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Fears Israel-Hamas War Will Lead To Wider Conflict In Middle East; 4.5M People Bought Homes This Year In Toughest Market In Decades; Toddler Opens Entire Family's Christmas Gifts At 3:00 A.M. Aired 11:30a-12p ET

Aired December 27, 2023 - 11:30   ET

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

[11:30:00]

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SARA SIDNER, CNN ANCHOR: Growing concerns this morning out of the Middle East that fallout from the Israeli-Hamas war in Gaza could boil over into a wider regional war. The U.S. is dealing with an increase in attacks in the Red Sea. Yesterday, the Navy intercepted more than a dozen missiles and drones -- Tuesday.

All of that coming out of Yemen. U.S. Central Command says they were fired on by the Iranian-backed Houthi rebels. That's the same militant group that has launched over one hundred attacks in the Red Sea against 14 different commercial and merchant ships.

I'm joined now by CNN military analyst and former NATO Supreme Allied Commander, General Wesley Clark. Thank you so much for coming in on this holiday week. When you look at the scenario that is happening with the Israeli war on Hamas, and then you look at what's happening surrounding that area in the region, what are your biggest concerns about whether or not this is going to actually expand into a wider conflict?

WESLEY CLARK, CNN MILITARY ANALYST: Well, it's been the policy of the administration that we don't want it to expand and grow wider conflict. And so, when that's your public policy and you're arguing, please don't let it escalate, you're inviting the enemy to attack you, and dare you to escalate. The problem that we have is what's the decisive target if we do escalate?

Now, we know all of this is being orchestrated by Iran. And we know it's backed by Russia. And we know what helps Russia distract from what there is going on in Ukraine.

And so, from the administration's point of view, they're under attack from Russia in Ukraine. You've got Iran. You've got a problem getting military assistance to Ukraine. You've got the defense budget. You've got a whole lot of issues out there.

So, I think the issue that I see is, how do we get escalation dominance enough to shut off the attacks from the Houthi in the Red Sea. How do we do that? We bring our allies in. We've got to use diplomacy, maybe there's some economic measures we can use. Maybe we know the right targets to strike if we go into the Houthi -- into Yemen and strike the Houthi. Maybe we don't.

But it's a real conundrum. Because normally an attack like this -- a battle like this, you wage it by, you think you can go tit-for-tat. No, you don't want to do that more than once or twice. So, you want to get dominance.

You've got the dominant airpower. You know they can't resist that. But what is the decisive effect that the airpower will bring when you strike on the ground in Yemen?

I think that's the dilemma that the administration faces on this particular issue. Do you know the launch site, you know, the command and control, what are the regional consequences, repercussions. Do you want to instead go against Iran, maybe take out that Iranian intelligence-gathering ship that's targeting the Houthis?

And if so, then what's the consequence of that? It's a really -- it's a really difficult conundrum. And one thing is clear is it's not stable.

SIDNER: Right.

[11:35:09]

CLARK: So, if we continue just to try to defend and we don't go with the source of the attacks, either tactical or strategic, then we can expect those attacks to continue and to intensify. And eventually, they will get through the protective shield of the -- of the aircraft and the destroyers that are on the ground. They will target a ship and cause real damage. It's inevitable. So, we have to -- (INAUDIBLE)

SIDNER: And, General, we saw something happened this -- yes, we hope -- happen this week in Iraq, where several members of the U.S. military were injured. When you hear that -- and if people don't realize, you know, the region can explode. We're talking about Iraq and Syria and Lebanon, and obviously, you've got the influx of Yemen and the -- in the Houthi rebels.

What do you see going forward for the -- for the dangers of U.S. troops that are in some of these areas?

CLARK: Yes, I think we're balancing here trying to do a certain amount of damage to prevent an escalation. But also recognizing that we don't want to have to insert more troops to protect what's already there. And we can only do so much from the air.

It's a delicate balance. We don't want to pull out of the region. We've got real equities in that region. We need to stay there. But on the other hand, we don't want our troops exposed.

And so, all of us, I think, who look at this thing from a military context, recognize we're going to have to do more militarily. And the question is, and we can't answer it on this program because we don't have detailed intelligence, what are the right targets? And what will our impact be both tactically and diplomatically if we strike those targets?

And ultimately, of course, the question is Iran. And -- you know, we don't want to go to war with Iran. But Iran has been at war with us for over 40 years now.

They've been behind all the mischief in the Middle East. And we have danced around the edges of it. We've taken limited actions.

They hit our troops when we were in Iraq. They took out the Marine barracks in 1983, killed 280 some odd Marines with a car bomb, suicide bomber. It's a long, long, painful story.

And we've managed to use America's overarching power diplomatically, economically, and militarily to maintain our -- the international order that we seek and minimize the disruption that Iran is able to cause. And my concern is we're looking toward the new year I'm thinking about how things are. We're reaching the end of this era with the fighting in Gaza, with what's going on in Ukraine where we can simply strategically defer addressing critical issues.

And instead of handling them on, strike here and a strike here and a little bit of assistance here, and a little bit of diplomacy or paces. The world -- the boiling -- pot is starting to boil in a way that is adverse to American interests, and we need a broader, stronger strategy to deal with it.

SIDNER: General, that is -- there's a lot to do, and it is so complex as you put it. Thank you so much for sort of spelling that out for us. Appreciate you.

KATE BOLDUAN, CNN ANCHOR: Coming up for us. Some four-and-a-half million people bought a home this year in one of the toughest markets in a generation. What this year's housing market can tell us about what's to come?

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[11:42:37]

BOLDUAN: 2023 was a tough year for the economy to say the least. And even tougher for the housing market. Mortgage rates reached a 23-year high. Home sales sank to a 13-year low. Add that together with some more and the ability -- the ability for people to afford a home hit its lowest point since 1984. Yet, 4.5 million people still bought a home this year.

CNN's Rahel Solomon has much more on this. Rahel, what is the big takeaway then from -- on the housing market from this year?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT & ANCHOR: Yes. It has certainly been a rough year for a lot of people in the housing space. Whether you were a buyer, whether you were a seller, whether you were even an agent, 2023 was a rough year. And yet, four and a half million people still manage to buy a house in 2023. And it seems like when you talk to folks in this space, it really came down to one being clear about what your goals were. So, if it was location, if it was affordability, that would have been a tough goal. But whatever your goal was, would have been clear about that strategy, being prepared to essentially wait it out if you might because it was a tougher year than it has been in a really long time, and then also being willing to be flexible.

It wasn't exactly the type of year that you would call a buyers' market. So, if you were looking, you had to be a little bit creative, you had to be a little bit more compromising --

BOLDUAN: And aggressive. I feel like you would.

SOLOMON: And -- that would help.

BOLDUAN: In this market, that would definitely help.

SOLOMON: And so, the big story in 2023 was, of course, interest rates. And we can show you sort of mortgage rates over the last few years or so. And take a look at November of 2020 and you can see they were practically at zero.

They were between two and three percent. And so, a lot of people had either bought mortgages or bought homes with mortgages in this range or refinance. So, most people were locked in at these really low rates.

And then as of course the Fed started to raise rates, you see them steadily climb higher until they reach sort of highs that we haven't seen in a really long time. And so, that created an -- a real affordability challenge. Because even though we saw sales fall, we didn't see a lot of people buying as many houses, home prices continued to go up.

And we can show you home prices. And the reason why it's just there was just a real lack of supply. Supply was very tight. And so, that kept the prices elevated.

Moving forward, if you will not one of the four and a half million people in 2023 who bought a home in 2024, is actually looking better. So, no matter who you're talking to, whether it's the Mortgage Bankers Association, whether it's Redfin, listings are expected to go up. So, we're expecting to see better supply in 2024, and rates are expected to go down.

Now, I say that with a huge caveat because of that chart that I just showed you. When you say --

BOLDUAN: Yes. Down by how much?

[11:45:03]

SOLOMON: Exactly. So, we're not talking about the twos, we're not talking about the threes --

BOLDUAN: Oh, please, let's go back to the twos.

SOLOMON: Yes, I'm with you -- I am with you.

BOLDUAN: Let's go back to the twos.

SOLOMON: Exactly. But every economist, every person expert that I talked to in housing, I asked the same question because I've been trying to get a sense of sort of where the consensus is in terms of mortgage rates. And what I hear most often is six and a half percent. Which is not twos, it is not praise, but it is certainly better than that 7.7 that we had seen within the last year.

So, I think buyers will appreciate any decline. It's not going to be significant, but it will -- it will certainly help. It will also help as terms of listings. You know, we'll see more, you'll see lower rates and hopefully that will help on the affordability issue.

BOLDUAN: I mean, math starts getting better, right? Like --

SOLOMON: The math starts mathing.

BOLDUAN: I mean, one-bit changes, and other bits going to change, and then the maps just getting better-ish.

SOLOMON: And math starts mathing.

BOLDUAN: (INAUDIBLE) done better. Well, the math starts mathing. It will get better-ish. It's good to see you. Thanks, Rahel.

SOLOMON: Yes. Likewise.

SIDNER: All right, thank you, ladies. The math will be mathing. Speaking of mathing, a creature was in fact stirring at the ripe kitchen house on Christmas morning. The parents whose 3-year-old woke up at 3:00 a.m. and did what you're seeing there, every single present under that tree, unwrapped.

How did they deal with it? Coming up. They are joining us live.

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[11:50:14]

BOLDUAN: So, any parent -- any human would agree, anytime your 3-year- old toddler wakes you up in the middle of the night asking for scissors, it would be reason for concern.

SIDNER: Yes.

BOLDUAN: But at 3:00 a.m. on Christmas morning, that might spark absolute and sheer panic. That was the scene at one home in North Carolina this Christmas. This is what happened to Katie and Scott Reintgen. And this was the scene, take a look, that they found in their living room after their 3-year-old son T woke them up.

SIDNER: Woke them up because he was unwrapping every single present you can imagine under the tree. And you can see the result of it there. Just a sheer paper nightmare.

He had woken up in the middle of the night and decided that he was going to go about his business, you know, opening the present which includes the ones that were also for his two siblings. So, nothing was spared.

We're joined now by Scott and Katie Reintgen. Thank you so much for being here. OK, first of all, I want to know what it was like. Like, what happened that gave you the alert that your toddler was about to do some serious damage here?

SCOTT REINTGEN, PARENT OF TODDLER WHO UNWRAPPED FAMILY'S CHRISTMAS GIFT AT 3:00 A.M.: I mean, that was the first alert was a loud voice asking for scissors, which again is a -- it's a really tough 3:00 a.m. request. Slightly tariff --

KATIE REINTGEN, PARENT OF TODDLER WHO UNWRAPPED FAMILY'S CHRISTMAS GIFT AT 3:00 A.M.: Very casually.

S. REINTGEN: Oh, yes. Like it was the most normal thing in the world. He had been hunting through the presents, and very specifically was looking for his spider man web shooters. And so, when he found them, the one step between him and you know joyful toy play was a pair of scissors, obviously.

BOLDUAN: But, Katie --

K. REINTGEN: But he didn't start --

BOLDUAN: But, Katie, is this on brand for tea? I mean, I know which one of my children I would like to put in the category of she would definitely do this. Like, is this -- is this him?

K. REINTGEN: Yes. The oldest child, he's 6, just started kindergarten, such a rule follower, would never.

S. REINTGEN: Never.

K. REINTGEN: He would never. Middle child, nothing's off limits.

S. REINTGEN: All adventure. I mean, so -- I am an author for a living. It's my job to have an imagination. And I could not in the wildest dreams have imagined any of our kids going down and unwrapping every present.

Like, taking a sneak peek. OK, we could see that. But the whole entire gift set. And so, when Katie came back and reported to me at first, like you have the shock of like, there's no way that actually happened. And then when she told me that T was going to do that, I was like, oh, actually --

K. REINTGEN: Of course.

S. REINTGEN: Yes. Actually, it makes a lot of sense though.

BOLDUAN: Distracts. SIDNER: OK, it's fine.

K. REINTGEN: Yes.

SIDNER: Did you ask him why, or like, you know that these presents -- some of those are from Santa for your siblings?

S. REINTGEN: We had a really good heart-to-heart with them. That was on the -- you know, on social media. People were like, well, I would have been so upset and this and that.

And like, sure, we could have gone that path, or we could just like laugh at it and talk him through it. He's little -- he's still a little guy.

SIDNER: Sure.

S. REINTGEN: And so, one of the things that really clicked with him though, was this idea of like -- I was like, well, how much fun was it for you to open the gifts if you like? Like, oh, it's fun.

And so, we have the same feeling that we all get when we open the gift. And so next time, we're going to make sure everyone gets to experience that. and it definitely clicked for him.

He got -- his claim was that he was just trying to help everybody out. He's just trying to unwrap things -- do it for you.

BOLDUAN: I love this guy.

S. REINTGEN: Yes.

SIDNER: He was doing it for a year.

BOLDUAN: I love your son.

SIDNER: You're welcome.

BOLDUAN: Yes. I mean, I'm sticking to that story, Mom. I was just trying to be helpful.

SIDNER: Just trying to make it easier for everyone to enjoy their presence. I mean, hello? This is such a wonderful story.

I just need to know. How did you fix it? Like what did you do when you realized that 3:00 a.m. like, literally every present -- and we know how long it takes to wrap presents. That is a real job.

K. REINTGEN: Well, the --

SIDNER: What did you do?

K. REINTGEN: Well, the night before, I very carefully had wrapped all of this. And so, I start -- I had run out of the wrapping paper. And so, I just started taping things back together. And at first, I laughed. (INAUDIBLE) a picture. And then I just felt dread. And I think the funniest part was the next morning as Henry's opening the gifts, Thomas keeps chiming in with, I knew you were going to get that. And how did you get the -- (INAUDIBLE)

S. REINTGEN: Yes.

SIDNER: Spoiler alerts.

S. REINTGEN: (INAUDIBLE) left and right. And he's like, I knew you're going to get those. Like, it just is one of those beautiful funny moments.

SIDNER: So good.

S. REINTGEN: Again, we will remember this forever. We'll tell this story for a very long time, ideally at his wedding. So, it's just kind of fun to have something this pop up.

And it's been really fun too to share it with everyone. Like it just kind of we were not expecting the response that it got. But I think it got that response because so many people have another story that resonates where an uncle did that or a brother or a sister, and so it's kind of fun to see everyone tell their own stories, too.

BOLDUAN: Yes.

SIDNER: Marvelous.

K. REINTGEN: And when you're --

[11:55:01]

BOLDUAN: Go ahead, Katie.

K. REINTGEN: I was just going to say, we know this is not the important -- most important thing in the news right now. But we're just happy that it made people smile.

S. REINTGEN: Yes.

K. REINTGEN: It can enjoy the toddler chaos, which is having children.

BOLDUAN: And that's what we were going to say. Like, it is such a -- it is a pleasure to meet you and for -- to share some joy. And your parenting abilities at 3:00 a.m. are better than my parenting abilities at any part of the day with no amount of caffeine.

I'm so impressed. We must be friends. You probably won't want to be my friend once you see my parenting abilities. So, it's really good to meet you, guys.

K. REINTGEN: It's a pleasure. Merry Christmas, guys.

S. REINTGEN: It's a pleasure. And trust me -- (INAUDIBLE). Have a good day. SIDNER: We are officially Team T. Team T.

BOLDUAN: Oh, totally.

SIDNER: That's us. We're on it.

BOLDUAN: I'm just -- I'm just trying to help.

SIDNER: Thank you so much for joining us.

K. REINTGEN: Yes.

SIDNER: We appreciate you. This is CNN NEWS CENTRAL. "INSIDE POLITICS" is up next.

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