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Devastating Wildfire Blazes Through California; G20 Summit Meets this Weekend; Autoworkers Forced to Find New Career Path; FDIC Lends Hand to Struggling Homeowners
Aired November 14, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: The next hour of CNN NEWSROOM starts right now.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If you seek economic growth, if you seek opportunity, and if you seek social justice and human dignity, the free market system is the way to go.
(END VIDEO CLIP)
HOLMES: His audience may not be as receptive this weekend. President Bush seeking a team effort from the G20 leaders who blame him for the global money meltdown.
Fire in the hills, flames and showers of embers consume dozens of homes in a ritzy area north of L.A. The wind expected to whip things up even more today.
And making a buck off of Barack. Lots of supply and demand for the Obamabilia. T-shirts, get your T-shirts, and much, much more.
HOLMES: Well, hello, everybody. I'm T.J. Holmes live at the CNN World Headquarters in Atlanta, Georgia, sitting in for Kyra Phillips. And you are in the CNN NEWSROOM.
Misery, we understand, does love company and might be a love fest in Washington, D.C. this weekend. We don't know if that is quite the case, though, leaders, dignitaries, envoys from 20 or the world's most popular (sic) or fastest-growing nations all of them in the grip of economic disaster, coming in search of common solutions. Now, many of them blame the U.S. and lax regulation, but President Bush is already saying he doesn't want to hear it. For its part, Congress is taking up a bailout measure for sputtering U.S. automakers, the Senate plans a test vote Wednesday on $25 billion in emergency loans.
Over in the House, members charge that so far anyway the $700 billion bank bailout is shortchanging homeowners. They want a much greater focus on curbing foreclosures.
And, of course those stimulus checks, remember those? Well that is back in the past. Retail sales dropped 2.8 percent last month, the most in a single month, ever. Also, gasoline and auto sales led the way there. We are staying on top of this story with the help of our friends here. Here is CNN's Kathleen Koch, at the White House for us. Allan Chernoff in New York, Stephanie Elam on Wall Street.
Kathleen, I will start with you. That would be awfully naive of us to think that the G20 leaders are going to get together and solve all the world's problems.
KATHLEEN KOCH, CNN CORRESPONDENT: Not this weekend, not in a matter of a couple of days. Obviously, T.J., the problems are far too large.
Now, what we are certainly going to be hearing, though, from these world leaders who have been arriving here in Washington all day, a lot of ideas for ways to move forward and a lot of finger pointing, but primarily a call for some concrete reforms, concrete reform.
There you see the motorcade of the Italian Prime Minister Silvio Berlusconi, who just arrived.
They really want some hard and fast decisions to be reached this weekend. The White House, however, is just pushing back on that. Primarily because President Bush has just some barely two months left in office. He really does want to commit the incoming Obama administration to reforms that it may not support.
Still, White House Press Secretary Dana Perino in a briefing earlier this afternoon insisted they just don't expect a lot to be accomplished.
(BEGIN VIDEO CLIP)
DANA PERINO, WHITE HOUSE PRESS SECRETARY: We have always said that this is going to be a series of summits. Nothing is going to be solved overnight. But we're going to get a long way towards moving the ball down the field tonight and tomorrow afternoon.
(END VIDEO CLIP)
KOCH: The White House, earlier this morning, took the unusual step of releasing an advance of the text of President Bush's Saturday morning radio address. And in that he is going to be talking about the world economy. Saying -- quote -- "Reforms in the financial sector are essential." And he is going to go on to add that "government intervention is not the cure-all".
So, certainly, expect President Bush, tonight, in his remarks to the world leaders, as they join together here at the White House for a working dinner, and then in their sessions tomorrow, here in Washington, to echo that call to preserve the free market system, to mend it, T.J., but not to end it.
Back to you.
HOLMES: Mend it, not to end.
OK, Kathleen Koch for us at the White House.
What about the bailout? How is that working? Well, for the second day in a row, lawmakers are grilling regulators over billions for struggling banks. Yes, the banks are getting money but what about the little, or relatively little help, that the homeowners are getting for the at-risk in foreclosure. That is not all, though. Also, the outrage factor over pay and perks for executives of firms that are now in ruins.
(BEGIN VIDEO CLIP)
REP. ELIJAH CUMMINGS (D), OVERSIGHT & GOV'T. REFORM CMTE.: We open up the paper today to hear they are going to pay millions - as if, everything is just the same as it was - to their employee, in bonuses, well, the problem is that a lot of people that we represent won't even have a job at Christmas time, and damn sure won't have a bonus.
(END VIDEO CLIP)
HOLMES: From the other side of the Capitol comes the question, can a lame-duck Congress save a crippled industry? We'll find out soon, possibly. On Monday senators will take up $25 billion in government loans for the quickly failing Big 3 automakers.
CNN's Allan Chernoff reminds us exactly what is at stake.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): New Jersey Caddie dealer Craig Ploetner believes Americans have to lend money to General Motors, because millions of jobs are at stake.
CRAIG PLOETNER, TOWNE CADILLAC: It's a temporary loan to get ourselves back on our feet so we can get this market motivated, sell more vehicles.
CHERNOFF: A few miles away Congressman Scott Garrett argues a taxpayer bailout would simply throw good money after bad.
REP. SCOTT GARRETT, (R) NEW JERSEY: They're simply going to simply burn through this money at a rapid pace and very likely they'll be coming back to Congress once again.
CHERNOFF: Opponents of a bailout say GM is a bloated company that failed to change with the times. Relying too much on selling gas guzzlers, paying autoworkers more than foreign carmakers paid and granting generous retirement packages when it could ill-afford them. So, they question, why should taxpayers have to pay for management's mistakes?
GARRETT: The taxpayers asking, where does it end?
CHERNOFF (on camera): You don't see an end?
GARRETT: I don't see an end. CHERNOFF (voice over): Fact is, GM is restructuring to save billions in expenses, it is cutting manufacturing capacity, reducing inventory of raw materials and plans to have an independent trust fund retiree health benefits. But the full-cost savings won't be in place until the end of next year.
KENNETH ELIAS, KELLER & ASSOC.: The problem with General Motors has been it's always been a day late, a dollar short.
CHERNOFF: Can GM survive? Auto experts say yes, but not without federal loans; billions this year, and probably billions more next year. And, they say, GM still needs radical restructuring to shrink the company.
ELIAS: They need to cut brands and refocus on a couple core brands, for example, Chevrolet and Cadillac, and cut a lot of fluff out.
(END VIDEOTAPE)
CHERNOFF: Well, we'll soon find out whether or not Congress is willing to actually give some money for a bailout to the auto companies, and General Motors in particular, next week Senate Leader Harry Reid does plan to have legislation on the floor, voted on as to whether or not they should use some of the $700 billion bailout money for Detroit, T.J.
HOLMES: Allan, we hear, oftentimes, you know, where do you stop with the bailouts, and what not. But something we often hear is some companies too big to allow to fail. Is bankruptcy, and allowing this company to go under, General Motors, is that really an option?
CHERNOFF: You know, it depends who you ask. General Motors says bankruptcy is absolutely not an option, and there are a few reasons why. First of all, they believe if they went bankrupt, that would devastate their auto sales. A lot of people say they wouldn't want to buy a car from a bankrupt company. The other thing is, to get out of bankruptcy, you usually need to have financing. Well, that financing just doesn't exist, so bankruptcy for General Motors could almost be like a roach hotel, and you can check in, you cannot check out. That could be a massive problem for General Motors.
But there are other analysts who are saying, you know what, bankruptcy may be the only route for GM to radically restructure enough to just get rid of some of its brands, to rewrite its labor contracts, et cetera, for the company to finally emerge as an efficient operation. It is a very, very intense controversial debate here -- T.J.
HOLMES: And like you said, it depends who you ask.
Allan Chernoff for us, in New York.
Well, learning a new trade. Later in the newscast, find out how some laid off autoworkers are coping with the hand they've been dealt. And automakers not the only ones out there losing jobs. Today more than 15,000 new job cuts were announced. Stephanie Elam at the New York Stock Exchange with these grim details, and the selloffs that we're seeing on Wall Street.
Stephanie, hello to you again.
STEPHANIE ELAM, CNN CORRESPONDENT: Hi again, T.J.
Yes, we take a look at two big companies that have been cutting jobs that we've heard about today.
Starting out with Sun Microsystems, they say they are planning to slash up to 6,000 positions. That is about 18 percent of their global workforce. The company sells high-end computer servers. The problem is a big chunk of is profits come from sales to the financial services sector. And we all know too well about the problems in that area, right?
Now, "The Wall Street Journal" is also saying Citigroup is cutting another 10,000 positions. The banking behemoth says it is part of a previously announced plan to cut expenses. It is already slashed more than 20,000 positions over the past year. So that is one thing weighing on the markets today.
The other thing we have to look at, retail sales, they fell 2.8 percent last month. That is the biggest drop on record, meanwhile, retailers like JCPenney's, Kohl's, Nordstrom, Abercrombie & Fitch; they have all reported quarterly earnings and all of them posted double-digit percentage drops, and also weak outlooks for the holiday season.
That is factoring in, but T.J., I have to tell you, the markets have really come back. We were off as much as 360 points on the Dow. Let's take a look at the numbers now. The Dow off 146, at 8688. Nasdaq off still about 2.75 percent, right now, at 1552. So we have come back from our lows of the day, and we know we get closer to that last hour of trading, things will tend to change around, so we'll keep our eyes on it, T.J.
HOLMES: Well, that is something. It is not as bad as it was earlier.
ELAM: We'll take something, right? We'll take it.
HOLMES: We'll take that right now. Stephanie Elam for us. Good to see you. Thank you.
ELAM: Good to see you. Thanks.
HOLMES: Well, homes burned to the ground, part of a college campus in flames, more than a dozen people hurt, we'll go live to Southern California, where hundreds of firefighters are battling a huge wildfire.
Also, they were tough, tough competitors, can they now be partners. The latest on the report that Hillary Clinton could join Barack Obama's team.
How we just talked about earlier how the retail sales are down, well, unless the item for sale has Barack Obama's picture on it. The rush is on for anything Obama.
(COMMERCIAL BREAK)
HOLMES: Well, Barack Obama is about to be out of a job, but don't worry, we know he has another one lined up. When this will happen we now know. President-elect Barack Obama will officially resign his Illinois Senate seat Sunday. It will be effective Sunday. Obama's Senate office will close sometime in the next two months. Illinois Governor Democrat Rod Blagojevich will appoint Obama's successor, the seat will be up for re-election in 2010.
As the president-elect continues to assemble his White House team, we have learned that one of his potential advisers could be his former campaign rival Hillary Clinton. Our Ed Henry is standing by in Chicago.
And, Ed, people just love this kind of speculation, don't they?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That is right. Good afternoon, T.J.
Speculation is running wild right now because of this meeting that occurred here in Chicago yesterday afternoon between Hillary Clinton and Barack Obama. What we know is that people within the Obama transition are saying that Hillary Clinton is one of many people who are being looking at for Secretary of State, potentially. And that is because Barack Obama is said to be looking for a real heavy weight on the international stage, someone who carries a lot of international clout. And she can obviously fit that bill.
And people in the Clinton world say that while she's not actively seeking any Cabinet post, the Secretary of State is really the only one she could potentially be interested in, because of the vast international portfolio. A little earlier today, she addressed some of these questions. Didn't really say either way whether she wants it or not, but nonetheless, addressed the speculation.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON, (D) NEW YORK: I am not going to speculate or address anything about the president-elect's incoming administration. And I am going to respect his process and any inquiries should be directed to his transition team.
(END VIDEOTAPE)
HENRY: So obviously the door open, maybe a crack. She is obviously not campaigning for it, wanting to walk that careful balance. People close to Barack Obama say that the benefits, the pluses of a Hillary Clinton as Secretary of State would be carrying that international clout, but also the fact that Barack Obama has spoken before about how he enjoyed the book "Team Of Rivals" about Abraham Lincoln's Cabinet; rivals getting together and having a real healthy clash of ideas. Potential minuses, of course, the fact that it could bring sort of the Clinton baggage back into things after he has already sort of turned the page a bit by beating her in the nomination process.
We should also mention that she is not the only one in contention. There are other heavyweights like Senator John Kerry, the 2004 Democratic nominee, and Bill Richardson, the governor of New Mexico also being looked at it, T.J.
HOLMES: All right. Well, Ed, he appears to be a bit on a rival roll here. He wants to chat with John McCain, as well. What do we know about that meeting?
HENRY: They will be meeting here in Chicago Monday. This was expected to happen. We just didn't know how quickly it would occur. And it really gives Barack Obama a chance to show that he is sort of reaching out, that he wants to work with the former rival. John McCain, obviously, spoke very warmly of Barack Obama, had very gracious words for him on election night. And what we are hearing from the both sides is that the two men want to do is kind of bury the hatchet, but also look forward about what issues they can work on together now that John McCain is going back to the United States Senate.
One of those issues where clearly they have some common ground is the issue of global warming, so we would expect that might be one of many areas where they will try to tout their ability, next year, to work together once a new Congress comes together and once Barack Obama is sworn in.
HOLMES: All right. Ed Henry for us in Chicago.
Ed, thank you so much.
Well, earrings, and T-shirts and buttons, if it has Barack Obama's name on it, you can bet it is now a best seller. Our Carol Costello says when it comes to collectibles, people can't seem to get enough of all things Obama.
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice over): That $700- billion bailout is not doing much for the economy, so far, but Barack Obama's face sure is.
UNIDENTIFIED MALE: Which one is going the fastest?
UNIDENTIFIED MALE: $4, please.
UNIDENTIFIED MALE: Yes, sir.
UNIDENTIFIED FEMALE: Cash only, yes.
UNIDENTIFIED MALE: Everything with Obama's face on it.
UNIDENTIFIED FEMALE: I will take that.
UNIDENTIFIED MALE: Which one, Miss?
UNIDENTIFIED FEMALE: The one that has "Hope" on it?
UNIDENTIFIED MALE: Yes, ma'am.
UNIDENTIFIED FEMALE: I will take that.
COSTELLO: In New York City's Union Square, vendors, who make their Obama tees.
UNIDENTIFIED FEMALE: Obama in the House, Obama jewelry.
COSTELLO: Earrings and buttons made for pennies are cleaning up.
UNIDENTIFIED MALE: And what was business like, you know, in the last week?
UNIDENTIFIED FEMALE: Crazy, insane.
UNIDENTIFIED MALE: What is your hottest seller?
UNIDENTIFIED MALE: The "hope" button.
COSTELLO: It is not just New York, either. Obama merchandise mania is inescapable.
ANNOUNCER, TV AD: Get both of these brilliant, uncirculated Barack Obama 24-karat gold layered coins. A 29.95 value, yours for just $9.95.
COSTELLO: According to "The L.A. Times", nine Obama books are in the works. One industry insider calls it the biggest thing for publishing since Harry Potter.
UNIDENTIFIED MALE: Do you also have (INAUDIBLE)?
COSTELLO: Professional collectors have never seen anything like this. Normally after a candidate is elected interest in paraphernalia disappears, not this time.
In Austin, the Obama store.
UNIDENTIFIED MALE: If it has Obama on it, it will sell.
COSTELLO: He's not kidding. These Obama earrings, they are hot, hot, hot.
UNIDENTIFIED FEMALE: A lot of people have bought the Obama earrings and I felt kind of bad because I was not donating any of the money. I have always wanted to go to Peru, to Machu Picchu, and I think that Obama won't mind if I actually use the money.
COSTELLO: If you think it is crazy to spend money on this stuff, you are wrong. Mark Evans is a professional collector. He says creative, well-made items made by artists or street vendors could be worth their weight in gold someday.
MARK EVANS, AMERICAN POLITICAL ITEMS COLLECTOR: I am looking for stuff that is not mass produced and distributed all over the country. For example, when I was in Denver we found buttons that were made by street vendors, artists, and those are the sort of things that we look for.
UNIDENTIFIED MALE: Just show that off a little bit, there you go.
(END VIDEOTAPE)
COSTELLO: So those earrings are hot, hot, hot. If you want to make money on your Obama paraphernalia, get rid of the T-shirts, because those won't be worth anything in 20 years. You want to pick up unusual buttons. Like this one, I got from Ohio Republicans during the primary. And it is self-explanatory.
Also, T.J., I found these on the streets of New York, Obama condoms?
HOLMES: Obama what?
COSTELLO: Condoms. Obama condoms, it says, "Use with good judgment."
HOLMES: OK.
COSTELLO: And you can also make money off of candidate paraphernalia who have lost the election, like Sarah Palin. I found these Sarah Palin condoms as well. And it says, "When abortion is not an option," Palin condoms.
HOLMES: Where are you hanging out, you are finding condoms all over the streets, Carol?
COSTELLO: Actually this NYU student was selling them for 10 bucks, for three. There is also McCain condoms, "Old, but not expired."
HOLMES: OK, OK, that's enough of that. Did I see an Obama thong somewhere as well?
COSTELLO: I don't want - you're telling me to stop?
HOLMES: OK, no, I mean - OK, let's go to the next question. I have to ask you, besides the presidential stuff, besides, besides the Obama stuff, what else is hot out there besides Obama? Any of these other candidates or what else are people buying?
COSTELLO: Well, the hottest items are McGovern items. So, if you have any buttons with McGovern on it?
HOLMES: Really?
COSTELLO: For some reason those are selling like hotcakes now and they're worth something.
HOLMES: OK, Carol, we should get together and talk again since this was so interesting this time around.
COSTELLO: Sure.
HOLMES: Carol, thanks, dear.
HOLMES: All right. Well, breaking through the brass ceiling, and we have a major military milestone to tell you about. That is just ahead.
Also, hedging their bets in uncertain times, Detroit auto workers look to casino school as a backup.
(COMMERCIAL BREAK)
HOLMES: More than 550,000 votes have already been cast for the CNN Hero of the Year. We will announce the top honoree Thanksgiving night in an all-star tribute, right here on CNN. These are amazing people, and we will meet one of them in just a minute. But first, a quick look at all 10 finalists.
(BEGIN VIDEOTAPE)
ANNOUNCER: The 2008 CNN Hero honorees, they all dare to make a difference.
TAD AGOGLIA, COMMUNITY CRUSADER: I put together a crew that stays on the road 12 months out of the year, responds to disasters all over America, free of charge.
MARIE DA SILVA, CHAMPIONING CHILDREN: My mission is to educate AIDS orphans in Malawi.
YOHANNES GEBREGEORGIS, CHAMPIONING CHILDREN: I am bringing literacy to the children of Ethiopia.
ANNE MAHLUM, COMMUNITY CRUSADER: We use running to help the homeless move forward.
DAVID PUCKETT, MEDICAL MARVEL: I make artificial limbs and braces for those in need to Mexico.
LIZ MCCARTNEY, COMMUNITY CRUSADER: I am helping families rebuild in St. Bernard Parish.
CAROLYN LECROY, CHAMPIONING CHILDREN: I started the Messages Project so that incarcerated parents can keep in touch with their kids.
PHYMEAN NOUN, CHAMPIONING CHILDREN: I recruit children from this dump to attend school at my organization.
MARIA RUIZ, CHAMPIONING CHILDREN: I cross the border to help people in Juarez.
VIOLA VAUGHN, CHAMPIONING CHILDREN: I came to Senegal from Detroit, Michigan. I started a girl's education and self-sufficiency program.
ANNOUNCER: Your vote will help one become the CNN Hero of the Year. Vote now, CNN.com/heroes.
(END VIDEOTAPE)
HOLMES: And one of the heroes you saw there is a Yohannes Gebregeorgis. She grew up in rural Ethiopia, the son of an illiterate cattle merchant. When Gebregeorgis was 19 years old, he got a paperback copy of a romance novel entitled, "Love Kitten." That book changed his life forever by inspired a life-long commitment to reading. He fled his home country in 1981 as a political refugee and came to the United States where he studied library science. And now he is opening libraries and starting literacy programs for children in his homeland of Ethiopia.
He joins me now, live, from Denver.
Yohannes Gebregeorgis, Sir, thank you so much for being here. So it was a romance novel that started this journey, is that right?
GEBREGEORIS, Yes, that is right. That is the first book I had read outside of school when I was 19.
HOLMES: Now, what was it about that book, what was it about that experience, I guess, that really started your journey?
GEBREGEORGIS: Well, it just happened that I was 19 and I was in love for first time. I think that is what got me into reading that book. And, you know, also finding other romance books later on which helped me to graduate into more serious books into the coming years.
HOLMES: Well, sir, how crucial is it? You certainly see how important books and reading has been to your life and where it has gotten you, so I guess you certainly understand the connection and how important it is for young people to read?
GEBREGEORGIS: Absolutely. I strongly believe that literacy and reading is the way to empower people, to empower societies, and particularly children. I think that social change can be achieved through literacy and through reading, and education, primarily.
HOLMES: And sir, there are a lot of places, of course, where there is a need for programs you are putting on, but how important for you, and especially to you, to help the young men and women who are in the same place you were, in the same location, and in the same life situation you were in, in Ethiopia?
GEBREGEORGIS: Yes, you know, my own life situation, my own background coming from the rural community in Ethiopia, and not having books, growing up in a society that was repressive and exploitative, and I strongly believed social change and advocated social change. And you know, the revolutionary social change at a time in my life, but now, I strongly believe that it is by changing society, the attitude of society, that we can change the country. Not really by changing a governmental, or institutional power.
You know, by providing reading and libraries, and literacy, I think that the future of a country could be better, by the fact that literacy would bring to society, and children in particular.
HOLMES: Sir, tell us now again, I guess, give us the update on what you have been able to do in Ethiopia with the number of libraries and books provided, but also your plans for the future?
GEBREGEORGIS: Well, we have done, not very much, you know, I consider this, really, a drop in the bucket, or drop in an ocean. We have established two permanent children's reading centers, or libraries. We have established a donkey mobile library. We have establish 16 school libraries. But the need is so much that we want establish thousands of school libraries and maybe hundreds of permanent public libraries for children. A lot of (INAUDIBLE) mobile libraries and create a network of libraries in schools all around Ethiopia and in villages and in communities around Ethiopia.
HOLMES: Yohannes Gebregeorgis, sir, it is some amazing work you're doing. And even if we had never heard your or had you on CNN, it still would have been amazing work that you're doing. But we are glad we're able to showcase it and acknowledge it.
So, sir, thank you so much and we will see you again very soon. One of our CNN Heroes. Sir, thank you for your time.
GEBREGEORGIS: Thank you.
HOLMES: And there are only five days left to vote for your favorite hero. The deadline's November 19th. You can go to CNN.com/heroes. Anderson Cooper will announce the hero of the year at an all star tribute right here on CNN, on Thanksgiving night.
Meanwhile, it is about 2:31 here now in the CNN NEWSROOM. Here are some of the stories we are working on.
Another sell off on Wall Street. And it was uglier earlier. But not as bad right now. The Dow down about 104 points, but not as bad as it was a little earlier. So, things starting to look up, a couple of hours left in the trading day.
The FDIC is out with an aggressive plan to help homeowners who are behind on their mortgages. The agency says it could help a million and a half homeowner avoid foreclosure. Under the plan, the government would spend about $24 billion to guarantee more than 2 million modified loans through the end of the next year. Taxpayers would absorb half the losses if the borrower defaulted again.
A Libyan man convicted in 1988 bombing of Pan Am flight 103, over Lockerbie, Scotland, will stay in prison for now. A Scottish court has rejected his plea that he should be released because he suffers from advanced prostate cancer. Well, getting ready for some out of this world remodeling. The shuttle Endeavor, set to lift off in just a few hours. Details ahead on this Home Depot mission.
Also, an inferno in southern California. Multimillion dollar mansion burned to the ground before firefighters could get a handle on a big blaze near Santa Barbara. We'll go live to the front lines.
(COMMERCIAL BREAK)
HOLMES: In Southern California, an all-out assault on a devastating wildfire. Hundreds of firefighters are on the front lines in Santa Barbara County, where this fire broke out last night. You see a home, a structure here burning. Already destroyed more than a hundred homes, injured more than a dozen people. CNN's Ted Rowlands joins us now from Santa Barbara.
And are more homes, I guess, still in the line of fire?
TED ROWLANDS, CNN CORRESPONDENT: Yes, T.J. There's still some concern about homes that are potentially in danger. But notice one thing, the wind is completely dead right now which is giving the firefighters the edge.
Last night, it was a completely different story. Mother nature had the edge. This is one of the homes that was lost. You can see this used to jet out here into the canyon. But it collapsed and it's a complete loss. There were battles throughout the night at different home sites. You mentioned that about 100 homes were lost. Last night, we came across a group of firefighters, three guys by themselves, trying to save a home. And it was dramatic, the firefight that we witnessed.
Basically, they were fighting a fire of a garage. They were trying to save the home which was connected to garage. At one point they had to get out a saw to sever the garage from the home. They doused the home, did the best they could. In the end, we left before finding out whether or not they were able to successfully save that home or not.
The bottom line, firefighters say while they do have the upper hand in terms of the weather at this hour, this is a war that is still going on. And they have a long way to go before they have containment.
(BEGIN VIDEO CLIP)
CHIEF RON PRINCE, SANTA BARBARA FIRE DEPARTMENT: Like I said, we are going to have a tough day ahead. Control of this fire is not even in sight. We are bringing in a incident management team, Cal Fire Incident Management Team. We're doing a transition this afternoon. And the next 12 hours is going to tell the tale in terms of what we can really do with this fire.
(END VIDEO CLIP) ROWLANDS: And how that tale turns out will depend heavily on the weather. How will Mother Nature help or hurt the firefighting efforts?
(WEATHER REPORT)
HOLMES: Check out this video here, of a natural gas line that blew overnight in central Oklahoma. Flames said to be visible 20 miles away. The blast destroyed several homes, injured two people. It also blew a 40-foot crater in the ground. That caused the state highway to have to be closed. No word on exactly what caused the pipe to break. The company says an inspection last year however, found no problems.
Let's take a look now at the Kennedy Space Center. The Endeavor set for lift off in a little more than five hours. It's a Home Depot mission, if you will. The crew taking up a bathroom, sleeping quarters, an exercise machine and a new kitchenette to the International Space Station. It sounds like a nice place to hang out. The weather looks a bit iffy for tonight's launch. Talked to our Miles O'Brien who's out there. He says it looks pretty good. But, we will keep you posted.
Well, we don't want to overlook one giant leap for India's space agency. 23 days after a rocket took off with the lunar orbiter and probe. The probe has touched down on the moon. All these crafts are unmanned. The orbiter is sending back pictures while scanning for water and studying rocks.
Well, it is quite a career change, but they've got to play the odds. Detroit auto workers training as casino dealers in case the Big 3 go bust.
And look who is celebrating the big 6-0. We'll check out Prince Charles' royal soiree.
(COMMERCIAL BREAK)
HOLMES: Well, her father, her grandfather and her great- grandfather all served in the U.S. Military. And today, Ann Dunwoody reached the pinnacle of her own Army career when she became the first woman ever promoted to four-star general. Our senior Pentagon correspondent, Jamie McIntyre, here.
This is kind of a really nice and historic moment today.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Real history made here today in the Pentagon auditorium as those stars were pinned on the shoulder Ann Dunwoody.
Those stars carry with them the weight a historic first, something that General Dunwoody didn't really realize until she began getting a flood of e-mails and letters from people all across the country saying essentially that these stars were -- on which they were pinning their hopes and dreams for their daughters to be able to go through the ranks of the military as well. Defense Secretary Robert Gates was on hand for the historic occasion, and praised her trailblazing 33 year career.
(BEGIN VIDEO CLIP)
ROBERT GATES, DEFENSE SECRETARY: As opportunities for women expanded, individuals like Ann Dunwoody have risen to the challenge and excelled. History will no doubt take note of her achievement in breaking through this final brass ceiling to pin on a fourth star. But she would rather be known and remembered, first and foremost, as a U.S. Army soldier.
GEN. ANN DUNWOODY, U.S. ARMY MATERIEL COMMAND: And even though I thought I was only coming to the Army for two years, I now know that from the day I first donned my uniform, soldiering is all I ever wanted to do.
(END VIDEO CLIP)
MCINTYRE: You can hear General Dunwoody's voice cracking a little bit there with emotion.
As you mentioned, she is a fifth-generation military officer. And her family is a living testament to how far women have come. Her sister was one of the first female helicopter pilots, I think the third in the Army. And her niece is flying A-10s for the Air Force.
Still, the Army has a ways to go. They still bar women from direct ground combat, a distinction that these days seems to be a little bit divorced from reality considering that women fight in two wars in Iraq and Afghanistan where there are no clear front lines. They are fighting and dying right alongside men. The Army, though, however is a far cry from the one that General Dunwoody joined back in 1975. Back then, the Army did a survey, and most officers enlisted thought that the most appropriate job for a woman in the Army in 1975 was as a cook.
T.J., they have come a long way since then.
HOLMES: Times have changed, and that answer will get you slapped, probably, these days.
Jamie McIntyre for us at the Pentagon.
Thank you so much.
If Detroit's Big 3 crap out, they will be able to deal. More and more automotive workers worried about their prospects are putting their money on casinos. Here's Bora Kim of our affiliate, WDIV.
(BEGIN VIDEOTAPE)
BORA KIM, WDIV REPORTER: Meet Randy Young (ph)--
UNIDENTIFIED MALE: 21, ma'am. Nice hand.
KIM: By day he works at the GM tech center, by night, he is learning tricks of a new trade.
Do a lot of dealing and you know hand's on stuff. It is actually a lot of fun, really, learning. I enjoyed it.
KIM: His three of a kind prospects for employment, the new big three, Motor City Casino, Greektown Casino and MGM Grand.
UNIDENTIFIED MALE: I work on an assembly line.
KIM: With a daughter heading to college and layoffs possible, Richard Dupre (ph) is prepared. He already deals cards part-time.
UNIDENTIFIED MALE: If full time is offered to me at the casino it is something I would have to consider.
UNIDENTIFIED FEMALE: They can move right up the gaming corporate ladder.
KIM: Thanks to its tuition reimbursement options, casinos (INAUDIBLE) in Dearborn Heights currently (INAUDIBLE) many present and former autoworkers. Its graduates are placed across the country, career paths which lead to bigger markets like Las Vegas and Atlantic City.
UNIDENTIFIED FEMALE: There's new casinos popping up all the time. It is sad, but it is true. Gaming is taking over the auto industry.
UNIDENTIFIED MALE: I had to take the buyout.
KIM: Down on his luck, Tom Farrell (ph) didn't want to deal with anymore job shuffles late in the game.
I figured 42 years was enough and -- I wanted to get into this interest because we go out to Vegas every year. And we went out there the first time and I thought it would be very interesting to try it.
KIM: The game of life students and graduates here know, you sometimes have to gamble for the wining hand.
UNIDENTIFIED MALE: 21.
(END VIDEOTAPE)
HOLMES: Well, some skills actually do transfer from the factory floor to the casino floor. A former auto worker is now helping his casino colleagues now organize a union.
There is some change in the air, voters demanding solutions when it comes to energy and transportation. What Energy Fix they can look forward to.
(COMMERCIAL BREAK)
HOLMES: All right. Almost top of the hour here. Oh, OK. Oh, come on, Rick. We know you are working. You've got the glasses, you've got the whole look working.
What have you got going back there?
RICK SANCHEZ, CNN ANCHOR: This guy is writing me. He says, "Why are the KKK and the neo-Nazis not put in the category of terrorist? What is the difference between them and the Taliban?"
That is an interesting question as I go through some of these tweets. Because we are doing both of those stories. First of all, there is something really strange going on in Long Island, New York. There is all of the incidences of hate crimes and a renewal, it seems, of the KKK. So we checked into it, and there seems to be a history of the KKK. There was a time in that place when one of out of every seven residents was a member of the KKK. So we are looking into that.
And then, this is fascinating. We've got an interview where a guy sits down who is our enemy, who hates us. He is one of the top militants in the Taliban, and he sits down to talk to a journalist who was sent there by CNN, because it is obviously too dangerous for one of us to go into those mountains of Afghanistan, pardon me, Pakistan. And he talks about Barack Obama, talks about how he hates the United States, talks about us in general. I mean, this is fascinating stuff. This is as good as you will see.
That is -- well, it should be together for you about 20 minutes after the hour. So we're going to have that as well.
HOLMES: All right.
SANCHEZ: Just two of the pieces of real good journalism that we're going to be sharing with you today.
HOLMES: Well, we look forward to seeing it. And hurry up, and get here, I'm about to cough up a lung the past couple of hours here.
SANCHEZ: What?
HOLMES: I'm about to cough up a lung. I'm not feeling too well. So the sooner you can get up here and relieve me, the better.
SANCHEZ: I can't believe you said that. All right. I'll rush right out.
HOLMES: All right. Appreciate you, Rick. See you here in a second, buddy.
Well, the people have spoken and they want change when it comes to energy and transportation. CNNMoney.com's Poppy Harlow has our Energy Fix from New York.
Hey there, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, T.J.
They sure have, the people have spoken, from Missouri to California to Honolulu. Voters in those states approved ballot measures last week that will bring big changes in their communities.
In Missouri, the presidential vote still hasn't been called, but voters did approve more alternative energy by a 2-1 margin. Their proposal is calling for 15 percent of the state's energy to come from renewable sources, like those solar panels that you see right there, by the year 2021.
The power grid isn't the only place that you're going to see changes. A group that advocates for more mass transit in this country says $75 billion in new transportation projects were approved across the country last week. A lot of them fund mass transit, like the nearly $10 billion rail project that will link San Francisco and Los Angeles. It is a high-speed rail, you see it right there -- 220 miles an hour. It is expected to help save Californians some 12 million barrels per year.
Seattle voters approved a nearly $18 billion plan that provides an additional 34 miles of light rail and also extended bus service.
In Honolulu, voters approved a more than $4 billion light rail project, T.J. So a lot of money going into these projects.
HOLMES: Yes, a lot of money. A billion here, a billion there. This is some expensive stuff given the times that we're in. Where is all this money coming from?
HARLOW: Right, where are we going to get that money, and the $700 billion?
HOLMES: Yes.
HARLOW: A lot of people are asking that. It is a good question. And despite the economy, what it seems like, voters are really concerned about a return to what we saw this summer, which was $4 a gallon gasoline.
One possible selling point here, the project in California that I told you about, that is expected to create 450,000 new jobs. These projects, they do come at a cost, though. Some are financed with sales tax or property tax increases, others are funded by bonds and perhaps some of the voters thought, you know what? What is this going to mean for my wallet if I don't have to drive? But some pretty neat projects, some costly projects as well. Certainly some energy fixes.
Back to you, T.J. Feel better by the way.
HOLMES: Yes, sorry about that. Thank you so much, Poppy Harlow.
A federal investigation has backed up a whistleblower's claim of a cover-up at the Dallas/Ft. Worth airport. The Transportation Department found FAA managers hid dozens of safety errors made by air traffic controllers. They either classified the errors as non-events, or shifted the blame onto pilots.
No motive given in the report. But an official with the controllers union says the managers got bonuses for meeting safety goals.
We're going to introduce you to a man who just turned 100 years old. And you know what? He is still on the job. A Rhode Island man with an unbelievable work ethic, and you're going to want to hear his tips for living a long life.
(COMMERCIAL BREAK)
HOLMES: All right. Well, Happy Birthday to Prince Charles. The British monarch turns 60 today, but he has been celebrating all week. He's already gone to a comedy show in his honor starring Robin Williams. Also a black tie dinner. And today, he got 41-gun salute in Hyde Park. It was a gift from his mum. To top it all off, Rod Stewart coming over to Prince Charles' home to sing a couple of songs.
My birthday sucked.
Well, he is 100 years old and still reporting to work every single day. Jimmy Shaw has some advice for living a long, full, debt- free life.
(BEGIN VIDEO CLIP)
JIMMY SHAW, 100-YEAR-OLD WORKER: I guess the main thing -- not smoking cigarettes. If you ain't got it, don't get it. Never mind the credit cards.
(END VIDEO CLIP)
HOLMES: Don't smoke, and if you ain't got it, don't get it. Shaw manages the family business in Johnston, Rhode Island. He's been with Shaw's Garage for 80 years and he says he still does break work from time to time.
Don't smoke, cut up the credit cards. Rick, that's the key. You and I will make it to 100 and we'll party together.
Rick Sanchez and the 3:00 p.m. NEWSROOM starts right now.
