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Officials: U.S. May Strike al Qaeda in Yemen; Abdulmutallab's Hometown; Iran Demonstrations

Aired December 30, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Wednesday, the 30th of December, 2009. And here are the top stories for you, right here in the CNN NEWSROOM.

A trail of missed opportunities from Nigeria to Detroit. Eight years after 9/11, U.S. agencies aren't communicating about potential terrorists.

The Iranian regime calling thousands of its supporters to the streets. Anti-government protesters are told to stay away or expect no mercy.

And tears of joy in Georgia. A mother reunited with the daughter she gave up for adoption 50 years ago.

Good morning, everyone, I'm Tony Harris, and you are in the CNN NEWSROOM.

A new finding this morning about the attempted bombing of Northwest Flight 253. Here's what we know right now.

Two senior administration officials tell CNN the U.S. military is reviewing targets in Yemen. Retaliatory strikes could be aimed at al Qaeda training camps.

Bomb suspect Umar Farouk Abdulmutallab was apparently on the CIA's radar as far back as August, but sources tell us a report on the Nigerian never made it to other U.S. security agencies.

President Obama calls the communication breakdown a systemic failure. The president says the intelligence, plus other information, could have kept the suspect off the plane.

And an official with the African Union says a man was arrested after he tried to board a flight from Somalia to Dubai last month. The official says the man carried potential bomb-making ingredients. He says the incident may be linked to the Detroit incident.

All passengers flying out of Amsterdam's Schiphol Airport to the U.S. will now undergo a full body scan. The technology could have detected the explosive powder hidden in the suspect's underwear.

(BEGIN VIDEO CLIP)

GUUSJE TER HORST, DUTCH INTERIOR MINISTER (through translator): It takes three weeks to start using these machines because one-half of the two still have to be (INAUDIBLE) out with the required software. And in three weeks, 15 scanners will be in use on flights to the states.

(END VIDEO CLIP)

HARRIS: All right. And that is a look at the latest developments in the terror investigation this morning.

Now let's zero in on Yemen and possible retaliatory strikes on al Qaeda.

CNN Pentagon Correspondent Barbara Starr joining me now.

And Barbara, what are you learning about possible military action?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Tony, let's break it down for people.

There have, in fact, been, already this month, long before this Northwest flight incident, a number of military operations in Yemen. Some carried out directly by the Yemeni military, by all accounts, some U.S. intelligence and targeting information, possibly even some U.S. weapons provided to go after al Qaeda targets. The al Qaeda network in Yemen has already been in the crosshairs of both countries.

But now, in light of this incident, two senior U.S. officials tell CNN that both countries, together, their military and security services are going back, looking at the al Qaeda target list inside of Yemen, trying to see if they can make a link to this Christmas Day foiled attack. And if they can, they certainly will continue to carry out these strikes that have already been ongoing, and they will look for targets that they can hit that were directly linked to this possible attack -- Tony.

HARRIS: Barbara, any way of knowing how many al Qaeda militants are operating or training in Yemen?

STARR: Right. What exactly is the al Qaeda target list in Yemen?

Well, you know, U.S. officials say they think, but nobody has a really solid handle on it, that there might be as many as 200 or so al Qaeda members inside of Yemen around a central core leadership in that country. But the key is the strikes that have already happened, nobody really knows for sure yet whether they have been able to take out that core leadership or whether the leaders have actually scattered and now will even be tougher to track down. There are also a number of al Qaeda training camps inside of Yemen, and there is some concern that this Nigerian suspect may indeed have trained at one of those camps -- Tony.

HARRIS: One more for you, Barbara. The idea of dropping U.S. bombs on another country, clearly highly sensitive stuff here. How does the U.S. potentially head down this road and avoid the type of blowback we've seen in Pakistan?

STARR: Well, that is really key here. If there are additional strikes, the level of U.S. involvement, we are told by very senior officials in the Obama administration, would be directly coordinated with the Yemenis. And that's the reason the U.S. has been so quiet about the strikes that have already happened this month.

There's essentially a secret agreement with Yemen. The U.S. will help, it will help as much as it can, it will press the Yemenis to do as much as they can, but Washington will remain very quiet about it because it's so sensitive inside of Yemen that there would be any U.S. military assistance. So don't expect to see a lot of headlines when and if it happens -- Tony.

HARRIS: OK.

Barbara Starr at the Pentagon for us.

Barbara, appreciate it. Thank you.

And next hour we will talk more about airport security worldwide. Rafi Ron joins us. He is the former security director at Israel's Tel Aviv Ben Gurion International Airport.

And to get a better understanding of Umar Farouk Abdulmutallab, CNN's Christian Purefoy traveled to the hometown of the suspected terrorist in Nigeria.

(BEGIN VIDEOTAPE)

CHRISTIAN PUREFOY, CNN CORRESPONDENT (voice-over): This is the small mosque once attended by Umar Abdulmutallab, the man who allegedly tried to let off a bomb onboard the Detroit flight on Christmas Day.

The last time Abdulmutallab came here to pray, his neighbors say, was in August this year, just before he went to Yemen. Everyone here is shocked that he is now the center of a global terrorist alert.

(on camera): Was he a devout Muslim?

(voice-over): "He would be the first to prayers and the last to leave," says the local imam. "But he didn't mingle. He liked isolation."

At the prestigious local school he attended, which does not even teach religion, this son of a wealthy Nigerian banker is remembered as well-behaved and popular with his classmates.

(on camera): So he mixed with children from all backgrounds here, Christian, Muslim...

KERCHIRI SETH, SCHOOL VICE PRESIDENT: Yes, that's right. Christians, Muslims, Hindus, other religions, because we have other nationals here in Nigeria.

PUREFOY: Do you have Americans here in the school?

SETH: Yes, we have Americans.

PUREFOY: But outside the school there was violence on the streets.

The city of Kaduna sits on one of the longest religious fault lines in the world, separating a Christian sub-Saharan Africa and a Muslim northern Africa.

In 2000 nearly 1,000 people were killed in Kaduna after religious riots, and in 2002, thousands were displaced after the Miss World Competition was to be held here. It was canceled after tens of mosques and churches were burned. Growing up in Kaduna, Abdulmutallab was certainly no stranger to religious violence.

(voice-over): Nobody in Kaduna that I met publicly supports Abdulmutallab's actions. But he is certainly not alone in his resentment against the West.

"The West promotes immoral values," said this trader. "It's wrong for the west to support the Israelis to kill Muslim Muslims," says another.

Extremism is not taught here, insists Imam Dumawa. There is no attempt to justify suicide attacks. Abdulmutallab must have learned his radical ideas in his studies abroad, he says.

But he warns many similar young men from wealthy families studying in the Middle East are often returning with dangerous ideas. "There are sects abroad that are trying to trap and brainwash our children," the imam says.

The question that concerns many in Kaduna now is whether Abdulmutallab may not be the last young Nigerian to fall prey to radical and violent ideology.

Christian Purefoy, CNN, Kaduna, Nigeria.

(END VIDEOTAPE)

HARRIS: Another major story we're developing and following this hour, government-staged rallies in Iran. We will show you the other side of the story.

And Jacqui Jeras tracking weather. Get your -- I always want to walk over here when I see this shot. Get your New Year's Eve forecast from this lady right here.

JACQUI JERAS, CNN METEOROLOGIST: You've got to go that way. Hello.

HARRIS: Sorry about that, Jacqui. I don't know what to do with that shot.

But first, here's the latest from the New York Stock Exchange. We're selling, in a selling mood early. Stocks down 13 points.

We're following developments throughout the day, right here for you in the CNN NEWSROOM.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Happening now on the streets of Tehran, more demonstrations. But unlike the ones in previous days, these are government-sponsored rallies.

And quickly now, let's get to Rosemary Church, who is monitoring the situation from our Iran Desk.

And Rosemary, look, what should we make of what's happening in Iran today? Yes, the government is sponsoring this event, which isn't probably the best with a struggling economy, but the truth is there was a pretty huge turnout there.

ROSEMARY CHURCH, CNN CORRESPONDENT: Yes, indeed. And Tony, you know, what we've got to take note here is that we have witnessed on Sunday the worst violence since the disputed June 12th elections in Iran, so this is an effort by the government to counter that.

You can see these pictures here. Hundreds of thousands of supporters of Iran's regime taking to the streets Wednesday, this day, in a show of force against the opposition.

Now, a number of these people were actually bused in from rural areas and given the day off so that they could attend these rallies. And state television showed footage of people swarming downtown. You can see that downtown area, including Tehran's Engalab (ph) Square.

Now, it's important to note not only Tehran, in actual fact. We mainly hear these protests there, but these pro-government protests taking place in Araq (ph) and Qom, and also in the south, in Shiraz.

Now, eight people were killed and more than 500 protesters arrested following those anti-government protests back on Sunday, just three days ago. And you know, the police chief, General Ismal Ahmadi Mohadam (ph), he's issued a harsh threat. Listen to this. I want to read it out.

This is directed at anti-government protesters, and he says, if we could just bring those words up from him, "In dealing with previous protests, police showed leniency. But given that these opponents are seeking to topple the ruling regime, there will be no mercy." And he emphasizes that they will crush the protesters.

Now, we've had new amateur video coming in from Sunday's anti- government protests in Tehran. Have to note here, CNN cannot confirm the authenticity of this video. I want to show you this footage. Now, you can see here there's people running. There's a car, there's a group of people here. Watch this as a police van rushes over into that crowd.

Now, actually knocks someone down. Then it reverses, as you can see there. And another van, another police van on the left there, then moves in and mows over the top of the body there of somebody lying on the ground.

HARRIS: Whoa. Whoa.

CHURCH: Now, of course I say body, but at this point we do not know whether that is a man or woman, whether they are dead or alive. The witnesses then rush in there. And have to note here that Iran authorities are saying that protesters took control of those police vans and they did this themselves.

Looking at another piece of amateur video now, we've covered this woman's face in respect for her, a dead woman, who apparently was also knocked down by a paramilitary van, and she is being taken there by the witnesses. You see that they're taking her body and putting her into a car to take her to a hospital to try to stop authorities there, Iranian authorities, getting hold of her remains.

And also, Tony, worth noting, we were reporting on Sunday, of course, that the nephew of opposition leader Mir Hossein Mousavi had been killed. Now Syed Ali Mousavi has been buried.

And so -- and we're looking at clothes now from him. We don't know the circumstances at this stage of his death. We know that he was shot, but we don't know what the circumstances are.

But we're keeping an eye on that and all the other developments coming out of Iran.

Back to you.

HARRIS: Appreciate it. Rosemary, thank you.

More analysis and insight on what's going on in Iran right now from Newton, Massachusetts, Jim Walsh. Jim is an international security expert at MIT.

Jim, as always, great to talk to you.

JIM WALSH, INTERNATIONAL SECURITY EXPERT, MIT: Good to see you, Tony.

HARRIS: And in Washington, Karim Sadjadpour, a leading expert on Middle Eastern affairs with a special emphasis on Iran. He is with the Carnegie Endowment for International Peace.

And Karim, let me start with you. What should we -- same question I asked Rosemary at the top there -- what should we make of what's happening with these protests, these government-sponsored protests, demonstrations today in Iran? KARIM SADJADPOUR, MIDDLE EAST EXPERT: Well, Tony, when I was based in Tehran, I used to attend these government-sponsored protests frequently. And when you talked to the demonstrators, they were often, as Rosemary mentioned, bused in from the provinces, given the day off of work, given a free lunch. So you compare that to the anti- government protesters who are warned weeks in advance that there are going to be severe repercussions if they attend these protests, and still hundreds of thousands turn out.

So, I am very confident, Tony, having been based in Tehran a couple of years, that a majority, if not a vast majority, of people in Iran want to see a different type of government in Tehran.

HARRIS: Jim, are you surprised at all by the turnout?

WALSH: No, I'm not. You know, in political science, generally protests are not a good indicator of the general support of a government because most people don't protest. It tends to be a small slice of society that engage in protests.

I think, though, that this is symbolic of one of the problems we face in Iran. That is to say, not everyone hates the government. Even though these guys are being bused in from the hinterlands, the fact is, at least pre-election polls show that there's some plurality of the Iranian people.

You know, is it 30 percent? Is it 40 percent? Is it 45 that supported the government?

Now, that may have changed given all the violence that's taken place, but this is a divided society right now. And it's not as if it's 99 percent against the government. There are some pockets of support for the government as this plays out.

HARRIS: All right. Terrific. Let me take that point to Karim.

You know, I don't want to paint all of these people we see protesting today as sort of mindless automatons. What of the line of thought that says Iranians are paying really close attention to what's going on in the country, and in whatever numbers, large, medium, small, have decided they don't like the approach, the tactics and the arguments put forth by the opposition? What of that line of thought, Karim?

SADJADPOUR: Certainly, Tony, no country, no population on earth is monolithic. There's a diversity of views. But let's put things in perspective.

The Iranian population is overwhelmingly young, two-thirds under 33. Under Mahmoud Ahmadinejad's tenure, the Iranian economy has severely deteriorated, social freedoms have severely been curtailed, political freedoms have severely been curtailed.

So there's a difference between being poor and being pious and being ignorant. And I would say that Iranians, despite the fact that they're pious, you do still have lower income classes, that doesn't mean that they're ignorant and they don't know what's good for them.

HARRIS: Yes.

Jim, isn't the real -- and I think Karim just hit on this. Isn't the real pressure on this regime economic? Don't you gain real transaction on pocketbook issues, even in Iran? Isn't that the issue, to win more support for your movement?

WALSH: I think that's right, Tony. I would not overstate Iran's economic problems. It had -- the IMF said it had -- is looking at three percent growth.

It hasn't done as well as its neighbors in the region over this period of time, but it hasn't gone down into a hole either. The real economic issues facing Iran are going forward.

If the price of oil remains modest, and there's a lack of investment in Iran's oil infrastructure, if that continues, along with rationing, we're really looking at a problem as Iran spends all its hard currency to keep those subsidies going. But right now it's not great, but it's not -- you know, the economy hasn't collapsed either. But looking forward, there will be increasing economic pressure, and that will affect, as Karim rightly points out, the young people the most, and they are a majority in Iran.

HARRIS: Karim, what does the opposition really want?

SADJADPOUR: Well, Tony, I think that even amongst the leadership of the opposition, there's a diversity of views. I think individuals like Mir Hossein Mousavi, Mehdi Karoubi, they were important pillars of the 1979 revolution, and they still believe in the idea of an Islamic republic.

I think if you talk to the younger protesters, the university students, they would like to see much more fundamental change, separation of religion and state. And at the moment, I think the tactics of the opposition leadership is to take a very deliberate approach, to recruit as many people as possible under the tent of this green movement, and focus on removing President Ahmadinejad, maybe even Supreme Leader Ayatollah Khamenei, rather than talk about specifics which may create fissures amongst the opposition themselves.

HARRIS: All right. Let's leave it there.

Karim Sadjadpour and Jim Walsh.

Gentlemen, great to talk to you. Great discussion. Thank you both.

SADJADPOUR: Thank you, Tony.

WALSH: Thank you.

Checking our top stories now.

The governor of Iraq's Anbar province fighting for his life this morning after suicide bombings. This is video near the blast site. Officials say the governor was targeted by a rogue bodyguard. At least 22 others were killed in the attacks, 57 wounded.

A British man held hostage by militants in Iraq for more than two years has been freed. Officials say Peter Moore is in good health. Moore was captured, along with four of his body guards, in May of 2007. At least three of the other men are dead.

Yet another round in the fight over 9-year-old Sean Goldman. After returning home to his American father last week, his family in Brazil now vowing to continue their fight to regain custody. A lawyer for Sean's father says Brazil no longer has jurisdiction since he is now in the United States.

So, you've been wondering if you should fire your financial planner. Don't do anything until you hear what Gerri Willis has to say. And she's up next.

(COMMERCIAL BREAK)

HARRIS: Well, here's a financial resolution for the new year. Check up on your money manager. You don't want a graduate of the Bernie Madoff school of investing handling your assets.

Your personal finance editor, Gerri Willis, is here.

Gerri, I like that. Yes, good point.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.

HARRIS: What are the red flags that investors might notice?

WILLIS: Well, hi there, Tony.

Yes, there are telltale signs that your adviser may not have your best interests at heart. Here's what to look out for.

If your planner guarantees you big returns on investments, watch out. Investing is always risky and there's no way to guarantee a particular level of return. And as Madoff's victims found out way too late, your check should go to a third-party custodian who is actually holding your funds, not directly to the planner or their company.

Another sign, you're pressured to buy a specific investment. Hey, remember, this is your money, after all. You have to be comfortable with how it's being put to work.

One word of caution here. You know, firing your adviser just because you're not happy with returns in a specific year may be wrongheaded. Some of the most levelheaded and accomplished investors and portfolio managers had terrible performances over the last two years.

What you want to think about is how adept were they at responding to the crisis? Did they duck your phone calls when the market took a dive? That's a sure sign you should get a new adviser. HARRIS: Well, how do I do this? How do I go about checking up on my adviser, Gerri?

WILLIS: You know, that can be tricky. Look, if you're working with a stock broker, call FINRA. That's the Financial Industry Regulatory Authority.

Now, that agency, they maintain something called a database, a central registration directory. It's a database on brokers that includes disciplinary actions taken against them and lawsuits. So great information there. You can also go to your state securities regulator. They maintain info on brokers' employment history and their education.

And remember, there are lots of designations for advisers, letters that go after their names. The best ones for regular investors, CFP, certified financial planner. It's awarded by the CFP Board of Standards. It's stuff to get.

And NAPFA, the National Association of Personal Financial Advisers. This is a group of advisers who don't accept commissions for selling investment products but, rather, work for fees paid by their customers.

And, of course, if you have any questions, send them to me at Gerri@CNN.com. We love to hear from you.

HARRIS: Oh, terrific. Thank you, Gerri. Good tips, as always.

The terrorist attempt on Flight 253 puts a spotlight on airport full-body scanners. That is good news for a small company in southern Mississippi.

(COMMERCIAL BREAK)

HARRIS: Let's get you caught up on the Flight 253 terror investigation. Authorities in Africa suspect a link between the attempted bombing of a Detroit-bound plane and an incident in Somalia. They say a man was arrested last month trying to board a flight with chemicals that could be used as an explosive device. President Obama wants a preliminary report on what went wrong by tomorrow.

And the airport in Amsterdam plans to start using body scanners on passengers flying to the United States. The flight that was targeted was headed from Amsterdam to Detroit.

A Mississippi company that makes body scanners has ramped up production big-time. The company is working to meet the increased demand for the machines. Reporter Doug Walker of affiliate WLOX has a look from Jackson County, Mississippi.

(BEGIN VIDEOTAPE)

DOUG WALKER , WLOX REPORTER (voice-over): There's a flurry of activity on the production floor at Rapiscan in Jackson County. Workers are busy building the new body-scanning machines, machines that are about to be shipped to TSA.

TOM SCHOEMANN, RAPISCAN OPERATIONS MANAGER: We have been tasked to deliver 150 machines between the December and the April timeframe. We are on schedule to deliver 40 this month, which will begin deploying in U.S. airports in January.

WALKER: Tom Schoemann oversees the operation at this Sunplex (ph) facility. The plant has recently hired an additional 25 people to meet the demand and they're working 60 hours a week. Because of the recent terrorism incident, federal officials are seriously considering placing the $150,000 body scanners in most airports. And if that happens...?

SCHOEMANN: We'll have to double our staff. We'll have to add an additional 25 jobs and go to a second shift of operation.

WALKER: Even with concerns about airport security and safety, the body scanning technology issue is not without controversy.

(on camera): There have been some privacy concerns raised with the use of these machines, but what better way to dispel some of those concerns than to take the test myself.

(voice-over): I step into the scanner for the 15-second test. When it's over, this is what I look like on the computer screen. The scanner picks up glasses, a cell phone, a small pocketknife and a pen. Of course, the knife could be used as a weapon on a plane.

Even though Rapiscan will gain business and profits from any additional orders, there's an even greater calling at play here.

SCHOEMANN: There's a great deal of pride that goes into this and everyone out there realizes what's at stake and what they're doing.

WALKER: And what they're doing is earning a living and helping protect the country at the same time.

(END VIDEOTAPE)

HARRIS: Rapiscan started its operations in August of 2004 with one employee. The company now has 31 workers and many of you have been through airports across the country since Christmas Day. Here's our question for you -- are you experiencing long delays or security searches? And here are a few of your comments on our blog.

"I certainly felt the impact," this is from Bob, "of disrupted air travel on my recent flight from Winnipeg, Canada to Ft. Myers, Florida. Long waits to clear security as well as strict carry-on limitations make one think twice about traveling. This really concerns me as I am in the accommodation industry. The adverse effect on the hospitality sector is certainly felt on both sides of the border."

And this from Vicki who writes, "The big question mark is why does the public have to suffer severely when respective government agencies fail to do their job? Stricter airport security measures are not even necessary if all names in the terrorist lists are taken seriously. Terrorists are terrorists."

And, of course, we want to hear from you as well. Leave your comments for us, please, on my blog at CNN.com/Tony.

(COMMERCIAL BREAK)

HARRIS: Yemen, the focus of a slew of security concerns. Now the small country is in the middle of a very volatile region that presents all sorts of challenges. CNN's Josh Levs is here to show us.

And, Josh, use that mapping there -- flip it, zoom in, pull out, whatever -- to give us a really good look at Yemen, please.

JOSH LEVS, CNN CORRESPONDENT: This is what we need to do because it is surrounded. It is in a very volatile region and not just in one direction.

Let's go straight to it. What I want everyone to see first is where Yemen is itself. We go up to that Horn of Africa and you have the Gulf of Aiden here, you have Yemen right here. It's a country of about 24 million people.

But when we hear about this new organization, this al Qaeda in the Arabian peninsula, it's not just in Yemen -- let's zoom up -- it's also in Saudi Arabia. So what you're seeing security officials think about here is what to do not only about Yemen, but also about the operational structure of the same organization that is in here. This group was basically the combination of al Qaeda in both these countries. Now a lot of thoughts about what to do about al Qaeda in both these countries as one group.

Now, as though that wasn't a big enough challenge, let's zoom out even further, I want you to see what's right north of here. You've got Iraq and Iran. Now obviously the U.S. has a lot of major security concerns in different ways in both nations here.

And then over here, Tony, you have what we traditionally think of as the Middle East when you think about it. You have Lebanon and you have Syria, you have Israel, all over here. All of it on the north side of Yemen. Now, that's a challenge, right?

Here's what we haven't even dealt with yet. Let's go to the next section here, we're going to zoom south because what's on the other side of Yemen is also of tremendous concern and that's right here -- Somalia. As we know, there have been serious security concerns inside Somalia. It's been, to some extent, a breeding ground for al Qaeda.

And as though all that isn't tricky enough, Tony, inside Yemen itself you have all sorts of conflicts going on right there. One of our guests on "AMERICAN MORNING" spoke about that.

(BEGIN VIDEO CLIP)

PROF. FAWAZ GERGES, LONDON SCHOOL OF ECONOMICS: Al Qaeda appears to have merged with local conflicts and this is where the danger lies. So you not only have an al Qaeda footprint, an alien one, you have al Qaeda now leading the struggles in the south against the north. And also, you have tens of thousands of Somali refugees, Somalia is a refugee state. So you have interaction between al Qaeda members in Yemen and Somalia.

(END VIDEO CLIP)

LEVS: So, Tony, when you take a look at the big picture here, and a lot of Americans remember the story of the piracy that was going on outside Somalia, you have Yemen smack in the middle of all this. And with Somalia down here, all of it presenting challenges in looking at how do you deal with the new security concerns now, given what's happened over the past week, Tony.

HARRIS: How complicated is this world? It wears me out. It's just -- all right, Josh, I appreciate it.

LEVS: I could have kept going...

(CROSSTALK)

LEVS: ... but the fact is this is a lot of where the security officials are looking at in terms of this specific story.

HARRIS: My goodness. Josh, appreciate it. Thank you.

Think about it for a second here -- television with no football, no "24" and no "American idol"? It could happen if FOX and Time Warner Cable can't find some common ground.

(COMMERCIAL BREAK)

HARRIS: What's this, I can't get my "American Idol" fix? I wouldn't mind that so much. I can't watch all my NFL playoff games? That would really bother me. It could happen to some viewers if FOX and Time Warner Cable can't resolve a pretty nasty feud.

Business correspondent Stephanie Elam is joining us from New York. Stephanie, what's this kerfuffle all about here?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: can you please stop lying? We all know you watch "American Idol" religiously. We know that is your show, Tony.

HARRIS: That much?

ELAM: The issue could be a big deal for a lot of people who watch the FOX programs. What is happening is that there's a little bit of a disagreement between the nation's second largest cable provider, which is Time Warner Cable, and News Corp, which is the parent of FOX TV. So all the FOX channels that you see out there.

The problem here is that their contract agreement is going to just come up and go away when the ball drops tomorrow night and that is the problem. Because what is happening here is that Time Warner cable is basically saying, you know what, you guys want too much money from us and then you take a look at FOX and they're saying, yes, but you've got other stations on your cable network that you pay for, you don't even have to pay for ours and our ratings are better. So they say pay us what you pay those guys. You pay about a dollar a subscriber for people who subscribe to those cable stations, do the same thing.

So the difference here, and I should break this one down, too, Tony, is that broadcast stations like NBC, ABC, CBS and FOX, all of those channels are free. Those are the basic ones that back in the day when you had bunny ears on your TV, you could still get those stations. Well, the way it works for the cable networks, they actually are paid by the cable providers to have their content on their service. So that's the difference here. And they're saying, but we've got good content so include us in that.

Now the networks are saying it's hard for them to make money off the broadcast channels because there's just so much programming out there. There's also advertisers are less interested in paying as much since there's less eyeballs around since there's so many distractions and also think about how many TV shows you can watch on the Internet now. There's things like Hulu and other things on YouTube. So because of that its cutting into revenues as well. So obviously this is a dicey one, but it's coming up to the 11th hour at this point.

HARRIS: Who's going to be impacted if an agreement isn't reached?

ELAM: Not everyone, but a lot of people. We're talking about 13 million people. It's not just FOX that we're talking about here. We're also talking about the Food Network and Weather Channel here. But Los Angeles, New York and Dallas in particular would really be the ones that could see all of the FOX, local stations disappear from their channels, they could see FOX cable go away and all that regional FOX programming that would all go away as well. For those people who do watch the playoff games...

HARRIS: It's not going to go away. They're going to make an agreement.

ELAM: They could. You right, but here's the thing, Tony, it would behoove both sides to work it out because obviously FOX wants to keep their channels on TV and obviously Time Warner Cable would like to keep it around too because people subscribe because of this.

So I'm sure something will be worked out soon, but as the ball gets closer to dropping, more and more people are worried about losing their FOX.

HARRIS: Grown folks, get in the room and work this out. Don't mess with my Weather Channel.

ELAM: Do not mess with your "American Idol," stop talking about this -- we know.

HARRIS: Oh, please.

Stephanie, appreciate it. Thank you. See you next hour. And you can see where the ten best places to find a job are located. You can do that right now by just logging onto CNNMoney.com.

Let's get you caught up on our top stories now, and this just coming into us. A suicide bomber has attacked a military base in eastern Afghanistan. There are an unknown number of American casualties to report. CNN's Atia Abawi is working the story and we will bring you any updates as soon as we get them.

Across Iran today, tens of thousands of people participating in government-sponsored rallies. It's in response to days of anti- government protests, which triggered violent government crackdowns. The government gave all civil servants and employees the day off to attend the rallies.

And Michael Jackson's "Thriller" video is getting a spot at the Library of Congress. It is being inducted into the National Archives Registry which recognizes films for their cultural, historical and aesthetics significance. "Thriller" is the first music video to be nominated.

OK, Wall Street, Main Street, 2009 was one heck of a year when it comes to everything financial. Don't believe me, just ask that man, Ali Velshi. We'll do that next right here in the CNN NEWSROOM.

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HARRIS: Homeowners who didn't get foreclosed upon took a real beating with declining home values this year. Is there a Rocky Balboa-like comeback in store for 2010? CNN Money -- well, our main man, truth be told here -- Ali Velshi live in New York hosting his radio show.

Ali, great to see you, man. Great to end the year with you. What is your take on the housing sector for 2009 and then maybe give us a bit of a look ahead.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: All right. Well, I'll tell you 2009 was better than it could have been because of the fact that the Federal Reserve threw so much money at these mortgage agencies keeping mortgage rates low. So we're at 50-year lows on 30 and 15-year fixed mortgages. As a result of that combined with the foreclosures that took housing prices down, it has made the cost of owning a house as low as it has been in a generation.

And as a result of that, take a look at what the median price of a single family home, that's the kind of home most of us live in, was a year ago. It was $180,300 in November of 2009, which is the most recent numbers we have, $172,600, so down 4.3 percent over the year. Down 25 percent from the peak in august.

So you think about this, compared to August of 2005, a house is 25 percent cheaper. Interest rates were six and change then, now they're five and roughly around five. So you combine -- and obviously because rates are lower, your down payment as a proportion is lower, if you're putting 20 or 30 percent down. So it's a whole lot less money to own a house in 2009.

Now, Tony, the result of that is because it's less money to own a house, more people are taking that risk of getting into a house, if they have got good credit. And that means in 2010, we could see some stability.

I am a bit more optimistic than a lot of the surveys are on what the median price of a home is going to be in 2010. The surveys indicate a drop of as much as 10 percent average nationwide. But remember you're not buying the average house, you're only buying the house in the place that you're buying it. Some markets are going to see a marked improvement. Phoenix, Arizona, Nevada, Florida and Michigan are still going to see downturns and that's what's going to bring the average down. But for a lot of places, you could still see gains in the market.

So it's one of those three areas that make people feel prosperous, Tony. I would say if you're in a position to buy a house, keep those low interest rates in mind, they could help you out.

HARRIS: A nice rebound for stocks and maybe we'll talk about jobs next hour, but a nice rebound for stocks and, boy, you recall better than just about all of us where we were in March. Was that about -- we were 6,000 for the Dow and you take a look at where we were then and where we are now and what a comeback.

VELSHI: Yes, you're 20 percent if you bought in January of last year. Allowing for the fact the market went all the way down to March and then up, you're still up double the long-term average for a year. If for some reason you invested in March, you're up 61 percent. Again, you're still down 26 percent from are October of 2007, which was the all-time high.

But, you know, these are just numbers for perspective. The bottom line is you should have had a strategy a year ago, but I don't blame you for not having one because a year ago there wasn't a single positive economic indicator out there. So a lot of people just hunkered down and kept their cash with them. Don't make that mistake for 2010.

When I come back in the 12:00 hour, I'm going to give you some of the forecasts both for housing and for jobs.

HARRIS: You are the man, can't wait. Ali, appreciate it. Thank you, man. See you next hour.

VELSHI: Have some folks call me, will you?

HARRIS: Did we get the phone number for Ali's radio show? I mean, he's got another 10 minutes or so. Do we have it? Do we know it? Somebody work that out for me, please.

Oh, it is? There you go, it's 877-266-4189. Give Ali a call right now, he's got another 10 minutes on the air.

Still to come in the NEWSROOM it was a heart-wrenching decision made 50 years ago. Five decades later, the reunion.

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JACQUI JERAS, CNN METEOROLOGIST: I'm CNN meteorologist Jacqui Jeras. You're looking at some bitter cold conditions in Vermont. In fact, temperatures are so cold, that the salt is not being very effective. Apparently it's designed to work the best in 20 degree temperatures. So officials there are trying to experiment a little bit in putting some additives in with the rock salt to help melt it.

Very cold in the Northeast continued today. As you can see on our map, the wind-chill index is down there. Feels like 20 in Albany. Looking at 6 in Portland. 15 degrees below zero here in Caribou, Maine. Temperatures are warming up a little bit this afternoon and tomorrow ahead of the next weather maker. It's bringing in some snow showers across the upper Midwest. Some rain across the south, just enough basically to be a nuisance. And it'll kind of get in the way of folks in the Northeast trying to celebrate New Year's Eve tomorrow night -- Tony.

HARRIS: Oh, yes, good point.

All right, Jacqui, appreciate it. Thank you.

And here is what we are working on for the next hour of CNN NEWSROOM.

Airport security and behavioral screening in the wake of the failed terror plot. Can suspicious behavior be detected before someone gets on a flight? I will ask a airport security consultant. And believe me, he is the real deal. And a New Year's Eve tradition gets an eco-friendly update. The ball drop will be more energy efficient as we ring in 2010. Details in a live report from Times Square.

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HARRIS: Do you remember the song "mother and child reunion and it's only --"

Well, it was a mother and child reunion that took half a century to play out. After all those years, a Georgia woman meets a daughter she gave up for adoption. It is a story of family and faith.

Mark Pickard of Atlanta affiliate WXIA reports from Lawrenceville, Georgia.

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MARK PICKARD, WXIA REPORTER (voice-over): Egola Brown walks to the end of the driveway with her family around her to wait. Of the almost 51 years that have passed leading up to this moment, these final minutes are the longest.

EGOLA BROWN, GAVE DAUGHTER UP FOR ADOPTION: I don't know what's going to happen. You know, when I see her, I -- I can't imagine. I can't imagine what's going to happen. But we got a lot to catch up on.

PICKARD: Egola Brown was born in Alabama, but moved to Cincinnati where she spent most of her life. She moved to Atlanta three years ago. In Cincinnati she was pregnant at age 20 and living with her parents.

BROWN: I couldn't at that time take care of the child. And my mother, you know, wasn't in no shape to take care of the child. So I did the best thing that I thought was possible, that was give up the child for adoption.

PICKARD: Egola ended up with a large family of her own, one that was always one daughter short.

HEIDI ADAMS, EGOLA BROWN'S DAUGHTER: I have three other sisters, and another brother, but, I mean, you never have enough family, especially when you know it's somebody that's yours and you want them in your life.

PICKARD: That's when Heidi Adam's daughter, Egola's granddaughter Lauren got involved.

LAUREN CRENSHAW, EGOLA BROWN'S GRANDDAUGHTER: I recently found out, like two months ago, that my grandmother gave up a child up for adoption. So I decided to see if I could find her.

PICKARD: Lauren went online and entered her grandmother's maiden name, then sent her mother a computer message.

ADAMS: I'm like what did you send me this time of night? And so I go up there and look at it and in her subject box it had, "Found your sister, Merry Christmas.

PICKARD: Kharon Gibson, Heidi's sister, Lauren's aunt, Egola's daughter was living in Cincinnati. She'd been looking for them, too. She is coming to Laurenceville.

BROWN: There was a void in my heart. But like I said, and I give the praise, God worked it out.

ADAMS: I'm excited. I'm excited for my mother. And I'm so happy that for once we can all be together.

PICKARD: After 50 years, Egola Brown is about to meet the baby she gave up for adoption.

BROWN: My goodness.

VOICE OF KHARON GIBSON, DAUGHTER GIVEN UP FOR ADOPTION: I wasn't about to give up. I said at 50, I've been looking all these days. It's too late. No one's ever found anybody after 50 years.

It's wonderful. I'm just glad. I'm just overwhelmed. I'm just glad I got a mom.

PICKARD: Egola's family is finally together. It is a testament to the bonds of kinship and a glorious example that the strength of love does not diminish, even after 50 years.

Mark Pickard, 11Alive News.

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