We have tried it George Bush's way and it hasn't worked.

ACOSTA: Some of it is aimed in attracting republican support for the incoming president's economic recovery plan but that could set up an early battle in the now heavily democratic Congress. REP. NANCY PELOSI (D), SPEAKER OF THE HOUSE. I want a repeal of the tax cuts for the highest income people in America.

WOLF BLITZER, CNN HOST: There would be a tax increase for those richer -

PELOSI: That's not a tax increase. This focus of the tax cuts should be on America's middle class. The backbone of our democracy who have gotten really the royal shaft in the past eight years.

ACOSTA: Mr. Obama is asking for sacrifice from Congress as well. Some political observers say the economic crisis raises the stakes.

DAVID GERGEN, CNN POLITICAL ANALYST: This strengthens Barack Obama's hand with the Congress and with the public. It's so urgent that it's going to be very, very hard, I think, for people who don't like parts of this package to vote against it.

(END VIDEOTAPE)

ACOSTA: And Mr. Obama is now in the business of managing expectations, warning Americans the country not only needs hope but hard work. He calls the task ahead a heavy lift. And John, I remember during the campaign, those t-shirts that said "Got hope? Got work," may be more like it now, John.

ROBERTS: Yes, exactly. Well, every incoming president finds that the honeymoon quickly ends. This looks like this one comes to an end before he's even inaugurated.

ACOSTA: That's right.

ROBERTS: Jim, thanks so much for that.

And at 9:15 Eastern, right here on CNN, President Bush will hold his last news conference in office from the White House briefing room. He'll begin with remarks about the important role that the White House press corps plays in covering presidents. That ought to be interesting. Before he takes questions. That's live here at 9:15 Eastern here on CNN and also on CNN.com.

CHETRY: Well, better than a nanny or perhaps better than the Secret Service, Barack Obama's mother-in-law is moving to Washington with them. We'll take a look at the first grandma and why she may be a role model for many retirees.

Also the epicenter of the civil rights movement more than 50 years ago when Little Rock Central High opened its doors to equality.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Because it's been 51 years, I think they were baby steps now, but they were big steps then.

(END VIDEO CLIP) CHETRY: And today, we go back to see what Americans' first black president means to new student and to pioneers. It's 39 minutes after the hour.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

ROBERTS: The clock is ticking away there for the final countdown to the inauguration. A dress rehearsal for history. Officials staged a large-scale rehearsal for the upcoming inauguration and parade yesterday and there was even a stand-in for the incoming president- elect. Army Staff Sergeant Derek Brooke delivered a six-word inaugural address that drew cheers. He said "my fellow Americans, God bless America." Beginning in the end, I guess.

It's official, the first Grammy is moving into the White House. Barack Obama's mother-in-law is expected to help the young Obama children adjust to their new lives. Carol Costello joins us now from Washington.

Six bedrooms at last count, Carol, in the residence of the White House. Do we know which one she's going to claim?

CAROL COSTELLO, CNN CORRESPONDENT: No, that's the ticker. That's top secret, John. But yes, the first mother-in-law is moving in at least temporarily. Marion Robinson, Mrs. Obama's mom, will move into the White House to help her daughter with her daughters, Sasha and Malia.

Mrs. Robinson is 71 years old and she has cared for the girls while their parents campaigned. She does not enjoy the limelight but will give up her cozy Chicago bungalow for the white mansion at 1600 Pennsylvania Avenue. The Obama transition team tells us the move could be temporary or permanent. No doubt about this though, Grandma's efforts will be much appreciated.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FUTURE FIRST LADY: There is nothing that makes me rest more now that I have to work than to know that my kids are being loved and cared for by someone who is teaching them values and discipline and giving them a little extra candy every now and then.

(END VIDEO CLIP)

COSTELLO: And boy does she. This will not be a first. Harry Truman's mother-in-law lived at the White House but it was not a happy thing. She often belittled President Truman telling her daughter he made really bad decisions. Truman stuck it out though. You know it's dangerous to criticize your wife's mother.

As for Marion Robinson, she obviously has a warm relationship with Barack Obama but is known for playing by her own rules. The Obama's only allow the girls watch TV for an hour. Grandma thinks that's a bit extreme. She often lets the girls stay up late and she doesn't adhere to Obama's healthy eating habits. She says hey, if you're going to eat fried chicken, eat fried chicken, rolled in rich cracker batter and fried to a crispy brown. It tastes much better, John.

ROBERTS: I tell you one thing too though. As Harry Truman's mother-in-law wasn't the only one saying that he was making bad decisions, although history had a kinder view of him. So the Lincoln bedroom, typically reserved for dignitaries and special guest, maybe the Queen's bedroom, that would be appropriate, I would think.

COSTELLO: I don't know. You know what she's really going to be doing, she's going to be taking care of that dog. Because you know kids never take care of the dog.

ROBERTS: Exactly. Whichever one they choose. Carol, it's good to see you this morning. Thanks.

CHETRY: Well, Barack Obama's rise to the presidency being looked at as an end to the baby boomer era. A commander in chief who came of age after Vietnam. So, what that could mean for his ability to make critical decisions and work with others in Washington, an interesting look.

Also big business taking a page from the Obama playbook but could modeling their ad campaign now after the presidential campaign backfire? We take a look. It's 45 minutes after the hour.

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CHETRY: More than a half century ago, nine students became the first African-Americans to pass through the hallways of Little Rock Central High School. It was a seismic shift for the Arkansas school and also a major achievement for the civil rights movement.

Now as America is poised to see its first black president take office, we're talking to the students, past and present, as part of the weeklong series "Road to the White House." Our John Zarrella is live from Little Rock, Arkansas this morning. Hi, John.

JOHN ZARRELLA, CNN CORRESPONDENT: Hi, Kiran. Well here we are in Little Rock. And what happened here more than 50 years ago changed this school behind me forever. It also helped change the nation and it paved the way for the Obama presidency.

(BEGIN VIDEOTAPE)

ZARRELLA (voice-over): The building is imposing. Casting a long shadow over the neatly kept grounds. This is Little Rock Central High School, on the outside it hasn't changed in half a century. It is only when the school bell rings and the students pour out. You see the change in color. Today nothing like what it was in 1957. Carlotta Walls Lanier thumbs through here yearbook.

CARLOTTA WALLS LANIER, MEMBER OF THE LITTLE ROCK NINE: And then it shows how the 101st give whack on the grounds of the school. ZARRELLA: Only after federal troops arrived were Lanier and eight other African-American students able to integrate Central High. They became known as the Little Rock Nine.

LANIER: Because it's been 51 years, I think they were baby steps now but they were big steps then.

ZARRELLA: Back then, she believed once the doors of equality were opened, it wouldn't be long before an African-American became president.

LANIER: I had hoped to see something like that in probably the next 10 or 15 years when I was in high school, but that didn't happen.

ZARRELLA: Now that it has, today's students at Central see themselves as the beneficiaries of an Obasanjo presidency.

DEIVORY HOWARD, CURRENT LITTLE ROCK CENTRAL STUDENT: It just means OK, now I can actually be what I want to be.

HELENA LIU, CURRENT LITTLE ROCK CENTRAL STUDENT: There actually is a chance for anyone to do what they want to do if they work hard enough.

HOWARD: An ordinary person can do extraordinary things.

ZARRELLA: And they believe their school's history gives them a greater appreciation for racial tolerance.

CHRIS BELL, CURRENT LITTLE ROCK CENTRAL STUDENT: I think that when you come through those doors there, it's a different environment. It's more of a one-one environment. Everyone is one and we're working together for a common goal.

AFSHAR SANATI, CURRENT LITTLE ROCK CENTRAL STUDENT: We learn a lot more about, you know, what happened here and the importance of it, and definitely - I mean, I have friends that go to private schools that are - that are not as diverse. There's a degree of racial uniformity that they have and it's just they don't get the same experience.

ZARRELLA: Central does not shy away from its past. Students take a class that teaches it.

HOWARD: I couldn't believe it's happening here. But, at the same time, it's like I'm glad it did, because, you know, if it wasn't for that, we probably wouldn't be - the country wouldn't be where it is now.

ZARRELLA: And as you look in the reflecting pool outside Central, that is what you see. The present. Not the past.

(END VIDEOTAPE)

ZARRELLA: Now the students don't dwell on the past or even talk about it much, unless people like me ask them. But down the street, there's a museum and across the street, there's a gas station where the protesters stood more than 50 years ago. There are images everywhere. Images you can't escape, and, perhaps, that's a good thing. Kiran.

CHETRY: Wow. John, that's amazing and especially, I'm sure they will be watching extra closely as we witness history just a few short days from now.

ZARRELLA: Yes, indeed, without question.

CHETRY: John, thanks.

It's 51 minutes after the hour.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Skid row.

UNIDENTIFIED MALE: I see this big 18-wheeler coming at me sliding.

ROBERTS: Car after car after car. A trail of twisted metal on an icy interstate. Extreme weather on the move for your ride to work today.

Plus, Obama, the brand.

UNIDENTIFIED MALE: And the world is made of energy -

UNIDENTIFIED FEMALE: Obama's campaign did something absolutely brilliant and almost impossible.

ROBERTS: Why corporations see big bucks in the campaign logo. On this AMERICAN MORNING.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the most news in the morning. And there is a shot of the west front of the Capitol Building as they are putting up the balcony there for the inauguration. In just eight days before Barack Obama becomes president and his is spruced with the finishing touches on that stage. Some influential evangelical pastors are putting their touch on the walkway that Obama used to get there.

David Brody of the Christian Broadcasting Network obtained this video of the pastor blessing the walkway this weekend. David is also a CNN contributor and he joins us now from Washington. David, what is the significance of what we see in that videotape?

DAVID BRODY, CHRISTIAN BROADCASTING NETWORK: Well, there are a couple of things, John, going here. We have a situation where the pastors, in essence, have gone ahead and blessed this walkway in a way where they're saying, look, you need to pray for those in authority over you. And I think that's a situation where, you know, at the end of the day, that's exactly what conservative evangelical Christians are going to do and they've been doing that for a while now.

So I think you're seeing this on a continuing basis and you're going to see a lot more of that in the future, throughout the next four years, John.

ROBERTS: David, I'll give you a chance to put your earpiece back in.

BRODY: It's in.

ROBERTS: OK. Good. I know the problem you were hearing yourself back and that could be tremendously annoying. The incoming president-elect talked about this idea too that he has not yet picked a church to attend in Washington.

BRODY: Right.

ROBERTS: He spoke with George Stephanopoulos about that on "This Week" yesterday. Let's listen to what he said.

(BEGIN VIDEO CLIP)

OBAMA: One of the things that Michelle and I will be doing is probably visiting some churches and seeing what's comfortable. It is tougher, as president. You don't want to subject your fellow church members, the rest of the congregation to being magged every time you go to church.

(END VIDEO CLIP)

ROBERTS: When he talked about being magged he means going through the metal detectors, the magnetometers that the Secret Service has to put people through anytime the President attends any event, anywhere, let alone church. Are there any candidates in terms of a church that he might visit?

You know, President Clinton, President Bush both chose St. John's Episcopal Church which was across Lafayette Park from the White House, just an easy car ride or sometimes even a walk if they had the protection to do it. Do we know where Barack Obama is looking at this point?

BRODY: You know, it's really the best kept secret in Washington. It's kind of like remember that Dallas TV show, "Who Shot J.R.?" It was the best kept secret in America. No one really knows, we do know that Michelle Obama has some ties to Metropolitan A&E church in Washington, D.C.. That may be a possibility.

I mean he is going to look at certain churches that deal with obviously community organizing, deal with social justice issues but also John, something very important to keep in mind. Those close to Barack Obama tell me that the Sunday school is extremely important for them exactly where their kids are going to really get that church teaching, if you will.

And another important thing here, John, is that and Barack Obama talked about it in that interview as well, where he talked about how pastors are needing to pray for him and really dealing with him on that level. Those close to him say it's important that he has two to three spiritual advisers, if you will, pastors that want nothing from him politically, that have nothing to do with the church he attends but just simply are there to pray for him.

ROBERTS: Is he being extra careful in the wake of the Reverend Wright controversy in which church he chooses?

BRODY: I don't think there's any question about that. there are going to be a lot of political consequences to this, whatever the case may be, but I think what we've seen from Barack Obama so far is that he is a no drama guy. I mean, there's not going to be many surprises here. What he has talked about in the campaign will most likely come true in the - in his presidency.

What I mean by that, is that you will see him, most likely, pick a church that is pretty traditional in the way he sees his faith. Social justice issues, community organizing. That is probably the way he is going to go, John.

ROBERTS: And how important is it for him to attend church? Something has been made the last few Sundays, he has hit the gym as opposed to going to church. Bill Clinton went to church a lot. George Bush more infrequently. How important is it for him to be a regular Sunday attendee?

BRODY: Well there's no doubt that it's important. And I believe that he and those close to him that know more about his faith walk says it's very important, but I think at the end of the day, John, what this is going to be is not just the church experience.

A lot of people get wrapped up in that, but what we saw in the campaign, if you remember some of the pictures of those pastors, "laying hands on Barack Obama," literally praying for this man, now president of the United States. That is going to be probably even more important than just going to church every Sunday. That prayer every single day that he is going to need and he is going to need a lot - quite a hefty dose of it.

ROBERTS: Right. Well, we'll see what he picks. David Brody, it's good to see you. Thanks for dropping by.

BRODY: Thanks, John.