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Raging Wildfires in California; Canned at Citigroup; Congress Takes up Auto Industry Bill
Aired November 17, 2008 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Well, hello, everyone. It is Monday, November 17th. And here are the top stories we're following for you this hour in the NEWSROOM.
Fire crews hoping to cover a lot of ground today if the weather cooperates. Three massive wildfires burning hundreds of homes across the Los Angeles area.
Congress looking at a bailout bill for the auto industry today. GM says step on it, it's running out of road.
A Chicago get-together today. One-time rivals for the presidency looking for ways to work together.
Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.
It is now day four in the fierce fight against raging wildfires across southern California. More than eight homes destroyed, thousands of families displaced. And here are the hot spots.
The biggest blaze called the Triangle or Freeway Complex Fire, it started in Orange County and spread to Riverside. Almost 24,000 acres scorched. That fire just 19 percent contained.
Then there's the 10,000-acre Sayre Fire in Los Angeles County. That blaze is 40 percent contained this morning. More than 480 homes scorched there.
And the so-called Tea Fire in Santa Barbara County, more than 1,900 acres have burned. It is now 80 percent contained. Fire officials say that blaze was human-caused, possibly arson.
Let's get right to the fire zone now. Our Thelma Gutierrez in Yorba Linda.
Thelma, good morning.
THELMA GUTIERREZ, CNN CORRESPONDENT: Good morning, Tony.
Well, I can tell you, we have some good news to report from out here. Twenty-two thousand people have been evacuated from the Yorba Linda area. Many of these people are able to return home today. So many of them will return home to scenes like this: complete devastation. This area was hard hit, Tony. Two hundred homes in this area, including the Anaheim Hills and the surrounding areas, were destroyed. The fire ripped through this area very quickly.
Now, up north in Montecito, in Santa Barbara County, where 210 homes were destroyed, fire investigators have gone through the rubble. They are now looking at the cause of that fire as a possible arson. They've cordoned off the area where the fire started, and they're sifting through the rubble to try to look for clues. They're also asking for the public's health to try to come up with any kind of clues that might identify the people who may have been involved in that fire.
And then north of Los Angeles, in the town of Sylmar, an area very, very hard hit, 500 mobile homes were destroyed there when the fire just raged through that area. Now, there was great concern among officials that perhaps many of the elderly people who lived in those mobile homes would not have had a chance to escape, and so what they've been doing for the last couple of days is they've sent cadaver dogs in.
The coroner has been there. And they've been going through some of the ashes looking for human remains. Now, they've gone through 30 percent of that area, and so far they have come up with nothing. So that may be a good sign.
They're also asking people to check in with officials, people who live in that area, to let them know that they're OK. So, so far, again, no human remains found in that area. Very good news.
Also good news today, Tony, out here in the Yorba Linda area, the red flag warning has been lifted. And the winds have stayed calm, and firefighters are hoping that this weather holds, because this is the break that they've needed for the last four days -- Tony.
HARRIS: Well, we will keep our fingers crossed for those firefighters.
Thelma Gutierrez for us.
Thelma, good to see you. Thank you.
You know, CNN i-Reporters are doing their part to help fire- ravaged communities and keep us informed as well. Our i-Reporter Jim Prosser (ph) is distributing gas masks with Direct Relief International.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: So as of now, Direct Relief is helping distribute 95 (ph) particular masks to protect against the air quality from the fires. We're working with the Public Health Department to ensure public safety, as you can see. And we're really just trying to do our best to coordinate with them and make sure that anyone who needs a mask or has any respiratory issues can get one. We'll be here until about 2:00. And we're coordinating constantly with all the local officials to make sure that if we're needed, we can respond immediately. We gave about 30,000 standing stock and more on the way, so we should be able to take care of all the immediate needs.
The masks (ph) are done (ph) in from CVS. And then we've also purchased about 10,000 of our own.
We're happy to do anything we can to support the community. We're really just a support organization. The guys on the front lines do all the real hard work.
(WEATHER REPORT)
HARRIS: Well, issue #1 now, the economy. Citigroup, the nation's second largest bank, cutting another 53,000 jobs worldwide. Man.
CNN's Christine Romans in New York.
Christine, let me put on my skeptic's hat for just a moment here. That is such a huge number. I know this is a big international company.
Does Citigroup really intend to lay off 53,000 workers?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: They certainly do, Tony. You know, last year, at the end of last year, they had 375,000 workers worldwide. By the end of September, they had 352,000. So they've been laying people off, or at least not filling positions all year.
And now they say they want to get to approximately 300,000. And that's going to happen sometime between now and the first half of 2009.
It's a whole lot of jobs. I mean, think of it, Tony. They're saying they are going to cut more jobs than some companies even have to begin with. I mean, this is a lot of job cuts.
About half of those cuts are going to come through what they call divestitures, meaning they're going to get rid of some businesses, sell them off. Those people might find jobs in the new company that owns them, perhaps, but usually people buy a company and then they find synergies, as they say on Wall Street, and they lay you off.
HARRIS: Right.
ROMANS: The other half will be straight-on layoffs. Tens of thousands of people are going to lose their jobs -- Tony.
HARRIS: Right. And I ask for the reality check on this because I'm just curious as to what extent. We hear these huge numbers, and I wonder to what extent they're meant to satisfy -- markets, corporate boards, shareholders -- i.e. guess what? We get it and we're doing something. But you're telling me this is real with Citigroup.
ROMANS: It's real. But, you know, they are trying to send a message to Wall Street, no doubt.
HARRIS: Yes.
ROMANS: I mean, their shareholders have been hammered this year. I mean, Wall Street is screaming for them to do something. They've had four very tough quarters. This is clearly management trying to say, look, we get it and we are moving ahead.
One of the screens in their PowerPoint presentation to their employees in the town hall said "Getting Fit Fast."
HARRIS: Yes.
ROMANS: And among the things on there talked about, you know, their tier one capital ratio, their allowance for loan losses, the things -- you know, how much money they're setting aside for people to cover bad loans, their headcount reductions, and the like. They're trying to Wall Street, look, we have our house in order, and we're going to do all of these dramatic things to make sure that we're ready to go.
Now, the stock was down earlier this morning. The stock is down I think 68 percent this year. I mean, Wall Street and shareholders have not been happy so far with what they've seen from this company.
HARRIS: Wow. OK. Christine, appreciate it. See you next hour.
ROMANS: You're welcome.
HARRIS: Thank you.
You know, more issue #1 now. A survey of 50 prominent economists concludes what most everyone suspects. Ninety-six percent of them say the U.S. is in recession.
Japan, the world's second largest economy, announced today it's economy has slumped into recession. Consumers are showing little appetite for Japanese electronics and cars. Toyota and Sony both have slashed profit forecasts for 2008.
The lame duck Congress taking up an auto industry bailout bill today. President-elect Obama, speaking on "60 Minutes," says he backs loans for Detroit.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), PRESIDENT-ELECT: 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)
HARRIS: Well, Democrats want to tap the $700 billion bailout program to help automakers, but prospects are not good.
Here's CNN's Kate Bolduan on Capitol Hill.
Kate, good to see you.
KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Tony.
HARRIS: I would imagine there's been considerable pushback to the idea of tapping into the TARP -- sorry -- before the automakers.
BOLDUAN: Well, while Democrats are pushing the plan that you just mentioned right there, carving into the TARP to use money to give loans to the auto industry, there has been some pushback, some very vocal opposition from Republicans, as well as the White House. We just heard a little while ago, White House spokesperson Dana Perino saying, that it's a slippery slope once you open up TARP to allow for other industries other than the financial industry to get some of that money.
They say it misses the mark. That's not what it was originally intended for. But Democrats, they're not backing down.
They're really saying that this is the way that this bailout should go. They're asking for $25 billion of loans for the auto industry. That money to come out of the financial package. But that's going to be very much the focal point of the debate here.
HARRIS: Well, Kate, what about using -- maybe this is another option, maybe it isn't. What about using the $25 billion loan program approved by the Energy Department? Why not use that money as the bridge loan that the automakers are telling us is necessary?
BOLDUAN: Well, that's an alternative plan, a proposal that we've heard Republicans pushing, as well as the Bush administration. We heard Commerce Secretary Carlos Gutierrez on "LATE EDITION" just this weekend say that that is where the fund should come from. Basically, what they're asking for is to use the same dollar amount, $25 billion.
HARRIS: Right. Right.
BOLDUAN: It was previously approved for a loan program, but that money was meant to help automakers retool their plans in order to make and produce more fuel-efficient cars. But I have to say, while they're pushing that plan, and it's something the Republicans in the White House are backing, Democrats are not backing down. They say it doesn't seem right now that there is any air of compromise, I should say, but we'll have to see as the debate continues.
HARRIS: Yes. OK, Kate. Appreciate it. Let us know.
BOLDUAN: Of course.
HARRIS: Kate Bolduan on Capitol Hill for us. We want to hear from you as well. Should Congress bail out the U.S. auto industry? E-mail us at cnnnewsroom@cnn.com, and we will be reading your comments in the 1:00 p.m. Eastern hour.
Homes burned, people displaced. The wildfires in southern California causing huge problems. Your i-Reports are coming up.
(BEGIN VIDEO CLIP)
MICHAEL YNEQUEZ, SYLMAR RESIDENT: When you live right here and then see your own place not there anymore, going on fire, with everything burning, it's devastating.
UNIDENTIFIED FEMALE: 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.
EMMA YNEQUEZ, SYLMAR RESIDENT: 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 VIDEO CLIP)
(COMMERCIAL BREAK)
HARRIS: The U.S. withdrawal plan from Iraq now in its final stage, awaiting approval. Today, Iraq's parliament took its first look at the deal that marks and makes December 31, 2011 the deadline for U.S. troops to leave the country.
Parliament is expected to vote early next week. This is the last step in the approval process. It has already been signed by U.S. and Iraqi officials and OK'd by Iraq's cabinet.
As the Iraq war winds down, veterans of the first Gulf War are still suffering. We've heard a lot about Gulf War illness, now a new report says it's real and not just wartime stress. But there is plenty of that to go around.
CNN Medical Correspondent Elizabeth Cohen joining us now with more on the study that has just been released.
I'm particularly curious about this because I did a lot of reporting on this back in the '90s. So I'm interested in these findings.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: And you probably remember that there was a lot of back and forth.
HARRIS: Yes, absolutely.
COHEN: Is Gulf War illness real? Is it not real? And I'll tell you, this report is really quite stunning.
It's from a panel of scientific experts that's going to be presented to the Veterans Administration. It says that one out of every four veterans deployed to the Gulf War in '90 and '91 suffered from Gulf War illness. That is indeed a huge number. A bigger number than a lot of people expected.
HARRIS: Well, I have to ask you, part of the back and forth is to try to determine a cause. Is there anything in the study, in this reporting, to indicate what caused Gulf War illness, sickness, the syndrome?
COHEN: Yes, indeed, there is. And let's first talk about what Gulf War illness is.
HARRIS: Right.
COHEN: First of all, it's sort of a conglomeration of different problems -- pain, headaches, pain throughout the body, GI problems, problems with thinking, with memory and concentration. And this one, Tony, this is the big one: Lou Gehrig's Disease. You haven't heard that so much associated.
HARRIS: No.
COHEN: And what they found was that vets who were deployed to the Gulf War in the early '90s, they came down with Lou Gehrig's Disease twice as often as other vets who were not deployed. That is a huge number.
And we were talking about the cause. So let's talk about it, because there were all sorts of theories floated as to what the cause was for Lou Gehrig's Disease -- I mean, I'm sorry, for Gulf War illness.
HARRIS: That's right.
COHEN: So they came up with two things. One of them is pesticides -- that vets who used pesticides. And the other was anti- nerve gas pills.
And so what's really interesting here...
HARRIS: That's interesting, yes.
COHEN: So pesticides and anti-nerve gas pills.
And let's bring back what we had there a second ago. This is a really interesting sentence that just says it all about this report.
It says, "Scientific evidence leaves no question that Gulf War illness is a real condition with real causes and serious consequences." That really says it all. I mean, that, you would think, might end the debate.
HARRIS: I wonder what can be done now for the veterans.
COHEN: Well, part of the problem that this report points out is there hasn't been a lot of research done on Gulf War illness. And so what this report says is, look, we've been sending less and less money on research since 2001. They called for a new effort at research so they can figure out just what you said, how do you treat these problems?
HARRIS: How do you treat them?
All right. We've got to get help for these veterans. I certainly know that.
Elizabeth, good to see you. Thank you.
COHEN: Good to see you.
HARRIS: See you next hour.
Taking money out of your 401(k) to pay your bills, there's got to be a better way than that. Personal Finance Editor Gerri Willis is next.
(COMMERCIAL BREAK)
HARRIS: Solutions to America's money crisis, our daylong focus here in the CNN NEWSROOM.
While politicians grapple with the big picture, Personal Finance Editor Gerri Willis is here to talk about you.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.
HARRIS: Look, it's you and me. It's all of us here. Specifically, your retirement.
Gerri, first thing you tell us is to breathe.
WILLIS: Breathe.
HARRIS: Take a deep breath and get a bit of a grip on things here.
WILLIS: Yes. You know, it's easy to let this all kind of overwhelm you.
And look, Tony, we are solidly here in bear market territory. Stocks are down 36 percent for the year, since the mid-1960s. You should know, though, the S&P 500 has been through seven bear markets. It happens.
And over the long haul, the effects of the sell-offs, they get washed out by gains. So, instead of focusing on losses, you really need to think about your goals right now.
There's a great retirement calculator at CNNMoney called "What you need to save for retirement."
HARRIS: Yes.
WILLIS: Go to CNNMoney.com to find that. Now, this is going to give you an idea of how much money you're going to need when you retire. But don't forget, this is going to be a really big number. I've done it myself, and even the pros don't expect you to have 100 percent of that figure at retirement because you keep investing even as you are in retirement. Eighty percent of that number is a better goal.
Next, get a plan. Even people who sock it away regularly in their 401(k) typically, they aren't even thinking about a plan. Professional investors write something called an investment policy statement that outlines goals, strategies, expected returns.
You need to do the same. Commit it to paper. When do you want to retire? How much money do you want to have when you retire?
Right down your current savings and then your strategy for getting to the goal. This allows you to focus on the right thing.
One thing that the investment industry doesn't tell you -- and Tony, this is important -- look, most of those retirement calculators out there on the Web, they have you spending something like 80 percent of your pre-retirement income on retirement. And if you've already paid off your house, maybe you're not supporting kids anymore, or other family members, you may find that your out-of-pocket costs are far lower than those calculators suggest.
It's important to know.
HARRIS: Yes. Yes. Yes. That's good balance on that.
Let's talk about what people should be doing at certain periods in their lives and their careers. Let's talk about young workers right now. What should they be investing in, Gerri?
WILLIS: Look, Tony, under 40, the strategy here is simple, simple. Keep on investing. You're buying stocks at a huge discount.
You have lots of time. Look, if you pulled your money out now, you'd simply be locking in huge losses.
Allocate about 80 to 90 percent of your investment money to stocks and the rest to fixed incomes or bonds. That's in your 20s and 30s.
HARRIS: Right.
WILLIS: But then, Tony, as you get closer to retirement, these are the folks that have been really hurt here, the ones that are at the cusp of retirement, in retirement. Make sure that you've got a better asset allocation.
A reasonable allocation strategy for your age is 55 percent stocks, 40 percent of bonds. If you misallocated and are truly hurting now, call a financial planner to help you sort out whether you're going to have enough cash to meet those financial goals. Look, a family planner would be a good choice. Go to napfa.org to get names of folks who can help. And most good planners will agree to evaluate your plan in a one-time meeting for a set price.
HARRIS: Awesome.
WILLIS: And if you want to do it yourself, Tony, because I know you're a big DIY guy...
HARRIS: Yes, that's me.
WILLIS: TrowePrice.com has some really good calculators too that can help you out on this.
If you find that you don't have enough cash, pre-retirees, some of these folks, Tony, I hate to say this, will have to continue working.
HARRIS: Yes.
WILLIS: So you have time to recover, you don't tap that money now. You give yourself a couple of extra years.
One other thing that's worth mentioning here, each year you delay taking benefits -- and that's Social Security benefits -- beyond age 62, you can boost your payout by 8 percent. So, go to ssa.gov/estimator for details.
Send us questions. And we're already getting them here -- Gerri@CNN.com.
HARRIS: Nice.
WILLIS: We want to hear from you. This is important stuff, Tony.
HARRIS: Awesome stuff, focused on solutions today and the days to come.
Gerri, good to see you.
WILLIS: My pleasure.
HARRIS: Great new address there for e-mails. Good stuff. Thank you, Gerri.
WILLIS: Thank you.
HARRIS: You know, some economists predict the jobless rate will top 8 percent in 2009. One way to avoid layoffs, get into a field that is growing, not shrinking.
Last week I asked jobs expert John Challenger about hot spots.
(BEGIN VIDEO CLIP) JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Some of the hottest jobs right now are in healthcare and energy. Those sectors have been strong, really the bulwarks of this economy, this down economy. And a lot of people now can leave, say, industries that aren't doing so well -- automotive, banking, housing and construction -- and take on roles in those growing areas.
(END VIDEO CLIP)
HARRIS: And as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice and answers. Check out our special report, "America's Money Crisis." That's at -- there you go -- CNNMoney.com.
A global company announces huge layoffs. We are live outside Citigroup with reaction.
Plus, you're showing us what you're seeing. I-Reports from Southern California, that's next.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We're ready to go. We see how serious it is because of the Sylmar fires and the other fires. We've seen houses burn down. So when you see houses burning down, it brings this thing into more perspective -- hey, it's real.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
HARRIS: A major bank preparing to hand out more pink slips, a lot more. Citigroup says it is cutting more than 50,000 jobs in the coming months. Richard Roth is live outside Citigroup offices in New York.
Richard, good to see you. I'm curious, are you hearing any reaction to this news from Citi employees?
RICHARD ROTH, CNN CORRESPONDENT: They have not wanted to discuss what's happening. Many of them were in, or listened by remote location, a town hall meeting conducted by the CEO of Citigroup. He announced 50,000 people will be laid off in the coming weeks and months from an original headcount of 350,000 worldwide Citigroup employees.
This is another one of the corporate financial giants reeling during this horrible year of the financial collapse. The Citicorp stock before today's trading was down 68 percent for the year. Now Citicorp says it's revenues are stable. It's getting $25 billion from the federal bailout. But it's had to cut costs.
One Wall Street and financial analyst I talked with here on the street in front of Citicorp headquarters, Jim Awad, said Citicorp is just having to deal now with acquiring so many businesses and companies as it amassed a large financial platform over the years. (BEGIN VIDEO CLIP)
JIM AWAD, MANAGING DIRECTOR, ZETHYR: You get the feeling that the company was put together by an aggressive series of acquisitions that in retrospect were not put together as efficiently and coherently as they could have been. And when the world went against them, they were slower to react in terms of selling businesses, divesting assets, restoring capital and laying off people to get costs in line. So they're trying to catch up with some of the other players.
(END VIDEO CLIP)
ROTH: Now as for the average Citibank holder of money in these financial institutions they don't have to worry says Jim Awad. It's a big company, they can always merge with someone else if problems develop.
But we've heard that before. But right now everything is stable at Citi Corp. But it's bad news for the 50,000 people who will be laid off.
HARRIS: That's for sure. All right, Richard Roth for us this morning.
Richard, appreciate it. Thank you.
Job losses, as you know, have also play plagued the U.S. auto industry. Congress is convening this week to take up a possible bailout for Detroit's Big 3. GM is taking no chances, however. It is working hard to get the general public on its side.
Here to explain -- there she is back from vacation, I hope you enjoyed yourself with all this difficult news, I know it was difficult -- Susan Lisovicz at the New York Stock Exchange for us.
Good to see you, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Tony.
Well, GM is taking its case directly to the people. The automaker has created a new Web site, a Facebook page and posted a video on YouTube. On those sites GM says this isn't just an auto problem; it's a U.S.-problem. Because 1 in 10 Americans has an auto- related jobs and the U.S. automobile industry supports jobs in all 50 states.
GM points out that the carmakers are the biggest purchasers of plastic, steel and even electronics. A tracking firm says that so far this year more than 20 major auto related companies have gone bankrupt. Most of them parts suppliers.
GM shares, though, are rallying big time, they are up 10.5 percent. But remember, they tumbled 30 percent last week. And there's still right now, even with today's big rally, trading under $3.50 a share. GM, of course, is a Dow 30 stock.
The Dow is under pressure again, right now down 159 points. The Nasdaq is down 21, 22 points, or about 1.5 percent as well -- Tony.
HARRIS: Hey, Susan, I'm wondering if the old saying remains true today -- as GM goes, so goes the nation?
LISOVICZ: Well you know, GM is a shadow of itself. Let's just be candid about that. But if GM fails, there's no question it will hit our economy, hence all of those auto related failures that I just mentioned.
The auto industry contributes 4 percent to the nation's GDP, and this at a time when the GDP has actually shrunk. A regional Fed bank, meanwhile, says (INAUDIBLE) economists surveyed says the U.S. is indeed in recession or will soon enter one. The economists also expect the unemployment rate to climb from 6.5 percent to 7.6 percent next year. A GM bankruptcy would surely contribute to that, although some opponents say a government bailout would be throwing good money after bad -- Tony.
HOLMES: My goodness. What to do?
All right, Susan, see you next hour. Thank you.
They came, they conferred, but what did they accomplish? World leaders met in Washington over the weekend searching for solutions to the global financial crisis. Zain Verjee live from Washington now.
Zain, good to see you. What was actually accomplished? I hear a lot of excitement about the summit being expressed by, for example, the French.
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Exactly. Good to see you, Tony.
Well guess what? This meeting didn't solve the world's problems, but it did make history. Certainly it increased the number of countries at the table on the world's financial board of directors. And it triggered off a process that's pretty much going to transform the entire world order as we know it, where it's not just the rich countries that will be making the key decisions, but powerful emerging countries, too, like Brazil, Russia, India, China. They're also going to be calling the shots.
A lot of people are saying it was a success, too, because it set key agenda items, things like plans for financial reform and generally more world coordination on the economic landscape. One person, Tony, put it this way, the traffic jams in Washington were worth it.
HARRIS: I'm curious, Zain, what, if anything, came out of this for President-elect Obama?
VERJEE: Well, President-elect Obama wasn't there personally. But the world financial crisis is pretty much going to be the thing he's got to tackle as soon as he comes into office.
But he did send two people to represent him, including Former Secretary of State, Madeline Albright. Gosh, Tony, he's going to have to lead a major coordinated world effort. The hard stuff has been kicked down the road from this meeting to the next one in April. The key here to understand is that this is going to be a really long period of adjustment for the U.S. It's still considered the world's superpower, but it's going to have to do things like share decision making and power and influence with those economically powerful countries, the BRIC countries as they're know as -- Brazil, Russia, India, China.
The president of France making a statement at this summit saying we are in a whole new world now.
HARRIS: Yes, sounds like it.
All right, Zain, good to see you. Thank you.
President-elect Barack Obama is meeting with John McCain today. We will take you live to Chicago for that.
Plus, we're keeping you up to date on the California wildfires. A father struggles to explain the devastation to his young son.
(BEGIN VIDEO CLIP)
AUGUSTINE REYES, FIRE VICTIM: This is all that's left of my house. This is it.
He's 7 years old, and he's autistic. He doesn't do well with change. So it's just going to be very hard to explain to him and bring him. It's going to be very hard.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
HARRIS: Let's work together. That is the message behind a meeting next hour between President-elect Barack Obama and his former rival, Senator John McCain. It will be their first meeting since Obama defeated McCain in the presidential election.
Here's CNN's Suzanne Malveaux.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (on camera): Well, Tony, that meeting between Barack Obama and John McCain just minutes away. Barack Obama priding himself on using the model, if you will, of the late Abraham Lincoln, saying that he is going to look to fill the cabinet posts with those who are most capable. And he's also reaching out to his rivals. But Obama aides say don't expect that this is about some sort of job interview. This is something a lot more informal.
(voice-over): Today, Barack Obama is meeting John McCain on his own terms, hosting his formal rival on his Chicago home turf. It's part good will, part good picture. The last time the two appeared together, Obama had to engage in the messiness of debate. Now, he gets points for just reaching out. Obama's aides say he'll focus on their commonalities over issues like climate change and ethics reform. In Obama's first TV interview since the election, he told CBS's "60 Minutes" the global economic crisis provides a unique opening for both men, and their parties, to come together.
B. OBAMA: You actually have a consensus among conservative Republican-leaning economists and liberal left-leaning economists. And the consensus is this, that we have to do whatever it takes to get this economy moving again, that we have to -- we're going to have to spend money now to stimulate the economy.
MALVEAUX: Obama also emphasized getting his national security team in place as his top priority. And he described the threat of Osama bin Laden this way --
B. OBAMA: Capturing or killing bin Laden is a critical aspect of stamping out al Qaeda. He is not just a symbol, he's also the operational leader of an organization that is planning attacks against U.S. targets.
MALVEAUX: Obama also said he would use his unique power as president to issue executive orders to act quickly on Guantanamo Bay and U.S. detainee interrogations.
B. OBAMA: I intend to close Guantanamo, and I will follow through on that. I've said repeatedly that America doesn't torture. And I'm going to make sure that we don't torture.
MALVEAUX: As for the incoming First Lady, Michelle Obama, she says their daughters Sasha and Malia will come first.
MICHELLE OBAMA, WIFE OF PRESIDENT-ELECT OBAMA: I've, you know, had to juggle being mom in chief and having a career for a long time. The primary focus for the first year will be making sure that the kids make it through the transition.
MALVEAUX (on camera): Part of that transition, Barack Obama meeting with John McCain. It's just moments away. And there will be two other people in that room with him. On Obama's side, his Chief of Staff, Rahm Emanuel, on McCain's side, Senator Lindsey Graham.
Now, you talk to them, you talk to the folks who know them, they say, look, they're not going to be acting as referees, although it will be good that each will have their own person in their corner. But these two guys, they are close, and they're the ones who are behind the scenes, Tony, to make this meeting happen.
(END VIDEOTAPE)
HARRIS: All right, Suzanne. Appreciate it. Thank you.
No letup this morning for those battling wildfires in Southern California. This is Montecito over my shoulder and now (INAUDIBLE). Santa Barbara County, north of Los Angeles, nearly 200 homes are burned to the ground there. Across the region more than 800 homes have been destroyed since several wildfires broke out late last week. 35,000 acres scorched. Some people were warned to leave, others fled on their own.
(BEGIN VIDEO CLIP)
JOANNA WOOD, FIRE VICTIM: Well, they didn't tell us that we had to evacuate.
UNIDENTIFIED MALE: We had no warning.
WOOD: Yes. We just are -- our bush just exploded in front of our house, and we knew we had to get out of there. There was no evacuation.
MIKE SCHOEPP, FIRE VICTIM: We're fortunate that the house didn't burn down, but we lost the garage and all the cars in the back in the shop, so -- a few parrots (ph). But we're lucky to have a home still.
(END VIDEO CLIP)
HARRIS: And our i-Reporters have been out in full force taking pictures of the destruction caused by the Southern California wildfires. These amazing photos sent in by Michael Hanzich in Yorba Linda. Check out that thick smoke there and the ash. That gives you a real idea of the enormity of the situation. Hanzich says it was hard to breathe. The air left his eyes burning.
We're going to talk about the air quality associated with wildfires next hour with medical correspondent, Elizabeth Cohen.
Rob Marciano -- Rob are you there? Check out these pictures from our i-Reporter Josh Grier. He's also there in Yorba Linda. That's his house mate there, Danny Haderon (ph), on the roof. They say they've been preparing all day, trying to protect their home there, soaking down the yard, making sure the windows were closed. And then they saw people -- their roofs actually burning. So they decided it was time to do what we see going on here, to hose down that roof so they could see the flames to the east from one fire and the smoke to the southwest from another blaze. So they were sandwiched for a while there.
Look at those pictures. I-Reporters really helping us tell that story, Rob.
ROB MARCIANO, AMS METEOROLOGIST: That is scary. When you think about how when you see one house or two houses burned completely and then another house not burned. You know --
HARRIS: How random it is, yes.
MARCIANO: It is random. But a lot of it has to do with the brush and bushes and what kind of fuel you have around your home.
HARRIS: True, true. MARCIANO: I suppose some of it might be -- I don't know how much wetting your roof does. I'm sure the firefighters are looking at those pictures, going, would you just get out --
HARRIS: I know. Good point. Good point.
MARCIANO: -- so we can do our job. Nonetheless, it's just a tough thing to see when you see homes and lives turned upside down.
What we're seeing here weather wise today, it will be hot, winds will be offshore, but not as critical as they have been. It will be gusty at times. But generally speaking, today is going to be a day of transition. So no fire weather watch out, no red-flag warnings posted today. So that's good news.
But eventually I'm going to get these arrows to go the other way, I think tomorrow, more so on Wednesday. And that brings in the cool Pacific Ocean air, and that will help raise humidity levels and drop temperatures. Always a good thing.
Today temperatures will be a couple degrees below what we saw yesterday. Some of these pretty toasty -- 96 degrees in Santa Ana, 88 in Los Angeles.
This is a funny picture, but it's actually something that the folks in Southern California are using to help eliminate some of the fuel. They're getting goats out there and doing some grazing. Obviously we need more to knock down some of the (INAUDIBLE), but they munch on this stuff and they clear it out. And that's certainly -- I know it's funny to look out.
HARRIS: Maybe we should adopt a couple there, Rob. And help the effort here or something.
MARCIANO: The guys who have those goats -- they actually charge for them.
HARRIS: Well, OK. We could do that.
MARCIANO: So we could do that. And it's cheaper than actually getting someone out there to cut the grass.
(WEATHER REPORT)
HARRIS: That's a business model there. Bring the goats in to take care of my lawn. Hey, now.
Rob, thank you.
Same-sex marriage. The controversy isn't going away.
(COMMERCIAL BREAK)
HARRIS: And this just in to the CNN NEWSROOM. Mark Cuban, the Internet entrepreneur, the owner of the Dallas Mavericks in the NBA, we're learning today that Mark Cuban has been charged by the Securities and Exchange Commission with insider trading for selling 600,000 shares of the stock of an Internet search engine. The company named Mamma.com. And this is on the basis of material, non-public information, concerning an impending stock offering, kind of the broad strokes of insider trading here. We will get more information on these charges from the Securities and Exchange Commission and the charges against Mark Cuban and bring you more information as we get it right here in the CNN NEWSROOM.
California's newly passed Proposition-8 --
(BEGIN VIDEO CLIP)
CHRISTINE QUINN, NEW YORK CITY COUNCIL: ... going and fighting until we have full equality again in California, in New York and in every state in our great union.
(END VIDEO CLIP)
HARRIS: OK. California's newly passed Proposition-8, which outlaws same-sex marriage in the state, making waves all across the country. Our Veronica De La Cruz has been watching the web and joins us now with reaction.
Veronica, good morning.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, good morning to you, Tony.
Even though the proposition which did pass more than a week and a half ago banned same-sex marriage in the state of California, people across the nation have been protesting. Tony, I want to show you this, take a look at this quad box. This is what it looked like across the country over the weekend. People marching, carrying signs in Boston, Oklahoma City, Orlando, Florida, Seattle, Washington. And of course, Tony, there's been lots of coverage online.
Andrew Sullivan, who is an openly gay conservative blogger posted pictures and comments from dozens of rallies. Take a look at this. This is from his blog, The Atlantic. I want to show you this woman in Missoula, Montana. She was protesting and in Missoula, Montana. There she is holding a sign. And the sign reads, "Against gay marriage, then don't have one."
And the comments posted there -- there were about 150 to 200 protesters. This is Missoula, Montana, keep in mind, "It was a day which made me feel good about our town and optimistic for our future, gay and street."
And here's the thing, Tony, lots of these rallies have been organized online. There are groups like Join the Impact. This is their Web site, jointheimpact.com. And the group was started a few days after the proposition passed. They've been urging people in 300 cities across the globe to turnout this weekend to protest. It's a global movement. They're calling it a civil rights movement.
And of course there's lots going on on Facebook as well. We've been asking people to keep the discussion alive on the group. This is something from one of our users, Jake Bell, in Colorado. He writes, "As an actual, true conservative, I think the banning of same-sex marriage is unconstitutional and morally wrong. True conservatism -- not radical-religious conservatism that the media likes to portray as mainstream -- calls for the government to stay out of a citizen's personal and private matters. Under the U.S. Constitution, all people are created equal."
And of course that is on our Facebook group. You can join the discussion as well. Just search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris.
And Tony, I've got to say, since we've started this group, this has been the one issue that people want to keep talking about.
HARRIS: Really?
DE LA CRUZ: For the past few weeks, yes. The web has been abuzz. And the Facebook groups, there are tons of them on Facebook. There are people who are opposed, people who are for the proposition.
HARRIS: Well let's keep it going.
DE LA CRUZ: And again, like I said, yes, join on the decision, Veronica De La Cruz in the CNN NEWSROOM with Tony Harris.
HARRIS: OK, Veronica, see you next hour. Thank you.
Pirates hijack an oil tanker. We bring that to you live in the next hour of CNN NEWSROOM. We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: When disaster strikes in the United States, Tad Skylar Agoglia can't be far behind. His team has helped hundreds of people in difficult situations. And he is today's CNN hero.
(BEGIN VIDEOTAPE)
ANNOUNCER: This is CNN Heroes.
MARCIANO: There are 20 reports of tornadoes.
UNIDENTIFIED MALE: There it goes!
HEIDI COLLINS, CNN ANCHOR: Crews are fighting fires on several fronts.
TAD AGOGLIA, CNN HERO, COMMUNITY CRUSADER: The most critical phase of a disaster is the first few days. That's when you have to find the people that are in desperate need of medical attention, food, water. But, you pull up and there's a building lying in the middle of the road, or, if 20 miles is underwater, how do you get all those resources to those people?
I got this crazy idea to use one of my cranes to respond to a disaster and just open up roads so that the real heroes have the resources they need to continue the search.
My name is Tad Skylar Agoglia. I provide help and hope to those in their greatest hour of need.
There's people on life support, people on oxygen, there's people that are going to die if we don't get to them. I put together a crew that stays on the road 12 months out of the year and responds to disasters all over America. As soon as we see a threat striking anywhere in the United States, if we feel it's severe enough, we leave immediately.
Oftentimes, I'm asked why I do this. And I can't help but think, why aren't more people doing this?
ANNOUNCER: Vote now at cnn.com/heroes.
(END VIDEOTAPE)
HARRIS: Three days left to vote for your favorite CNN hero. Go to cnn.com/heroes to see their stories and to vote. Then, join Anderson Cooper Thanksgiving night to find out who will be CNN's hero of the year. Vote now at cnn.com/heroes. Only three days left.
