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Official: Hagel's the Choice; Police: Teen Made Homemade Explosives; Prices Jump this Year; Digging for Safety in Syria; Cat Nabbed in Prison Break Conspiracy; Penn State Revisited; Falling Off the Metaphor Cliff

Aired January 06, 2013 - 18:00   ET

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


DEBORAH FEYERICK, CNN ANCHOR: And, hello, everyone. I'm Deborah Feyerick, in for Don Lemon.

A big announcement expected tomorrow in Washington. Sources tell CNN President Obama is going to announce that former Republican Senator Chuck Hagel is his nominee for secretary of defense. Hagel has his share of critics, even within his own party. We'll have more on his expected nomination just a few moments away.

President Obama signed into law today a $9.7 billion Sandy disaster relief package. It was the first legislative action of the new Congress. Some lawmakers were outraged after House Speaker Boehner canceled a vote Tuesday on a much larger aid bill. Sandy devastated parts of the Northeast more than two months ago. Lawmakers will consider a $51 billion aid package on January 15th.

About half of the 5,000 residents of Long Beach, New York, remain homeless due to Sandy. Still, they came out in force yesterday to say goodbye to a landmark. Thousands witnessed the start of the demolition of the two-mile long boardwalk, just damaged beyond repair by Sandy. It will cost an estimated $25 million. The new boardwalk should be ready in time for summer.

The five men accused of brutally gang-raping and killing a woman in India will appear in court. The case has prompted protests and vigils worldwide. The five are charged with murder, rape and kidnapping the 23-year-old woman last month. They will appear in a fast-track court designed to expedite cases. Two men are now on their tenth day of a hunger strike in New Delhi, demanding capital punishment for the accused rapists.

The man accused in one of the country's worst mass murders goes to court tomorrow. A judge will decide whether there is enough evidence for 25-year-old James Holmes to stand trial. He faces more than 150 counts, including first-degree murder and attempted murder in the Aurora, Colorado, movie theater shooting last July.

Twelve people were killed, dozens more injured. Some of the victims are expected to testify in the week-long hearing.

Well, fire up the Zambonis. Hockey could be back in a matter of days. The National Hockey League and the players association struck a tentative labor agreement today, according to a statement posted on the league Web site. That would end the more than 100-day lockout. If players and owners approve the agreement, the NHL could play a 48- game schedule slated to begin as early as next week.

Well, let's turn now to Washington where a senior administration official tells CNN just hours from now, President Obama will name Chuck Hagel as the nominee to be the next defense secretary. He is a Vietnam War hero and former Nebraska Republican senator known for his independent streak and willingness to buck his own party.

That quality endeared him to Democrats. But it is also part of the reason his nomination is facing criticism from fellow Republicans. Two of them spoke out Sunday on the Sunday shows, concerned about his past views on key issues, including Israel.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: Chuck Hagel, if confirmed to be secretary of defense, would be the most antagonistic secretary of defense toward the state of Israel in our nation's history. Not only has he said you should directly negotiate with Iran, sanctions won't work, that Israel must negotiate with Hamas, an organization terrorist group that lobs thousands of rockets into Israel, he also was one of 12 senators that refused to sign a letter to the European Union trying to designate Hezbollah as a terrorist organization.

(END VIDEO CLIP)

FEYERICK: Chuck Hagel's past statements and votes on Iran and Afghanistan are will go coming in for congressional criticism.

(BEGIN VIDEO CLIP)

REP. TOM COTTON (R), ARKANSAS: I'm disappointed the president has nominated Mr. Hagel, and I've urged the Senate to oppose that. Mr. Hagel came out against the surge the week that I returned from Iraq in 2006, said the war couldn't be won. No one had told us that when we were fighting it in 2006. He delayed emergency funding for the troops in 2007 even after the surge succeeded in 2008. He still said it wasn't because of the troops addition.

(END VIDEO CLIP)

FEYERICK: Well, let's talk more about the expected announcement of Chuck Hagel to be defense secretary.

Our Athena Jones is standing by in Washington.

And, Athena, Chuck Hagel has detractors really on both sides of the political aisle. He also has critics in the gay and lesbian community. Why are some in that community criticizing his nomination?

ATHENA JONES, CNN CORRESPONDENT: Well, this is because back in 1998, then-Senator Hagel called into question the suitability of a nominee for an ambassadorship because that nominee was gay. He said -- he called it an inhibiting factor that man was, quote, "openly aggressively gay" and questioned whether he could do an effective job. Now, Hagel apologized for those comments in December. But it is still something that the LGBT community is not happy about.

FEYERICK: When does this process get started? Do we know when the hearings will begin?

JONES: Well, they won't be able to happen until the president makes his official announcement, which, as you know, is planned for tomorrow. The first step is going to be hearings in the Senate Armed Services Committee. After Hagel gets through that, assuming that he gets through that, he'll go before the full Senate for a vote. We expect it to all get started soon, though -- Deb.

FEYERICK: He is a Nebraska Republican. He is also a Vietnam veteran.

Interestingly, he is going to have to deal, if he is successful in being nominated, he is going to have to deal with the pullout of Iraq and Afghanistan of U.S. troops. Also, he is going to have to deal with how to handle veteran affairs. It seems he does have things that are strong qualifiers for him to become head of the department.

JONES: That's certainly what his supporters will say. They think that in the end, whether there is a fight in the Senate or in the Armed Services Committee, or very exciting hearings we end up watching, that he will -- could ultimately be confirmed because they don't feel that the Senate is going to vote down a decorated Vietnam War vet. This is someone who got two Purple Hearts. Yes, he has been a maverick in his party, and an independent voice. But his supporters argue that he knows what he is talking about.

As you mentioned, he will have to deal with the drawdown of troops in Iraq and also future cuts to the Pentagon budget, separate and apart from those discussed in the sequester. So, a lot of big issues that would face him. But he has to get over this first big hurdle first -- Deb.

FEYERICK: All right, Athena Jones for us there in Washington. Thanks so much.

JONES: Thanks.

FEYERICK: Well, police in Alabama may have prevented yet another school tragedy. This after a disturbing find at a teenager's home: dozens of homemade explosives and a journal full of plans to carry out an attack.

It began when a teacher at Russell County High School near Georgia, near the Georgia state line, found the journal and called police.

Seventeen-year-old Derek Shrout is facing a felony charge of attempted assault. Police discovered dozens of tobacco containers filled with shrapnel and holes for fuses. Investigators says Shrout was one step away from turning them into grenades, live grenades. If not for the journal, no one may have discovered the plot until it was too late.

(BEGIN VIDEO CLIP) HEATH TAYLOR, RUSSELL COUNTY SHERIFF: The journal contains several plans that look like potential terrorist attacks and attacks of violence and danger on the school. And in particular, there were six students specifically named and one teacher.

(END VIDEO CLIP)

FEYERICK: His classmates are clearly shocked by the discovery.

(BEGIN VIDEO CLIP)

QUINTIN HOBBS, RUSSELL COUNTY HIGH STUDENT: That's crazy. I didn't think anything like that could happen at Russell County. I thought that just something that happens everywhere. It's crazy. You have to worry about it still. Maybe he has friends that want to do it. You never know.

JAVON ROGERS, RUSSELL COUNTY HIGH STUDENT: He could have got me in school for real. He could have got the whole school. He could have just got all of us at once if he really wanted.

(END VIDEO CLIP)

FEYERICK: CNN affiliate, WTVM reports that the earliest entries in the journal were written just three days after the massacre in Sandy Hook, Connecticut. Police say Shrout is a self-proclaimed white supremacist and learned to make the explosives through the Internet research.

Well, quiet in Steubenville, Ohio, today after days of media coverage centering on the alleged rape of a 16-year-old girl. Both sides are preparing their case for a February 13 trial, in a case that has divided the small Ohio town. Two 16-year-old high school football players are charged with sexually assaulting the girl last summer. The alleged attack took place at several parties over the course of the night.

I spoke to Walter Madison, attorney for accused teen, Ma'lik Richmond.

(BEGIN VIDEO CLIP)

FEYERICK: Has your client admitted to being there and admitted to being with this young woman on that night?

WALTER MADISON, DEFENSE ATTORNEY FOR MA'LIK RICHMOND: Well, subsequent to the photograph, there is evidence that she was conscious and that she was capable of making decisions and speaking and exhibiting, you know, decision-making activity.

So, again, the photo is out of context. And those are the things we must wait to see.

(END VIDEO CLIP)

FEYERICK: A defense attorney for the other accused teen spoke to our Susan Candiotti. He claims a text message may be a crucial piece of evidence in the upcoming trial.

(BEGIN VIDEO CLIP)

ADAM NEMANN, ATTORNEY FOR TRENT MAYS: I would like to bring up an interesting fact that we do plan on presenting at trial is that my client received a text message the following day from the alleged victim, the alleged victim herself, stating that she said, "I know you didn't rape me."

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: What?

NEMANN: She texted my client the next day stating, quote, "I know you didn't rape me."

CANDIOTTI: Do you have that text?

NEMANN: We do. That is something that's going to be introduced at trial.

CANDIOTTI: And what did he reply?

NEMANN: That's something that's going to be introduced at trial, yes.

CANDIOTTI: Why do you think she sent that?

NEMANN: Because I don't think she thinks she was raped.

(END VIDEO CLIP)

FEYERICK: Nemann would not show us the alleged text. The girl's attorney declined to comment on that alleged message.

Well, the fiscal cliff, not important. The debt ceiling, not important, at least according to Newt Gingrich, at least they're not to him. Details on why Newt says it is time for Washington to take a good look in the mirror.

And 2013 is proving to be more expensive for many Americans. We'll show you the top 10 items that will cost you more this year.

(COMMERCIAL BREAK)

FEYERICK: Well, let's talk politics now with two of our regulars, L.Z. Granderson and Ana Navarro. Both are CNN contributors. L.Z. is also a senior writer for ESPN. Ana is a Republican strategist.

And good to see you both. Happy New Year.

Well, let's start with the fiscal cliff and strategizing that former House Speaker Newt Gingrich did this morning on "Meet the Press". He says the process has become a complete diversion from what's really important. Listen.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), FORMER HOUSE SPEAKER: We are now going to spend 60 days or 90 days totally fixated in the media on, you know, the next big crisis and then the crisis will go down to the White House, and then secret meetings. And then at the last minute, we'll once produce 2,400 pages no one will have read. It is exactly the opposite of healthy self-government.

(END VIDEO CLIP)

FEYERICK: It is interesting, because he called it a distraction. Newt Gingrich criticizing the process. No one really seems happy with what happened or how it happened.

Is this how things are going to get done in Washington these days, governing by crisis? Let's start with you, Ana.

ANA NAVARRO, CNN CONTRIBUTOR: Well, you know, I agree with that part that he just said. This is absolutely not healthy governing. But, you know -- and I love Newt Gingrich. Let me just say that. In fact, he was in Miami over the holidays. So, he was having a little diversion himself.

But I suspect when he was speaker, he didn't very much like criticism of the type he is giving now. Newt Gingrich is a great ideas guy. Not all of them are great ideas. Some of his criticisms are absolutely valid. We are not doing this in a healthy, whole some, constructive way.

And we are -- we seem to be going from crisis to crisis to crisis, which is part of this destructive cycle. That being said, this is not a division. This was a real cliff. This was a real problem.

I think John Boehner deserves a lot of credit for having put so much into it, for having tried so hard to make a deal. For having herded his cats. It was not pretty. It was making sausage. It wasn't the straightest line between "A" and "B", but it got done. I think he deserves a lot of credit, even from his predecessors.

FEYERICK: And, you know, we're going to talk about that next. But, L.Z., I do want to ask you that question. Do you think there was a distraction? Because I think a lot of Americans were shocked to find out within that bill that was signed to avoid the fiscal cliff, that in fact, there were so many other things that nobody knew about, nobody had a chance to read.

I mean, this is almost, you know, passing bills and laws in the secrecy of night because nobody even knows. We're just reading about the fallout and what the taxes even mean to all Americans, L.Z.

L.Z. GRANDERSON, CNN CONTRIBUTOR: No, it wasn't a distraction. Keep in mind Newt Gingrich is almost 70. He will be 70 this year. He is rich.

He can afford to say this whole conversation is a big distraction. But I live in the Midwest, I report in the Midwest and I talk to every day people. Let me tell you, the $2,000 that was at risk for the middle class Americans, that wasn't a distraction. That's real money. So, this conversation we had was a very important conversation to be had. And I'm a little offended. Actually, not a little -- I'm a lot offended that a one-time elected official and someone who wanted to be our president described this whole conversation as a distraction.

That just talks to me about how aloof he was to this whole process to begin with.

FEYERICK: But I think a lot of people, I think a lot of people. But I do think -- I do want to ask you the next question, but I think a lot of people really saw a non-focusing on real issues. And this just sort of back-and-forth press conference that were going on all across Washington. And, look, a lot of people say a lot of time was wasted.

But let met just -- another thing that's really sort of troubled me about how it all played out. That was President Obama's handling of negotiations. John Boehner took a lot of criticism. As Ana said, he was able to herd his cats. It was like making sausage.

Peggy Noonan made some very interesting points about the president in "The Wall Street Journal." In her words, she said, "John Boehner, they knew how much he wanted a historic agreement on the great issue of his time. Mr. Obama couldn't have even make a deal with a man like that, even when it would have made the president look good." That grand bargain.

So, L.Z., did Mr. Obama miss a critical opportunity to extend an olive branch to the Republicans, specifically John Boehner, as a gesture of conciliation? Because what's missing is a picture of the president with the speaker. That doesn't even exist. And this was sort of a deal.

GRANDERSON: You know, I read Peggy's piece. I think it is entitled, "There is no 'I' in kumbaya." And I thought, you know, it's a very interesting title. And I got sort of what she was trying to say.

But at the end of the day, she really sounds as if she still has sour grapes over the election. The fact of the matter is, is that it's not about extending olive branches. It's about doing your job. I was really sick and tired of seeing both sides talk about how brave they were and how courageous they were.

No one else in America is brave and courageous as much as these politicians for doing the very basics of their job. This whole conversation that we had in terms of not raising taxes on the middle class was something that was resolved in the Senate months ago. So, if she wants to talk about parties not actually doing what they should have been doing, the Senate voted for a bill to not allow the taxes to go up on the middle class back in the fall.

So, the reason why it went this long was because of Boehner, because of his party, and because of this sort of distraction politics they have been doing, the obstructionist.

FEYERICK: And very quickly, Ana, do you think, in fact, that it would have gone a long way for the Republicans if President Obama, rather than taught them at the press conference he had basically said, we know how hard it was and thank you? Conciliation, trust-building?

NAVARRO: I think it would have gone a long way, not only for the Republicans. I think it would have gone a long way for President Obama.

Listen, Deb, we are just at the beginning of this. We've got four more long years. He's got a legacy he wants to build. He is going to have to work with Republicans.

And it works better when you try to invest in building relationships, when you put some capital and some time and some resources, some real resources, and investing and building relationships in Congress. That's what Bill Clinton did. And that's why he was able to get things done.

So, that's why I hope President Obama does in this second term. Not only with Republicans. He also needs to build relationships with a lot of the Democrat leaders in Congress --

FEYERICK: Right.

NAVARRO: -- who complain bitterly and continuously.

GRANDERSON: You know, can I --

FEYERICK: Absolutely, L.Z., unfortunately, we have to wrap it up. But let's just leave it at this. I think both sides have a lot of work to do to try to restore trust because I think that's what the American people probably are eager for right now.

L.Z. Granderson, Ana Navarro, thanks so much as always.

NAVARRO: Thank you.

FEYERICK: Well, food, gas technology, yes, we could all feel the cost. Ahead, the top 10 items that will squeeze your budget this year.

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: I'm Dr. Sanjay Gupta. This is a Spiker Box. One of these, along with a cockroach, could make you an expert on the brain.

UNIDENTIFIED MALE: We try to make the tools like simple enough that we use, things people are familiar with, cell phones or laptops. And then our equipment has one button on it. You just turn it on.

UNIDENTIFIED FEMALE: We've been enlightened by the neuroscience. I've been lamed (ph) like how our brain functions and getting a better understanding of muscles and brain.

UNIDENTIFIED MALE: We're almost up to 100 high schools. But I'm greedy. We want that across all the country. We don't just want one kid. We want every kid.

GUPTA: Neuroscientist Greg Gage, this Sunday on "THE NEXT LIST."

(END VIDEO CLIP)

(COMMERCIAL BREAK)

FEYERICK: A lot of the things we buy every day are suddenly about to cost a lot more. Prices are jumping this year on all sorts of basics.

Our Josh Levs is here to break it down for us.

What do you got, Josh?

JOSH LEVS, CNN CORRESPONDENT: Yes. Hey there, Deb.

So, here's the thing. So, we've got good news and bad news. And we are doing the bad news for now so I can lift you all up later with the good news.

Our folks at CNN Money have done a great job of looking and seeing what's ahead in this year and figuring out how we are all going to feel it in basic goods that we buy often literally every day. Americans are buying these every day.

Take a look what's ahead this year.

Meat products in general expect prices to go up 3 percent to 4 percent. And this is a result of what's been going on in agriculture. You remember, there has been a drought. It's affected the corn supply.

Corn is a basic in feeding cattle. That has led many people to reduce their cattle supply which in turn creates a crunch on the prices, 3 percent to 4 percent.

Also, we avoided that dairy cliff that we could have phased with a farm bill expiration that was part of the fiscal cliff battle. However, even with that gone, dairy prices are still going up due to what's going on with agriculture in America. I expect about 4.5 percent up according to the Department of Agriculture.

Shipping is going up this year, 4 percent to 5 percent -- FedEx, UPS and the Postal Service and a lot of basic shipping rates. And this is them passing their costs on to the consumer in many cases.

Here, public transit, a whole bunch of cities are increasing the cost of public transit, in some cases, substantially. And you're going to want to take a look at what the options are if you are someone that uses public transit. Look at those monthly cars. Look at cars in some cases. You can get to last even longer that will help you save.

Health care premiums across the country. And a lot of you know this now, because your paychecks are being affected already -- up an average of 6.3 percent across the country, according to Aon Hewitt, which did a survey of this. And this is about what we keep talking about, the spiraling costs of health care in this country and insurers then passing that along. So, expect about 6.3 percent going up in your health care premium.

And one more -- a new car. If you are in the market for a new car this year, many new car models have their prices going up even higher than usual, more than typical inflation in that industry.

So, keep an eye out. You want to keep an eye out for deals.

That brings me to the good news will be. I will be back next hour because amid this bad news of what's coming more, there are new technologies you can use to save more money than ever. The technology explosion that's around us is giving so many ways to save money and very few people have figured out how to use them.

So, I'm going to be right here next hour, the 7:00 hour Eastern Time, to show you how to use new technologies to save money. You take a few hours. You get to know them.

At the end of this year, I promise you, you'll look back and see that you saved a bundle -- Deb.

FEYERICK: All right. I'm going to hold you to that. So, all we have to worry about right now is meat, moving and health.

LEVS: That's all. You got it.

FEYERICK: All right. We'll check back with you top of 7:00, thanks.

LEVS: OK. Thanks.

FEYERICK: Well, with more than 12 million people out of work, Friday's new job numbers show little has changed in the unemployment picture. At best, many expect very slow growth all year long.

So, some career counselors are urging their clients to do all they can to keep their current jobs even as they prepare for what they hope will be more opportunities later in the year.

Tom foreman has today's "American Journey".

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Roughly 12 million Americans are without work. Nearly 5 million for a half year or more.

So, career counselors across the country are starting 2013 with a clear message. Keep hanging on.

ROSEMARY HAEFNER, CAREERBUILDER: It's not something that we would all like, but you know, it's incredibly competitive right now whether you're working or not working. And I think that individuals who have that advantage of having employment right now should make sure they're taking full advantage of that.

FOREMAN: That, they say, means three things.

First: ask for opportunity. Build your professional network inside and outside of your office. Workers who go unnoticed are often the first to go out the door.

TRACEY WILEN-DAUGENTI, APOLLO RESEARCH INSTITUTE: They don't raise their hand. They don't raise their hand for the difficult projects. They don't ask for lateral moves. They don't ask for more responsibilities. They don't join teams.

These are things that companies look for for people for the longer haul.

FOREMAN: She works for the Apollo Research Institute which promotes further education. And that's what many job advisors say is the second key, take advantage of every training opportunity.

HAEFNER: Good times or tough times are always should be looking at how you're going to be developing and growing your skills, whether for your current employer or your current position, or perhaps, it's something, you know, down the road.

FOREMAN: And lastly -- unlike the unhappy guys in the movie "Office Space," embrace all sorts of technology.

WILEN-DAUGENTI: By the year 2020, over 75 percent of jobs will have a technology component. And I think that's very important for people to understand for longevity and for employment of the future.

FOREMAN (on-camera): Staying employed this year will be easier in some fields than in others, of course. For example, jobs in health care and business services like sales are expected to be plentiful.

(voice-over): And, as 2013 goes on, the job market is predicted to pick up steam, setting the stage for better days in the next New Year.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

FEYERICK: Well, living in fear, trying to escape, and suffering from more than just war. We take you inside one refugee camp along the turkey/Syria border where people are trying to escape bombs and gunfire are now faced with a different kind of catastrophe.

(COMMERCIAL BREAK)

FEYERICK: Half past the hour now. Let's take a look at the headlines.

A big Cabinet announcement expected tomorrow in Washington. Sources tell CNN that President Obama is going to name former Republican senator, Chuck Hagel, as his nominee for Defense secretary. Hagel has his share of critics, including fellow Republicans. They say his views towards Israel as well as U.S. policy in Afghanistan will get a close look during the nomination process.

Boats, helicopters and divers are searching off the coast of Venezuela for Italian -- fashion mogul Vittorio Missoni. But rough seas are complicating the effort. A small plane carrying Missoni, his wife and four others disappeared Friday en route to Caracas. Missoni has worked with celebrity clients like Kerry Washington. The fashion house known for its signature zigzag stripes has annual sales estimated at $75 to $100 million.

Well, Nelson Mandela appears to be feeling much better. Reports say his recovery from a lung infection and gallstones surgery are nearly complete. The former South African president was hospitalized for two weeks last month. A spokesman says the 94-year-old Nobel Laureate continues to receive treatment at his home near Johannesburg but is gradually getting back to his normal routine.

Well, five men accused of brutally gang raping and killing a woman in India will appear in court tomorrow. The case has prompted protests and vigils worldwide. The five are charged with murder, rape and kidnapping the 23-year-old woman last month. The woman's brother tells CNN that the family would like to see a new hospital named after her to keep her memory live.

Bad weather is hampering efforts to move an oil barge that ran aground near Alaska's coast. So far, there are no visible signs of leaked fuel and the Royal Dutch Shell oil barge is upright. Authorities want to move the barge about 30 miles north so they can get a better look at possible damage. It ran aground New Year's Eve when it had to be cut free from a tugboat during a huge storm that whipped up 24 waves.

Well, in Syria, a scathing speech today from President Bashar al-Assad and more bloodshed caught throughout his country.

A Syrian opposition group says at least 91 people were killed today nationwide. Activists say at least five of the victims died in Aleppo when a mortar hit a bus.

As the bombs were falling and the bullets flying, the Syrian president lashed out at rebels during his first public speech in seven months. Assad was affectionately mobbed by a crowd of adoring supporters in the capital. He told his people and world that Syria is not undergoing revolution and that as long as, quote, "terrorists," unquote, are in the country, the regime will not stand down.

(BEGIN VIDEO CLIP)

PRES. BASHER AL-ASSAD, SYRIA (Through Translator): This is a conflict between authority at power or between the enemies of the homeland. This is a conflict those who wanted to take revenge against the people to end to fragment Syria. Those are the enemies of the people. And the enemies of god. And the enemies of god will go to hell.

(END VIDEO CLIP)

FEYERICK: Assad also laid out a plan to end the war starting with foreign countries ending their support for what he calls the terrorists. The speech drew immediate condemnation from leaders in the U.S. and Britain.

It's winter in Syria. For refugees, that means scavenging for anything they can find to eat, looking for anything they can get to stay warm and protecting the youngest ones from death. All this while they can see but cannot touch a safe haven that is so close in view.

CNN's Nick Paton Walsh reports from one camp where even the children are digging their way to safety.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): They fled this far, almost to safety in Turkey but still they dig. To these boys, dragged fast into manhood, it's not really a game. It's an air raid shelter.

"We make kids so if the jets come and bomb us," he says, "we put children here to hide them. But of course we'll make it much bigger for 20 to 30 people."

The holes are so they could see outside when the bombs come, although they've already seen so much.

"We were sitting suddenly and the rocket comes, making this noise," he says. "A big explosion, an artillery shell."

Here, in Bab al-Salam, 8,000 of them fled everything they had hoping for something but finding the new free Syria could give them little. A hundred yards from Turkey, they're not allowed into its bustling camps.

"Of course 80 percent of those here," he says, "came hoping to cross into Turkey but the Turkish government stopped hosting over six weeks ago. People are furious and we can't provide a loss of their daily needs."

What was temporary in summer is now looking permanent in frost. The distant thought of shelling a reason to endure even this.

(On camera): Even though these people are just about 100 yards from the Turkish border, they still have to bring what little plastic tent shelter they have under cover because of the intense cold approaching. You can still hear sometimes the shells in the distance reverberate inside this open, concrete hang-up. But the real enemy in the months ahead is going to be that bitter winter cold.

(Voice-over): For Abdul Qadr al-Hasan's daughter, Siham, the cold came too fast.

"She wasn't sick," he says. "She didn't have any problems at all. We were out late that night and playing with her. We woke the next morning and her mother checked on her. She was curled into a ball from the cold. We buried her in the village. Her sister is afraid now of the cold."

Now he burns plastic to keep warm. Wood is in short supply and expensive. In fact, they've stripped nature almost bare here. Even these plants cut down for food. Trashed plastic gathered hungrily. Its acrid, poisonous smoke cluttering a dense, wretched world.

After 21 months of this war, this is the best the world has done for them.

Nick Paton Walsh, CNN, Bab al-Salam, Syria.

(END VIDEOTAPE)

FEYERICK: Well, love letters from World War II discovered during a home renovation, they were hidden and apparently for a very good reason. That's ahead.

(COMMERCIAL BREAK)

FEYERICK: A rare find by a Michigan man remodeling his home. A treasure trove of love letters sent to a World War II veteran.

Hubert Sawyers found the letters hidden above a heating duct in the basement. The love letters from two women belonged to a war veteran who used to live there. Here's what one letter said.

(BEGIN VIDEO CLIP)

HUBERT SAWYERS, HOMEOWNER FOUND WWII LOVE LETTERS: "Sweetheart, it was hard to see you go this morning, knowing that it may be the last time I shall see you for a time, which we don't know how long it is going to be before we see each other again."

When we saw this, we were just hoping it was, you know, it'd be like a bag of bonds or a bag of money, but honestly, it was -- it was just really cool.

(END VIDEO CLIP)

FEYERICK: Two women, Violet and Pat, wrote the letters to their soldier. Sawyers discovered the World War II vet later had married a woman named Sadie, and explaining why the letters were hidden in the basement.

Well, it's the case of a feline turned felon. This kitty was caught red-handed trying to help in a prison break. Details on this bizarre case next.

(COMMERCIAL BREAK)

FEYERICK: Brazilian prison officials say they have foiled a bizarre jail break plot. Prison guards became suspicious after they spotted an oddly-shaped cat entering the prison.

Well, CNN's Azadeh Ansari is here.

And Azadeh, this is pretty extraordinary.

AZADEH ANSARI, CNN INTERNATIONAL DESK EDITOR: And we've heard a lot of bizarre stories but this one definitely tops the list, Deb. Now this whole story unfolded in Brazil in the northeast city of Alagoas. Now the jail itself, the prison guards who were manning the jail looked and they saw this beautiful, black and white cat, just going in and out of the main entrance of the prison. But something wasn't right.

And you will see exactly why. Take a look at these pictures. This cat had duct taped to the length of its bodied a cell phone, saws, drills, a battery, a memory stick. I mean, why? I mean, this is crazy. I mean, you'll see some of these inmates will go to extreme lengths just to find a way out of this overcrowded and very violent prisons.

FEYERICK: You know what's amazing is that whoever taped up the cat did a good job taping the cat but they couldn't have added just a little bit of fur to kind of conceal it? It's kind of like not thinking through the plot all together.

Was this cat supposed to find one prisoner? Was this like a homing cat, like a homing pigeon kind of thing?

ANSARI: Well, it obviously wasn't your average nine lives variety house cat. It's looks like a gangster cat, OK? Because I can't think of any other way that something like this would actually happen if this wasn't -- this cat wasn't properly trained to do this. Now it's the -- the story is actually still under investigation. But the more than 250 inmates that are in this jail are all being held as suspects.

Now I thought -- I thought this was really interesting because authorities say that it'd be hard to find who's responsible, because, surprise, the cat doesn't talk.

(LAUGHTER)

FEYERICK: Of course they could potentially find fingerprints on the devices, on the tape that's actually strapped to the cat's body and perhaps like work backwards in terms of finding exactly who -- you know, who this person is tied to.

So this is not the only example of, like, crazy prison breaks. Tell me about some others.

ANSARI: Well, most recently, just this past month, we had a guy in Brazil, another Brazil jail break attempt, who took a broken shower pipe, tried to punch a hole through the concrete wall, but -- was able to make this hole but didn't realize that he was too big and he wasn't able to fit through the wall. So he actually got stuck.

So there's a picture of him, like, half on one side of the wall and half on the other side of the wall. And the prison guards thought it was really funny. They let him hang out there for a while and then they finally freed him.

(LAUGHTER)

Well, put him in the cell so --

FEYERICK: I could just see that. I could just the prison guards having a conversation while this poor man who has lost all shred of dignity, clearly, all right, is half in and half outside this whole. All right. Well, Azadeh Ansari, it's fascinating and always so fun. It's incredible the lengths at which people will go to. And I guess, listen, they are in prison. You've got time on your hands. Think of a way to get out. All right. As opposed to filing legal options.

OK. Thank you so much.

ANSARI: You're welcome.

FEYERICK: We always appreciate it. Great story.

Well, Pennsylvania's governor revisits the Penn State scandal and goes after the NCAA in court. Plus, Lance Armstrong is reportedly planning to come clean.

We're going to examine the motivations both of these intriguing stories next.

(COMMERCIAL BREAK)

FEYERICK: The National Hockey League could be back in a matter of days. League officials and the players association struck a tentative labor agreement today according to a statement posted on the league Web site. That would end the more than 100-day lockout.

If players and owners approve the agreement, the NHL could play a 48- game schedule slated to begin as early as next week.

Well, we have two more big sports stories to talk about tonight that reach far beyond the sports world.

Jon Wertheim is here to share his insights. He's a senior investigative reporter for "Sports Illustrated."

And Jon, let's talk about a story that you covered both for "Sports Illustrated" and for us here on CNN, and that is the Jerry Sandusky child abuse case at Penn State University. Well, this week, as you know, the Pennsylvania governor sued the NCAA trying to overturn the tough penalties which not only included a $60 million fine but a four- year ban on bowl games, then that obviously imposed in the wake of the Sandusky scandal.

He claimed in part that the NCAA was trying to prop up weaker teams. He also said it hurt students and businesses that weren't even tied to the scandal. So what is he doing?

JON WERTHEIM, SR. INVESTIGATIVE REPORTER, SPORTS ILLUSTRATED: That's a good question. I mean, there are actually two suits. One was about divvying up the $60 million fine. The other is Governor Corbett's antitrust suit. And, you know, it's really problematic. I mean, first of all, stepping back, Governor Corbett was the attorney general of Pennsylvania during the Sandusky investigation. He was a member of the Penn State Board of Trustees when he became governor.

And now to come six months after these penalties and say this is antitrust violation, boy, it really does have tinges of political expediency. This seems a very dubious lawsuit.

FEYERICK: Yes, but he even goes so far as to basically say that the reason that the -- the NCAA did this was in part because, you know, Penn State has such a great team that clearly other teams needed to benefit and that's what this is basically.

WERTHEIM: Yes, which is really just silly. I mean, the NCAA has bigger fish to fry than this. So I think also -- I mean, one reason Penn State did not get the death penalty, you know -- the football team would be suspended, maybe even the whole athletics department, the one reason that didn't happen is because Penn State showed contrition, they issued this Freeh report, they basically said we're willing to accept punishment, we're willing to accept blame.

This completely flies in the face of that. So anti-trust lawsuit, I mean, I don't even know if the governor of Pennsylvania has standing for that, and antitrust lawsuit on the grounds that there's all this collateral damage and that the NCAA had it in for Penn State is really borderline absurd, I think.

FEYERICK: Right. So we're willing to accept blame as long as we don't have to pay anything.

Let's move on, let's talk about Lance Armstrong. "The New York Times" reports that Armstrong is thinking about coming clean about doping in the hopes of resuming his athletic career. And as we know, he was given a lifetime ban last fall based on a mountain of evidence that he was deeply involved in using performance-enhancing drugs. If he confesses after all these years, is it simply too late? Will he just be slammed even more or is this a good strategy?

WERTHEIM: Well, I mean, I think a lot of people are rolling their eyes and saying exactly what you said that it's too late. But I think one thing that's interesting. You mentioned a mountain of evidence, but there were no positive tests in that mountain and if Lance Armstrong can come forward and actually talk to these authorities and explain how it was he was able to pass these tests, whether there were other agencies that were involved, whether there was a cover-up, that could have real value.

Obviously his motivations are he wants this band shortened or even overturned so that he could compete even in triathlon, and I think that's a little dubious. I mean, he was so defiant for so long, it's really disturbing to think that now he's coming clean, but I think if he cooperates, that could really have some real value to the investigators.

FEYERICK: So are you suggesting that he may even be looking to cut some sort of a deal that could make all his problems basically go away?

WERTHEIM: Yes. I don't know about that. I mean I think there are -- there are going to be a number of lawsuits that stem from this. And I don't think his troubles are going away anytime soon. But, you know, he wants to compete, not even as a cyclist, mostly as a tri-athlete in events that are governed by WADA, by the World Anti-Doping Authorities, and that -- that is not going to happen as long as this ban is in place.

And I think that's really what's motivating him. But boy, I mean, this -- again, there was so long, so -- such a long period of defiance. I mean, for him now, you know, 15 years after these first accusations to come out and say, you know, mea culpa, I think that's an awful long time.

FEYERICK: Yes, not only that, but you know, he may want to come clean but he's also going to open himself up to significant perjury charges.

WERTHEIM: Exactly.

FEYERICK: All right. Any quick thoughts on the apparent end to the NHL lockout?

WERTHEIM: Well, you know, 18 months ago we were going to miss NFL preseason games and it was a -- you know, a national catastrophe. It's great there's going to be hockey, but I think the fact that the public wasn't exactly clamoring for this should be -- should be pretty problematic for the league. You know, good we're going to have a season, probably good it's a shortened season but you wish it hadn't come to this.

FEYERICK: All right. All right. Jon Wertheim from "Sports Illustrated," thanks so much. Always appreciate your insights.

WERTHEIM: Thanks, Deb.

FEYERICK: OK. Quick, what's the one phrase you hope you never hear again. If you said fiscal cliff you're not alone. We'll take a look at some of the wonky metaphors associated with the battle in Washington.

(COMMERCIAL BREAK)

FEYERICK: So my guess is you are pretty psyched that you're not going to be hearing the term fiscal cliff anymore, right? You know, that's the phrase that swept the nation's capitol and airwaves over the last few months. It seemed the more arcane and wonky the budget mess got, well, the more Washington reached to try to explain it.

CNN's Christine Romans has more.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT (voice-over): Just like the yodeler in that cliffhangers game on "The Price is Right," we did fall off a cliff. A metaphor cliff.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Fiscal cliff.

SEN. HARRY REID (D), MAJORITY LEADER: The fiscal cliff.

UNIDENTIFIED MALE: Over the cliff.

UNIDENTIFIED MALE: So-called fiscal cliff. ROMANS: Or maybe not. Cue Julie Andrews in "The Sound of Music."

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: It's more of a slope.

RICHARD QUEST, HOST, CNN'S QUEST MEANS BUSINESS: It's not a cliff, it's a slope.

STEPHEN MOORE, EDITORIAL WRITER, WALL STREET JOURNAL: It's really kind of a slope.

ROMANS: Hill, cliff, slope -- be honest, it felt more like this.

REP. DENNIS KUCINICH (D), OHIO: This place is starting to have the feel of the movie "Groundhog's Day."

BASH: At least the movie made you laugh. This was more like "The Hurt Locker."

JOHN AVLON, CNN CONTRIBUTOR: Congress set this time bomb. Now they're scrambling to defuse it.

ROMANS: In the end the cliff, slope, bomb, "Groundhog Day," call it what you will, it became a bill and a new metaphor.

UNIDENTIFIED MALE: Kick the can down the road.

DIANE SWONK, CHIEF ECONOMIST, MESIROW FINANCIAL: That's just kicking the can down the road.

UNIDENTIFIED MALE: Kicking that can.

SEN. RAND PAUL (R), KENTUCKY: Kicking the can.

UNIDENTIFIED FEMALE: We are done with kicking this can down the road. We grabbed that can and that can can called spending cuts.

ROMANS: But, hey, we're not blameless.

(On camera): That's congressional malpractice.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Economic storm of our own making.

JOHN BERMAN, ANCHOR, CNN'S EARLY START: We are in detox from our fiscal cliff addiction.

ROMANS (voice-over): But the masters reside in the halls of Congress.

UNIDENTIFIED MALE: Like a bull in a China closet.

UNIDENTIFIED MALE: They're like salespeople who tell their customer they can have the $30,000 car.

UNIDENTIFIED MALE: We should look at those who have lit the candle.

UNIDENTIFIED MALE: Like an airplane, did we climb over it? No.

ROMANS: So now can we please put the metaphors out to pasture?

UNIDENTIFIED MALE: We soon face the Valentine Day clip and perhaps the April Fool's Day cliff.

UNIDENTIFIED FEMALE: What the president was saying was, I'm not going to play chicken with the debt limit.

ROMANS: I guess not.

Christine Romans, CNN, New York.

(END VIDEOTAPE)