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9,500 Jobs Lost at DHL Express; A Bigger, Better Bailout; Obama, Bush Meet at White House; Remembering Mama Africa

Aired November 10, 2008 - 12:00   ET

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

T.J. HOLMES, CNN ANCHOR: Hello there, everybody. I'm T.J. Holmes, sitting in today for my good friend Tony Harris.
The headlines we've got for you here in the CNN NEWSROOM on this Monday, November 10th. We've got more stories about the economy. And yes, it ain't good.

DHL Express cutting thousands of jobs. AIG, however, getting a big bailout package from the government.

Also, talking about the transition of power today. One is coming in. One is headed out. Barack Obama meeting President Bush in the Oval Office today, and Obama's wife Michelle will be along for the tour of their new home.

Known as Mama Africa -- that's Miriam Makeba -- a musical force against apartheid in South Africa, collapses and dies on stage.

We will start with issue #1, the economy. Yet another jolt today. DHL Express cutting 9,500 jobs and ending U.S. domestic deliveries. Well, for Wilmington, Ohio, this is nothing short of a disaster.

CNN Senior Correspondent Allan Chernoff is in that town.

Allan, trying to put in perspective for folks who are hearing about this town now, what does DHL mean to Wilmington?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: T.J., DHL is everything here in Wilmington, Ohio. This is the central sorting hub for DHL in the United States, the central air hub as well for DHL. Ten thousand jobs depend upon DHL here in Wilmington.

And I'm not talking only about DHL, but there are so many subsidiary companies, supplier companies. And in fact, the two airlines that serve DHL -- keep in mind, DHL is owned by a German company. They can't own an airline, so there are two airlines based here that service DHL. They are all talking about massive, massive layoffs. One of every three families in this town dependent upon this huge facility right behind me.

We were at a diner just a few minutes ago talking to some people deeply affected. Let's have a listen to what some of the families here are saying.

(BEGIN VIDEO CLIP) SHERRY BARRETT, DHL EMPLOYEE: They're taking away everything from me, my family, my friends, this whole town. I'm sorry.

UNIDENTIFIED MALE: It's going to affect me directly. And so, just kind of, I don't know, tightening reins, buckling down.

(END VIDEO CLIP)

CHERNOFF: Lots of people are doing just that, T.J. One fellow I spoke with said that he's training right now to become a nurse. At least that's a business, he said, that does not depend on the economy.

By the way, DHL says it expects to lose $1.5 billion here in the United States this year -- T.J.

All right. Allan Chernoff, horrible news there for the folks in Wilmington. It just hurts to see that lady there in tears in that diner.

Allan, we appreciate you. We'll be checking back in with you.

We'll turn to some news about the insurance giant AIG. Well, the government retooling that bailout for that big insurance company. It's actually getting more money, and it's getting more favorable terms.

CNN's Christine Romans is at the New York business desk.

Help us with this one. They got billions and they need a few billion more. How does this work?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, this is the new and improved AIG bailout. This is $152 billion, roughly, the value of this bailout. And it takes the bailout that was already out there and it kind of throws it out, fine-tunes it, and repackages it into something that looks a little different.

So this is what it looks like. This is major changes to that bailout from earlier in September. That $85 billion bridge loan has been reduced to $60 billion, and then the terms have become more favorable. The interest rate on that loan has gone down.

Treasury will take a $40 billion stake in the company. So this is the government buying $40 billion stake. That's you and me, our taxpayer money. So that comes out of our treasury asset, TARP thing that they call it, the $700 billion bailout.

The Fed restructuring the initial loan, lowering the interest rate, as I pointed out. And then the Treasury demanding some limits on pay. In particular, the Treasury saying that the top 70 employees of AIG will have to have their bonus pool frozen.

The Treasury will also buy billions of AIG's troubled mortgage- backed securities. And then there will be a $30 billion government backstop, backstopping its credit default swap agreements. Basically, this is a new and improved kind of bailout for the country, and people on Wall Street actually saying that it shows that the government is willing to do everything it can to protect to save this massive, massive insurance giant.

And it goes beyond insurance in terms what this company does. It has 100,000 employees around the world. It is embedded in almost every kind of industry you can imagine. So the fact that this company can avoid bankruptcy is seen as pretty crucial.

Now, the government's point man on that treasury toxic asset, $470 billion plan, Neel Kashkari, he called this a one-off event necessary for financial stability. He said that it didn't necessarily mean that that bailout was going to be used for other companies other than banks and thrifts as a general rule, but that AIG, that this was necessary for financial stability. And so they were going to take money from that $700 billion plan and actually buy a stake in AIG.

HOLMES: And Christine, just real quickly here, can we get used to this maybe in that, you know, we heard about the bailout plan, we heard about a couple of bailouts, AIG, we heard about all these things, but tweaking is going to happen. We'll see these stories and we'll see these plans change, and it might end up costing us more than. Hopefully, it might cost us less.

But we can expect to see some tweaking?

ROMANS: Tweaking I think is the most optimistic way to put it. A gentleman we were talking to at Taxpayers for Common Sense -- and, of course, it's a group that likes to safeguard our money -- he said the government is playing fiscal Whack-a-Mole.

HOLMES: Wow.

ROMANS: Simply taking our money and hitting the mole as it pops up everywhere it can, each problem as it pops up. Some people would say that the government is being agile and swift and changing quickly to rapidly changing market conditions. Other would say we're just kind of flying blind here.

HOLMES: Flying blind. Whack-a-Mole. Don't want to play Whack- a-Mole with...

ROMANS: Fiscal Whack-a-Mole. That's a good way to put it.

HOLMES: ... $700 billion Whack-a-Mole. That's an expensive Whack-a-Mole.

Christine Romans, we appreciate you. We'll see you again here soon.

Well, something else to tell you about here, folks, that kind of slipped under the radar during the early days of this financial crisis when that $700 billion plan was being talked about. There was a rule change by the Treasury Department. This rule change essentially repeals a law that deals with a certain type of tax shelter.

Stay with me here now. "The Washington Post" reports that it gives banks a potential tax break that's worth as much as $140 billion. A dozen tax experts who were interviewed by the paper called that move illegal.

The Post says no one at Treasury told Congress about this change in the rules, so when lawmakers finally found out about it days later the paper says they got a little upset over there at Congress. And that's putting it lightly.

We'll turn to some more financial news. More bad financial news.

Circuit City unplugged by its rival Best Buy, and also by this nation's economy. This is the nation's number two electronics store filing for Chapter 11 bankruptcy protection. Circuit City will continue operations during this reorganization period. The company will cut, however, 700 more jobs, close 150 stores, and it will exit big markets like Atlanta, as well as Phoenix.

Well, the nation's auto industry struggling, about to crash, amid the spiraling economy. Top Democrats are urging the Bush administration to consider including car companies in, what else? A bailout. Specifically, the $700 billion bailout plan. Ford, Chrysler and General Motors have been battered by the credit crisis and poor sales of those big, not so gas-friendly SUVs.

Well, a lot of you feel pretty strongly about a possible bailout of the auto industry. And it's understandable. We have a lot of your iReports we've been going through.

We'd like to have you send those to us at cnnireport.com. We'll share them with you over the next half-hour.

It is, of course, a symbolic rite of passage: the outgoing president welcoming in the new president-elect to the White House. It happens just about two hours from now. President Bush and President- elect Obama will hold an Oval Office meeting.

White House Correspondent Elaine Quijano is live with the preview.

What do we expect in this meeting? Everybody is so curious, what's it going to be like when we see these two together?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes. Well, it certainly will be fascinating to watch, T.J., even if it is from a distance. It's a private meeting, as you know.

We know as well that President-elect Obama left Chicago just a short time ago. As you noted, on his way here for that meeting scheduled to take place in just about two hours. And just to set the scene for you, what's going to take place here at the White House, at the south portico, in about two hours, the Bushes will greet the Obamas. The two couples are then going to head to the diplomatic reception room before the president and president-elect take that traditional walk down the colonnade and sit down for those talks in the Oval Office. Now, it's clear, of course, the top priority right now for the U.S. is the economy. That's the immediate focus. But also likely to be on the agenda, national security issues and the wars in Iraq and Afghanistan.

Now, their meeting is slated to last at least an hour. And what will the dynamic be like, especially considering Barack Obama ran and won largely by highlighting his opposition to Bush administration policies? Well, we asked that of White House Press Secretary Dana Perino just a short time ago.

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: This is going to be a private meeting. And there's not a lot that we can do to preview it. I don't think any of us can understand what it's like for two people who are now going to be in a very small club, who understand what it's like to be commander in chief, to be the leader of our great country. And so they'll have a private conversation. I'm sure they'll talk about a range of issues.

(END VIDEO CLIP)

QUIJANO: And Dana Perino also saying that President Bush understands full well what it's like to be on the campaign trail, and so is able to just sort of let those comments, the heated rhetoric from the campaign trail, sort of slide off his back.

Now, also today, of course, we should mention that this will be an opportunity for the current and future first ladies to meet. Laura Bush and Michelle Obama will be meeting as their husbands are conferring in the Oval Office, and taking a tour of the private residence. Now, this will really be a chance for Mrs. Obama to get a closer look at the place that is going to be home for the Obama family.

We should also note, T.J., that the daughters, Sasha and Malia, will actually not be here at the White House. We know for a fact because we saw it in the video, that their father, the president- elect, actually sent them off to school today -- T.J.

HOLMES: Yes, sent them to school. And tell us here quickly, does the president have anything else set on his schedule for the day? I know if these two leaders, if they want to meet all day and have a sleepover, they can. But is there something else on the president's schedule that we know he has to get off to a little later?

QUIJANO: You know, there's nothing later. And in fact, one thing that has been noted is that, certainly, these meetings could last longer than the allotted time.

Again, I can tell you that there's at least an hour budgeted. I'm sure if it goes well and things are going along, that certainly they will meet for longer than that. But the president did have an event today. It was a closed event. He met with wounded warriors in suburban Washington. But nothing scheduled after the meeting today. HOLMES: Nothing else. Well, we will see how long this thing goes.

Elaine Quijano for us from the White House.

Elaine, always good to see you.

And we will take you there live as President Bush welcomes in President-elect Obama to the White House. That meeting expected to happen around 2:00 Eastern Time.

And speaking of President Bush, is he just about the most unpopular president ever? He is if you accept the latest CNN/Opinion Research Corporation poll. Well, why wouldn't you accept the CNN poll?

Well, CNN Political Analyst Bill Schneider joins us now from Washington.

Bill, tells us, just how bad is this?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Very bad. The president's disapproval rating is now 76 percent. More than three- quarters of Americans say they disapprove of the job that President Bush is doing. That is the highest disapproval rating for any president on record, and these measurements have been taken for more than 50 years, across 12 presidencies.

Nobody's ever even gotten more than 70 percent disapproval. Take a look at some of these historical numbers.

George Bush is now 76 percent. The highest disapproval rating Bill Clinton ever reached, you see there in 1994, when his party was badly defeated, 54 percent.

His father, unpopular, did not get re-elected. His highest disapproval rating was 60 percent in 1992.

Jimmy Carter is remembered as a president who was unpopular at the time, he did not got re-elected. His highest disapproval, 59 percent during the malaise crisis of 1979.

Richard Nixon had to resign in disgrace, 66 percent disapproval when he resigned. And Harry Truman, until Bush, until this President Bush, had the highest disapproval rating on record, 67 percent in 1952. So, President Bush has set a record, but it's not the kind of record he really wants to set.

HOLMES: And you gave us some numbers there. And if you can, wrap up here. Just give us some perspective.

How do presidents feel about these numbers? They all tell you they don't look at polls and so on and so forth. But it's still kind of a sense of pride in their approval and disapproval numbers.

SCHNEIDER: Well, I remember Lyndon Johnson used to walk around with polls in his pockets. So when he was doing well -- of course, he and other presidents do pay attention to the polls. They say they don't.

But one thing that the Bush people have said all along is, well, the president who had the highest disapproval rating before us was Harry Truman. And look at his reputation. It's been enhanced over the years.

So it sounds like a strange comparison right now to a lot of Americans. Can Bush be another Harry Truman whose record is embellished over time? A lot of people think that's ridiculous, but they think, yes, over time, as events in the Middle East develop, people may come back to see President Bush more positively, but they certainly don't see him that way now.

HOLMES: That's a very good point you make there, only time and history will tell.

Bill Schneider for us.

Always good to see you. Thank you so much.

SCHNEIDER: Sure.

HOLMES: We'll return to the story out of Haiti. Anguish and desperation, still. There you see volunteers here who have been clawing through the rubble of a collapsed school building. The desperate search for children continues.

(COMMERCIAL BREAK)

HOLMES: Well, the owner of a school that collapsed in Haiti is being questioned by authorities. At least 89 people died in Friday morning's collapse of that school just outside of Port-au-Prince. At least 150 were hurt. Haiti's president is blaming the collapse on shoddy construction.

We want to see now exactly what's happening with that search that is continuing. Our David Mattingly is there.

David, what do we know? Do we have a good estimate of how many people could still be trapped?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, first of all, a sign of the desperation that surrounds this search and rescue operation just occurred just a short time ago. A group of about 20 Haitian civilians ran up to the rubble area and began digging again with their hands. We saw this once before over the weekend. They went in there, were digging with their hands, and shouting, showing some of the impatience and the desperation as this search and rescue operation continues to go very slowly.

And when they did, I want to show you something. On the hillside across from where the school collapsed there are about hundreds, maybe thousands of Haitians that have gathered on rooftops and on balconies watching everything that is going on. When those civilians ran over here to this site to begin digging on their own, there was a huge roar of approval from the other side of the hillside.

But for right now, we are told that there is still a search and rescue operation going on. At some point, there may have to be a decision made to turn this into just a recovery operation. That's because for over 48 hours now, there has been no sign of life.

About an hour ago, they brought in search teams with dogs. The dogs went in, they found no signs of life. Again, another bad sign that this search and rescue operation may be wrapping up.

If that's the case, and this turns into a recovery operation, we will see large equipment being brought in, large pieces of concrete going in -- going down. Some demolition possibly going on as they get in and try to recover any of the bodies of the people who might be in there.

Exactly how many, we're not sure. Early estimates of 100 to 200 people trapped in that rubble everyone believes now is not accurate. It may be dozens.

But again, no one knows for sure. This wanted a typical school day. There were a lot of visitors here. There were a lot of children not in this building who normally are in this building.

And at this point, it's still very much wait and see. The people I showed you on the hillside and this entire country waiting to see if there might be one miracle left in that rubble and someone does come out alive.

HOLMES: Well, we can only hope that someone will come out alive. Still a rescue effort, as you said.

David Mattingly on the scene there of that collapse.

David, we appreciate you.

And if our viewers out there, you'd like to get involved in efforts to help others in times of great tragedy, you can visit our Impact Your World page. You'll find links to groups providing food and shelter to people in need. Again, that's cnn.com/impact.

Certainly an impact the economy is having on a lot of people right now. Another company cuts thousands of jobs, and an insurance giant gets a new and improved and more expensive bailout package.

(COMMERCIAL BREAK)

HARRIS: All right. Imagine a nuclear power plant. Think of it. You see a big plant somewhere. Well, now imagine one the size of a hot tub. Now imagine one in your very own back yard.

CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.

Poppy, this sounds like it could fix a lot of energy problems if we could pull this one off.

POPPY HARLOW, CNNMONEY.COM: Yes, right. Crazy talk, though, at the same time. It really sounds like science fiction, but it's not.

A company called Hyperion Power Generation says its mini nuclear plants are very real. Here's the idea, you see it there.

Build this plant, bury it beneath the earth. Hyperion says these modules aren't even much bigger than a person, and they say they'll power up to 20,000 homes each.

They're designed for industrial projects or for small remote communities. And they're said to be pretty much like a battery, meaning there are no moving parts that can be broken down. The technology was discovered by the U.S. government in the famous Los Alamos facility, T.J., that developed the first nuclear weapon -- T.J.

HOLMES: Now, that is interesting, a power plant in my back yard.

HARLOW: I know.

HOLMES: That's not really something that would make a lot of people feel comfortable, I guess, just hearing it.

HARLOW: That's exactly right. It sounds dangerous. People think of Three Mile Island. But Hyperion says, listen, this isn't dangerous.

It says these are similar to the modules used where people are trained that work at nuclear plants. Still the question, do you want that in your back yard?

Honestly, they say the first ones are going to industrial projects, not right in your back yard. They're designed to never be opened. And if they are opened, Hyperion says the fuel inside is not weapons-grade. That's important.

The company also says it's impossible for one of these to melt down. And they're shipped back to the company to be refueled. So they're not refueled on site. All safety measures.

Four thousand of these are expected to be shipped out in 10 years. It's pretty unique, if you think about it.

A large nuclear plant obviously takes a lot longer to build. You can't ship it around. The question, why would you even want something like this? Well, it's interesting.

We heard John McCain touting nuclear power on the campaign trail because it has a lot of advantages. First off, there are no greenhouse gas emissions. They're a very reliable source of energy. And they're relatively cheap.

These new mini plants will cost $25 million each. That's about 6 to 8 cents a kilowatt. That is relative cheap.

The question, T.J., just like you and I both have, is how is the public going to react? We'll see, but this company's betting on it. Certainly an alternative form of energy -- T.J. HOLMES: Yes, and alternative is one way to put it.

Poppy Harlow, always good to see you. Thank you so much.

All right. Well, a battle continues over a bailout for the big three. .

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: General Motors, Ford and Chrysler have been some of the worst-run companies in America. That's why they're in the fix that they're in.

(END VIDEO CLIP)

HOLMES: All right. Well, should the government rescue the auto giants? We'll hear what you have to say about it.

(COMMERCIAL BREAK)

HOLMES: All right. Let's take a look. OK. That's not so bad. It could be better. But still, down about 47 points right now, the Dow. Kind of been a flat day. Been positive 50-plus points at another point we took a peek a little earlier. But got some, I guess some positive news over from the Asian markets after the bailout announced over in China. So we'll see what happens, even though we're getting a lot of bad economic news here in the U.S. today. A triple jolt, if you want to call it.

First up, let's talk about DHL Express announcing plans to cut 9,500 jobs in its Wilmington, Ohio, hub. It's also going to end U.S. deliveries. DHL operations will continue normally. So you still can ship overseas and they'll bring stuff here from overseas. But within the U.S., ain't happening.

Also, another bailout package to tell you about. This one for AIG. This one's been restructured a bit. This loan repayment term will be no longer. Interest rates will be lower. The government will also buy some AIG stock.

Also, let's turn to Circuit City now, filing for bankruptcy protection. Seven hundred more workers will lose jobs and about 155 stores will be closed.

Well, the struggling economy, issue number one when President- elect Barack Obama visits President Bush today. They're scheduled to sit down in the Oval Office about two hours from now. About an hour and a half, actually. They'll be arriving, we expect, President-elect Obama and his wife at the White House. Our Brooke Baldwin reports one important focus in their meetings will be a possible bailouts of, in fact, the auto industry.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT, (voice over): At the White House Monday, the first meeting between the president-elect and the president. The top of the agenda, the economy, according to one member of Barack Obama's transition team. Among the questions, how to heal the ailing automotive industry.

JOHN PODESTA, OBAMA TRANSITION TEAM: The president-elect has said that we need to do more to try to stabilize the industry as we begin to come up with a program so that they become substantial companies once again. They're the back bone of the American manufacturing industry.

BALDWIN: Friday, two of the big three posted third quarter losses in the billions. Saturday, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to the Treasury secretary, asking Henry Paulson to consider a quick cash infusion for car companies. They suggest the money could come from the $700 billion bank bailout. An idea Secretary Paulson previously opposed.

The letter read, "Congress granted you broad discretion to purchase or make commitments to purchase financial instruments you determine necessary to restore financial market stability. A healthy automobile manufacturing sector is essential to the restoration of financial market stability, the overall health of our economy, and the livelihood of the automobile sector's workforce."

PETER MORICI, ECONOMIST, UNIVERSITY OF MARYLAND: General Motors, Ford and Chrysler have been some of the worst-run companies in America. That's why they're in the fix that they're.

BALDWIN: Economist Peter Morici contends a bailout is more like a handout. He says Detroit's big three have hemorrhaged billions through the years. So sending these car companies quick cash, Morici says, conveys a terrible message to the rest of the country's private sector.

MORICI: That you can pay your workers too much, you can have sloppy management and you can be slow to the markets with new products and the government will bail you out. It simply makes no sense to send that kind of message to the private sector in America.

BALDWIN: A Treasury Department spokesman has now response to Speaker Pelosi and Senator Reid's letter says, "we continue to work on a strategy that most effectively deploys the remaining TARP funds to strengthen the financial system and get lending going again." TARP is an acronym for Troubled Asset Relief Program. President-elect Barack Obama has already pledged his support behind the ailing automotive industry. The question now is, when will that support come. And when it did, will it be too late?

Brook Baldwin, CNN, New York.

(END VIDEOTAPE)

HOLMES: And a lot you out there have been weighing in on the idea of a bailout for automakers.

The responses we've been getting kind of split. Josh Levs looking at that for us -- Josh. JOSH LEVS, CNN CORRESPONDENT: Yes, it's striking. You know, I've been reading through even more of the e-mails now that were sent to the NEWSROOM about this. They toggle back and forth between pro and con. Let's get right to it. I want you to see some of these.

We're going to start off with this one from Mike in Canada who writes us this. "Bailing out mega-automakers that can no longer provide a competitive product will quickly erode productivity and confidence in other sectors and render the meaning of capitalism a joke."

Let's got to Diane Meade now. She says, "yes, the auto industry needs help. But require retooling the plants to build cars and trucks that use, for now, natural gas. Building more gas-guzzling models would be throwing money away without real changes."

Now to Herta Grandsault who writes us this. "Absolutely no more bailouts. The carmakers had the chance to change to more fuel efficient cars years ago. Instead, they chose to lobby Congress to preserve the status quo and avoid investing in the future."

Let's go to the last one here now from Novi, Michigan. This is from M.S. "Yes, it is fashionable to decry the auto industry. But current employees did not have anything to do with past excesses. It is puzzling that it would be OK to spend close to a trillion dollars to bail out finance companies, but not save auto companies."

I'll let you know you can still weigh in on this. We're looking to hear from you now on ireport.com. Send you're your videos, photos, stories, your views on whether this should be a bailout for the auto companies.

T.J., we're keeping a close eye on this now.

HOLMES: All right, Josh, thank you. We'll see you again.

LEVS: Thanks a lot.

HOLMES: Well, new now from the political ticker. The chief of staff for President-elect Barack Obama brushing off criticism that he'll be hyper-partisan. Rahm Emanuel says he'll help Obama work in a bipartisan fashion. The Republican National Committee criticized Obama's selection of Emanuel saying it does not represent change.

Also a prominent source close to Barack Obama confirms he wants adviser Valerie Jarrett to replace him in the Senate. Jarrett is one of the leaders of Obama's transition team. The governor of Illinois, however, will be the one to make the final decision on who will fill Obama's Senate seat.

And you can check out our political ticket for all the latest news. Just go to cnnpolitics.com. That's your source for all things political.

Well, why in the world would you pay top dollar for a free ticket? Maybe, if you're talking about tickets to Barack Obama's inauguration. Some people are digging deep in their pockets to witness this historic event. And CNN's Brianna Keilar with the story.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CORRESPONDENT, (voice over): It's the hottest ticket in town. The 2009 presidential inauguration. And it's free. At least it's supposed to be.

How much would one of the VIP seats be? $13,000?

Huge demand has turned what's traditionally a giveaway into a thriving online marketplace. Our quick search of the Internet found site after site, many of them legitimate ticket brokers, promising a view of Barack Obama being sworn in as the next president for a precious price.

I'm looking at reserved VIP, $20,377?

Howard Gantman is the Senate staffer tasked with pulling off Washington's biggest event.

Isn't it against the spirit of the event for these tickets to be sold?

HOWARD GANTMAN, COMMITTEE ON INAUGURAL CEREMONIES: Well, we think it's absolutely insane to be selling those tickets. We understand some people want to try to make a buck. But for those people thinking of buying tickets, it's buyer beware.

KEILAR: Ticket brokers are middle men selling tickets they say they buy from Hill staffers or people who get them free of charge through their members of Congress. But because those tickets are only given out at the last minute, Gantman says brokers can't be sure they will get as many as they've sold.

You could end up in a hotel room with nothing more than a refund?

GANTMAN: Quite possibly. There won't -- there are no tickets available now. The tickets will be distributed less than a week before the event.

KEILAR: Congressional staffers caught selling theirs could be fired.

GANTMAN: We are going to be alerting all members of Congress that it is against the code of ethics for staff or for members to sell these tickets to the public.

KEILAR: But ultimately, Gantman says, it's inevitable some will be sold. And some people will pay cut-throat prices to witness history.

(END VIDEOTAPE)

HOLMES: All right. Some just will witness is from their living room. Brianna Keilar, we'll bring you in here now. Help people understand this. We're talk about tickets to this event. Even if you pay for them, or the ones that are free, whatever, who needs a ticket anyway. The mall is a -- this big national mall, a big open, public area. A lot of people still will be able to just walk up there if you get there in time, I guess?

KEILAR: Walk up into the area, but maybe not get really close. Because this is an outdoor event. It is free. But it's not a free- for-all. There is security. You can understand how there needs to be security when you're having an event with the president of the United States there. But that said, you know, a lot of people, T.J., they are going to show up. They're going to be quite a ways back on the mall or in the surrounding areas. So in the end, the best seats are the ticketed ones. And that's why people want tickets.

HOLMES: And no way to police exactly if somebody does sell their ticket, you said, as well?

KEILAR: Well, no, there's no names on the tickets. So, you know, they can just be exchanged. Just like concert tickets, baseball tickets. And I should also mention, these aren't all seated tickets. For the vast majority of them, it's standing room only.

HOLMES: All right. Brianna Keilar. All right, you find some tickets. You let me know.

KEILAR: All right.

HOLMES: And buy them for me, though, of course -- Brianna ...

KEILAR: They're free.

HOLMES: All right, Brianna, appreciate you. We'll see you again soon.

Well, it is no longer a hurricane. Paloma now downgraded to a tropical depression. But only after pounding Cuba. People there digging out from that storm. Paloma wiped out hundreds of homes when it roared ashore as a major category three storm over the weekend. It's powerful surge sending waves almost a mile inland. The storm is expected to weaken further over the Atlantic as it now heads towards the Bahamas.

Well, we want to bring in Chad Myers, who's made his way in.

Boy, I swear, every hurricane, seems like Cuba has been pounded over the past several months. So tell us what this thing is now, this Paloma. Is it going to be a threat to anybody else?

CHAD MYERS, CNN METEOROLOGIST: It really won't be a threat to anyone else. It has really lost all definition. The sheer now tearing it part. But this is what Santa Cruz looked like also.

You know, just all these areas along the southern shore of Cuba really got pounded. Originally the AP had this as a category four, 140-mile-per-hour storm. But quickly the Hurricane Center put out this at approximately 6:20 Eastern Stand Time, high resolution satellites and also fixes from the Air Force recon says 125-mile-per- hour category three. Like if you're under 125 or 140-mile-per-hour wind, you could tell the difference.

But the buildings down there in this area of Cuba, I mean there's not a 1999 hurricane rating on these buildings. There are no tie- downs to the roofs. The is just not the same type of standards that we would build homes in hurricane zones up here in the U.S. So people are really, really -- this area had been devastated by this hurricane and it's going to take a very long time for it to come back.

This storm started out down near Nicaragua, in Honduras. Got to be a category four right there. And as it came on shore, just a category three. But, obviously, that is still a very major hurricane at 125 miles per hour. Now it's all done. The winds are less than 25.

We had 16 named storms this year. I think we're probably done with hurricane season, although it's pretty close. Sixteen named storms. That's tied for the fourth most of all time. So we can see, it was an active year, but certainly not a record-breaker -- T.J.

HOLMES: Active but not record-breaker. There's nothing to be thankful for at least a bit.

MYERS: Yes. Sure.

HOLMES: Chad, we appreciate you.

MYERS: You bet.

HOLMES: Stay here. We're going to turn to this story. A tragic story for so many American veterans and an outrage many will tell you as well. They go from the battlefield to being homeless.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The world forgets the veterans.

UNIDENTIFIED MALE: They are in shelters. They're in drop-in centers. They're in emergency rooms.

(END VIDEO CLIP)

HOLMES: Our veterans, in focus, here in the NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: We are saluting America's veterans today in honor of tomorrow's ceremonies. One problem that has plagued the veteran community for decades is homelessness. And our photojournalist, Emanual Tobokakus (ph) profiles a vet who has overcome the problem with a little help from some new friends.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: They're $2.

JOE BOYAL (ph), VETERAN: Yes, I got no money.

SAM TSEMBERIS, FOUNDER & EXEC. DIRECTOR, PATHWAYS TO HOUSING: Veterans Day is always about . . .

BOYAL: It's an important thing for me.

TSEMBERIS: Lest we forget.

BOYAL: The world forgets the veterans.

TSEMBERIS: Among the homeless population, about 20 percent are veterans.

BOYAL: I joined the Navy in 1972.

TSEMBERIS: I'm Sam Tsemberis.

BOYAL: My name is Joe Boyal.

TSEMBERIS: I'm the founder and executive director of Pathways to Housing.

BOYAL: I don't know what I am. I've been a lot of things.

TSEMBERIS: They are in shelters. They're in drop-in centers. They're in emergency rooms. They are in jails. They have never had a moment of privacy.

BOYAL: Off and on I was homeless about 15 years.

TSEMBERIS: It's all public space, crowded conditions.

BOYAL: The hardest part about being homeless is trying to find a place to sleep at night. It could be a park bench. It could be anywhere. You got to sleep with one eye open and watch your back. I never (ph) thought of suicide (ph) at time, but I was hoping somebody would end it for me. I finally found Pathways to Housing. And they gave me a beautiful apartment. But I have trouble being by myself.

TSEMBERIS: He needs assistance because he had issues with rule following.

BOYAL: I've been in programs.

TSEMBERIS: Such as sobriety or mandatory treatment.

BOYAL: Drug programs.

TSEMBERIS: In order to get into most housing programs for people who need help, he would have remained on the street forever.

BOYAL: Psychiatric hospitals.

TSEMBERIS: We figured out a way to quickly house them, put them in housing first and then provide services for them.

BOYAL: Ever since I got my apartment, I feel like I can do anything.

TSEMBERIS: Veterans have made that contribution. And that, as a society, as a country, as a government, we ought to honor that.

BOYAL: For the first time in my life, I'm happy.

(END VIDEOTAPE)

HOLMES: And tomorrow you can join Heidi Collins for the CNN NEWSROOM tomorrow morning live from the deck of the Intrepid. That's the famous aircraft carrier that's being rededicated as a museum in New York after a two years restoration. That coverage begins at 9:00 a.m. Eastern Time.

Well, they lost their vote but not their voice. Gay rights activists back on the streets of California. We track their movement, on the web as well.

(COMMERCIAL BREAK)

HOLMES: Well, there has been outrage over the passage of proposition 8 in California. That's the amendment that bans same-sex couples from getting married. Well, there's also been a lot of talk out there on the Internet about it. Our Veronica De La Cruz keeping an eye on all things online.

What are they saying out there?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Well, there are more demonstrations and protests this past weekend, T.J. We saw gay rights supporters targeting California churches that they said pushed for a ban on same-sex marriage.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What do want?

CROWD: Equal rights.

UNIDENTIFIED MALE: When do we want it?

CROWD: Now.

(END VIDEO CLIP)

DE LA CRUZ: That was in San Francisco yesterday, T.J. At least 300 other protesters surrounded a mega church led by Pastor Rick Warren. They accused the church of spreading lies about the supreme court ruling allowing gay marriage.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Today, in 2008, I think everybody deserves a lot more than what we're given. And I really think we're literally the second-class citizens left today. And I'm glad to see that we're coming together and fighting for what we believe in, what we deserve.

(END VIDEO CLIP)

DE LA CRUZ: So, yesterday, Governor Arnold Schwarzenegger said he was disappointed that the ban on same-sex marriage passed. He believes the issue will go back to the court.

So we have been watching the web for reaction to the protest. And the Church of Latter Day Saints has this statement posted to their Web site. They say, "while those who disagree with our position on Proposition 8 have the right to make their feelings known, it is wrong to target the church and its sacred place of worship for being part of the democratic process. Once again, we call on those involved in the debate over same-sex marriage to act in a spirit of mutual respect and civility towards each other."

And checking out our Facebook group, T.J., Dickson Kong writes, "that is why we vote. Everyone had a fair chance to speak out through their votes. And the people have spoken. (And is not a small group). Arizona, Florida, California all passed Prop 7. That tells us something and that is the choice of the majority."

Christopher Dale Vinson says, "even if a majority voted against it, what gave them the right to say other individuals can't do it anyways? They are impeding the rights of homosexuals. That's why church and state are supposed to be separated. Because religious views can fog up the lenses when it comes to rights and liberty."

And, of course, you can check out our Facebook group. Just search for Veronica De La Cruz in the CNN NEWSROOM with Tony Harris -- T.J.

HOLMES: All right. Veronica, we appreciate you keeping an eye on that for us. Thank you.

And we want to tell our viewers here about one of the greatest voices from Africa now silenced.

We are remembering Mama Africa.

(COMMERCIAL BREAK)

HOLMES: Well, the woman known as Mama Africa has died. Now many of you today maybe not know the name -- may know the name Mama Africa, but her name is Miriam Makeba. You might know her work there. She wooed the world with her sultry voice and her anti-apartheid message. She died after collapsing on stage -- actually at a concert. So Mama Africa is dead now at the age of 76.

(BEGIN VIDEOTAPE)

ROBYN CURNOW, CNN CORRESPONDENT, (voice over): Miriam Makeba, loving nicknamed "Mama Africa." MIRIAM MAKEBA, "MAMA AFRICA," SINGER: I know I made African music universe (ph). I am the first artist to come out of the continent of Africa, and particularly from South Africa, to go to Europe, America and other countries and sing the songs of my people. And have people come by the thousands to just cue up and want to see this young African woman.

CURNOW: Some of her early hits composed in the 1950s.

MAKEBA: People would kill me if I do a performance and not sing "Pata Pata" or (INAUDIBLE). What I do is I try to put them in a medley of songs. I do a medley of songs, then I just sing bits and pieces of them because I'm too tired of singing the song.

CURNOW: Tired and short-changed, she says. Makeba doesn't own the rights or get revenue from some of the most recognizable compositions.

MAKEBA: And not being very well-educated to know the ins and outs of finances and stuff, we get robbed all the time by promoters, managers, the record companies and this and that.

CURNOW: Taking to the stage and touring the world to make ends meet.

And to fund her passion, supporting 18 disadvantaged teenage girls who live in a home Makeba established near Johannesburg in 2001.

MAKEBA: I'm not rich, but I shared with these children whatever it is I could afford.

CURNOW: Her life filled with ups and downs, in exile for 31 years for speaking out on apartheid. During those years, though, she sang for John F. Kennedy, collaborated with Harry Belafonte. She was once married to jazz legend Hugh Masekela and the conversational Black Panther leader Stokely Carmichael.

But after 50 years in show business . . .

MAKEBA: I know what it is not to have. I know what it is to go to bed some days without food.

CURNOW: Robyn Curnow, CNN, Johannesburg, South Africa.

(END VIDEOTAPE)

HOLMES: Well, again, she died in Italy after collapsed on stage there. She was 76 years old.

Kyra, just chatting with you here. You said you actually had a chance to meet her?

KYRA PHILLIPS, CNN ANCHOR: I did. I always referred to her as the Harry Belafonte -- the female Harry Belafonte. They did a lot of things together. Yes, she was an amazing woman. I mean, she had a choice. She could be famous. She was young. She was beautiful. She was an amazing singer. Or she could be a political voice. And she chose the hard road and look at the amazing things that she did.

HOLMES: Take a stand. So we're honoring today.

But handing this thing off to you. It's all yours. You'll be happy to know it's out of my hands now.

PHILLIPS: I'll see you tomorrow.

HOLMES: All right. See you.