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Japan Officially Enters Recession; Southern California Reeling Tonight From Wildfires; Faulty Grenades Sold To FBI and Other Law Enforcement Agencies
Aired November 16, 2008 - 23:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Up in flames. Southern California reeling tonight from wildfires. The latest on the search for bodies in the smoke and rubble.
A world of trouble. A country with an economy that rivals the U.S. declares it's in recession.
Unfriendly fire. Ammo used by U.S. troops and law enforcement may be hurting them instead of the bad guys. Tonight, a CNN special investigation.
UNIDENTIFIED ANNOUNCER: Live in the CNN NEWSROOM, Don Lemon.
LEMON: First tonight, to Japan where the breaking news leaves little doubt we're headed toward a global economic crisis. Just days after the European Union declared it was in a recession, Japan, the world's second largest economy, has followed suit. Can the U.S. be far behind? CNN's Kyung Lah is in Tokyo tonight with how America played a role in Japan's downturn.
KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: Well, Don, you've heard the phrase, if it looks like a duck and walks like a duck. Well, this is a report that officially says Japan's economy, the world's second largest economy, has now slipped into recession for the first time since 2001.
And why? There are a number of factors. But the biggest factor, if you talk to any economist here, is that the U.S. consumer, that all-important consumer, Japan's number one customer, just is not fine. They cannot get the loan for that big Japanese automobile. They also don't feel like spending on those smaller ticket items like the Wii.
So, what that amounts to is that Japan's brick and motor companies, the companies that you know -- Sony, Toyota, Honda, Nissan -- those companies are struggling in the global slowdown. And so, what that means is that those companies make less money. And then that translates into job losses and a weakening of Japan real economy.
So, Don, this is something that puts an official ticker on what many people had already believed what's been happening -- is that Japan's economy is in a recession.
LEMON: CNN's Kyung Lah. Thank you for that, Kyung. Allan Chernoff is CNN's senior correspondent.
Allan, what does this mean for us here?
VOICE OF ALLAN CHERNOFF, CNN BUSINESS CORRESPONDENT: Don, this is absolute confirmation that we are in a major global recession. Keep in mind, Japan has the second biggest economy in the world.
We heard just the other day that Europe is in recession. The European Union saying that the 15-nation EU is in recession, two consecutive quarters of declining GDP.
And, of course, here in the United States, well, Gross Domestic Product, fell on the third quarter. We don't have yet two consecutive quarters. Come on, there's no doubt that we're in a recession here as well. And this means -- the bottom line is, the fact that we're having a global recession means that nobody is pulling us out of our economic malaise. We are going to have to dig out of it ourselves.
LEMON: And let's talk about something else, Allan. What does this mean for our electronic sector? This cannot be good news because we rely on Japan for much of that.
CHERNOFF: Very, very bad news. U.S. companies provide a lot of components for Japanese electronics. Think about computers. Intel chips are used in Sony, Toshiba laptops, Microsoft operating systems -- used in those computers as well. Japan imports about $63 billion from the United States. It's a huge market. If Japan is sinking, that hurts us as well.
LEMON: Our senior correspondent, Allan Chernoff. Allan, we appreciate that.
And the next president's top priority will be keeping U.S. economy afloat. And right now, a big part of that equation -- a possible multibillion bailout for the big three automakers, with you footing the bill. Senior political editor Mark Preston joins us now.
Mark, the President-elect spoke about this tonight on "60 Minutes." Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Well, let's see how this thing plays itself up. For the auto industry to completely collapse would be a disaster in this kind of environment, not just for individual families, but the repercussions across the economy would be dire. So, it's my belief that we need to provide assistance to the auto industry. But I think that it can't be a blank check.
(END VIDEO CLIP)
LEMON: All right, Mark. So, you heard the President-elect there and Democrats want to get the ball rolling on this right away, as in tomorrow. But it's really looking like a tough sell among Republicans.
MARK PRESTON, CNN POLITICAL EDITOR: Yes, Don, absolutely. Look, Democrats right now are thinking about introducing legislation as early as tomorrow that would take a slice of the $700 billion that was set aside for Wall Street. What Democrats want to do is take $25 billion, move it into Detroit and really prop up the U.S. automakers. They say that this doesn't just affect GM, Ford, Chrysler, these other automakers up there. But what it does affect is jobs all across the nation.
Republicans are saying that all they would be doing is bailing out companies that have not been able to adapt and really we'd be creating a breadline for other companies to come up. We could see a vote as early as Wednesday. But right now, the votes don't look there.
LEMON: OK, Mark. Let's talk about transition now. Barack Obama meeting with Hillary Clinton in Chicago last week. Is this just about appeasement?
PRESTON: No, absolutely not, Don. And we've heard Barack Obama talk over and over again about bringing rivals and bringing Republicans into his administration. Someone like Hillary Clinton is very recognizable on the world stage. And also, she would probably put at ease world leaders when she went over to speak to them. She would actually bring a force with her when she sat down to talk.
So, clearly, she would fit the mold as somebody who would be a strong secretary of state as would Bill Richardson. He's the New Mexico governor. And both of these people have met with Barack Obama in the past week.
LEMON: OK, Mark. We have a lot of news to get to, but I think this is important because Barack Obama is meeting with John McCain tomorrow, we're hearing. It's not about a role in his administration. Then if not, then what is it about?
PRESTON: No, really, it's all about Barack Obama saying that he would work with rivals. You know, for Barack Obama to reach across and try to bring John McCain in to help work with him, really, is not only magnanimous, but it's also very smart politically, and I think would be accepted by the American people.
Also, for John McCain, it really would help define his role in history. And for someone like John McCain, who is not the leader of the Republican Party, who is not very well liked by the GOP base, I don't think that this would be very hard for John McCain to work with Barack Obama, and really could pay dividends for him down the road.
LEMON: Political editor Mark Preston. Mark, we appreciate it.
To California now, where firefighters are making progress but there's still a lot of dangerous work ahead. Fires are still burning in LA County and neighboring areas as well. But as the winds die down a bit, a lot of evacuation orders have been lifted.
You're looking at live pictures now from Santa Clarita, California from out affiliate, KCAL.
And as firefighters gain the upper hand here, the extent of the damage is getting clear. More than 800 homes destroyed, 34 square miles scorched by flames, and amazingly, still no reports of any deaths being blamed on those fires.
CNN's Jacqui Jeras and Kara Finnstrom have been tracking all of the fires all day long. Jacqui is standing by in the CNN Severe Weather Center and Kara is in Sylmar, California, site of a devastating blaze, blaze that destroyed about 500 mobile homes.
Kara, let's start with you. And I understand you have some new information to report on the search for possible victims in that mobile home park. What can you tell us?
KARA FINNSTROM, CNN CORRESPONDENT: Well, Don, so far, fire officials tell us their search is about 80 percent complete and they have found no bodies. That is some very helpful news for this community which has already lost so much.
(BEGIN VIDEOTAPE)
MICHAEL YNEQUEZ, SYLMAR RESIDENT: When you live right here and then see your home blaze, not there anymore, going on fire, everything burning, it's devastating.
FINNSTROM (voice-over): Emma and Michael Ynequez and about a hundred of their neighbors know they can't get near what were their homes. They came back first to find and embrace each other. And then the peer over the wall for a glimpse of what the fire left.
EMMA YNEQUEZ, SYLMAR RESIDENT: We can see it from here that it's gone. Everything is gone. But we have each other and we have family and we just wanted to come here and have closure.
FINNSTROM: Closure after a terrifying evacuation Friday night with some homeowners escaping moments before a firestorm barreled through the park. There were about 600 mobile homes here. The fire destroyed nearly 500. Emergency crews fear not everyone may have gotten out.
DEP. POLICE CHIEF MICHAEL MOORE, LOS ANGELES POLICE: And if you were a resident of this park, we want to talk with you. We want to know that you're safe. We want to know where you're at.
FINNSTROM: Outside the park, a sign made by one man still trying to connect with loved ones who live here. Inside, crews with cadaver dogs are searching lot by lot.
JUDITH NAPOLITANO, SYLMAR RESIDENT: It looks like a warzone.
FINNSTROM: Judith Napolitano was on one of the few blocks somehow spared. But she's still not sure she'll ever come back.
NAPOLITANO: Right now, I don't want to stay. I really don't think I will ever feel safe here.
FINNSTROM: Emma and Michael say they got away with the only things that really matter. E. YNEQUEZ: Still, it's a blessing in a strange way. You know, when you have everything just taken from you, but you still have faith and you have each other, it's the most amazing thing.
(END VIDEOTAPE)
FINNSTROM: And with evacuation throughout the area being lifted and the search for bodies nearly complete, homeowners here tell us they may be able to go back soon and see what's left. They say they need to do that for closure.
Don?
LEMON: Kara Finnstrom, thank you very much for your reporting all day long on this story.
And we're getting a lot of iReports from people affected by Southern California fires. This photo was taken by Josh Grier in Yorba Linda. The man you see standing on the roof, he is Danny Padron. And Danny joins us now by telephone.
Danny, can you hear us?
VOICE OF DANNY PADRON, YORBA LINDA, CALIFORNIA: Yes, I can hear you.
LEMON: OK. So, tell us about this picture -- standing. This is not you standing on the roof. Is this you or did you take this picture?
PADRON: No, I'm the one standing on the roof.
LEMON: You're standing on the roof. You're trying to fight this fire with your water hose. Were you caught off guard by this?
PADRON: Well, I mean, we've been seeing reports from the news about the fire, but we couldn't tell exactly where the fire was until we walked outside and literally felt the smoke down the street. So, we try to do as much as we could to prepare the house like wetting down the yard and everything. And then we saw some pictures of people's roofs catching on fire. And I thought, let me just get up there and hose it down as much as I can and see if I can stop something.
LEMON: This is you doing this. Were your neighbors on their roofs trying to do the same thing, hosing their property down?
PADRON: I mean, we saw some sprinklers on. I don't see anybody else on the roof like I was. But people were -- people were -- there were people who were preparing, but not as much as I thought would be.
LEMON: All right. Our iReporter Danny Padron. We appreciate it. And you stay safe out there as well as all of your neighbors, OK?
PADRON: Thanks, Don. LEMON: All right. If you're on the fire zone, we want to hear from you tonight. Tell us what you're seeing. Make sure you log on to Twitter, to Facebook, iReport and MySpace.com, and we'll try to get your responses on the air.
Also, we want to tell you that we are talking to Kofalif Toshara (ph). She is one of our iReporters. She was out there today. A doctor helping out with all of this. She actually lives in the area. She's a doctor and her father as well. And we appreciate her efforts. She's giving us some of her responses and telling us what she saw earlier.
We want to get to CNN's Jacqui Jeras now. Jacqui can tell us about the winds as it comes to this fire.
Jacqui, the winds died down a little bit, but still they're not out of the woods here.
JACQUI JERAS, CNN METEOROLOGIST: No, not at all. You know, yesterday 70, 80 mile per hour wind gust. Today, we cut that in half and we're looking at some 40 and even a few 50 mile per hour gust. You know, that was enough that allow the firefighters to do more aerial operations today and also sent some backfires. So, they were able to get a little bit of containment. So, it was enough to make some significant improvement in fighting these fires.
Red flag warnings do remain in effect in Los Angeles and Ventura counties. In the mountains into the valleys it's been expired now into the coastal areas. That's because the little humidity finally starting to creep in there. Record high. So, a lot of heat to deal with as well. 96 degrees in Santa Ana.
Tomorrow, weather conditions improve just a little bit more as high pressure draws to the east. We'll see the winds become a little more calm and we'll start to see the humidity increase by the middle of the week.
Don?
LEMON: Jacqui, you've been doing a great job covering these fires for us and giving us the conditions. We certainly appreciate you on this as well.
And you heard at the top of this newscast, Japan is officially in a recession and a slow down in car sales gets a huge part of the blame for that. Can the U.S. learn a lesson from Tokyo?
(COMMERCIAL BREAK)
LEMON: We have two breaking news to tell you about tonight. Two breaking news stories. We want to give you some quick updates. Several Southern California wildfires are still ablaze but the weather is helping. Winds have died down. Evacuation orders are being lifted and firefighters are starting to gain the upper hand on the biggest blazes. Meantime, overseas, traders are reacting to word that Japan has officially entered a recession. This is the latest evidence that the economies are slowing down worldwide. Japan is the world's second biggest economy.
Turning now to the proposed bailout of the U.S. auto industry. Congress this week will take a long, hard look at whether to give a truck load of your money to Chrysler, GM and Ford. CNN's Kate Bolduan explains it could be a tough road.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN NATIONAL CORRESPONDENT (voice-over): One final round for Congress and President Bush in a lame duck session set to be a showdown centered on the hemorrhaging auto industry.
SEN. CARL LEVIN (D), MICHIGAN: One out of 10 jobs in this country are auto-related. 20 percent of our retail sales are auto- related or automobiles. So, this is a national problem.
BOLDUAN: Michigan Democrat Senator Carl Levin is drafting the Senate version of the auto industry lifeline. The bill could see a key vote as early as Wednesday and it could include $25 billion in loans to the "Big 3." The money would be carved out of the $700 billion financial bailout package.
And attempting to win more support for the plan, the bill is also expected to include an extension of unemployment benefits. But this would be no easy sell to Senate Republicans or the Bush administration.
CARLOS GUTIERREZ, COMMERCE SECRETARY: There's a line of companies, of industries, waiting a treasury just to see if they can get their hands on those $700 billion. That is for the financial system. It's to stabilize the financial system. That should not be used.
BOLDUAN: Senator Richard Shelby is the top Republican on the Senate Banking Committee. He says the Democratic plan would reward poor management at GM, Ford and Chrysler, and calls it "money wasted."
SEN. RICHARD SHELBY (R), BANKING COMMITTEE: They would be, in a lot of people's judgment, a lot better off to go through Chapter 11 where they could reorganize, get rid of the management, get rid of the boards, the people who brought them to where they are today.
BOLDUAN: Republican leaders along with the Bush administration are pushing an alternative plan, one that would pool money from an existing $25 billion loan program meant to help automakers produce more fuel-efficient vehicles.
GUTIERREZ: If we don't take care of the short term, there is no green future.
BOLDUAN (on camera): The Democrats argue automakers need those fuel efficiency funds as well as the bridge loans to survive the year. But Democrats also need Republican support because right now they maintain a slim voting majority, one getting even leaner with President-elect Barack Obama's resignation from the Senate.
Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
LEMON: Well, it is called a flash-bang grenade and it's used by the FBI to slow down the bad guys. Unless it turns out FBI agents were the ones getting hurt. A CNN special investigation, next.
(COMMERCIAL BREAK)
LEMON: U.S. troops could be out of Iraqi cities and towns by the end of next June, and out of Iraq entirely by 2011. Those are the tentative dates approved by the Iraqi Cabinet and sent to the Iraqi Parliament for consideration. No date has been set on when the Parliament might take up the proposal. This new agreement will replace a current UN mandate that U.S. troops now operate under in Iraq. It expires at the end of this year.
Pakistan has temporarily halted some aid shipments to U.S. forces inside Afghanistan. The closure of the Khyber Pass comes after militants on Tuesday seized a convoy of trucks hauling wheat and other supplies through the main route. The Khyber Pass is just one of several routes to bring supplies to American forces in Afghanistan. NATO says closing the Pass will not significantly affect troop operations.
A Georgia-based company under federal investigation accused of selling defective ammunition to the FBI and other law enforcement agencies here and abroad. Special Investigations Unit correspondent Abbie Boudreau uncovers how far the company is willing to go to sell this product.
ABBIE BOUDREAU, CNN INVESTIGATIVE CORRESPONDENT: Well, Don, a federal indictment against Pyrotechnic Specialties Incorporated or PSI as a result of a four-year investigation. For the first time, we hear from the injured FBI agent who say that in order to save a few dollars, the company put their lives at risk.
(BEGIN VIDEOTAPE)
BOUDREAU (voice-over): The explosion happened without warning.
UNIDENTIFIED MALE: My last memory, I was laying down on the pavement here.
BOUDREAU: It was around 4:00 a.m., in a small town outside of Philadelphia. FBI agent Donald Bain was sitting in his car in this parking lot with two other agents. He was armed, ready for anything. He wore a Kevlar vest and carried what's called a flash-bang grenade, a type of non-lethal weapon that when deployed emits a bright flash and deafening bang. Used to shock and disorient, often used on assignments just like this -- a kidnapping that had turned into a hostage stakeout. DONALD BAIN, FBI SPECIAL AGENT: There were still three bad guys that were holding the hostage, negotiations were going on.
BOUDREAU: And the next thing he remembers, the flash bang grenade in his vest just blew up.
BAIN: Car is on fire. I was told later I was on fire. Smoke billowing the car. It was obviously chaos.
THOMAS SCANZANO, FBI SPECIAL AGENT: It was like being in combat. There was smoke and fire in the vehicle. And I knew that we were in trouble.
BOUDREAU: An ambulance rushed the three agents to a nearby hospital. The stakeout was nearly blown. Luckily, the kidnapper and his accomplices were later caught.
BAIN: I felt like someone just struck me as hard as I could with a baseball bat.
BOUDREAU: These are pictures of agent Bain's injuries. He suffered severe bruising, a concussion and burns to his neck and ears. All of the agents say they've experienced hearing loss.
UNIDENTIFIED MALE: It was like a grenade going off in a car. That was it was.
BOUDREAU (on camera): And remember these flash-bang grenades, they are considered non-lethal weapons, but if they detonate early, they go off under body, these things could actually kill you. I mean, am I exaggerating, this is actually -- it could happen that way?
UNIDENTIFIED MALE: Absolutely. Like what we explained early, if Don did not have his vest on, I believe he would not be here with us today.
BOUDREAU: How could this have happened? Was it an isolated case or was there more to this story? It was enough to spark an investigation that would later lead to a federal indictment for conspiracy, fraud and money laundering against the company and its CEO that manufacture these flash-bang grenades.
(voice-over): This is the U.S.-based company, Pyrotechnic Specialties Inc. or PSI.
JAMES MILLIGAN, FBI SPECIAL AGENT: We expect risk to come from the bad guys, the people who we try to protect the American people from. For those risks to come from an American company is just -- it's unconscionable to me. It's infuriating.
BOUDREAU: It turns out, before PSI supplied these grenades to the FBI, it was doing business with the Department of Defense, a $15 million contract to supply the grenades to the military. That is according to the federal indictment. Until the government realized, there was a problem. In the indictment against PSI, the government claims the company knew its flash bangs were flawed. It even knew how to fix those defects, which would cost PSI just $3.72 per unit.
But the indictment says the flash bangs were not fixed. Instead, many of those defective grenades the military was using were just relabeled without the military's knowledge, and then sold to local law enforcement agencies and to the FBI, ending up in the hand of agent Bain.
BAIN: It's incomprehensible. I can't begin to tell you. For $3.72, less than what I pay my young son allowance every week, this company could have fixed the problem. And the three of us have to deal with these issues for the rest of our lives.
(END VIDEOTAPE)
LEMON: When we come back, we'll hear what PSI has to say. Plus, a military connection to this flash bangs.
(COMMERCIAL BREAK)
LEMON: Before the break, we showed you the injuries that FBI agents and Iraqi war veterans say they suffered after flash-bang grenades detonated. Could this have all been prevented? Special Investigations Unit correspondent Abbie Boudreau continues our story.
(BEGIN VIDEOTAPE)
BOUDREAU (voice-over): David Carlson is the CEO of PSI. We tried to ask him about the faulty flash-bang grenades. But after refusing to return our phone calls, we tracked him down as he left work.
Excuse me, Mr. Carlson? Mr. Carlson? Hey, excuse me.
BOUDREAU: No answers. Just smiles. And he drives away, leaving these three FBI agents forced to live the rest of their lives with chronic injuries, hearing loss and a constant ringing in the ears from the flash bang explosion that could have killed them.
SCANZANO: It drives me crazy. I don't sleep. I have tremendous headaches. I have -- the doctors claim severe hearing loss. But for all practical purposes, I'm deaf on my left ear.
BOUDREAU (on camera): So, and the ringing, it just -- it just won't go away?
SCANZANO: It will not go away. And the doctors claim that it's tinnitus and there's nothing that they can do for it. And I have to live my life with that.
BOUDREAU (voice-over): Carlson, PSI and other defendants in the case have pleaded not guilty. Court filings say the government's case is vague and/or confusing. Carlson's attorney says he cannot comment.
Andrew Stern represents the FBI agents in this case.
ANDREW STERN, ATTORNEY: I don't know how someone looks themselves in the mirror everyday in light of the kinds of things that have happened here.
If those detonate, he's going to lose his leg.
BOUDREAU (on camera): Right. And in the indictment, we learned of three different FBI agents who were injured by these faulty flash bangs, and now we're learning of even more injuries than -- this is yet another one. This is Dean Wagner, right?
STERN: That's exactly right.
MASTER SGT. DEAN WAGNER, U.S. ARMY: I was working with a great bunch of guys, guys that I've been with for a long time. You know, they're all like brothers to me.
BOUDREAU: And why the tears come to your eyes when you talk about that?
WAGNER: Oh -- excuse me.
BOUDREAU: Dean Wagner had just finished his second tour in Iraq. Only a day or two away from going home. He remembers putting his flash bangs away after completing a high-risk mission.
WAGNER: As I pulled the first one out, it was fine. I sat it down. As I reached for the second one, it exploded. And severely damaged my hands.
BOUDREAU: When you look down at your hand, were your fingers gone? I mean, is it just --
WAGNER: Yes, my fingers -- my fingers were gone.
BOUDREAU: They amputated...
WAGNER: Right.
BOUDREAU: From your wrist?
WAGNER: Right.
BOUDREAU: Is this where your wrist was or is it above --
WAGNER: Yes. This is -- this is -- these are my wrist bones right here.
BOUDREAU: This is your wrist bone?
WAGNER: Right here, yes.
BOUDREAU: OK.
(voice-over): Wagner and his wife, Karen, blame PSI for his injuries and want to hold the company accountable for not fixing the grenades when it had the chance.
(on camera): Do you think they have any idea of how this has affected your life?
WAGNER: I'm sure they don't. They don't have a clue what it's like. And if they could experience that, or somebody close to them would have to go through that experience, you know, I'm sure it would be a different story and maybe they would not have allowed this to happen.
BOUDREAU: Documents filed in case show a Marine Corps official testified before the Grand Jury in 2006 that there have been 87 incidents, including ten injuries over ten years. Wagner says he has heard of many other cases.
WAGNER: I would be talking to people and they would ask what happened to me, and I would tell them, and they would be like -- oh yes, I knew a Navy S.E.A.L. that this happened to, or I knew another Special Forces guy that this happened to.
BOUDREAU: Wagner tries not to let his injuries slow him down. Instead, he focuses on what's ahead.
WAGNER: Yes, I really enjoy being out on the bike, for sure.
BOUDREAU: Both Wagner and the FBI agents who say they were nearly killed by a defective flash bang are now trying to move on with their lives.
UNIDENTIFIED GIRL: Are you ready, daddy?
UNIDENTIFIED MALE: All right. Don't hurt yourself.
UNIDENTIFIED GIRL: OK.
BOUDREAU: It has been especially hard on their families.
UNIDENTIFIED MALE: You're in a dangerous profession, what if something else bad happens to you? And my wife has a lot of questions about my career. You know, this is a life-long dream to become an FBI agent and I don't want to lose that.
(END VIDEOTAPE)
BOUDREAU: The criminal trial in the case against PSI, Carlson and the other defendants is scheduled to begin in January. No date has been set for the civil case filed by Dean Wagner and the three FBI agents.
DON LEMON, CNN ANCHOR: Before we let you go we have to ask you this -- are these flash bangs still around or are they still out there, Abbie?
BOUDREAU: Well, the ATF does tell us that it is possible that these are out there and still being used. But we don't know. What we do know that is that bulletins were sent out, warning local law enforcement agencies and the military and the FBI that these flash bangs were potentially defective and should not be used, but there's really no way to know for sure. The one thing that we do know is that this company no longer manufactures this type of flash bang anymore.
LEMON: All right. You'll follow up if you hear anything, of course, I'm sure?
BOUDREAU: Absolutely.
LEMON: All right. Special Investigation correspondent Abbie Boudreau. We appreciate you reporting on that one, of course.
Meantime, we want to turn here and talk about some talk show radio hosts who can't wait to talk about how President-elect Barack Obama will deal with the economy.
I guess when he deals with it, he will actually be President Obama. In fact, we have two of them right here next and they are ready to go at it.
(COMMERCIAL BREAK)
LEMON: All right. Some quick updates on two breaking news stories. Several Southern California wildfires are ablaze, but the weather is helping at this point. Winds have died down. Evacuation orders are being lifted and firefighters are starting to gain the upper hand on the biggest blazes there. Check it out. Those are live pictures from KCAL, Santa Clarita, California.
Meantime, overseas, traders are reacting to word that Japan has officially entered a recession. It is the latest evidence that economies are slowing down worldwide. Japan is the world's second biggest economy.
The U.S. is in the midst of its own financial catastrophes. Some conservative talk radio hosts are putting it out there, saying that the weight of our economic crisis rests on the shoulder of President- Elect Barack Obama.
On the left, Warren Ballentine of "The Warren Ballentine Show." On the right, Martha Zoller of "The Martha Zoller Show."
So, we're hearing -- I am hearing some conservative commentators, radio people, television people, Martha and Warren, say, you know what, the economy is in the predicament that it is in because of Barack Obama. People are holding their money from the markets because they are afraid Barack Obama is going to raise taxes and this is going to be detrimental to the economy.
Warren, have you heard that?
WARREN BALLENTINE, RADIO HOST, "THE WARREN BALLENTINE SHOW": I have. And I think it is absolutely ridiculous. I think that these people are overreacting, if that is the case -- number one. Number two, the economy is in the tank and it's been in the tank for months, not because of Barack Obama but because of the Bush administration, and because of what Congress and the Senate has done.
I mean, I have always said this. I'm not in love with the Democrats or the Republicans. I think all of them need to go. I think we need to get rid of all of Congress and vote regular people in office. That's what we need to do.
LEMON: Martha, do you agree with the conservative commentators? You have a conservative radio show.
MARTHA ZOLLER, RADIO HOST, "MARTHA ZOLLER SHOW": No, I don't agree that it's all Barack Obama's fault. Although, I do think a few days of sell-off after the elections was because they don't know what Barack Obama is going to do. He talked like a centrist at the end, but he had talked about raising taxes, too. So, the few days, yes.
But I mean, this is at the feet of a lot of people. There's the Bush administration who didn't act quickly enough, as well as the House and the Senate Democrats who in July, Barney Franks said everything is OK.
LEMON: It's just very interesting. I mean, the man is not even in office yet, but we will see. But we have to move on, because we have a number of different topics that we are talking about.
BALLENTINE: Blame the Democrats. Blame the Democrats.
LEMON: OK. But here's I'm going to ask you. I'm going to ask you this, Martha, because I'm getting e-mails saying this and hearing people say, you know what, I kind of felt bad for Sarah Palin. She lost. And maybe the Republicans used her in some way. That's what I'm hearing. But isn't it time to get off the stage?
ZOLLER: Well, I think that she -- she needs to be out there telling her story for as long as people want to hear it. And everywhere she goes, for these interviews, they get great ratings. So, obviously, people still want to hear her story. I still would like to hear her story. She's going to be coming to Georgia for Saxby Chambliss. So, hopefully, we'll be talking to her next week.
LEMON: She was at a governor's conference, and many of the governors afterwards came out and said, I didn't like the way this press conference was held. Because we got up there and then it felt like we were agreeing with her.
ZOLLER: No. And I do think that if it is a Republican Governors Conference, it should have been a whole group of governors giving a press conference.
LEMON: OK.
ZOLLER: But people are still getting record rating when they put her on the air.
LEMON: OK. All right. Let's sought -- hey, Warren stand by. We want to move on. Let's talk post-hate, election hate. We have been hearing stories about people who have been arrested for certain things. You know, hate symbols being placed because of Barack Obama. Web sites that cater to hate. The traffic has gone up. What is going on here? Are people talking about this on your radio show?
BALLENTINE: Well, I know they are talking about it on my show. We have been talking about it on my show for a month now. I mean, this is something that we expected. We thought it was going to be actually worse than this.
I mean, the sad part, is that you got people in the south saying, well, you know, it is the south and we should expect this. No, we shouldn't. We're living in the United States of America. It's not the civil war right now. And we need to realize that. We may have come in on different ships, but we are all in the same boat right now.
ZOLLER: Well, and I resent the fact saying that it is just happening in the south. I mean, I have seen it -- I have seen it on Web sites based out of Boston, out of Chicago, out of other places. But, let's remember, every president since Gerald Ford has had some kind of attempt on his life. This is not something that should be unexpected, whether it's a black or a white president.
LEMON: Yes, but some of these Web sites, Martha and Warren, where they said trafficking going on --
ZOLLER: But the things they said about President Bush for six years, the kinds of things -- Randy Rhoads was thrown off the air for --
BALLENTINE: But Martha, it's more than -- it's more than just -- it's more than just talk though. It's more than just talk. Some kids in New York jumped on a young man. People are burning crosses. I mean, people are hanging up Obama signs out of trees is more than just talk.
LEMON: OK, Warren and Martha, I am sorry.
(CROSSTALK)
ZOLLER: It's more than just talk with what the Bush administration has been through the last six years.
LEMON: I'm sorry. We are going to continue this next week, because we have been -- I have been reading and getting a lot of responses about this particular issue. We're going to bring you guys back to talk about it.
ZOLLER: Thanks, guys.
LEMON: Meantime, have a great rest of the weekend. We appreciate it.
BALLENTINE: Thanks. Thanks, Don.
LEMON: We want to know what's on your mind tonight. Make sure you logon to Twitter, Facebook, MySpace or ireport.com. and tell us what you're thinking here. We'll get your response on the air. And there is an empty Senate seat now that Barack Obama is headed to the White House. We'll talk to one of the potential replacements, next in the NEWSROOM. It is a name you have heard more than once.
(COMMERCIAL BREAK)
LEMON: Barack Obama says goodbye. In a letter in the "Chicago Sun-Times," the President-elect says he is formally stepping down as Illinois senator. He also took the time to thank the people of Illinois, saying they taught him lessons he will draw on during his presidency.
Who is taking over for President-elect Barack Obama in the Senate? Well, ultimately, it is a decision of the governor of Illinois. In the past couple of weeks, we have heard names like Valerie Jarrett, Obama's close friend and confidant and Jesse Jackson Jr. Well, we talked to him about the what ifs at his home in Chicago.
(BEGIN VIDEOTAPE)
LEMON: What do you think about this transition and your chances and who do you think should take over for the senator?
REP. JESSE JACKSON JR. (D), ILLINOIS: Well, ultimately, this is going to be a decision of the governor of the State of Illinois. I trust that he will make a decision in the best interest of the state and of the nation. I've got 13 years of experience in the Congress of the United States. I have only missed two votes. No Democrat and no Republican can say that. And if you look at my track record -- a track record of service, I think it's something to be proud of. I would be honored and humbled to succeed Barack Obama in the United States Senate, but I will live with the decision of the governor.
LEMON: You will? But do you think anyone has the experience and the know-how. You know, as they say in politics, on day one, are you ready?
JACKSON: You know, I hear names badgered about. Rahm Emanuel, who apparently is going to be the chief of staff. I was in Congress before Rahm Emanuel. I served in Congress longer than Rahm Emanuel. He was in the Clinton administration when I was elected to Congress. I have been in Congress longer than Janice Schakowsky. I have been in Congress longer than most members of the Illinois Congressional District, except for Congressman Bobby Rush, who was ill and has expressed his support of my candidacy for the United States Senate. And Congressman Jerry Costello from downstate, who has expressed no interest.
And so, amongst Illinois Democratic members, I have served the longest, and amongst those who are above me, I have essentially their support, except for one who has decided that he does not want to be United States senator. And so based upon the merits, the public case that we have earned over the last 13 years, we have a track record. We are tested in this area. And we've obviously put our name in the ring, but it is the decision of the governor. LEMON: There is always a thing, you know, about it has been reported that Barack Obama has said that he would like a minority to succeed. Other people are saying the Senate should not be a club of all white men. How much of that do you think should factor if at all in the governor's selection?
JACKSON: Well, it's a factor, I hope, in the governor's selection. It doesn't have to be the factor. The way in which Barack Obama conducted himself as a senator, he was an American first who happened to be African-American. Obviously, the next senator from the State of Illinois must be an American first, someone who wants to advance the interests of upstate and downstate Illinois.
They must fill the enormous shoes established by Barack Obama. I think personally that it is important that that outlook of that senator have that perspective. I'd love the opportunity to try and fill those shoes.
(END VIDEOTAPE)
LEMON: We asked Jackson if he would run for Illinois, that seat, in two years. He said yes. Because the person who runs, they want to make sure that they can hold on to that seat when the election comes in two years. He said the race would be difficult but he welcomes the challenge.
It was one of the hot button issues of the weekend and of the entire election. Now it's time to hear from you about Proposition 8. That's some of your feedback right there that we are updating. Make sure you send us yours.
(COMMERCIAL BREAK)
LEMON: All right. More than 1 million people turned out at this weekend's mass rallies in support of same-sex marriage. That's according to a group that organized the nationwide event. It's called jointheimpact.com. The rallies took place yesterday in dozens of U.S. cities, large and small, to demand the right of gay couples to marry.
The movement erupted after voters in California approved a ballot initiative known as Proposition 8 to ban same-sex marriage. Arizona and Florida passed similar measures. We asked about what you thought and here's what we have to say -- what you had to say.
Brncreole says, "To condone gay marriage is the first step to human extinction."
Baily23, "Shame on Californians for taking away a basic right for gays to marry. It's heartbreaking. Truly heartbreaking."
Icampbell444 says, "The fires are horrible. I live about 30 miles from the fires. And not only is it affecting our emotions but health as well.
And Richmazza says, "Let's have the oil companies bailout the automakers." Bittbox says, "No bailout for the big 3. They'll blow through any money we give them in six months, then ask for more."
Make sure you keep your comments coming. And they'll also be at the bottom of your screen unless you're watching the rebroadcast a little bit later on in the evening.
Well, this is another sign of the tough times. A jump in the number of items returned to department stores.
(COMMERCIAL BREAK)
LEMON: Two breaking news stories here on CNN that we're following throughout the evening. And true to be big stories in the morning.
Firefighters are trying to get the upper hand on wildfires in California. The winds are helping a bit there.
Also, overseas, Japan announced tonight, it has officially entered a recession. It is the world's second biggest economy. Make sure you tune in for those stories tomorrow on CNN as well.
So what can the U.S. economy look forward to or not look forward to in the coming weeks? Our Stephanie Elam gets "Down to Business."
(BEGIN VIDEOTAPE)
STEPHANIE ELAM, CNN BUSINESS NEWS CORRESPONDENT: Another whiplash week here on Wall Street. The Dow plunged more than 400 points Wednesday only to climb 552 a day later. Next week, we'll see a pair of labor department reports on inflation. The producer and consumer price indexes. Even though inflation has taken a back seat to worries about economic growth, these reports could stoke investor concerns about inflation.
Shoppers can expect longer lines at the return counter. The National Retail Federation reports returns are up nearly 1.5 percent this year. And stores are responding with more relaxed return policies. Next week, Target, Home Depot, Saks, Gap and other major retailers will release their third quarter earnings reports.
Also coming up, we'll find out how the construction sector is doing. The Commerce Department will deliver its monthly report on housing starts and building permits which are expected to decline.
Economic troubles can be bad for your health. An American Legacy Foundation Poll finds 25 percent of smokers say stress about finances makes them smoke more. But help is on the way. Next Thursday is the annual great American smoke out.
That's this week's "Getting Down to Business." Stephanie Elam, CNN, New York.
(COMMERCIAL BREAK) LEMON: Well, who says one person can't make a difference? And CNN began asking you about your heroes. We've seen thousands of ways regular people have touched the lives of others. Tonight, CNN's hero is David Puckett.
(BEGIN VIDEOTAPE)
DAVID PUCKETT, CNN HERO: I'm David Puckett and I bring artificial limbs and orthopedic braces for those in need to Mexico.
There's always a plethora of donations of artificial limbs and orthopedic braces. We take casts in southeastern Mexico and make new limbs and braces from the components that we recycle.
Delivering a limb or brace is still the beginning because we have to come back to make sure that they have what they need. When we help one person, it actually affects an entire community.
(END VIDEOTAPE)
LEMON: Well, David Puckett recently came to CNN, to the NEWSROOM here to tell us more about his mission.
(BEGIN VIDEO CLIP)
LEMON: When you look at the people in the story that we had about you and you see that they didn't have access to this before, what's generally their reaction once they do get these?
PUCKETT: It's a beautiful reaction. I mean, they're excited. They're cautious. How much is this going to cost me? Then I'll tease them, I'll say, that's going to cost about $1,000. They said, oh really? I said, no, nothing. We're doing this because we love you. Because God has given us an opportunity to bless you and be able to help you overcome your tragic situation.
LEMON: They cry?
PUCKETT: Oh, yes. Many cry.
LEMON: You, too?
PUCKETT: Sometimes.
LEMON: Why so?
PUCKETT: It's emotional when you can see somebody walk for the first time. Caesar (ph) was 23 years old. He never had walked in his life. He never walked in his life -- 23. Born without two legs and an arm. And the first time I saw him, he was dragging himself in the dirt as was his younger brother, as is his sister today.
And she requires some additional surgery so we're trying to team up with a surgeon. But the first time I saw Caesar (ph), I said we can get you walking. He said, I'm 23. I've never walk. I don't even know how to walk. I said, we can fit you with two legs and an arm. We can get you walking.
LEMON: What do you think about that?
PUCKETT: He said, that's what I want. So two months later, we made him two legs. We made him an arm. We got him walking the first time. And the house was just full of people yelling and screaming and applauding and what not. He disappeared for six to eight months. I went back to check on him. He had left the village. He had gone, gotten a job, had met a girl. And six months later when I got back, he had gotten married. He had a child. So, now he's working, has a child, has a family, married and he walks on two legs.
LEMON: I was going to ask you why you do it. But that's my answer. That's why you do it. What do you say to people who may be thinking of doing something out of the ordinary or out of the box as we say to help other people? I'm sure you would recommend that they do.
PUCKETT: Well, as it's said, it's much more blessed to give than to receive. And I'll tell you that the blessings that you receive by pouring out upon somebody that which you have and that which you can share far exceeds any pay or any type of reward that you can receive otherwise. It's so much rewarding to be able to bless somebody with something that they would otherwise never had been able to get.
LEMON: A CNN hero, David Puckett.
PUCKETT: Thank you very much.
LEMON: Thank you for what you do. We appreciate you joining us. And you can go online right now and choose a hero who inspires you the most, CNN.com/heroes. We look forward to honoring all of these amazing people during "CNN HEROES: AN ALL-STAR TRIBUTE," hosted by Anderson Cooper, right here on CNN. That is on Thanksgiving night.
We have been following those wildfires out in California. And one of our iReporters as you see her there now, Cropolli Tajura (ph). She is a doctor and she was at Crown High School. She lives in the area and she helped out and we appreciate you joining us and for everything that you do. Thank you very much.
UNIDENTIFIED MALE: Thank you so much, Don.
LEMON: All right. I'm Don Lemon. I'll see you right back here next weekend, 5 p.m. and 11 p.m. Eastern on Saturday, 6 p.m. and 11 p.m. Eastern on Sunday. Make sure you have a great week, everyone.
