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Auto Dealer's Pain Beyond the Lot; Former Military Leaders Look for Change in Torture and Interrogation; Republicans Celebrate Georgia Wins; Tennessee: One in Six People on Food Stamps; Troops Re-Up in Face of Bad Economy

Aired December 03, 2008 - 09:00   ET

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


DON LEMON, CNN ANCHOR: Dumping their corporate jets for hybrid cars. Big three CEOs show Congress how they can cut their budgets and say how they can spend your money.
Also, another primary rival becomes an administration ally. This morning Barack Obama announces a spot for Bill Richardson.

It is Wednesday, December 3rd. I'm Don Lemon. Heidi's off today. You're in the CNN NEWSROOM.

We could collapse this month and that's a quote. America's automakers are painting a very grim picture of life without a taxpayer bailout.

At the direction of Congress all three have outlined what they need and how they intend to spend your money. The price tag is, get this, $34 billion.

The leadership of the autoworkers union is holding an emergency meeting this morning to see what concessions it can make. And as for those running the show there, all three chief executive officers say for the time being they'll accept only $1 a year in salary.

Well, the three head back to Capitol Hill tomorrow. Kate Bolduan is there and she is gauging early reaction to their plans. Brooke Baldwin is in Detroit, Michigan for the all-important UAW meeting, and Christine Romans is in New York keeping an eye on the $700 billion in bailout money Congress has already approved.

But first we go to Brooke.

Brooke, who is supposed to be at this meeting?

BROOKE BALDWIN, CNN CORRESPONDENT: Two words today here, Don -- key words -- survival and sacrifices. Who's here today? We're inside the GM headquarters a couple floors above me in the Marriott, UAW president and executive chairmen and women from all across the country.

What are they here to do? They're here to discuss possible further cuts on behalf of the UAW to help the big three get that multibillion dollar loan from the federal government.

Keep in mind here, that all of this is happening, this meeting, which starts at 10:00 this morning, happens one day after the autoworkers and automakers, rather, were told that they may need to re-discuss this 2007 labor contract which was just discussed last year.

Part of that, they had to already cut some of the wages for the new hires down to $14 an hour. They also shifted the UAW run healthcare benefits that will be shifting to the union in 2010. So those were two major develops that happened last year as part of those negotiations.

Now, today, what could happen? Well, discussions, really. I'm told that they can't vote on anything because they'll need -- they'll need actual membership to do that, so they'll be discussing possibly the job banks. That is where these workers who are laid off from some of these plants that are closing, that's where they're paid.

They could also discuss this union run health care system, the benefits, how may that shake out. I did talk to a couple of the union members when they got in late last night. They were skeptical of the media, but I did get some of them just to, at least, admit to me that some of them are nervous.

They were, essentially, e-mailed on Monday, told to be here in Detroit today to be pat of this meeting. Again, they said nothing significant could really happen as far as a vote goes, but basically what could happen is UAW president, Ron Gettelfinger, who will be here today, will be able to go to Washington and sit beside the big three execs to be able to get that multibillion loan from the government, so they have to have a lot of faith in their union leaders and they have to have a lot of faith here in the big three in Detroit. Don?

LEMON: All right. Brooke Baldwin in Detroit, we appreciate your reporting. Thank you, Brooke.

Meantime, downgrading from private jets to hybrid cars, just one of the many lessons in humility for those big three CEOs. They are pleading their case to a skeptical Congress today.

More from CNN's Kate Bolduan on Capitol Hill.

(BEGIN VIDEOTAPE)

REP. GARY ACKERMAN (D), NEW YORK: It's almost like seeing the guy show up at the soup kitchen in high hat and tuxedo.

KATE BOLDUAN, CNN CORRESPONDENT (voice over): Mocked for taking private jets, asked for a taxpayer bail-out, this time they're driving. Ford CEO in an Escape hybrid and GM's top executives in a Malibu hybrid, making the nearly nine-hour trip from Detroit to Washington to ask for even more than the original $25 billion lifeline.

Job one is salvaging a PR gaffe. Ford's CEO is making the case through a new Web site and YouTube.

ALAN MULALLY, CEO, FORD MOTOR COMPANY: We will get through this. We'll come out the other end as a turbo machine.

BOLDUAN: Chrysler's vice president warning Maryland dockworkers about the fallout if the big three fail.

BOB NARDELLI, CEO, CHRYSLER: The campaign that we're on is a real simple one. It's about saving jobs and preserving our way of life in America.

BOLDUAN: Congressional leaders are demanding accountability, proof the big three can survive, and an end to excessive executive compensation.

REP. NANCY PELOSI (D), HOUSE SPEAKER: It's ridiculous to ask the taxpayers to fund the shortfall of companies that are paying millions of dollars to their executives while the companies are losing billions of dollars.

BOLDUAN: GM is asking for up to $12 billion immediately And maybe another $6 billion later. The company claims, with restructuring, it can become profitable again and repay the loan by 2012.

Ford wants accessed up to $9 billion. Ford says it may be financially strong enough to not need the cash, but wants it available. And like the other automakers, it would step up production of electric and fuel-efficient vehicles.

Ford also would get rid of its five corporate jets, and all the CEOs are promising to work for a dollar a year.

(END VIDEOTAPE)

BOLDUAN: Now, Ford says that pay cut for their CEO will take effect if the company -- only if the company -- actually uses the bailout money, an important note there. Now, Chrysler is now asking for $7 billion in federal dollars.

All three automakers, Don, will be back here on Capitol Hill to face the music once again. They're hoping for a better outcome this time when they get here for hearings Thursday and Friday.

LEMON: All right, Kate Bolduan, thank you very much for that.

Remember, the $700 billion rescue plan passed before the election? Where exactly has that money gone? And is there any left for the automakers?

Our Christine Romans is in New York with a rather critical audit.

Christine, where do things stand right now?

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, where things stand right now is that the Government Accountability Office had its review, its first sort of formal audit of the $700 billion financial rescue and how it's been going and they found some concerns about oversight and some lapses in oversight.

And they had some recommendations for how to make things better, hiring more staff, hiring more qualified staff, improving the facilities, improving the transition into the next administration, and in general, improving the oversight of how this money is being spent.

Now, keep in mind, this was passed very quickly. It's an unprecedented effort overall. We knew at the very beginning that what the government was trying to do was something that had never been done before and that would normally take years to build out the infrastructure to do, and instead they were doing it quite literally overnight or over a couple of weeks.

So there are some holes there. The Treasury Department says it is -- it is putting together its own compliance program.

But here's how the money has been spent. About half of your money, this is your money after all. Half of your money is still left to be spent. The Treasury Department must ask Congress by law before they can spend $350 billion of this.

$250 billion has been earmarked to banks. I think about more than like $150 billion or so, $160 billion of that has already been passed out. $40 billion to AIG, $20 billion for this consumer lending facility with the New York Federal Reserve, it was announced last week, another $20 billion to Citigroup in addition to its $25 billion.

Don't forget that it got as a part of that big yellow pie chunk there to the banks. And then there's about $20 billion leftover to spend before the treasury secretary has to go back to Congress -- Don?

LEMON: Where are we going to get all this money to pay for this?

You know, I got to ask you this. Just before I came up here, there's some news came out about job cuts. And as I was reading it, it's no very good, Christine.

ROMANS: No, it's not good. And we know that November and December, these are the months that employers are taking a look at their headcount, trying to make numbers by the end of the year, looking at 2009, and they are cutting jobs.

Challenger, Gray & Christmas found the second highest number of job cuts in November on record, the highest since the month after September 11th. And ADP, another survey of private payrolls of private employers, found 250,000 jobs cut in the month of November.

Worst hit, Don, middle-sized businesses, companies that have, oh, say, you know, up to 450 employees to 499 employees. These middle-sized businesses, those are the -- medium-sized companies that are really getting hit and having to lay off an awful lot of workers.

LEMON: And, guess what, no one is bailing them out.

ROMANS: No, there are not.

LEMON: All right. All right, Christine Romans, we appreciate it. Thank you very much.

Now let's turn to the person who's soon to be in charge of this economy. We're talking about Barack Obama and there's another addition. The President-elect Barack Obama is set to name another former rival to his Cabinet. This time it is New Mexico governor Bill Richardson.

Our Suzanne Malveaux joins us now from Washington this morning.

And Suzanne, when we heard about all of these new appointments on Sunday night that were to come out on Monday, we're surprised Bill Richardson's name was not on it, but finally, yes, he is being appointed.

SUZANNE MALVEAUX, CNN CORRESPONDENT: And Don, talk about experience here. I mean, Bill Richardson -- he's been a governor, a congressman, a diplomat, a U.N. ambassador, and an energy secretary.

He's negotiated with countries like North Korea, Iran, Cuba, Iraq. He's got hostages out, peace agreements in, ceasefires, so why commerce secretary? That is the big question. It was widely viewed that he would be the logical pick for secretary of state, but that big prize went to Senator Hillary Clinton.

But as a governor, he has acted as a CEO of his state, balancing budgets, increasing access to healthcare, and Richardson's own bid for the Democratic nomination, it never really gained traction.

When I asked him about that in an interview before he dropped out of the race, he said that his weakness was, is that despite his accomplishments he wasn't as high profile or as charismatic as some of his competitors in the Senate.

And after Richardson dropped out there was, of course, Don, a lot of suspense over who was going -- he would -- who he would endorse. He's a very close friend of the Clintons. He and Bill Clinton spent Super Bowl Sunday together before he shocked everyone and ended up endorsing Obama.

Now this infuriated Bill Clinton, but they have since decided to put that aside and move on. So he's got a Cabinet now, Don, that's made up of Hillary Clinton as well as Bill Richardson.

LEMON: I've got to ask you. And you talked about a little bit -- is this somewhat of a concession prize for Bill -- for Bill Richardson because I thought he wanted to be secretary of state?

MALVEAUX: It looked like that was certainly going to be a fit, and they were trying to figure out, OK, Senator Hillary Clinton, where would -- where would she go in this Cabinet. Bill Richardson, how does Joe Biden fit in this? Obviously, the VP pick, all of them in some ways, their resumes really kind of overlap in terms of what kind of experience they have, whether it's their foreign policy credentials, whether it's business.

So there was really kind of a close look at all of these individuals, how do we all bring them into the tent. Obviously, Bill Richardson looks like he could have fit in either one of those jobs.

LEMON: All right. CNN's Suzanne Malveaux. Thank you very much for that, Suzanne.

We're going to find out more when the official announcement happens on Bill Richardson. That nomination is expected at 11:40 Eastern Time, this morning. And we'll bring you the president-elect's Chicago news conference. It will be live, so make sure you stay tuned for that.

Meantime, Republicans nationwide are celebrating Senator Saxby Chambliss' runoff election win in Georgia. The victory keeps a filibuster in play for the GOP in the next Congress.

Chambliss defeated Democrat Jim Martin by more than 10 percentage points. The runoff was mandated when Chambliss failed to win a majority of votes in November's general election. Martin placed second in a three-way race.

With the Minnesota race still undecided, Democrats have a 58-41 edge in the Senate.

We have some stunning new developments in the Mumbai attack investigation. How long and where the gunmen trained.

(COMMERCIAL BREAK)

LEMON: Let's talk about terror in India. What a sad story we have been covering here for the last couple of days. Secretary of State Condoleezza Rice is trying to cool rising tensions between India and Pakistan.

She arrived in New Delhi early today for talks with Indian officials including how best to address the growing crisis following the siege on Mumbai. India insists the attacks originated inside Pakistan and demanded that the country -- the country hand over about 20 militants who have taken refuge there.

Rice says Pakistan's president has assured her the country is committed to following any leads wherever they go.

And we have some new details for you today on those attacks in Mumbai. The lead investigator says the militants trained and planned in Pakistan for three months before launching their assaults.

CNN's Nic Robertson joins us now live from Mumbai with the latest on that.

What are you hearing?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Don, the latest we're hearing from the police, the lone gunmen who survived and has been captured, Mohammed Ajmal Kasab, was in the terror group Lashkar-e-Tayyiba for two years and had a year and a half of training in specialized in small weapons, handguns, automatic weapons.

He went to different training camps for these different specialties on explosives, on survival training, on maritime training before the last three months where, according to the police, he's told them that he specialized on and focused on the exact locations that he was going to target on his attacks. And of those four different groups of gunmen who came ashore from boats that they sailed from Pakistan, according to the police, they each in the last few months had different, very specific training.

They were shown photographs of the locations that they were expected to go to. They were told how to get those locations. They were shown the doors at the locations. They would go in through this door they were told and then out through that door. That would be your next location.

So, very, very detailed, detailed training for them, Don.

LEMON: CNN's Nic Robertson. Nic, we appreciate that.

Meantime, an airport crisis ends in Thailand as sporadic flights take off and land at Bangkok's main airport. Full operations are set to resume tomorrow. The weeklong siege by anti-government protesters left thousands stranded.

It ended after a Thai court dissolved the ruling party, but the party has reformed under a new name which will let it stay in power.

Meantime, back here at home we have some weather advisories for you. Our Jacqui Jeras on top of that -- Jacqui?

(WEATHER REPORT)

LEMON: I know all about that lake enhancement and lake-effect snow.

JERAS: Oh yes. Oh yes, you're in Chicago.

LEMON: I don't miss that at all.

JERAS: Duh? Of course.

LEMON: I don't miss that at all, Jacqui. All right.

JERAS: Hey, you know, speaking of Chicago, did you hear that the mayor is saying that they need to cut back on their snow removal?

LEMON: Ooh.

JERAS: Yes.

LEMON: Well...

JERAS: A lot of people not so happy about that.

LEMON: Well, a mayor did not get elected because of that before so, double-check that, Mayor Daley.

JERAS: We'll see what happens.

LEMON: All right. Thanks a lot. Thanks a lot, Jacqui.

Here's another reason for the two ruled -- that two-drink rule that you hear so much about. A new study suggests why it's bad for women to go over the limit.

(COMMERCIAL BREAK)

LEMON: OK, so how much is too much? Well, a new study suggests more than two drinks a day puts women at risk, increased risk, of heart problems.

Our Dr. Sanjay Gupta joins us now from New York. Dr. Gupta, I thought alcohol was good for your heart, but in moderation, right?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, that's what doctors always say, right, in moderation. The problem is that no one knows exactly what moderation means necessarily.

You're right, Don, I mean there have been a lot of studies showing that alcohol can be good for your heart. It can lower bad cholesterol. It can raise good cholesterol, but they always say moderate drinkers are best. The question is how much is too much just like you asked.

This was the subject of a study, a large one, Don, over 34,000 middle age women. They followed them for 12 years, trying to figure out what sort of problems might happen if you start to drink a certain amount.

And what they found, more than two drinks significantly increases the risk of something known as it atrial fibrillation. That's an abnormal report rhythm. That's compared to women who drink less than that.

Now, again, this was a large study, it was a long-term study. Most -- a lot of people as they get older may have some sort of heart rhythm problems, you know, about 10 percent of the population beyond a certain age is going to have a problem like this, but this is one of the first studies to show that just drinking a little too much, more than two drinks a day for women specifically, can greatly increase your risk of this.

You know, people -- have risk of heart disease already, have had stroke problems in the past, they're going to, they're going to need to think about this the most. But, again, moderate drinking, more than two might be a little too much.

LEMON: But, you know, I have to be honest with you, because as talking to some of the ladies here in the newsroom and, you know, everyone, everyone, men and women, they want to relax maybe after work or, you know, after a long week and have a couple of drinks. And I think that, you know -- I think it's two -- you said two drinks and it's like four or five ounces.

That doesn't bode well for a lot of women, especially women who drink a little bit more than that. You think -- when you think a glass of wine, you think more than that, Dr. Sanjay.

GUPTA: Yes, well -- you know, and as a doctor, I'm not necessarily going to advocate too much or too little drinking. But here's one thing to keep in mind as well, Don. You know we do a lot of these medical stories. There's a thing known as relative risk and absolute risk.

LEMON: Right.

GUPTA: I don't want your friends to think that if they had more than two drinks they're certainly going to get it atrial fibrillation. Only about 3 percent of women who drink more than two drinks on any given day are at a higher risk for atrial fibrillation.

But that's -- you know, it's higher than if you didn't have those drinks. So, you know, it's one of those things you need to be cautious of but not be paralyzed by it either. And as far as the alcohol -- because you brought this up, 12 ounces of beer, five ounces of wine, a shot of liquor, all have roughly the same amount of alcohol and the same number of calories on average, Don.

LEMON: Got it. Dr. Sanjay Gupta, we appreciate it. I would imagine moderation for men as well. Thank you, sir.

GUPTA: Yes, I don't want to be a downer over the holidays, but, yes, always drink safely.

LEMON: All right. Thank you, Doctor.

GUPTA: Thanks, Don.

LEMON: Meantime, we're going to talk about that bailout for automakers. 700 auto dealers, I should say, have gone bust this year and you're feeling the ripples right in your neighborhood. We'll tell you about that.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Don Lemon.

LEMON: And, of course, we cannot get through the day without talking about the economy and that means Wall Street. On Wall Street, a dismal report on the labor market.

A tech giant warns of a tough road ahead and, of course, the state of the big three automakers, it's handing in the -- is hanging in the balance, I should say. How are investors taking it? That's the big question. Will the market be up or down today?

Susan Lisovicz at the New York Stock Exchange with the preview of the trading day.

Susan, I'm looking at Sprint and NASCAR about to ring the bell behind you.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. They're -- yes, they're ringing the opening bell. And in the meantime we're watching some things that are not moving as fast, and that is, for sure, some of the stocks that have been pounded in the auto sector.

You know, we just had a very volatile week, you know. We had nice gains yesterday, a big selloff on Monday. The Dow plunged 680 points on Monday, Don, rebounded 270 yesterday.

Today we're expecting a lower open. And there's the opening bell. And they're off with NASCAR.

The big question is about a Big Three bailout. GM, Ford and Chrysler each submitting separate plans, detailing how much federal money they need and what they would do with it if approved by Congress. And now instead of the original $25 billion, they're asking for $34 billion. GM and Chrysler both say they could run out of funds this month.

Other companies suffering as well. BlackBerry maker Research in Motion, cutting its quarterly sales and earnings guidance. And in the meantime, more signs that the recession is deepening. A new ADP survey says 225,000 jobs were cut just last month. This comes two days before the bigger employment report. The government's monthly jobs report.

Separate report shows worker productivity revised higher, partly because there were fewer workers turning out more goods per hour worked. In about half an hour, we're expecting to learn that the services sector contracted further last month.

All of that taking a toll on Wall Street. So, the Dow give us, the Dow take it away. Right now it's taking away. The blue chips are down 159 points or nearly two percent. The NASDAQ is down 2.5 percent. And, yes, that was Jimmy Johnson who won NASCAR's Spring Cup for the third straight year and rang today's opening bell. But you knew that.

DON LEMON, CNN ANCHOR: I'm at NASCAR all the time.

LISOVICZ: There you go. He races with a Chevy, by the way.

LEMON: Yes. And you know what, Susan, we don't want to gloss over this, because if GM does go down, we know it's like a domino effect and they could take, you know, the rest of the auto industry with them and a couple of other sectors as well. So, that's not good news.

LISOVICZ: Well, the thing is, as you know, you could say, you know, look, GM brought its troubles upon itself or, you know, look, there's moral hazard. All of those thins, but the bottom line is when you have a company that big fails, it affects a lot of other businesses, part makers, for instance. And there was -- there had been some surveys that show and they've cited that one in 10 jobs is somehow related to the auto industry.

LEMON: Millions and millions of jobs. OK, thank you very much for that. Susan Lisovicz --

LISOVICZ: You're welcome, don. Good to see you.

LEMON: Yes, good to see you as well.

We're going to continue to talk about the big three. Bankruptcy is not an option, that's from the president of General Motors. His company along With Ford and Chrysler are looking to Congress to throw them a lifeline. In that bailout they seek $34 billion.

The heads of the big three automakers go back before Congress tomorrow to explain exactly how they'll spend that money. Leaders with the United Autoworkers Union are holding an emergency meeting this morning in Detroit to see what they may have to give up to make the plan work.

Well, you may think you're not affected when the auto dealer around the block shuts down? You'd be wrong, if you think that. CNN's Mary Snow reports on that.

(BEGIN VIDEOTAPE)

KEVIN HOLDORF, AUTO DEALER: Do you know if she reported any deals today?

MARY SNOW, CNN CORRESPONDENT (voice-over): Kevin Holdorf says he's never seen a slowdown this bad in the 22 years he's been at this New Jersey dealership. He says roughly 55 new cars sold last month -- a third of fewer sales than in good times. And that's better than most. While staff and spending have been cut, the effects go far beyond the dealership's doors.

HOLDORF: We deal with a lot of charities in the area -- senior citizen centers, local high schools, Little League. And if any business, especially ours, is having a rough time, that's less that we can give back.

SNOW: So far this year, the National Automobile Dealers Association says about 700 of roughly 21,000 dealers nationwide have gone out of business. And the number is growing. The group is taking out ads urging help from the federal government.

ANNETTE SYKORA, CHAIRWOMAN, NATIONAL AUTOMOBILE DEALERS ASSOCIATION: Dealers are the local public face of the automobile industry in communities and towns all across America. And so when they go out of business, not only do we lose consumer convenience and competition, but then that economic impact is very dramatic.

SNOW: Part of that dramatic impact, says one policy analyst, is the drop in state revenues.

IRIS LAV, CENTER ON BUDGET AND POLICY PRIORITIES: In a typical state, the auto sales will make up maybe between 12 and 15 percent of all sales tax revenue.

SNOW: And some states could be higher. In New Jersey, one trade group estimates auto dealers make up about 20 percent of all retail sales. It estimates that for every one percent drop in new car sales, the state loses more than $8 million in sales tax revenue. And it comes at a time when states are struggling and people are looking to government for more help with unemployment benefits and social services.

LAV: The state and local governments are pretty stuck unless the federal government comes in and helps them out. SNOW (on camera): It's estimated by the end of this year, there will be about 3 million fewer cars sold compared to a year ago, and that means a loss of billions in sales tax revenues. Mary Snow, CNN, New York.

(END VIDEOTAPE)

LEMON: We want to tell you about another name to add to Barack Obama's cabinet lineup this morning. This one is no real surprise. The nomination of Bill Richardson as commerce secretary has been rumored for weeks. The New Mexico governor was also under consideration for the secretary of state post. Richardson will become the latest former foe to be included in the Obama cabinet. We'll bring you the announcement. We'll bring that live to you at 11:40 Eastern, right here on CNN, of course.

Meantime, former President Clinton says his wife was surprised to hear her name come up in conversation for secretary of state. Hillary Clinton's nomination was formally announced on Monday. And in an exclusive interview with CNN's international Anjali Roe this morning, President Clinton speculated about what role he will play.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I think my involvement will be what our involvement with each other's work has always been. That is all the years I was a governor and president, I talked to her about everything. And I, you know, found her advice invaluable. And I'm sure that we'll talk about all of this. I mean, I really care about a lot of these profound challenges that our country and the world are facing.

But the decisions will have to be ultimately the President-elect Obama's decision. I'll just try to be a helpful sounding board to her. But I don't think I will do any more than that. Unless, he asks me to do something specific, which I'm neither looking for nor close to.

(END VIDEO CLIP)

LEMON: Well, Barack Obama's transition team will be meeting some big brass today. A dozen retired generals and admirals will be in town to talk about torture and interrogation techniques, and to push for rule changes in the new administration.

CNN's senior Pentagon correspondent, Jamie McIntyre, joins us live this morning.

Jamie, why is the CIA opposed to using the same interrogation techniques as the U.S. military?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, you know, the CIA has said all along that -- that it does not torture suspects, but it also doesn't reveal exactly what interrogation techniques it uses. It says, if -- if they want to -- if they publish that, then the enemies of the United States, al Qaeda and the like, can simply train to thwart those techniques.

This, of course, is a big issue that's going to be facing President- elect Obama when he takes office next month. And he's getting some advice today, his transition team is getting some advice from a distinguished group of retired generals and admirals, about a dozen of them, who are meeting with Obama's transition team.

They are calling for a clean break with the policies of the Bush administration. And among these generals is the retired U.S. Central commander, General Joseph Hoar, who was head of the Central Command back in the 1990s. He told the Associated Press that they have a fairly extensive list of, quote, things they want to get done and undone. Chief among those are a change in the interrogation tactics so that they are one standard across the U.S. government. Preferably, the U.S. military standard.

Also, an end to those so-called extraordinary renditions, where the CIA captures terror suspects abroad and then sometimes sends them to secret prisons and, of course, closing the Guantanamo prison. These are all challenges that the Obama administration has essentially said they want to move on. And they're going to get some reinforcement today from, again, from this distinguished group of retired generals and admirals.

Don?

LEMON: So, Jamie, how soon, then, would Guantanamo Bay close?

MCINTYRE: Well, you know, it's a thorny problem. Defense Secretary Robert Gates just yesterday here at the Pentagon said it was, quote, "a high priority," but he suggested they might have to have an act of Congress to actually change Guantanamo.

And, of course, what people are concerned about is even if they physically close the base, but then they move some of these terror suspects, especially the so-called worst of the worst, to the United States, they simply transferred the problem from Guantanamo to the U.S.

The real question there is under what circumstances can the U.S. hold people without -- without any access to sort of a legal recourse to get out. And that's one of the thorny issues that's going to face this administration, and the new CIA director, whoever that ends up being.

Don?

LEMON: Jamie McIntyre, thank you.

A runoff election win in Georgia with national significance. Why Republicans everywhere are breathing easier this morning.

And we have some sad news to report here. Familiar voice of the civil rights movement is gone. Renowned folk singer Odetta has died at the age of 77. The classically trained blues and Gospel singer, combined folk, blues and gospel, for a unique sound that champion African- American music. Odetta's long career included recordings and performances with Harry Belafonte and The Kingston Trio. Folk singer Odetta dead at the age of 77.

(COMMERCIAL BREAK)

LEMON: We are monitoring this. You're looking at a live picture now. This is from New Delhi, India. Secretary of State Condoleezza Rice, of course, meeting with Indian officials. She was quoted as saying that Pakistan, in her talks with Indian officials, that Pakistan has pledged to follow leads wherever they go.

Of course, India is saying that Pakistan in some way is responsible for this. And the secretary of state is there trying to negotiate, also trying to bring some calm to the area. We will monitor these pictures and the events there and bring it to you if any news comes out of that.

In the meantime, apparently even pirates listen to their leaders. As a Somali official says pirates released a Yemeni cargo ship without getting a ransom after negotiations with local clan elders. On the cargo ship was one of many seized in recent weeks by pirates operating off the coast of Somalia. The official says the Yemeni ship and crew are safe, and right now it's in a village in the region waiting to be refuelled.

The Brazilian government is pledging to swiftly repair key ports damaged by massive floods that deluge parts of the country. At least 116 people have died in the Santa Katrina area. Many of them in landslides triggered by the floods, and that number is expected to rise.

More than $400 million in revenue has been lost at one port since the flooding started last month. And Brazilian officials say the loss grows by $35 million each day the port remains closed.

Jacqui Jeras joining us now in the CNN severe weather center to tell us about whether here -- we still have those advisories in the Midwest, Jacqui?

(WEATHER REPORT)

LEMON: All right. Giving Republicans a last line of defense in the Senate. Saxby Chambliss' win in Tuesday's runoff election carried far beyond his home state of Georgia. CNN's Dana Bash reports.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (on camera): It has been a wrenching month long runoff campaign here in the State of Georgia, but in the end, the Republican incumbent Saxby Chambliss won with a pretty healthy margin over the Democratic challenger here, that's Jim Martin.

Now what this means on a national level is that Democrats in the United States Senate now will not have the 60-vote majority, a filibuster-proof majority, that they were hoping to get, and that was a major part of Senator Chambliss' campaign here. He said elect me because I will be a fire wall against Barack Obama's agenda in Washington and he made clear he intends to keep that promise.

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SEN. SAXBY CHAMBLISS (R), GEORGIA: I look forward to working with him, but when he wants to raise your taxes, when he wants to tanker with the Second Amendment, when he wants to make proposals with respect to health care that were or going to take your choice of choosing your doctor away from you, then I'm going to be the 41st senator to stand up and say no.

(APPLAUSE)

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BASH: Because of the national implications for this Senate race, in part because of the fact that this was the last time voters were going to go to the polls in the 2008 cycle, there really has been a big spotlight on the state of Georgia. Millions of dollars have poured in, and that has fueled television ads that voters here have been bombarded with throughout the last month, while other voters around the country have been able to get a respite from that.

And we've also seen political celebrities, Democrats and Republicans, from Bill Clinton to John McCain and Sarah Palin, parading through the State of Georgia. But in the end, the Republicans did pull it off. And certainly they are celebrating here, not just because of this particular race, but because of the fact that Republicans have not had a lot to celebrate about lately. And this certainly gives them at least a mental boost to a party that has been demoralized. They said here tonight that this may be the beginning of their abilities to get beyond their big problems and start rebuilding.

Dana Bash, CNN, Atlanta.

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LEMON: All right, Dana.

Pretty good perks come with the position.

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UNIDENTIFIED MALE: We get free housing, free insurance. We don't have to pay for electricity and water.

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LEMON: Well, of course, one job demand is to put yourself in harm's way, unfortunately. Well, the economy is making reenlistment a sweeter, sometimes bittersweet deal.

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LEMON: We want a snapshot on just how tough things are getting in this recession. Here it is. In Tennessee, the government says one out of every six people, that's 433,000, is on food stamps. That's up almost 10 percent since January.

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KELVIN MEEKS, TENNESSEE DEPARTMENT OF HUMAN SERVICES: You come into our lobby in the morning and take a look at the lobby, and you see folks that are just, -- it's -- some of it is standing room only some days.

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LEMON: People from all walks of life are applying for food stamps, many for the very first time. They simply cannot find a job.

And there is one field where there is always a steady paycheck. And no surprise, it is thriving. More people are joining and staying in the military. Marie Antonia of affiliate KMBC in Missouri brings us one soldier's story.

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MARIE ANTONIA, KMBC CORRESPONDENT (voice-over): Sergeant Jay Thorne spends lots of time in lots of places, with a squad in Kuwait, in a sandstorm south of Baghdad, but this poses an issue. The 28-year-old can be closer to one of Saddam's castles than his own home.

SGT. JAY THORNE, U.S. ARMY: We made the decision, but I try not to think about it too much.

ANTONIA: A difficult decision since reenlisting means he won't be there for more of the kids' birthdays or their photos.

J. THORNE: Yes, I mean, it's hard. But this decision was really our best interest -- in the kids, my family, my wife's family, my wife.

ANTONIA: A wife who is expecting, they already have two children.

AMY THORNE, WIFE: The Army does take care of you, and that's wonderful. The civilian world is a little more brutal. It's harsh.

J. THORNE: We get free housing, free insurance. We don't have to pay for electricity and water.

ANTONIA: The couple couldn't find a civilian job that pays enough.

A. THORNE: So you feel like you don't have much choice to go in the civilian world and you're not used to paying $800 for rent.

ANTONIA: When you have a son with a medical condition that affects his hearing.

J. THORNE: Since I've been on active duty, he's had three surgeries. We haven't paid for anything.

ANTONIA: So they pay in other ways.

A. THORNE: It's hard at night, you know, when daddy doesn't tuck him in. All that good stuff.

ANTONIA: We first met the Thornes in 2003 when an emotional Amy was surprised to see Jay come home for the birth of their daughter Lexxi (ph). He's now stationed in Germany, had the family there, but brought them home so Amy could again give birth in the U.S.

The sergeant who joined the reserves in 1999 tells us he knows at least ten other soldiers reenlisting for economic reasons.

J. THORNE: As of right now, it's really our only option.

A. THORNE: You know, there's webcams. Webcam is good. You just make the best of it.

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LEMON: That's Marie Antonio of KMBC. Well, Thorne and his family are far from alone. In fact, the Pentagon says it's just wrapped up its strongest recruiting year since 2004.

All right. Ho, ho, ho. No, no, no says one Grinch.

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VOICE OF SANTA CLAUS: How about a song to get you into the holiday spirit.

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LEMON: Santa chatter becomes the talk of the little town of Bethlehem.

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LEMON: I like the tree. I like the song, too. Isn't that beautiful? Look at that. Just mostly blue. And you see the Capitol in the background. The holiday spirit of course is a blaze on Capitol Hill. Last night was the annual Capitol Hill Christmas tree lighting. The 78-foot fur from Montana's bitterroot forest is adorned with 10,000 energy saving LED lights. Did you get that? Energy saving. It's green. It's a green tree.

Its branches are decorated with 5,000 ornaments handmade by Montana residents. But if you're still not in the holiday spirit, well, make sure you tune in tonight for the lighting of the Rockefeller Center Christmas tree. That is in New York City of course at Rockefeller Plaza.

Well, you would expect Christmas spirit to be plentiful in the Christmas city of Bethlehem, Pennsylvania. But there is a Grinch in their midst trying to steeple Santa Claus. Joscelyn Moes, of CNN affiliate WFMZ has the Grinchy story.

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VOICE OF SANTA CLAUS: How about a song to get you into the holiday spirit.

JOSCELYN MOES, WFMZ CORRESPONDENT (voice-over): Santa Claus has come to town.

(SANTA CLAUS SINGING)

CHRIS BRUMFIELD, OWNS SINGING SANTA: A friend of ours had found it and we've said, oh, we've got to have it because it's Christmas.

MOES: Now every Christmas, Chris Brumfield puts the mechanical singing Santa out in front of his Bethlehem home.

UNIDENTIFIED GIRL: He sings and we play him around and around and around.

MOES: For all to see and hear.

BRUMFIELD: They're familiar tunes to everybody.

MOES: But not everybody likes the jolly old elf. In fact, some want to silence...

(SANTA CLAUS SINGING)

MOES: ...Santa.

BRUMFIELD: Someone has taken offense to him.

MOES: They've even called the cops on the man in the big red suit. But Chris says he and Kris Kringle aren't guilty of anything but spreading holiday cheer. Many agree calling it a festive addition to the neighborhood.

JOSE ESPINAL, NEIGHBOR: The way things are going right now, you know, everybody is worried about the economy, this and that, there's got to be something to cheer you up.

(SANTA CLAUSE SINGING)

MOES (on camera): Although Santa can sing louder, Chris says he tries to keep the Christmas spirit up by keeping the volume level down.

(voice-over): He also says you won't hear Santa belting out any holiday classics after 8:00 or 9:00 at night. Chris just hopes he isn't forced to switch off Santa for good.

(SANTA CLAUSE SINGING)

MOES: He says it would make for one long silent night.

UNIDENTIFIED MALE: December in the Christmas city. I mean what could be more appropriate?

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