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Obama Makes More Cabinet Selections; Christmas Concert Protest; More from Mumbai Survivors

Aired December 03, 2008 - 10:00   ET

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

DON LEMON, CNN ANCHOR: Filling up his cabinet. Barack Obama returns to a list of primary rivals for his latest nominee. This morning Bill Richardson's role revealed.
Plus live from Mumbai, what we've just learned about the gunmen who terrorized the city.

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

Bill Richardson is set for his day on stage. The New Mexico governor is expected to be introduced this morning as a choice for commerce secretary. It is the latest cabinet nomination for President-elect Barack Obama. And CNN's Suzanne Malveaux joins us now live from Washington with the very latest on that. The announcement, 11:40 Eastern, correct?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Right, Don. Really take a look at this guy. Talk about experience. Bill Richardson has been a governor, a congressman, a diplomat, a U.N. ambassador, an energy secretary. He's negotiated with countries like North Korea, Iran, Cuba, Iraq. He's gotten hostages out, peace agreements in and cease- fires. So why commerce secretary? Really? That's the question. It was widely viewed that he would be the logical pick for secretary of state. But that big prize, as we know, went to Senator Hillary Clinton.

But as governor he has acted as CEO of his state, balancing budgets, increasing access to health care. And Richardson's own bid for the democratic nomination never really gained traction. When I talked with him in an interview about that before he dropped out of the race, he said his weakness, was that despite his accomplishments he wasn't as high profile or as charismatic as his competitors in the Senate. And after Richardson dropped out, there was a lot of suspense Don over who he was going to endorse. He's a very close friend of the Clintons. He and Bill Clinton spent Super Bowl Sunday together before he shocked everybody and endorsed Obama. It infuriated Bill Clinton but since then they have decided to put that aside and move on. And Don, you're looking at a cabinet of course that includes Hillary Clinton as well as Bill Richardson.

LEMON: Yes. Cabinet of rivals. That's what we're hearing. Suzanne Malveaux in Washington. We appreciate it, Suzanne.

That official announcement by the way on the Richardson nomination is expected at 11:40 Eastern this morning. And we'll bring you the President-elect live from Chicago when that news conference happens. So make sure you stay tuned.

Saxby Chambliss has ran his race on a pledged of being a firewall against Barack Obama's agenda. And the Georgia senator gave republicans what they wanted.

(BEGIN VIDEO CLIP)

SEN. SAXBY CHAMBLISS (R), GEORGIA: This race has been nationalized. People all around the world have truly had their eyes on Georgia. And you have delivered tonight a strong message to the world that conservative Georgia values matter.

(END VIDEO CLIP)

LEMON: Chambliss defeated democrat Jim Martin in Tuesday's run-off election. The win gives the GOP at least 41 Senate seats in the new Congress, keeping a filibuster in play.

Forget bankruptcy. Automakers say a bailout is better. The price tag? Around $34 billion. The heads of the big three detail their plan for spending that money tomorrow before Congress. The CEOs say they'll cut their own pay to $1.00 $1 a year and may have to eliminate certain cars and more jobs to make it work.

Also talking concessions. The Auto Workers Union, an emergency meeting is underway right now in Detroit. Our Brooke Baldwin is there. So who is at this meeting this morning, Brooke?

BROOKE BALDWIN, CNN CORRESPONDENT: Well, Don, I'm told, 525 different delegates. That meeting getting under way right now. It is UAW local president, executive chairmen and women from all across the country meeting here at the Renaissance Center. This is the General Motors headquarters, meeting just a couple floors above me in the hotel here. They're meeting to discuss, as you said, concessions, possible further cuts to help the big three, plead with Congress to get that multi-billion dollar loan to help get that liquidity so they can survive in this economy. Now keep in mind here that this morning's meeting is happening after automakers yesterday announced that they need to reopen that 2007 labor contract which already slashed wages for the new hires and also shifted the UAW health care benefits for retirees. That would be shifting to the UAW in 2010, and the health care benefits alone is what the big three are paying billions of dollars to each and every year.

What could be discussed this morning? Of course, those health care benefits and also, Don, what they call these job banks. That is how these laid off workers, thousands of laid off workers when plants closed, that's where they get paid. That's all up for discussion. So you can bet we'll be running upstairs and try to catch Ron Gellfinger, he's the UAW president, and he'll be briefing the media as far as what discussions happened this morning in the meeting which is by the way is closed to the media. Don.

LEMON: Have you had a chance to speak to any of the union workers yet? BALDWIN: I have. It's tough to talk to some of them. But those who were willing to speak to me off camera did admit that yes they're nervous about the possible cuts, the possible concessions they may have to make in addition to the concessions they already made last year as part of that labor contract. But they also admit that they have to have faith in their leadership, and that they have to have faith in the cooperation that they could take part of in this meeting and Ron Gellfinger could bring to Washington could prove to be key when it comes to the big three survival.

LEMON: All right. Thank you very much for that. Brooke Baldwin in Detroit. Again, the automakers plead their case before Congress tomorrow. And you can tune in right here on CNN beginning at 10:00 Eastern time.

Meantime, there's a new report on national security. And it says the U.S. is at risk because of the current security system, and it is dysfunctional, they say. The report from the project in National Security Reform recommends an overhaul of the current strategies. And it calls for the appointment of a new security council headed by a director of the National Security to advise the president. An interesting note, James Jones was named by the president-elect as a national security adviser, was among the experts who put the security report together.

(BEGIN VIDEO CLIP)

PRES. ASIF ZARDARI, PAKISTAN: My government will take action, our government will take action. The democratic government of Pakistan will take action against all the actors and anybody who is involved.

LARRY KING, CNN HOST: So you're firmly committed to getting at the root of this?

ZARDARI: Not just the root of this. I'm firmly committed to fighting terrorism.

(END VIDEO CLIP)

LEMON: That's Pakistan's president appearing on CNN's Larry King. President Zardari also told Larry King that he is willing to let his security officials participate in a joint investigation into the Mumbai attacks in India. But he says the suspects will be tried in Pakistan.

Secretary of State Condoleezza Rice is in India today as the situation on the ground takes on some volatile new twists. Indian officials diffused a bomb still hidden at one of the original sites of the attacks even as Pakistan continues to deny any involvement in those attacks. Indian security officials now say the attackers trained for and planned the attacks inside Pakistan. CNN correspondent Nic Robertson is on the ground in Mumbai. We'll get to him in just a moment.

But first, incredible true accounts of one Florida family as they escape from the gunmen of Mumbai. Luis Allen and his family took cover under the king-size bed in their hotel room listening to cries of terror and gunfire getting closer each minute.

(BEGIN VIDEO CLIP)

MAXIME WILLIAMS ALLEN, SURVIVED THE MUMBAI TERROR ATTACKS: Every time I close my eyes, I can hear this woman screaming, and then a man yelling no, no, no, and then you heard followed by gunshots. And that's when he said to me this is serious. And we pushed the kids under the bed, just like we don't want the world to judge us based on the fringes, those that exist on the fringes of our society, we don't want others to think badly for just a few people that reek havoc like this. They can't win from that stance.

(END VIDEO CLIP)

LEMON: Well, the family says the only thing left - the only time they left their hiding space briefly was to grab food from the mini bar during their two-day ordeal.

All your money matters. Job, house, retirement savings. The CNN money team is tracking them. And we'll hear what's on their radar today.

(COMMERCIAL BREAK)

LEMON: Now to India where Indian officials have diffused a bomb, they said still hidden in one of those sites. Pakistani officials denying any role in this. But Indian officials saying, you know what? They did it. And they say they planned the attacks inside Pakistan. CNN's international correspondent Nic Robertson joins us with the very latest on the Mumbai investigation. Nic.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Well, Don, the very latest just within the last hour or so, a bomb was discovered at the main CST Railway station in the middle of Mumbai. This was the railway station where one group of the gunmen first began to target people at that railway station. This bomb appears to have been lying around there left by those attackers for the past week. It was left with lost property and today police, as they were going through the lost property discovered the bomb, diffused it. It is made of high explosives. It's believed to be the fifth bomb that those bombers brought ashore when they came ashore on route from Pakistan to Mumbai. Police say that they detonated - two of the bombs were left in taxis, two in hotels. One of them went off in the taxi. This is the fifth bomb that they had essentially been looking for. They knew it was out there, didn't know where it was. And fortunately now it hadn't gone off. Now they diffused it at this main station, of course, it did cause a huge scare at the time, Don.

LEMON: They did not know where this was and sort of stumbled upon it, I would imagine this lone gunman that they are talking to did not - is not giving them information on this, Nic?

ROBERTSON: Well that's the surprising thing here, Don. Because the police are saying actually this gunman and he was the one at that station as well has been giving them a lot of information about the training that they had. But it seems, at least - obviously this is going to need to be followed up with the police. It seems that the police hadn't been told by him that the bomb was at that station. One would have imagined them finding it sooner. But the information the police have by the day gets more and more specific about how this terror trail leads back to Pakistan. The gunman they had spent a year and a half in training with this terror group inside Pakistan, went through the last three months very, very detailed training, being shown photographs of the building he was going to attack, how he was going to go into the building, how he was going to get out of the building, phone calls back from the attackers to Pakistan during the gun attacks. So all of this pointing a finger of blame at Pakistan. Of course, the president of Pakistan told CNN's Larry King just yesterday that he doesn't have adequate information yet to prove to him these attackers really do come from Pakistan, Don.

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

Let's move now to Wall Street. We'll check the big board for you. Looks like the Dow is trading down now. 105. Dow down 105 points. And as we look at all of that, as it's shaping up now, early on in the trading day, hopefully it will be better. But as things stand now, it's down. So we don't have to tell you in these times that times are tough and they're getting tougher. Christine Romans joins us now once again with another dismal report. And right before the holidays, Christine, what is in this report?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I think what's important here, Don, is that it should not be a surprise to anyone that you're going to see more layoffs and pink slips into the end of the year. I mean I think everyone should brace for that and understand that's going to happen. And that's not going to be in many cases the result of your performance at work. It's going to be the result of the fact that so many companies are having to cut jobs to make numbers by the end of the year and facing a very uncertain 2009.

So first, I think it's incredibly important for people to understand that this is happening and the pace of the job cuts is ramping up. Challenger Gray and Christmas showing November job cuts, the second highest on record, the highest since January 2002. That was in the wake of September 11th when a lot of companies were facing tough times and were cutting jobs. So they're showing that in financial services and insurance, in retail - heading into the holidays, imagine in retail cutting jobs and announcing job cut announcements in these tough times here.

Now, so here is from ADP, another survey out today showing 250,000 job cuts in November. And Don, this is quite interesting about this. It's not the big companies that are bearing the brunt of it. It is medium-sized firms, these are companies with anywhere from 50 employees to 499 employees who have cut 130,000 jobs in the most recent months. So it's these middle-sized companies, the companies that have made it, have managed to grow from being a small company into a medium company, able to get big, and now they're having to get smaller again because of what we're facing in the economy.

That's sort of the thumbnail sketch of what's going on, if you will, in your job. The first thing that happens, these companies don't fill open positions. We were seeing that all this year. They let the temps go. Then they cut hours. Then they start cutting jobs. We're seeing that in full force here.

LEMON: Yes, you know, every response I see via e-mail or Facebook or twitter, or whatever it is. They say they're bailing out these big companies but they are not bailing out the small companies and the middle sized companies. And maybe that's something we need to explore more. Go ahead.

ROMANS: One thing to keep in mind though is that some of these middle companies have been hurt because the commercial paper market kind of collapsed. That's something that the investment banks were involved in. They were facilitating this market, and so in some cases you're talking about rescuing or bailing out some of the big financial firms. It's the big financial firms that are allowing the middle tier companies to actually meet their payroll and to do some of the accounting that they're doing as well. So in some cases you can't separate out bailing out one set of companies and not bailing out another.

LEMON: Right. Let's talk about when people don't have jobs, of course, that affects housing and retirement and their savings, what have you. And you know we sit here every day, and I'm tired of telling people, you know giving them bad news unfortunately. But we're just a conduit, but not good for retirement savings.

ROMANS: No. I want to say something about the not giving bad news. I think a lot of people want to know what's happening.

LEMON: Yes.

ROMANS: People want to know what's going to happen next year as much as we can, and you can't sugarcoat it and you can't avoid it. We're in a really unprecedented tough time.

LEMON: It's a reality.

ROMANS: And knowledge is power. So people have to know what's going on around them so they can make the appropriate kind of adjustments in their life if they need to. Your house, a really big important thing here. We know from TransUnion that the defaults, the rate of defaults is expected to double next year. Incredibly important for people to know that a lot more people out there are not able to make their house payment. Keep in mind, 90 percent of people with a mortgage still are making their house payments. So if you're in that category, you know remember that. Also, the stock market, the S&P is down some 40 percent since its peak.

When you look at all the other bear markets out there, this is 15th bear market since 1929. This is right there in there with what a bear market looks like. So keep that in mind as well. You've already seen some big, big losses. Maybe the worst of it is behind us. I don't know. I'm not going to be able to go on television and tell you that. But you can put it in perspective. We've been here before, Don. We really have.

LEMON: And very well put, Christine. Knowledge is power. Thank you very much for that.

ROMANS: Yes.

LEMON: All right. Now we have some winter weather advisory at least a winter weather advisory right smack dab in the middle of the country. Our Jacqui Jeras on top of that for us. Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Hey, Don. Yes, we're looking at some snow showers across the upper midwest and into the Great Lakes. But you know, I'll tell you, big story in Minnesota today. It is cold out there, even by Minnesota standards for this time of year. It looks great though, right? Not so much. 17 degrees is the temperature. You add in those winds at 16 miles per hour, and the temperature your body is feeling, two degrees. Yes, a measly two. So not real pretty. Only getting up to 22 at best today. Of course, feeling colder than that. And you're going to stay in the 20s for highs all week long, my friends. So get used to that. What a pretty shot though of the nice skyline there in downtown Minneapolis right behind the Mississippi River.

All right. The snow coming down across southern parts of Iowa along the i-80 corridor. Be real careful here. It's moving in across parts of Wisconsin including Green Bay. Milwaukee north and west of town is getting a little bit of snow. But we'll start to see that spread southward throughout the day. It will be impacting you in the Chicago land area as well. Those winter weather advisories are in effect across much of the midwest at this time. That's what you're going to see there in blue. Two to five inches we think is as bad as it's going to get, with one exception of the bright red area there, get a little enhancement of that cold air moving over the warmer Lake Michigan. And we could see one to two feet in that area.

All right. The showers and thunder showers are going to get kicked in with the system too but we don't think that's going to happen until probably this evening. Nothing too strong anticipated here. The rest of the nation overall really not too shabby, just got to deal with much cooler conditions. Take a look at those wind chills, by the way. Isn't that cold?

LEMON: Burr.

JERAS: One below in Fargo. How about that? You were looking for somewhere to go.

LEMON: Fargo. And you have to say it, Minnesota.

Thanks, Jacqui.

JERAS: Yes.

LEMON: Changing the rules, the end of the term. What the Bush administration wants to do about one part of abortion rights.

(COMMERCIAL BREAK)

LEMON: We have some medical news for you that you really need to pay attention to. It's called the right to refuse. The Bush administration is looking to expand the rules for health care workers so they can say no to more patients. CNN medical correspondent Elizabeth Cohen joins us now to talk about this. They want more say- so in saying no.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Right. And not no because the patient can't pay. No because some doctors find some medical procedures morally objectionable. So the question is if your doctor doesn't believe in a woman's right to have an abortion, should he be forced to perform one? Well the answer is that even now he wouldn't be forced to perform it. Although President Bush wants to give more protection to doctors, nurses and other health care folks who don't want to do things that they find morally reprehensible.

Let me give you an example. I want to introduce you to a woman named Melissa. She was interviewed by my colleague, Randi Kaye. And Melissa said that when she went to her doctor for birth control, he said no. He said you're unmarried, I don't think you should be having sex. So I'm not going to give you birth control. And this obviously didn't make her very happy. But it's a big question sometimes in examining rooms these days.

LEMON: OK. It's a moral judgment. I mean -

COHEN: Correct.

LEMON: The question should doctors be doing that. Where does it stand at least protecting doctors, this law protecting doctors against other procedures?

COHEN: Right. Because abortion is a big one. We all know that. Let me give you sort of a grand list of various procedures that doctors, nurses and other health care workers might find morally questionable. Blood transfusions, some religions don't believe in blood transfusions, abortion, sterilization, some people don't believe in that, artificial insemination is morally objectionable to some. And birth control is morally objectionable to some. That's just the short list. I'm sure there's more. And this Bush administration document would protect the doctor or nurse who didn't want to do anything, if there was any procedure they found objectionable, this would protect them.

LEMON: Then why be a doctor? That's my question because shouldn't you make your own moral judgment, right? So what do the doctors think about this?

COHEN: Well, it's interesting. The American College of Obstetrics and Gynecology is you might think has been involved with many of these issues and what they say is, look, we understand that doctors have their religious and moral points of view. But they said you need to limit that point of view to the point where you shouldn't be obstructing - you shouldn't be putting that religious point of view on your patient. So that's how they put it. Don't put that point of view onto your patient insofar as it would limit the kind of care your patient could get. LEMON: OK. If I go to the doctor and you know I want something and the doctor says no, if I find myself on the other end of this, what do I do as patient?

COHEN: OK. What you can do is you can simply say, OK, you don't want to do this procedure, can you send me to someone who will do it? And it's really a very simple thing even if this is a doctor that you've had for a long time. So you can say, all right, well you don't want to tie my tubes. But I'm done having children. Can you tell me someone who can? It's really that simple. And I should add that there are doctors who support what the Bush administration is doing. There are groups of doctors who are religious who say that this is a long time coming.

LEMON: Well then does that doctor, I'm asking, you know, pay for your car, the gas to get over there, your inconvenience, all that.

COHEN: My guess is that they would not do that. You know it's important to have a doctor who you're sort of ethically in line with.

LEMON: Yes.

COHEN: You know if birth control is important to you -

LEMON: That's the bottom line.

COHEN: It is the bottom line.

LEMON: That's probably something you should ask before you -

COHEN: Sure. If you're a woman who wants to be on the pill and you have a doctor who doesn't believe in birth control, you're in the wrong office.

LEMON: Yes.

COHEN: Go somewhere else.

LEMON: Good stuff.

COHEN: Right.

LEMON: Thanks, Elizabeth Cohen.

We have some - this one is inspiration for everyone who is trying to beat the odds and realize their dream. 25-year-old Jessica Cox of Arizona doesn't have arms but she has heart and one might say she has wings. Cox is a certified pilot, born with a congenital defect. She uses her feet to fly.

(BEGIN VIDEO CLIP)

JESSICA COX, PILOT: When you're behind the yoke and you're soloing the airplane for the first time and you look over and you don't see your instructor there and you're forced to accept that you're flying the airplane, you realize at that moment that you literally have your life in your own hands or in my case, in my own feet.

(END VIDEO CLIP)

LEMON: Wow, Cox has been flying for three years. She already logged more than 100 hours in the sky.

Job cuts, another sign of the weak economy today. We'll check in to see how Wall Street is reacting.

(COMMERCIAL BREAK)

LEMON: Hello everyone. It is the bottom of the hour. And you know for a growing number of Americans, this recession is playing out in a very painful way. We're talking about job cuts. The number of people getting pink slips, it just keeps growing.

(COMMERCIAL BREAK)

LEMON: America's big three automakers say they need a lifeline and they're running out of time. Will it be Congress to the rescue? Let's check in now with CNN's Kate Bolduan, on Capitol Hill.

What's the word, Kate?

KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Don. Well, they met their deadline. There's one step towards at least their end goal. But now, members of Congress are really going through these -- what is it now, at least -- close to 100 pages for these proposals.

They're reviewing them, they're picking through, they're really analyzing and seeing if the automakers answer the questions that they really had and why they sent automakers home empty-handed last time around. That's what many lawmakers are busy doing today.

House Speaker Nancy Pelosi yesterday, came out to say that while she herself, was still reviewing the proposals yesterday, she did reiterate her call in a position that is shared by other Democratic leaders that Washington cannot let the big three fail.

Listen here.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), HOUSE SPEAKER: I believe that an intervention will happen. Either legislatively or from the administration. I think it's pretty clear that bankruptcy is not an option.

(END VIDEO CLIP)

BOLDUAN: Underlying an unresolved issue here, Don, that we have to remember is there remains a divide over where the money, where the bailout money would come from. Democrats, Republicans and the Bush administration remains kind of dug in still, it sounds like, on where these bailout funds should come from. That's going to be something that we can expect to hear more about at the hearings that begin tomorrow and Friday. Now, there isn't yet a scheduled vote next week for Congress to take action on any sort of bailout legislation. Both House and Democratic leaders in the Senate are laying the groundwork, at least leaving the possibility open. But as one senior Senate Democratic leadership aide said to me, it really hinges on the performance of these automakers in the hearings tomorrow and Friday. He said they have to make a persuasive case to the American public in order for Congress to move forward at this point.

LEMON: Kate Bolduan. Thank you very much for that.

BOLDUAN: Of course.

LEMON: All right. From the big three to the little guy in your town. Local dealerships are struggling to keep their doors open.

CNN's Alina Cho looks at how they're trying to sell cars in a lousy economy.

(BEGIN VIDEOTAPE)

ALI AHMED, ROB LAMBOIN'S UNIVERSITY DODGE: The first thing people think when they come in is that, yes, it's a fake ad. It's a normal car dealer ad. It's a gimmick, but it's not.

CHO (voice-over): Buy one, get one free, the type of ad you normally see at a grocery store. But at a Dodge dealership in Miami?

AHMED: We've been fielding phone calls and e-mail inquiries from every state in the country, looking to get this buy one, get one deal.

CHO: Desperate times, desperate measures. This year 700 car dealers shut their doors. That number is expected to top 900 by the end of the year. And the majority of those dealers sell American cars.

AHMED: It's definitely a tough climate right now. A lot of people are saying it's a perfect storm of, you know, gas prices and financing and consumer confidence.

CHO: The biggest problem, the trickle down effect of the credit crunch. Can't get a loan, can't buy a car. This Chrysler dealership in New York used to sell 150 cars a month. Today, they say it's half that.

(on camera): A year ago you might have had 15 to 20 salesmen on the floor. Today it's what?

MATT LEE, MAJOR WORLD AUTO: Eight to ten. Salesmen actually just walk out because they're not making enough money to support their family.

CHO (voice-over): They've even stopped bringing in new models because the cars they have aren't moving.

JAMIE KRINSKY, SALESMAN, MAJOR WORLD AUTO: Just, you know, you would see five people a day coming into at least look at a car. For a salesman, you're getting maybe one person a day or two people a day.

CHO: So they're offering deals too.

(on camera): Fire package included.

(voice-over): Zero percent financing for 72 months, $7,500 rebates. Even that's not enough. In the two hours we spent combing the lot, only one customer who was just browsing. So could a buy one get one free offer help this dealership?

(on camera): You have to admit, it's pretty catchy.

LEE: If it worked for them, what can we do? Maybe we'll try it.

CHO: In the interest of full disclosure, we should tell you buy one get one free means buy the first Dodge truck at full retail, get the second one free excluding tax, tags and dealer fees. That will cost you about $3,000. Still a good deal, but as always, there's a catch.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

LEMON: And again, the automakers plead their case before Congress tomorrow morning. And you can tune in right here on CNN, beginning at 10:00 Eastern time.

Another former Obama foe is getting a seat at the table. This time it's New Mexico Governor Bill Richardson. The Democratic presidential rival turned supporter is in line for commerce secretary. That announcement is expected in about an hour. And CNN will bring you live coverage of Barack Obama's news conference in Chicago. That's at 11:40 Eastern time. Just about an hour.

On Monday, Barack Obama put his national security team in place. That included Hillary Clinton as Secretary of State. Before the announcement, there was a lot of talk about what Bill Clinton would have to do to clear the way for his wife, of course.

Earlier this morning, the former president spoke about that in an exclusive interview with CNN International's Anjali Rao.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I think that virtually everything I've agreed to do, although it's all over and above what the law requires, is quite appropriate. For example, if she's going to be Secretary of State and I operate globally and I have people who contribute to these efforts globally. I think that it's important to make it a totally transparent. Say who the donors are and let people know that there's no connection to the decisions made by America's national security team, including the Secretary of State. So, everything else that's part of this, I have no problem with. I think it's a good idea.

(END VIDEO CLIP) LEMON: President Clinton also said his wife was shocked to be mentioned for the State Department post. He called it a very wise move by Barack Obama.

Singing the blues in the music biz (ph). How one industry is trying to bail itself out.

(COMMERCIAL BREAK)

LEMON: All right. Is your money tight but you still want to travel? Try booking a flight now and paying for it later. Call it layaway travel.

(BEGIN VIDEO CLIP)

SANDRA BARNES, DIRECTOR OF TRAVEL, AAA: You can actually put down a deposit and then make your final payment 45 to 60 days prior to your departure. I actually think people take advantage of it to avoid those high interest rates on their credit cards.

(END VIDEO CLIP)

LEMON: All right. So, AAA encourages travelers using the layaway plan to book early. Book early. All right.

No holiday shopping money? Well, how about some free gift cards? Connie Shepherd (ph) of Michigan, found 24 of them tucked inside a purse she had just bought at Target. Well, the cards are loaded with amounts of up to $100 from such stores as Toys 'R Us, Kohl's and J. Crew. Of course, Shepherd turned them into place, very nice of her. But so far no one has reported the cards missing. And police say, if no one claims them, merry Christmas to Connie.

A glitzy concert is planned tonight to announce the 2008 Grammy nominations. But, how is the music industry faring in a tightening economy? Probably not good.

CNN's Kareen Wynter takes a look. .

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): While the auto and banking industries have been lining up for federal bailout, the music industry has been busy bailing itself out.

MOSES AVALON, AUTHOR: We've seen CD sales drop, mostly due to peer to peer file sharing, but that revenue has been made up in other areas.

WYNTER: From 2000 to 2007 CD sales plunged 36 percent. There were lots of mergers and layoffs, while battered record labels, agents and artists scrambled to find a new business model.

UNIDENTIFIED FEMALE: record companies now are looking more toward digital services, mobile services, to make sure that the big pot of money is shared more broadly. WYNTER: During the same period, concert sales soared, from $1.7 billion to $3.9 billion. But now artists are finding it's much harder to pack stadiums, since many fans are struggling to afford the 75 bucks or more on a ticket.

SHERYL CROW, SINGER/SONGWRITER: Unlike everybody else out there with the exception of maybe Madonna and Prince, who we get used to looking at a three-fourths full house, but, you know, I'm grateful for that.

WYNTER: While brick and mortar record shops are closing down, Borders, Best Buy, Target and Wal-Mart are among stores that have signed distribution deals with such superstar acts as Aretha Franklin, AC/DC and the Eagles. Interestingly there's more music in the marketplace than ever before, in movies, TV shows, video games and ad campaigns.

AVALON: Every six months some new wave to sell or license music is being invented right down to opening a magazine and seeing an ad and hearing a piece of music embedded in a microchip the size of a hair. There's a license for that.

WYNTER: Novel ways for record companies and publishers to make money, in this new, ultra competitive marketing era.

Kareen Wynter, CNN, Hollywood,

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LEMON: A familiar voice of the civil rights movement is gone. Renowned folk singer, Odetta, has died at the age of 77. The classically trained Odetta combined folk, blues and gospel for a unique sound that championed 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.

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LEMON: Singer Jennifer Hudson's estranged brother-in-law heads to court this afternoon. 27-year-old William Balfour is charged with killing Hudson's mother, brother and nephew. All three were found shot to death in October. Police say they believe Balfour acted alone. He has a bond hearing scheduled a little over two hours from now in Chicago. We will keep you posted on what's happening in that case.

Plaxico Burress has become prime fodder for the New York tabloids. Now the Giants' star -- well, he has no chance to repeat his Super Bowl heroics after shooting himself and possibly his career in the foot -- in the leg, I should say.

CNN's Jason Carroll takes a look at that.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Plaxico Burress was the picture of a sports hero after this Super Bowl-winning catch. Not anymore. Now Burress faces gun possession charges after accidentally shooting himself in the leg at a nightclub Friday night. And he's also facing an angry mayor.

MAYOR MICHAEL BLOOMBERG, NEW YORK: The law is the law and that has nothing to do with sports. Everybody should be treated equally.

CARROLL: Who questioned if Burress's celebrity status helped him avoid the legal process.

BLOOMBERG: The police only found out about this because of a story on television. The hospital didn't call and the Giants didn't call.

CARROLL: State law requires hospitals to inform police if they treat a patient who's been shot. Police say New York Presbyterian did not immediately call. A hospital spokesman says an individual is suspended, pending an investigation. But the mayor also called out the team. The Giants released a statement saying, "As we started to get a sense of what we were dealing with, we did, in fact, notify NFL security, which then contacted the police."

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Plaxico Burress is in a world of trouble because his celebrity status seems to at first have helped him. But now, well may be hurting him.

CARROLL: Late Tuesday, the Giants fined and suspended Burress, ending his season. But will he get jail time? New York City's strict gun laws call for a mandatory minimum 3 1/2 year jail sentence for illegal weapons possession. Since the law passed two years ago, 550 suspects have been convicted and Mayor Bloomberg wants Burress to get no special treatment.

BRIAN NEARY, CRIMINAL DEFENSE ATTORNEY: The public glare on the celebrity when charged with a serious crime, I always think is a detriment to the celebrity.

MICHAEL MCCANN, SI.COM LEGAL ANALYST: The public generally believes that athletes are above the law, that celebrities, in general. And that persons with money are above the law. And I think what Mayor Bloomberg has done with his comments is to say, wait a second, I'm not going to let that happen.

CARROLL (on camera): Burress's attorney did not return our calls for comment. The NFL star is out on $100,000 bail. And he's scheduled to return to court on March 31st, where he's expected to enter a plea of not guilty.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

LEMON: All right, Jason.

Stunning news from Pembroke Pines, Florida. An elementary school there. A 7-year-old is accused of robbing a 6-year-old with a butter knife. Officials at the Pine Lakes Elementary School say the 7-year- old attacked the other child to steal his $1.00 in lunch money. The boy is suspended, he could be expelled. A few weeks ago, also in Florida, an 8-year-old boy was found with a gun in school.

Naming another nominee. We're waiting to hear from Barack Obama and his plans for Bill Richardson. You're looking at live pictures right now.

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(BEGIN VIDEO CLIP)

CHRIS BRUMFIELD, OWNS SINGING SANTA: It's December in the Christmas city. I mean, what could be more appropriate?

(SANTA DOLL SINGS)

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LEMON: Imagine that 24 hours a day next to you, or late at night. A symbol of Christmas getting a bad rap in Bethlehem, Pennsylvania. A neighbor called police shortly after Chris Brumfield put up the singing Santa in the front yard. Santa has been an annual guest for the last four years. And Brumfield says, he's already turned down the volume. And he hopes that satisfies the neighborhood Grinch, whoever that might be.

They're not your father's Christmas carols. A London concert organizer has rewritten the lyrics of some holiday favorites to make a political point.

Here is CNN's Atika Shubert.

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ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): 'Tis the time for Christmas carols. But, listen closely. These are not the traditional lyrics you might remember. Debra Fink is the concert organizer and lead soloist. She's Jewish. But, along with other activists, wants to use a Christmas tradition to protest Israeli occupation of Palestinian territory.

DEBORAH FINK, CONCERT ORGANIZER: Why not wake them up and say, well hang on a minute, did you really -- do you not know what's really happening? That what's the point singing about what supposedly happened 2,000 years ago when it's completely different now.

SHUBERT: So the "12 Days of Christmas" ends like this.

(SINGING)

SHUBERT (on camera): It's not just words that are (INAUDIBLE) controversy. It's the location. These beautiful acoustics are courtesy of St. James Church in London.

(voice-over): St. James Piccadilly has a history of supporting controversial causes. And that is a step too far for some Christians, especially those supporting Israel. GEOFFREY SMITH, CHRISTIANS FOR ISRAEL: What is shocking to me is that it is being parodied to make a political point in the church against Israel. The parody is to convey the reverse of truth. It is to try and label Israel as being an apartheid state.

(SINGING)

SHUBERT: The words of the revised version of "Once in Royal David City," attacks the security barrier Israel has erected around Bethlehem.

The concrete wall is designed to prevent Palestinian militant attacks into nearby Jerusalem. The number of attacks has dropped dramatically since the wall was built. But, it has also choked off business in this ancient city and isolated many residents into concrete enclaves.

Fink says mixing religion and politics in this case is the best way to get a political point across.

FINK: Sitting on their high hypocritical horses and using the church for a protest. And well, what is happening out there is unholy and I think is -- I don't know if it's a holy thing, but it's a godly thing, if you believe in God, to protest against it rather than just let it go on. I think that's unholy, letting an injustice carry on.

SHUBERT: For these political Christmas carols, no tidings of comfort and joy.

Atika Shubert, CNN, London.

(END VIDEOTAPE)

LEMON: I'm Don Lemon. Join us tomorrow morning, starting at 9:00 a.m. Eastern. For now, CNN NEWSROOM continues with Tony Harris.