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Hillary Clinton Named as Next Secretary of State; The U.S. Formally Enters a Recession; Mumbai Massacre: Isolating the Responsible Party

Aired December 01, 2008 - 14:00   ET

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

BETTY NGUYEN, CNN ANCHOR: Hello, everybody. I'm Betty Nguyen live at the CNN World Headquarters in Atlanta. You are in the CNN NEWSROOM.
So let's get right to it.

The police commissioner in Nassau County, New York, holding a news conference at this hour. He's talking about the Black Friday stampede at a local Wal-Mart. A store worker there was actually trampled to death. Several lawmakers pushing for so-called door-buster bills aimed at improving store security. And all of it the result of a senseless tragedy caused by impatient shoppers.

Susan Candiotti looks at some of the legal issues here.

(BEGIN VIDEOTAPE)

LT. MICHAEL FLEMING, NASSAU COUNTY, N.Y. POLICE: This was utter chaos.

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice over): These newspaper photos send chills. Capturing a 5 a.m. stampede as Wal-Mart shoppers smashed through the front doors and trampled to death a 34-year-old temporary security worker. Investigators are deciding whether anyone should or can be charged.

FLEMING: We are examining videotape, footage that was shot by Wal-Mart and by some of the surrounding stores.

CANDIOTTI: Authorities also want to know whether Wal-Mart had enough security.

FLEMING: It was several minutes before they were able to get the crowd pushed back enough to be able to render some aid.

CANDIOTTI: CNN legal analyst and former prosecutor Sunny Hostin says it's not intentional homicide, but shoppers could be criminally negligent.

SUNNY HOSTIN, CNN LEGAL ANALYST: Isn't that what we're talking about here? Wanting to get such a bargain and such a deal on Black Friday that you would run over another human being. His life didn't matter to whoever did this.

CANDIOTTI: Even if shoppers can be identified, Hostin says with 2,000 people pushing to get inside the store, the case could be tough to prosecute.

HOSTIN: It's going to be difficult to prove to a jury that this person, in their heads, failed to perceive the risk and is now legally responsible for it.

CANDIOTTI: That same afternoon, the store reopened. In a statement, Wal-Mart defended itself saying it worked with police, put up barricades and added more security -- quote -- "Despite all of our precautions this unfortunate event occurred."

New York's largest grocery union calls the death avoidable and Wal-Mart irresponsible. Lawyer Sunny Hostin says a civil lawsuit against Wal-Mart is all but inevitable, but she thinks Wal-Mart may have done all it could to prepare.

(on camera): Today, police expect to have more to say about the case. They're interviewing witnesses and trying to see whether they can identify anyone else on the tape. That could be tough. Then prosecutors will make the final call.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

NGUYEN: All but one of the gunmen are dead. The hotel fires, they are out. But the question still burns in India, who were the 10 people who took on the city of Mumbai last week and threw it into chaos? Indian officials blame what they call elements in Pakistan. The government summoned Pakistan's top diplomat to him as much and demand Islamabad do something.

Pakistan's government met with an Indian diplomat and claims there is no proof the attackers were based there. Secretary of State Condoleezza Rice arrives in India Wednesday to make sure cooler heads prevail between the nuclear neighbors. She is urging Pakistan to cooperate in the investigation.

And police in India have lowered the death toll from three days of savage attacks in Mumbai. All right, here's the new figure, 179 dead. That's -- and as well as 300 wounded. One of those in the hospital, a teenage boy who still doesn't know the pain that still awaits him. CNN's Matthew Chance joins us now from Mumbai.

This is such a sad story, Matthew.

MATTHEW CHANCE, CNN INT'L. CORRESPONDENT: It is, Betty. It's very sad.

It's an incredible story as well, because it shows just how difficult it's going to be for many people affected in these attacks in Mumbai, India's financial capital. It's going to be difficult for them to get over it.

This 13-year-old boy, we met him earlier this week, after he was taken to hospital. He's lost many close members of his family. He still doesn't know that yet. Let's listen to how he's getting on.

(BEGIN VIDEOTAPE)

CHANCE (on camera): Is he making a good -- a good recovery?

(voice over): His shrapnel wounds are slowly healing, but this 13-year-old survivor of the Mumbai attacks is still shielded from the awful truth. He's been reunited with his older brother now, but no one wants to tell this fragile teenager he'll never see his uncle, his three cousins, or his parents ever again.

UNIDENTIFIED MALE (through translator): I feel that if we tell him, he's so young, he will be terribly affected by it. He's badly injured now and there might be problems.

CHANCE: But the brother, who is 30, agreed to take me back to the scene to relive his family's nightmare.

(on camera): Well, this is Victoria Terminus in the heart of Mumbai, the bustling train station where one of those coordinated attacks took place. In fact, he was telling me, it was exactly here where so many members of this one family lost their lives. They were just standing here waiting to get on a train when the gunman burst in, firing automatic weapons, hurling grenades. The mother, the father, the uncle, the cousins, all lost their lives here.

As days in hospital have passed, the boy is asking difficult questions. Where is the rest of his family? Why haven't mom and dad haven't visited? It's forcing his doctors to reluctantly lie.

DR. B.M. SUBNIS, DEAN OF J.J. HOSPITAL: We have told him that we are locating your parents and they shall soon come back and meet you. But the way I see him, over the days now, the child is very smart, intelligent, and has understood that his parents are no more. Everybody is hiding from him that they are no more.

CHANCE: Do you think the knowledge that his parents are no longer with him --

SUBNIS: Yes.

CHANCE: Do you think that will affect his recovery in any way?

SUBNIS: That is what we earlier thought, but now, this hiding is affecting his recovery.

CHANCE (voice over): And no one wants that. The time for honesty, no matter how painful, is drawing near.

(END VIDEOTAPE)

CHANCE: Well, this is just one harrowing example, Betty. But now, in this city, there are hundreds, if not thousands, of terrible stories of people who have lost friends and loved ones.

Back to you.

NGUYEN: So, Matthew, have they said when they're going to tell the boy about his family?

CHANCE: Yes, I spoke to the older brother about that issue. He said, look, he's not ready yet. He's going to wait until the wounds have healed a bit better and the boy is really out of danger and is on his way back to full health. But, obviously, it is getting increasingly difficult to keep these important facts about the boy's family from him. I think it's going it be pretty soon.

NGUYEN: Yes, especially when he comes asking. Matthew Chance, joining us live. Thank you for that. Do appreciate it.

In other news, Barack Obama's national security team features a campaign rival and a hold-over from the Bush administration. The president-elect announced his choices for six top spots today in Chicago. And as expected, Hillary Clinton got the nod for secretary of state. CNN's Ed Henry joins us now from Washington .

This is quite a list, Ed. We've got a hold-over, a former rival. Are they all going to be able to work together?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's the big question, Betty. You're right.

Obviously, even Republicans are saying this is a high-powered group, a lot of talent starting with, as you mentioned, Hillary Clinton as secretary of state. Current Defense Secretary Robert Gates staying onboard. You have retired Marine General Jim Jones going to be the National Security adviser, there in the West Wing of the White House, a principle security adviser for the president.

But the big question is, will this so-called team of rivals really come together, stay on the same page, or will it be dysfunctional? You've had some historians come out in recent days and suggest this concept first pioneered by Abraham Lincoln, a team of rivals, doesn't always work. That they end up getting, you know, split by so many disputes and whatnot that it could be dysfunctional.

Barack Obama was hit with questions from reporters today, the president-elect, about some of the statements he made in the campaign about Hillary Clinton not having enough foreign policy experience. Of course, it was Hillary Clinton who ran that 3:00 a.m. ad suggesting Barack Obama didn't have enough experience. The way he answers it is to say, look, I want a robust debate within my Cabinet. We might not always be on the same page, but ultimately, I'll make the final call and it's better to at least go through all of this in a vigorous way than to have everybody on the same page all the time. Take a listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: I assembled this team because I am a strong believer in strong personalities and strong opinions. I think that's how the best decisions are made. One of the dangers in a White House, based on my reading of history, is that you get wrapped up in group think and everybody agrees with everything, and there's no discussion and there are no dissenting views.

(END VIDEO CLIP)

HENRY: Now, that could obviously be seen as a not-so-subtle shot at the Bush administration; how it got into war in Iraq. Let's face it, now Barack Obama, as the incoming president, is going to have to deal with what's next in Iraq. That's the other big question here.

He said, very clearly, when he introduced Bob Gates to stay on as Defense secretary that he will have a new mission, in the president- elect's words. That he wants him to responsibly end the war in Iraq; and said that he would stick to his time table of 16 months to remove all combat troops. But later under questions from reporters, he did leave the door open slightly to change that by saying that he would listen to commanders on the ground, something we've heard President Bush talk a lot about. So, a lot of liberals are looking at that and wondering if maybe there's some flexibility in that campaign promise, Betty.

NGUYEN: All right. CNN's Ed Henry. Thank you for that.

HENRY: Thank you.

NGUYEN: Well, a defeated vice presidential candidate back on the campaign trail again. Less than a month after she and John McCain lost the race for the White House, yes, we're talking about Sarah Palin. She's in Georgia today, trying to help Republican Saxby Chambliss keep his Senate seat. The race between Chambliss and Democrat Jim Martin will be decided tomorrow in a run-off. Chambliss led after the November 4th balloting, but did not get a majority of the votes.

Democrats need just two more seats to get a filibuster proof majority in the Senate. A recount is under way in the Minnesota race between Republican Norm Coleman and Democrat Al Franken.

All right. So we've all been feeling it, now it is official. The world's largest economy is in a recession. So why did it take so long for this announcement? Susan Lisovicz is at the New York Stock Exchange with the details on this; and a look at the sell-off, in fact, that we've been watching today.

Let's get to that first question. It looks like we've been in this recession for, oh, I don't know, about a year now?

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. Which already makes it a very lengthy, one of the lengthiest ones, Betty.

NGUYEN: Right.

LISOVICZ: The National Bureau of Economic Research, the official arbiters of all things about recession, says it started last December. And comes up with six years of growth. It takes the group a while to determine if and when the economy falls into a recession because it relies more on than just, say, GDP, gross domestic product, which is the broadest measure of the economy, that comes out every quarter. The NBER also considers employment, industrial production, wholesale, retail sales, income; and a general sense of a significant decline in economic activity spread across the broader economy.

Stocks were selling off well before the recession news was announced because of a pair of dismal economic reports on construction and manufacturing. As well as profit-taking after last week's big five-day run-up. The Dow industrials on the first day of December, off 440 points, or 5 percent . The Nasdaq is off 6 percent, Betty. So with five days of gains and a big step backward now.

NGUYEN: No doubt.

All right, let me ask you this. Is it there any idea how long this recession is going to take, or are we going to have to wait a whole year after it's over before we get the official word?

LISOVICZ: Oh, let's hope not for the latter.

NGUYEN: Yes.

LISOVICZ: That's for sure, Betty.

Well, unfortunately, the report doesn't do much forward-thinking. It's all backward. So it doesn't do any forecasting. It may not declare an end date for some time. But history shows that this recession is already one of the longest downturns of the last 60 years. So far, of course, we're at the one-year mark. To compare, the last two recessions, in 2001 and 1990 to '91, lasted just eight months.

But keep your eyes on the stock market for clues as to when the recession might end. A lot of times, bear markets in stocks, which we are also enduring, typically end four months before the recession ends. Stock market, a forward-looking indicator. So we're not seeing much hope, it would seem, today. But that's basically what the market will do. It will start to look for signs of stability, some light at the end of the tunnel, and the market will rally off of it, Betty.

NGUYEN: Keep your eyes on the markets. OK, that's what you do on a daily basis.

Thank you, Susan.

LISOVICZ: You're welcome.

NGUYEN: Let's talk now about sealing the deal. Hillary Clinton's selection as Barack Obama's secretary of state came down to one big factor, that being, Bill Clinton. We'll tell you what the former president did to seal the deal.

And trading steel for plastic? Some gun owners in Southern California decide they'd rather have a gift card for Christmas than their weapons. And you might be surprised by some of the weapons that they turn in.

(COMMERCIAL BREAK)

NGUYEN: Listen to this, if it weren't for a decision made by Bill Clinton, Hillary Clinton might not have been on stage today when Barack Obama unveiled his national security team. The former president played a key role in helping his wife become Obama's choice for secretary of state.

Here's CNN's Jim Acosta with that story.

(BEGIN VIDEOTAPE)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: All across the globe, economic empowerment efforts are making impressive gains.

JIM ACOSTA, CNN CORRESPONDENT (voice over): The people bankrolling Bill Clinton's global dealings have stayed shrouded in secrecy for years, from the contributors who donated millions to the Clinton Presidential Library in Arkansas to the companies paying for his speeches around the world.

W. CLINTON: We'll never have the level of development we need in Africa.

ACOSTA: The backers of his efforts to combat malaria or AIDS.

W. CLINTON: To help ensure that people everywhere are able to access the care and treatment that can save their lives.

ACOSTA: But now the former president has promised to make public the names of 200,000 donors to his vast foundation, clearing a final hurdle for Hillary Clinton to become secretary of state.

DAVID GERGEN, CNN POLITICAL CONTRIBUTOR: We've heard a lot of hand wringing about whether Bill Clinton would stand in the way of his wife, or would he be supportive of Barack Obama. He, too, has now signed on in a very fulsome way.

ACOSTA: As part of a deal brokered with the Obama transition team, the former president has also agreed to submit his future activities to the same State Department that would be run by his wife, and if necessary, the White House.

W. CLINTON: I feel especially honored to be here today.

ACOSTA: Big moves for a president who likes to do things his way. They are moves, he indicated, he can live with.

W. CLINTON: Whatever they want. This is a deal between the president-elect and Hillary.

ACOSTA: In all, Mr. Clinton's post-presidential activities with global movers and shakers have raised, by some estimates, a half billion dollars. Republicans say they'll examine that in Mrs. Clinton's confirmation hearing.

SEN. LINDSEY GRAHAM, (R) SOUTH CAROLINA: Obviously you would want to make sure that the spouse's business dealings did not present a conflict when it comes to our relationship with a particular country or a region. ACOSTA: Others in Washington wonder if this ex-president's ease with world leaders could be put to official use.

SEN. RICHARD LUGAR, (R) INDIANA: As a roving ambassador, as someone who takes special appointments, someone who still has ties with leaders all over the world. And whose conversations are important. It is a historically unprecedented situation.

(END VIDEOTAPE)

NGUYEN: And Jim Acosta joins us now live.

Jim, could the Clinton pick still backfire for President-Elect Obama?

ACOSTA: Well, it could, Betty. Although, it's not very likely at this point. Hillary Clinton does have a confirmation hearing. She will have to appear before members of the Senate to answer their questions about this, and her husband's business dealings around the world. And she will be asked whether or not any of those dealings pose a conflict of interest. And so you do have that.

And then there's the other factor where all of this could blow up in Barack Obama's face, and that is if and when Hillary Clinton becomes the secretary of state, and you get to where that question came from today at his press conference this morning, where he was asked, you not only have a team of rivals, you have the potential for a clash of rivals. So we'll have to find out whether or not Hillary Clinton can toe the Obama line. Obviously we wouldn't be at this point if there hadn't been some agreement to do so.

And after all of that is said and done, there is the potential, as you heard at the end of that piece, that we could see former President Bill Clinton in some official capacity, as some sort of special envoy, internationally, in a hot spot like India and Pakistan. So there are various places where, yes, some of this could backfire. But all indications are that the Republicans are very much in favor of a lot of these Cabinet picks.

As one conservative commentator said in this town yesterday, this is change he can believe in -- Betty.

NGUYEN: All right, CNN's Jim Acosta, joining us live.

Thank you, Jim.

ACOSTA: You bet.

NGUYEN: He's the one Mumbai attacker with a story to tell. His words could defuse over inflame tensions between two nuclear neighbors.

(COMMERCIAL BREAK)

NGUYEN: Take a look at this. Icy roads and blowing snow has drivers just spinning out west of Denver. Interstate 70, shut down for several hours yesterday, just as people were heading home after the holiday. More than 100 people had to spend the night at a Red Cross shelter.

Also, parts of Illinois, well, they're seeing their first major snowstorm of the season. Safe bet, though, it will not be the last. High winds expected to blow some of that snow around today, which is affecting visibility on the roadways. Let's get a check of all of this with Chad Myers. He's watching the weather.

Chad, you know, it is that time of year, but it's not the most opportune time for travelers.

CHAD MYERS, CNN METEOROLOGIST: Exactly. Trying to get back on Sunday and Monday, on one of the busiest couple of days. Although, heavy snow is very common in December because the air is still warm. A 32-degree air mass will make much more snow than a 10-degree air mass, because 10 degrees doesn't hold much water; 32 is full of water and you can get a lot of snow.

Still snowing in Chicago right now. Airports are a little bit slow. Milwaukee as well, right across Indiana , Illinois. Now we're starting to pick up a little bit of a lake enhancement, a little lake enhancement. And that is kind of helping out some of the accumulations.

Chicago and Midway, over an hour, so is La Guardia, JFK, Newark, San Francisco Philadelphia, kind of going down a little bit. Philadelphia you are down to 45 minutes, that is some good news.

Another story back out in the West, around Denver, going up to the high country today, anywhere along the front range you have to be careful. There are avalanche warnings going on; 100-mile-an-hour winds over the weekend stacked up the snow, now it is warm. Now it is in the 50s. Denver, tonight, only 40 degrees, 39 for a low.

There you go. That could cause, and has already caused some avalanches out there. And don't go to the high country without knowing where they are. You can always go to the Web site there at the state and figure out where those avalanche warnings are, all the way from, really, Wyoming, all the way down past Vail Pass.

Let me show you some snow, though. Where it is a little bit flatter, and it doesn't fall down the mountain. This is Iowa. Waterloo, Iowa, Clarence Smith, some beautiful shots. It's very pretty when the snow gathers on the trees and you have that nice, fluffy, white look. It's not so nice, though, when those trees are full of leaves and the leaves pull everything down. Not too many reports of power lines down, but enough of the fluff.

Look at that, how pretty that is. Like it was out there catching it with a catcher's mitt, out there in Waterloo, Iowa -- Betty.

NGUYEN: It's always pretty in pictures, but not when it's affecting you or your electricity.

MYERS: The weather outside is...

NGUYEN: Frightful at times.

MYERS: You got it.

NGUYEN: Thank you, Chad.

Well , from Barack Obama's chief Democratic rival to one of his key Cabinet members, Hillary Clinton gets the nod as the president- elect's secretary of state. We're going to talk more about it with our State Department correspondent, Zain Verjee.

(COMMERCIAL BREAK)

NGUYEN: Hello, everybody. I'm Betty Nguyen in the CNN World Headquarters in Atlanta, and you are in the CNN NEWSROOM.

It is half past the hour on this Monday. And here are some of the stories that we're working on for you in the NEWSROOM.

As expected, President-elect Barack Obama named Senator Hillary Clinton today as his choice for secretary of state. And, he picked the current Defense Secretary, Robert Gates, to continue as Pentagon chief. Other selections for his national security team, Arizona governor, Janet Napolitano, as head of Homeland Security, Eric Holder as attorney general, and Susan Rice as U.S. ambassador to the U.N.

India officially informed Pakistan today that it believes elements in Pakistan carried out last week's terror attacks on Mumbai. Pakistan says it hasn't seen any evidence supporting India's allegation and denies any role in those attacks.

Well, it is official, folks, the U.S. is in a recession. The Dow was already way down today, even before that announcement. Currently, it's still down 428 points.

As the Indian people mourn their dead in Mumbai and pray for their wounded, their government is trying to explain how 10 people could unleash so much death and destruction on a city of nearly 19 million. The latest figures are 179 dead, about 300 wounded. Soldiers today removed the last of the bodies from the Taj Mahal hotel.

India's government is also trying to figure out who the attackers were and where they came from. They're pointing fingers at Pakistan, but one person in their custody knows the answer for sure, and a lot rides on his words. Here is senior international correspondent, Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Could this gunman hold the balance of regional peace in his hands? He is the only attacker to be captured alive. Indian police say he is Pakistani. And what he tells investigators could shape the rising tensions between these two nuclear neighbors. (on camera): Government officials here were quick to blame Pakistan. Pakistan's ministers deny their country's involvement, have offered to help with the investigation, but are now considering bolstering their troops along the border. The two countries have fought three wars in the past 60 years. Getting this investigation right could not be more critical.

(voice-over): At a commemoration ceremony for police killed in the terror attack, Mumbai's police commissioner wanted to cool speculation.

(on camera): Commissioner, hi -- Nic Robertson from CNN. How are you doing?

CHIEF HUSSAIN GAFOOR, MUMBAI POLICE: OK.

ROBERTSON: So how is the investigation going at the moment?

GAFOOR: This is a condolences meeting. I really can't talk right now. Please, I hope you understand that sentiment (ph).

ROBERTSON: Absolutely.

(voice-over): It is indeed a tough time for the city, but India's maze of new, independent media outlets have a steady stream of leaks from investigators. They vary widely; few can agree on the captured gunman's name.

Our sister network, CNN IBN, has sources inside India's intelligence community. They're being told the gunman was trained and helped by Lashkar-i-Taiba, a Pakistan-based al Qaeda terror group. Indian officials allege in 1990s, Lashkar-i-Taiba was a state- sponsored terror group used by the Pakistani government to get control of the disputed northern Kashmir region, as well as being responsible for many more recent attacks here. Pakistan banned Lashkar-i-Taiba in 2002.

CNN IBN has also been told the captured gunman says he and his fellow attackers were told to memorize Google Earth maps of Mumbai streets so they could find their targets.

(on camera): As a measure of how seriously the attack and rising tensions are being taken in Western capitals, the FBI is sending a team to help; British investigators are also expected. And Interpol, the international policing group, are also in negotiations with Indian authorities to send in their teams.

(voice-over): While the country mourns its fallen heroes, an undercurrent of anti-Pakistan sentiment is growing. Managing that, while conducting a thorough and open investigation, may be this country's biggest challenge in the coming weeks.

Nic Robertson, CNN, Mumbai, India.

(END VIDEOTAPE) NGUYEN: We want you to take a look at some of these photos from our i-Reporter in India. 26-year-old Aaron Kadri was at home in south Mumbai during those attacks last week. He ventured out the next day and took these photos of the damage caused to the Leopold Cafe at the Taj Mahal hotel. He also attended a vigil for the victims and snapped these unique photos for us.

And you can always send your i-Reports to us by going to ireport.com.

Bangkok's international airport still under siege. Thousands of anti-government protesters have occupied the facility since last Tuesday, demanding the prime minister resign. He's refusing and the army shows no sign of trying to resolve the impasse. So, some 300,000 passengers, as you've been watching them here, remain stranded. But at least one is able to laugh at the situation.

(BEGIN VIDEO CLIP)

JENNY TYNAN, AUSTRALIAN TOURIST: Thursday I was really stressed because I've never left Australia before and I was just so keen to get home. My husband is stressed because of the same thing, my kids. So, yes, we're just -- he said I can never leave the country again.

(END VIDEO CLIP)

NGUYEN: Taking it in stride.

Well, protesters did grant two small concessions. They let Muslim pilgrims leave the airport and they allowed more than 30 commercial planes to fly to other airports in Thailand, where thousands of passengers hope to get on flights home.

A war zone. That's what it was like in the central Nigerian city over the weekend when fighting erupted between Muslims and Christians over results of a local election. A Muslim religious leader says more than 300 people were killed. Hundreds of police moved in and officials imposed a 24-hour curfew in some parts of that city. It was the first election in the area in over a decade.

Well, we do have a shocking report to tell you about today south of the border. Nearly 200 people have disappeared or have been kidnapped this year in El Paso's sister city of Juarez, Mexico. And 34 of them are American. That is from a local group called the Association of Relatives and Friends of Disappeared Persons International. And according to CNN affiliate, KVIA, more than 1,000 people have been killed in Juarez this year. Much of the violence, said to be drug-related. Some residents of El Paso say they'll think twice before crossing the border to visit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's pretty dangerous, I'd rather stay in El Paso.

UNIDENTIFIED FEMALE: I don't want to get killed. It's scary. Just scary.

(END VIDEO CLIP)

NGUYEN: Well, due to the violence, organizers of this year's Sun Bowl have canceled one of its long-standing traditions. And that is taking -- a participating football team is taking them to Juarez so that they can experience the Mexican culture there.

Come January 20th, Hillary Clinton is likely to be the nation's top diplomat. President-elect Barack Obama announced this morning that he'd pick his former rival as his choice for secretary of state. Well, our State Department correspondent, Zain Verjee, joins us now to talk about it.

Zain, what would be the immediate challenges for Secretary of State Hillary Clinton?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, she's going to face so many challenges, Betty: Iraq, Iran, North Korea, Pakistan, India, the rise of China, resurgent Russia, Afghanistan. It's really mind-boggling. So what she needs to do is focus on a few key initiatives and take the lead on those.

Here's what she had to say just a short while ago.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: We know our security, our values and our interests cannot be protected and advanced by force alone, nor, indeed, by Americans alone. We must pursue vigorous diplomacy using all the tools we can muster to build a future with more partners and fewer adversaries.

(END VIDEO CLIP)

VERJEE: She's also going to have to fill out key positions at the State Department, as well as fight for more resources, things like money and manpower, over at Foggy Bottom. And the recession isn't exactly going to help the situation.

A lot of people, too, Betty, are saying that to have someone like Hillary Clinton at the State Department really does matter because she knows how to deal with the internal bureaucracy. She won't take anybody's nonsense or won't let anyone push her around. That's important in raising the profile of the State Department within the government itself.

NGUYEN: Well you know, Zain, Hillary Clinton, Barack Obama, they weren't exactly best friends during the primaries, so this relationship is going to be crucial.

VERJEE: It is. It's absolutely crucial.

Hillary Clinton can really only be successful, as a secretary of state, if world leaders see her as speaking for the president, and also if she can work with the rest of the national security and foreign policy team. That's really key to define specific roles. All of them are huge personalities there on that stage today and they may be behind the scenes down the road or even now pushing different agendas that could lead to potential disasters.

It's also going to be pretty interesting to focus on and see how she works with people that slammed her during the campaign, like Susan Rice that was up with her on stage, now going to the U.N., or Greg Craig.

Obama is really the key here. He's going to be the critical factor in determining how Hillary Clinton's skills are used. We'll see what happens. But it's absolutely critical that she has access to him.

NGUYEN: Our State Department correspondent -- Zain Verjee.

Thank you, Zain.

It's been a long time since a secretary of state made the big jaunt to the Oval Office. In fact, it hasn't happened in more than a century and a half. But the job used to be almost a stepping stone to the White House. Take a look.

The last time it happened, 1857, when James Buchanan became the nation's 15th president. Before him, other secretaries of state to make the jump, they include Martin Van Buren, John Quincy Adams, James Monroe, James Madison, and Thomas Jefferson, who is the nation's first secretary of state under George Washington.

Well, think the credit crunch is squeezing everyone? We are going to take you to a shopping center where no one is even worried about the R word.

And it could be one of the best deals in town. Got any old guns lying around?

(COMMERCIAL BREAK)

NGUYEN: Immigrants might actually have a leg up on other Americans in this ailing economy. And it has to do with the way that they handle their money.

Ted Rowlands explains in today's "Uncovering America" segment.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: While businesses around the country struggle to stay afloat --

DR,ALETHEA HSU, REAL ESTATE DEVELOPER: This one is close to 7,000 square feet barbecue, dim sum.

ROWLANDS: -- Dr. Alethea Hsu's new shopping center in Irvine, California is at near full capacity and packed with customers. She says part of the reason that her jamboree mall is doing well while other retailers are struggling is because many of her customers are Asian.

HSU: Culture-wise, you don't spend all your money. You don't borrow money too much.

ROWLANDS: While stereotypes like hiding money under a mattress may not be true, experts say many immigrants, including Asians, do tend to save more and borrow less than other Americans. So, a bad economy isn't necessarily a bad thing for many immigrants.

DR. RAUL HINOJOSA, PROFESSOR, UCLA: This is all foreign born.

ROWLANDS: Raul Hinojosa, professor of political economy at UCLA, says Asians aren't the only ones who save. Many immigrants do, and they're able to take advantage of the current economy.

HINOJOSA: They don't have a lot of debt right now, so they're in a very good position to be able to actually flourish in a down market and to be able to be the type of people that can quickly stimulate new types of businesses and new types of spending.

ROWLANDS: The businesses doing well at Dr. Hsu's new mall include an Asian grocery store, a mix of Asian restaurants, and 85 Degrees, a popular bakery chain in Taiwan and Beijing. All attractive places to shop for customers who still have money to spend.

Ted Rowlands, CNN, California.

(END VIDEOTAPE)

NGUYEN: Well, it's a lucrative exchange. Get this: steel for plastic. Yes, residents in Southern California got store gift cards for their firearms this weekend. People who turned in handguns or rifles got a $100 card. The value of the gift card went up to 200 bucks for assault weapons. So police were actually pleased with the turn-out.

(BEGIN VIDEO CLIP)

CAPT. WILLIAM RYAN, LOS ANGELES CO. SHERIFF'S DEPT.: We're seeing everything from handguns, rifles, shotguns and assault rifles.

(END VIDEO CLIP)

NGUYEN: All right. So in case you missed it, police plan another Gifts for Guns event in Compton, California, next Sunday.

These tough economic times, they require savvy planning. Our Gerri Willis has some tips on making your job and your money recession-proof.

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NGUYEN: All right, so it's probably no surprise that the U.S. is in a recession. But today the National Bureau of Economic Research finally made it official. And it says that we've been in one, get this, for the past year. Personal financial editor, Gerri Willis, joins us now from New York with strategies on how to protect yourself, your family and your money.

I wish we would have known this a year ago, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I think we did.

NGUYEN: Yes, we've been talking about it for that long.

WILLIS: Well, we have, yes. It's no big surprise here that we're actually in recession, right? And so the question really becomes, what do you do then to protect yourself?

And I think the first thing you think about is your job security. Look, the biggest threat to you right now is losing your job, your income. After that, you lose your house. Things get worse. So you've got to make sure you keep that job. Raise your profile at work. Make sure your boss knows who you are and what good works you're doing. Make sure you're working on the projects that make the most difference to your company, the ones that are really bringing in the revenues. And finally, renew connections with people in your industry outside your place of business. Because let's face it, at the end of the day, if you do lose your job, you're going to have to go back and reconnect with those people.

And a really good idea right now, Betty, make sure you've got that resume in order just in case the worst happens. It's always great to have it updated so you can start sending it out right away.

NGUYEN: That is some good advice.

And when we look at this recession in the big picture, what can we expect?

WILLIS: Well, I think you want to really think also, Betty, about your money, too, right? How do you protect your money?

I think a lot of people are wondering, do I have enough savings right now in case I do lose my job? We always talk about having three to six to even nine months worth of savings so you can pay the rent, put food on the table. If you don't have that, and you have equity in your home, you might think about getting a home equity line of credit. That's always a great idea. It's like having a safety valve out there. You can use some of your home's equity to pay some of those bills while you're getting set up for the next job.

And if you do get laid off, maintain those health benefits. You're allowed to do that under law. Keep those health benefits in place. You'll pay for the privilege, but if you have some kind of illness or some kind of physical problem, ailment you've been trying to take care of, it will definitely make a lot of sense.

Now, you say, well what's the big picture here? Well, clearly recession has just been declared official, but we knew it was happening, right? Everybody felt it already. It's already lasted a year. So definitely, you know, put this in perspective. We've known it's happening, we've felt it already. The good news here is that we're already 12 months into it; average recession, about 16 months -- the longer recessions. So we may be well through it. We don't know the answer to that yet. But the worst could be past us.

NGUYEN: Yes, well let's hope that's the case, that the worst is past us.

Gerri Willis, as always, we do appreciate it.

WILLIS: No problem.

NGUYEN: And Team Sanchez, back there getting ready, working hard for the next hour of NEWSROOM.

Rick Sanchez, hello to you, back from a little vacation I hear.

RICK SANCHEZ, CNN ANCHOR: Good to see you, Betty.

NGUYEN: yes.

SANCHEZ: How have you been, good?

NGUYEN: So far so good, my friend.

SANCHEZ: Listen, I've got a couple of -- we always like to do stories that are a little bit under the radar here. If you're going to be part of Barack Obama's national security team, you might have to answer some real tough questions. That's the case with Governor Janet Napolitano of Arizona. Specifically about her relationship with Sheriff Joe Arpaio and how he had prepared his jails back in the mid- 1990s. We've got some information that's going to startle some people. Certainly some information that should be revealed and that she's going to probably have to answer to during her confirmation hearings.

Take a look at this. Look at this ship right here that we've come across. See this? You know those pirates off of the coast there of Somalia, right? Usually they take those big cargo ships. Well look at this thing, this is no cargo ship.

NGUYEN: That's a cruise ship.

SANCHEZ: Yes, that's a cruise ship. It's got about 600 or 700 people onboard. They tried to take that ship, but apparently they used some evasive maneuvers and were able to get away. Obviously what makes this news is, if they start going after cruise ships, imagine what they'd do with some 600 or 700 people that they then take hostage and the situation that that could develop.

So we're going to be all over that as well, Betty.

NGUYEN: All right. Some startling news; pirates, possible hostages, boy, you've got a jam-packed show.

SANCHEZ: We've got it for you. NGUYEN: Looking forward to it. Thank you, Rick.

SANCHEZ: I'll see you.

NGUYEN: All right. So you love them or you hate them. They have stood, in fact though, in the test of time. We're talking about the Bloody Mary cocktail, and it is marking a bloody big anniversary.

(COMMERCIAL BREAK)

NGUYEN: San Diego's skyline shrouded in fog this morning. But in some areas, the visibility was down to zero. The thick mist delayed flights at the city's airport, all the way up the coast to San Francisco. Big surf, though, crashing to the shore in Northern California over the weekend. Look at that. A storm over the Pacific stirred up huge waves, some of them 18 to 20 feet.

All right. Let's kick it back to Chad Myers in the weather center with the latest on the conditions out there.

Hey, Chad.

(WEATHER REPORT)

NGUYEN: Well, those delayed at the airport, or maybe on the roadways, may want one of those. We're talking about a cocktail with a kick, folks. And it actually has some staying power, Chad. The Bloody Mary, get this, is marking its 75th anniversary today. Yes. The modern recipe is -- or was created by a French bartender who was working in New York. And what he did was he spiced up simple tomato juice and vodka with a little pepper, tabasco sauce, lemon juice and other goodies. And to celebrate, lots of bars actually rolling back those Blood Mary prices to those 1933 levels.

Well, we are going to roll on to the NEWSROOM with Rick Sanchez. He is up next.