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Economic Stimulus Deal; News Conference on Murdered Marine; Fight for Florida

Aired January 24, 2008 - 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 again, everyone. You're with CNN. You're informed.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

Developments keep coming into the CNN NEWSROOM on Thursday, the 24th day of January. Here's what's on the rundown.

Get ready to spend. A tax rebate check may be in the mail pretty soon. It looks like Washington has worked out a deal on economic picker-upper.

HARRIS: A murder indictment expected to be announced this hour against a fugitive Marine.

COLLINS: A brutal winter storm shuts a major north/south freeway in California.

Life in the snow lane, in the NEWSROOM.

News out this morning could mean hundreds of dollars in your pocket. Sources say there's a tentative deal now on a plan to pump up the economy with tax rebates.

Kathleen Koch is tracking details from the White House. Susan Lisovicz watching how all of this is playing out on Wall Street this morning.

First, though, the plan to boost the economy and what it means for your bottom line.

Live to Kathleen Koch at the White House.

Good morning once again, Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Heidi.

Well, what we are hearing again, this from sources who are familiar with the talks, is that this tentative agreement has been reached between the administration and Capitol Hill, but right now House Speaker Nancy Pelosi, Minority Leader John Boehner are trying to sell this plan to their respective members, Democrats and Republicans. Now, sources tell us that basically the agreement, first of all, does include Democrats dropping their insistence on an increase in food stamps, that unemployment benefits be extended.

Republicans, in turn, agreeing to drop their insistence that only taxpayers be the ones who get these tax rebates. Because that would have excluded some 23 million working Americans who do pay payroll taxes, but they simply didn't earn enough to make -- to pay income tax.

Now, how much would the rebates be? What sources on Capitol Hill and at the Treasury Department say is that it would be $600 for individuals, $1,200 for couples. And then Republican and Democratic aides on Capitol Hill say there would also be an amount given per child, perhaps in the range of $300 per child.

Now, as far as when this might be announced, we are hearing that -- and also, let me not forget, there will be business tax breaks as well. Those details are still being decided. But a press conference to announce this between Pelosi and Boehner and Treasury Secretary Paulson is expected later today -- Heidi.

COLLINS: All right, Kathleen. We are waiting and watching. Thanks so much.

Kathleen Koch, live from the White House this morning.

KOCH: You bet.

(STOCK MARKET REPORT)

COLLINS: This morning a grand jury is set to consider first- degree murder charges against a fugitive Marine accused of killing his pregnant comrade. The district attorney holding a press conference right now.

We can see those pictures coming out of Onslow County, North Carolina. We are monitoring that for you.

Corporal Cesar Laurean is the primary suspect in the murder of Maria Lauterbach. Authorities believe he is on the run in Mexico.

Lauterbach's burned body was found buried in Laurean's back yard near Camp Lejeune, North Carolina. The military is conducting new tests now to see if the fetus was born alive and to determine if Laurean is the father.

As I said, we have been monitoring this news conference from Onslow County with the district attorney there. You are looking at Dewey Hudson. He has just said that he will not seek the death penalty or seek an indictment for the fetus either. So that news just in to us as we are speaking now.

Once again, those words from district attorney Dewey Hudson, you see there at the microphones out of Onslow County, North Carolina.

We'll stay on top of this one for you.

(WEATHER REPORT) COLLINS: Quickly want to get you back to the district attorney in Onslow County now. Once again, we are listening to comments from Dewey Hudson in the case of the Marine corporal who is suspected of killing Maria Lauterbach, a 20-year-old pregnant colleague.

Let's go ahead and listen in for just a moment.

(JOINED IN PROGRESS)

DEWEY HUDSON, ONSLOW COUNTY DISTRICT ATTORNEY: ... here in Onslow County. But not to apprehend him, so that's a question better asked to the federal government.

QUESTION: Do you have any other updates on the search for him?

QUESTION: Do you believe he's in the United States still?

QUESTION: Anything -- the latest -- anything you know about the search for him?

HUDSON: I don't think I care to comment on that.

QUESTION: Has there been any determination now whether or not the fetus that was to be born is his child?

HUDSON: That's a good question. One I forgot to mention.

One of the additional things that they're doing as a result of the federal autopsy is trying to determine not only the paternity of the unborn child, but also the sex of the unborn child. Although some people have reported that, it's my understanding that that determination has not been made.

QUESTION: Say that again over this way.

HUDSON: OK. I'm sorry.

One of the things that the military is doing now is trying to determine the paternity of the unborn child. And also, they're trying to, as a result of the second autopsy, they're trying to determine the sex of the unborn child.

QUESTION: What is the latest on Laurean's wife?

HUDSON: Pardon me?

QUESTION: What is the latest on Laurean's wife?

HUDSON: She continues to be a cooperating witness.

QUESTION: Any indication that she may be charged (OFF-MIKE)?

HUDSON: It would be inappropriate for me to talk about any potential future charges.

QUESTION: Sir, where's the military autopsy of what's being done? Is that a central lab, or here, or what?

HUDSON: No. Initially, we thought we were going to do it here at Camp Lejeune, at the naval hospital. But I was informed yesterday that, in fact, her body was transported to Dover, Delaware, where, I believe, one of their -- a military forensic pathologist and two anthropologists (ph) conducted the autopsy.

QUESTION: Any word on the autopsy and on the condition of her body? Was she abused in any way before her death, or even after?

HUDSON: I don't care to comment on that at this time. I don't think...

QUESTION: How did she die?

HUDSON: The same -- I think their conclusion was the same as the medical examiner in Chapel Hill, and that is that it was blunt trauma to the head.

QUESTION: What was she beaten with?

HUDSON: I cannot talk about that.

QUESTION: They say it looks like her...

COLLINS: OK. We have been listening again to district attorney Dewey Hudson out of Onslow County, North Carolina, there. More information about the suspect and the plans for him, if you will, in the death of 20-year-old pregnant Marine Maria Lauterbach.

Of course, as you know by now, trying to find the man on -- well, we thought we were going to see him now on the screen -- but Cesar Laurean. The military, as you may remember, is now conducting an extensive investigation into all of this. Most currently, trying to determine whether or not he was, in fact, the father of the baby.

But perhaps the most interesting information out of this so far is that, according to the D.A., they will not be seeking the death penalty in this case if the suspect, Cesar Laurean, is found in Mexico. But they are reserving the right if found somewhere else.

Other interesting factors will be covered by Susan Candiotti, who is following this development and this press conference, alongside us.

Susan, the other thing that the D.A. mentioned here is that they will not be charging him for the death of the fetus because the laws in North Carolina?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: That's right. The law in North Carolina is that even if a fetus is considered viable -- in this case, Maria Lauterbach was more than eight months pregnant. Even if the fetus is viable, it is not against the law, there is no such thing as a murder charge for a viable fetus if that fetus has not been born alive.

So he announced what we reported actually yesterday for the very first time, broke the news that preliminary findings of the second autopsy done by the military indicate that that fetus was not born alive. However, they did indicate that additional tests are being done just to make sure, testing a sample of the fetus' -- one of the lungs, the tissue, to determine if there is any sign of oxygen.

If they can prove that there is oxygen, that would indicate, according to the prosecutor, that the fetus had breathed life. And if that were the case, then, under the law, they would be able to charge Laurean with a second murder charge for a fetus that was considered to be alive outside the womb.

COLLINS: Well, it is seemingly complicated here. And still so many unanswered questions.

We heard at the end of this press conference, and some of the reporters were asking about, how she did die. And he did mention blunt trauma to the head. But not much more than that with regard to a potential weapon.

CANDIOTTI: That's right. There are reports that a crowbar is being tested to see whether it is the murder weapon.

However, for the record, authorities will only say that they have recovered a possible murder weapon, and it's being tested to see if that is the weapon that was used to kill Maria Lauterbach. However, they did announce yesterday, or rather we learned yesterday from the district attorney, that this other autopsy being done by the military, that they are reconstructing Maria Lauterbach's skull. That will help them further determine the extent of her injuries.

COLLINS: Wow. All right.

CNN's Susan Candiotti watching this story for us in Miami.

Thanks so much, Susan.

CANDIOTTI: You're welcome.

HARRIS: The presidential campaign trail -- Republicans fight for Florida and one big name fights for survival.

(COMMERCIAL BREAK)

COLLINS: Tens of thousands of Gazans right now pouring into Egypt for a second day. They're stocking up on everything -- food, furniture, livestock, you name it. It's described as a carnival atmosphere in the border town of Rafah.

This human flow started after Palestinian militants blasted through metal border walls built by Israel. Israeli and U.S. leaders are calling on Egypt to regain control of that border. They fear terrorists and weapons may be coming into Gaza unchecked. But Egypt is welcoming the Palestinians who are suffering under a recent Israeli blockade.

HARRIS: So, just five days before the presidential primary in Florida, and candidates are racing for votes. For one, Florida could be the end of the road.

CNN's Dana Bash explains.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice over): On the stump, Rudy Giuliani's theme of tested is retooled.

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: I did it with New York City, and you can go look at the results to the economy of New York City. I have done it with businesses. I have done it before, I can do it again.

BASH: Giuliani says he wants to jump-start the economy by simplifying the tax code immediately.

GIULIANI: Ultimately, if it's passed, you will be able to file your taxes on one page.

(APPLAUSE)

GIULIANI: One page.

BASH: His biggest challenge, getting Floridians to listen.

Before this appearance, volunteers worked the phones to beef up the crowd.

UNIDENTIFIED FEMALE: There'll be a gas station on your left. You will see Rudy Giuliani signs.

BASH: A packed house, but lots of people who can't vote in Florida.

UNIDENTIFIED MALE: I'm here visiting from Pennsylvania.

BASH (on camera): And where are you from?

UNIDENTIFIED FEMALE: Bremen, Indiana.

BASH (voice over): There are fresh signs Giuliani's strategy to skip most early contests in search of a Florida win may not be working. A new poll here shows Giuliani now statistically tied for third with Mike Huckabee, a 10-point fall from his Florida lead a few months ago.

(on camera): So why is it that you seem to be losing support, not gaining support?

GIULIANI: I think the reality is that we are gaining support. I think the issues that we are hitting on are the ones that are the key ones for the people of Florida. And the most important one is, you know, proven leadership.

BASH (voice over): There, his obstacle is John McCain, on TV with this new ad... SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: There's no one more qualified to meet our national security threats. I have been dealing with these issues my entire adult life.

BASH: And McCain appears to be competing for Florida's top spot with Mitt Romney.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: And I will go to Washington using the experience I have in the private sector, in the real economy, to strengthen our economy.

BASH (on camera): There's a saying here in Florida that, the more south in the state you travel, the more north you are. And we encountered a number of New York transplants that Mayor Giuliani is banking on here. But after dominating Florida for months, it seems the political terrain has shifted and the boisterous former mayor from America's largest city is suddenly having trouble getting his voice heard.

Dana Bash, CNN, Estero, Florida.

(END VIDEOTAPE)

HARRIS: And we have a showdown for you in the Wild Wild West. A week from tomorrow, the candidates face off in California debates, the last debates before Super Tuesday.

Wow, watch it right here, January 30th, 31st on CNN, home for politics. Your home for politics.

And time is winding down and the race is certainly heating up. For the freshest polls, the latest fights -- I'm selling it, it's good stuff.

COLLINS: "Scrappy little army..."

HARRIS: Is that what -- OK.

For the Political Ticker blog and more, check out cnnpolitics.com.

COLLINS: A student calls a school administrator at home and gets an earful. He gets revenge on the Internet, and now he's speaking out. Hear him in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Dirty politics online.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Continually having friends tell me at church and other places, hey, you know he's a Muslim, he's a Muslim. I thought well ...

(END VIDEO CLIP) HARRIS: But it's wrong and so are other claims in an anonymous e-mail aimed at Barack Obama. We are keeping them honest.

OK, bottom of the hour. Welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris.

COLLINS: Hi there, everybody. I'm Heidi Collins.

Among our top stories today, news that could mean money into your pockets. Sources say there's a tentative deal now on a plan to jump start the economy. It includes tax rebates for you and tax breaks for businesses. Sources say rebates would be $600 for individuals, $1200 for couples.

Both sides are making concessions. Democrats dropped plans to increase food stamps and extend unemployment payments. Republicans agreed to allow non-taxpayers to get rebate checks. People who work but don't earn enough to pay taxes would be eligible. That's about 23 million more people than under the Republican proposal.

Also in the headlines this morning, cutting jobs and wages. Ford today announcing plans to offer buyouts to all of its 54,000 hourly workers. That paves the way for lower-wage replacements. It's part of the company's plan to end three years of losses. Ford was replaced as the country's No. 2 automaker by Toyota last year. Sources say the buyouts will be similar to plans offered in 2006. They ranged from $50 to $140,000.

HARRIS: The death of actor Heath Ledger, what happened in the moments immediately after the actor was found unconscious. CNN's Jason Carroll piece together a timeline.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): A crush of cameras try to capture a shot of Michelle Williams, Heath Ledger's ex- fiance as she arrived at her Brooklyn home late Wednesday. Williams' mother was already there and did not answer questions about Ledger's death. Most of Ledger's friends and family are staying quiet.

But now, new details are emerging about the actor's mysterious death Tuesday. According to a police source with knowledge of the investigation, the timeline goes as follows. 12:30 p.m., Ledger's housekeeper arrives at his fourth floor Soho apartment. 1:00, she enters his bedroom. Ledger was lying facedown and snoring. 2:45, his masseuse arrives. Around 3:00, the masseuse enters Ledger's room. She tries to wake him, but he is unresponsive.

The police source says the masseuse used the speed dial on Ledger's cell to call his friend, actress Mary-Kate Olsen. Olsen called a private security team, instructing them to head to Ledger's apartment. The masseuse called Olsen a second time, saying she was calling 911. 3:26, the masseuse makes the emergency call and with the help of an operator, performs CPR. 3:33 p.m., paramedics arrive and are unable to revive Ledger. Three minutes later, at 3:36 p.m., Ledger is pronounced dead. Rumors swirled about what police had taken from the actor's apartment. Later, investigators said a $20 bill discovered tested negative for illegal drugs.

RAY KELLY, NEW YORK POLICE COMMISSIONER: There were no illegal drugs found. They were prescription bottles, all of the pills were in the bottle. There was some report that they were strewn. That's not the case. The bottles were capped.

CARROLL: An autopsy performed early Wednesday was inconclusive. Ledger's family says his death was an accident. Until several months ago, Ledger lived here with his ex-fiance, actress Michelle Williams in Brooklyn. The two met while filming "Brokeback Mountain." They have a two-year-old baby girl Matilda, her footprint marked in cement outside the house. Ledger moved out after the couple's engagement ended several months ago.

Actor Alessandro Nivola lives next door.

ALESSANDRO NIVOLA, ACTOR: In all my encounters with him, he was just incredibly sweet guy and he loved his little daughter and I was a huge fan of his as an actor. So I -- you know, it's just, it's awful.

CARROLL: Ledger's body has been taken to a funeral home in Manhattan. Memorial arrangements are pending.

(on camera): The memorial outside of Ledger's home continues to grow with more flowers and candles. The medical examiner says more toxicology tests need to be done. It could be another two weeks before an exact cause of death is determined.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

COLLINS: Lesson in winter driving, know exactly where you are going. A car got stuck in a frozen Ohio pond after the driver turned into what she thought was a snow-covered driveway. Look at that. It was actually a drainage culvert that led downhill to a pond.

Alexis Keys was trapped.

(BEGIN VIDEO CLIP)

ALEXIS KEYS, DRIVER: I freaked out. I tried to open my front door. I couldn't get it open. I tried to call 911, but I was too frantic that I just -- I wanted to get out. Tried to break open the door, I couldn't. Finally, I tried the left rear door and I just shoved it as hard as I could and it opened and I just squeezed myself out, climbed on to the ice. And I was soakin' wet, freezing.

(END VIDEO CLIP)

COLLINS: Boy, well, she did make it out by herself. But it took divers and two wreckers to get her car out. HARRIS: Boy, let's get to Rob Marciano in the severe weather center. And Rob, you described the system in the west where our friends there is one of those sit and spin storms, which means it's going to be there for a while, huh?

(WEATHER REPORT)

COLLINS: It's a smear campaign aimed at Barack Obama. CNN's senior political correspondent Candy Crowley is setting things straight and keeping them honest.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Kate Brighton usually votes Republican, but this year, Barack Obama caught her attention.

KATE BRIGHTON, BARACK OBAMA SUPPORTER: But continually having friends tell me at church and other places, hey, you know he's a Muslim, he's a Muslim. I thought, well, I said, I haven't heard that anywhere. Oh, yes, yes, don't you know, he's a Muslim. And then, somebody sent me an e-mail that said, you know, he was at this Madrassas, blah, blah, blah, about him being, you know, a Muslim.

CROWLEY: There are many different versions. Subject, one of these e-mails begins, good warning. It claims that Obama conceals the fact that he's a Muslim -- wrong. Obama talks openly in his book about his Muslim father who left him at the age of two and his Muslim stepfather. But Obama is not and never has been a Muslim.

It charges that Obama was educated at a radical Islamic school in Indonesia. A CNN investigation found that to be false. It claims Obama was sworn into the Senate on the Koran. Turns his back to the flag, refuses to say the Pledge of Allegiance: false, false and false.

BRIGHTON: This whole thing about being Muslim, they're really tapping into, I think, a national fear of terrorists. So Muslim, terrorist, I think they put the two together.

CROWLEY: And really hard to trace.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: They come in waves. And they somehow appear magically wherever the next primary or caucus is. Although, they're also being distributed all across the country.

CROWLEY: It's nasty stuff with the potential for real impact to the Bible belt. And so it is that Barack Obama finds himself shadow boxing with cyberspace.

OBAMA: Just like if anybody starts getting one of these e-mails saying Obama is a Muslim, I have been a member of the same church for almost 20 years, praying to Jesus.

CROWLEY: The candidate is speaking out about it more often now and his campaign has set up its own fact check Web site. They have Kate Brighten, too, armed with her own research and fact sheets she got from the campaign. Brighton strikes up random political conversations at the Wal-Mart. She's ready when Barack Obama and his religion come up.

BRIGHTON: I'm going to say almost the very first thing, which I just, it's -- I'm astonished by it. So whoever contrived this knew the trigger that they needed, because yes, it's almost the very first thing that comes up.

CROWLEY: There's no way to know where all this started, only that it will be difficult to end. Cyberspace has made its way into the real world. The sign is up now in Columbia, South Carolina, keeping them honest, that's not true. Candy Crowley, CNN, Columbia, South Carolina.

(END VIDEOTAPE)

COLLINS: And don't miss the showdown in the wild, wild west, a week from tomorrow the candidates face-off in a California debate, the last debate before Super Tuesday. You can see it only here January 30th and January 31st on CNN, your home for politics.

HARRIS: A new monster movie may make you a bit queasy, and it has nothing to do with gore.

(COMMERCIAL BREAK)

HARRIS: OK. We've got a box office warning for you. You could get queasy in the Cloverfield. Chief Medical Correspondent, Dr. Sanjay Gupta explains why this week's top grossing movie is a real stomach churner.

(BEGIN VIDEOTAPE)

SANJAY GUPTA, CNN CORRESPONDENT: A lot of people talking about this movie this weekend. It was shot, as you can see there, to give you a first-person look at things, to put you sort of in the driver's seat if you will. It's a great concept actually using a lot of handheld cameras, sort of shaky cameras, people will think.

But, it will cause something known as vertigo. Vertigo is when your body is getting strong visual cue that you're moving, but in fact, you're not moving at all. It has an impact on the balance centers on your inner ear and to your brain to some extent as well. And it can be disturbing to some people.

It can cause nausea, it can actually cause people to vomit, can make people lightheaded and dizzy. In fact, people have had to walk out of these theaters and not be able to actually finish watching the movie. We've actually seen that, in fact seen warnings posted a at of AMC Theaters across the country saying, just like an amusement park ride that you might actually have some problems while watching the movie.

The good news is, the vast majority of people are not going to experience vertigo. And if you're really worried about it there are a few things you can do. You can actually, first of all, you could rent it because if you watch it at home instead of in the theater you will get perspective around your honor screen.

You could also just simply try closing your eyes for a couple of minutes. That'll allow your brain and your inner ear to sort of reequilibrate. And, if it's bad you could consider taking some medications to actually get rid of the dizziness.

Problems with those medications is that oftentimes make you feel sleepy. If you're like me, I can hardly make it through the opening credits, that may not be a good option at all. But hopefully, if you watch the movie, you'll enjoy it and not get sick. Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

HARRIS: So, our friends at CNN.com tell us many of you who have actually gone to the movies to see Cloverfield are sounding off about your experience in the theater. You want to check it out yourself? All right. Go to CNN.com.

COLLINS: I don't know, I'm so excited about going to a movie that potentially could make me sick.

HARRIS: Yes. Can't wait to get there.

COLLINS: Apparently not, but still. Jim Clancy is standing by now to tell us a little more about YOUR WORLD TODAY. There he is. Hi there, Jim.

JIM CLANCY, ANCHOR, YOUR WORLD TODAY: Hi there, Heidi, and hello to you too, Tony. Well, coming up in just -- in a few minutes, YOUR WORLD TODAY is going to take a look, of course, we're going to watch the markets. But we're also looking at this story that's got Paris abuzz, a 30-year-old traitor loses more than $7 billion. It's a big story.

We're going to have that. We'll continue to watch the markets as French police are out looking for the worse traitor on the planet.

Plus, we're going to take you to Iraq. Some grim scenes played out here, explosions in Mosul, killing and wounding many Iraqis. Our own Michael Holmes reports live from Iraq. He was just there. The coalition pushing against al Qaeda. al Qaeda pushing back.

Plus, there's a new soap opera in Thailand about the stewardesses. Its stylish, it's sexy and it's sending the real pilots and stewardesses into orbit. Dan Rivers will give you a boarding pass to a front role aisle seat to explain why the antics on the television screen are prompting demands to cancel this in-flight entertainment.

Heidi, Tony, join Isha Sesay and me top of the hour.

COLLINS: Wow, that -- definitely steamy. Forget E.R. and all the medical type shows --,

CLANCY: A lot of controversy.

COLLINS: Yes, it's the flight attendants.

HARRIS: That's a tease for you.

COLLINS: Fascinating. All right, Jim. Thank you. We'll be watching.

HARRIS: Yes.

COLLINS: Well, the yo-yo Dow lurching ahead at the open this morning. Will you need a neck brace though today?

(COMMERCIAL BREAK)

HARRIS: Boy, oh, boy, oh, boy, it has been a very volatile week on Wall Street. You think? And today, stocks have been in an out of positive territory. Following all the moves for us is Susan Lisovicz on the floor at the New York Stock Exchange. Housing numbers, Ford news, it goes on and on.

Why can't we just call the whole thing off, Susan, and go have lunch?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well you know, you really hit the nail on the head, Tony. But today you can eat lobster tails if we closed it down right now, because we're still hanging in there. The bulls are still hanging in there. And we actually got some good news on the jobs front. It's been so busy. And that's one of the reasons why the market's so volatile, whether it's Congress or the economic stimulus plan or the Federal Reserve or corporate earnings.

Economic data, jobless claims, the number of people seeking unemployment benefits last week fell for the fourth straight week. And the claims fell to the lowest level in four months. That's good news. What's bad news is the turmoil we're seeing among bond insurers. That is a niche in the financial market. You know they've been rocked. Security capital shares are down 24 percent after a ratings agency downgraded its financial strength.

Why is that? Well, ratings agencies have been worried about bond insurers and about their ability to make payment on claims. What kind of claims? It all comes back to subprime loans. Believe it or not, as those risky mortgages default, bonds backed by those troubled loans could also default and some ratings agencies are worried that in a worst case scenario, a whole flood of them could put such pressure on bond insurers that they wouldn't be able to make payment. That's a concern. You're seeing that play out vividly, even though the three major averages are up right now.

One other thing I wanted to mention, of course, subprime mortgages goes back to the housing market. We got existing home sales for December. They fell 2.2 percent from November. For the year, single family home sales fell 13 percent. That's the worst read in 25 years. Prices for the year also fell. The chief economist for the National Association of Realtors says, prices probably haven't fallen for an entire year since the Great Depression. But, the bulls are resilient. Two hours and change into this session, the Dow Industrials holding on, up 82 points. The NASDAQ is up 35 points, one day after it briefly entered into a bear market. Go figure, Tony.

HARRIS: Go figure. Susan, what a job today. What a job period. Good to see you.

LISOVICZ: I'll be back tomorrow.

HARRIS: Absolutely. Thanks, Susan.

LISOVICZ: You got it.

COLLINS: Shocked drivers couldn't believe their eyes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's just a little girl...

UNIDENTIFIED FEMALE: That's hitchhiking...

UNIDENTIFIED MALE: Looks like a 5-year-old girl just walking on the side of the road by herself.

UNIDENTIFIED FEMALE: Maybe younger.

UNIDENTIFIED MALE: And it just looks weird.

(END VIDEO CLIP)

COLLINS: The 5-year-old who thumbed her way to school.

(COMMERCIAL BREAK)

COLLINS: I want to go ahead and give you some information we are just getting in now here in the CNN NEWSROOM. According to Mexican police, there has been an arrest of a man in connection with a death of a U.S. border patrol agent last week. We -- the man's name is Jesus Navarro Montes. He was arrested in Mexico. This is according to Mexico's attorney general.

He was arrested in connection with the death of Luis Aguilar, who apparently was attempting to stop two vehicles believed to have come into the country illegally. They were trying to get back into Mexico when he was struck and killed. Getting some reaction from Homeland Security secretary, Michael Chertoff, praising the work with the Mexican authorities and how quickly they were able to make this arrest.

HARRIS: So a little girl wants to walk to the school bus stop by herself. Mom says no way. So she took matters into her own hands, or at least her thumb. Brent Hunsaker of -- I just like saying the name -- of affiliate KTVX has more.

(BEGIN VIDEOTAPE)

BRENT HUNSAKER, KTVX REPORTER: A lot of people passed by our little hitchhiker yesterday morning, a few called police.

UNIDENTIFIED FEMALE: (INAUDIBLE) City Police.

UNIDENTIFIED MALE: Yes, there's just a little girl...

UNIDENTIFIED FEMALE: That's hitchhiking...

UNIDENTIFIED MALE: Looks like a 5-year-old girl just walking on the side of the road by herself.

UNIDENTIFIED FEMALE: Maybe younger...

UNIDENTIFIED MALE: And it just looks weird.

UNIDENTIFIED MALE: I'm just worried, there's so much traffic.

HUNSAKER: But Adrienne Hart didn't call, she stopped.

ADRIENNE HART, PICKED UP YOUNG HITCHHIKER: Yes, she was almost getting hit by cars.

HUNSAKER: Then she saw the thumb out.

HART: And I have to take a second glance because I'm like, she's like four feet tall, hitchhiking. So I was like, did I see that right? So I looked back and I see the little girl. And so I go -- I'm like she's going get hit. So I turn around and I ask her if she needs a ride.

HUNSAKER (on-camera): Did she seem at all scared?

HART: No. No, no, no. Hopped right in my car.

HUNSAKER (voice-over): And once in her car, she asked plenty of questions.

HART: She's making small talk. Asking really mature questions. Like asking me about where I work, what I do, if I'm married. And I'm just thinking, wow.

HUNSAKER: But she wasn't very good answering questions.

HART: She's not giving me any directions whatsoever. She's just saying go down the street.

HUNSAKER: Adrienne searched for a school and finally found Grandview Elementary. She left the little girl with a member of the school staff who found out she was reported missing, and called police.

(on-camera): So you're in the habit of picking up hitchhikers?

HART: Yes, I am, that's my job. No, the first time I've ever done it.

HUNSAKER: And you did it because? HART: She was six and I could tell she was in danger.

(END VIDEOTAPE)

HARRIS: Before -- before that woman gave the young hitchhiker a ride, police say a man apparently picked up the little girl and drove five miles trying to find her school. When he couldn't find it, the 5-year-old got out of the car and began thumbing until Adrienne picked her up.

COLLINS: Time to take a look at some of the most clicked on videos on cnn.com now.

Wide spread online reaction to news of the sudden death of actor Heath Ledger -- cnn.com bringing you the latest on this still unfolding story.

Scotland Yard now investigating a home video of troubled rocker, Amy Winehouse. She is pictured smoking an unknown substance from a glass pipe.

The "Detroit Free Press" is reporting the city's married mayor, Kwame Kilpatrick, exchanged romantic and sexually explicit text messages with his chief of staff. Kilpatrick says he is embarrassed and he is asking for forgiveness from both his family and hers. For more of your favorite video, go to cnn.com/mostpopular. And of course, don't forget you can take us with anywhere you go on your iPod with the CNN daily podcast.

All right. Well, that's all we have for now, here in the CNN NEWSROOM. We will have CNN NEWSROOM continuing one from now, at 1:00.

HARRIS: "YOUR WORLD TODAY" is next with news happening across the globe and here at home. I'm Tony Harris.

COLLINS: And I'm Heidi Collins. See you tomorrow, everybody.

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