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Auto Industry Bailout; Simpson Headed to Jail; French Jewelry Heist
Aired December 07, 2008 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD LUI, CNN ANCHOR: You are in the CNN NEWSROOM. The news is in unfolding live on this Saturday, the 6th day of December. I'm Richard Lui, in for T.J. Holmes. He is off this weekend. Good morning to you.
BETTY NGUYEN, CNN ANCHOR: Well thanks for being with us today. Hello, everybody, I'm Betty Nguyen.
Will the auto bailout loan program even get off the lot?
LUI: Also for you, O.J. Simpson is headed to jail. He says he's sorry, the judge was not in a lenient mood though.
NGUYEN: Did you hear about the jewelry heist in Paris? In and out in under a minute with over $100 million in goods. You are in the CNN NEWSROOM.
First up, wheeling and dealing to keep America's auto industry rolling along. CNN has learned congressional staffers are working over the weekend to craft a bailout loan bill for Detroit's big three. Late yesterday, House Speaker Nancy Pelosi did an unexpected about- face. She backed off her opposition to using funds from a fuel efficiency research program to help the big three. The big three CEOs making a renewed pitch for federal financial assistance. They may have been helped by the release of November's unemployment figures which were the worst in 34 years.
(BEGIN VIDEO CLIP)
REP. BARNEY FRANK, HOUSE FINANCIAL SERVICES COMMITTEE CHAIRMAN: For us to do nothing, to allow bankruptcies and failures in one, two, three of these companies in the midst of the worst credit crisis and the worst unemployment situation we have had in 70 years would be a disaster.
REP. JAMES BARRETT, (R) SOUTH CAROLINA: We're sitting here trying to evaluate the business plan of corporations. Trust me, congress has no authority to tell people how to spend money efficiently and effectively. We certainly can't predict the direction of the marketplace. I am concerned that businesses are rightly going to start thinking they can just come to Uncle Sam and we will bail them out. We are broke, flat broke.
(END OF VIDEO CLIP)
LUI: Adding to that, November was bad. December may be even worse. More than 43,000 pink slips have been handed out already this month. We are early on. We are less than a week into the calendar. AT&T, JP Morgan Chase, U.S. Steel, DuPont, from communications, to banking, manufacturing and media, to name just a few, this hemorrhage of jobs is not limited to a few specific industries.
More than 200 unionized workers lost their jobs at the Republic Windows factory in Chicago this week but try telling them that. The newly unemployed will not go away quietly here. In fact, they are sticking around to protest their firings and demanded union-brokered benefits. They say the company did not follow a federal requirement, to give workers a 60-day advance notice of the plant shutdown.
(BEGIN VIDEO CLIP)
MELVIN MACLIN, LAID-OFF WORKER: We feel mistreated here. You know, for no apparent reason, because we don't make business decisions. We only make windows. But yet because of bad decisions, we suffer. Our families suffer.
RAUL FLORES, LAID-OFF WORKER: It's really, really hard for everybody. Not just because we're losing our jobs its because we are losing our insurance too.
(END OF VIDEO CLIP)
NGUYEN: He is not in the White House yet but President-elect Barack Obama, says, he has a plan to save or create jobs while addressing the country's aging infrastructure. CNN's senior political correspondent Candy Crowley joins us now live from Chicago with more on Obama's to-do list. Give it to us, Candy.
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: While congress is busy trying to put together some sort of short-term plan to keep the auto industry rolling for several more months, the Obama economic team has been looking at the longer term plan, the place where Obama does come into play as he is inaugurated on January 20th. He has begun to outline what he thinks an economic recovery program should include. It includes some things that you might not immediately think of. He says that the government, the U.S. government, spends more on energy than any other entity in the world. He wants to put new heating systems in those government buildings, public buildings that need it. He wants to put in new lights. He says it will save taxpayers billions of dollars. But he also has more conventional ways of creating jobs.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT-ELECT: We will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s. We will invest your precious tax dollars in new and smarter ways. We will set a simple rule, use it or lose it. If a state doesn't act quickly to invest in roads and bridges in their communities, they will lose the money.
(END OF VIDEO CLIP) CROWLEY: He says he also wants to help rebuild and repair schools, put computers in the classrooms. He is talking about an upgrade in the internet, thinks that every child should have access to broadband. So there are things like these that he is looking at the long-term that he believes will help not just children in education but will help with economic recovery. He adds to that, upgrading the way that medical records are filed, getting them on the internet. Something he says will save lives but also create jobs.
NGUYEN: Candy, there is also word that Obama is expected to make another announcement about his cabinet tomorrow. What are you hearing?
CROWLEY: Right. Tomorrow is Pearl Harbor Day. He had scheduled a news conference as a salute to those who have served the country, who are still serving the country. But a high-level source says he will also unveil who he wants to head the Veterans Administration. It is a fitting day to do that so we are told that is the announcement we will get tomorrow.
NGUYEN: All right, with the scoop, Candy Crowley, thank you so much.
LUI: Let's stay on President-elect Barack Obama. His road to recovery is putting Americans to work rebuilding the nation's highways. As Abbie Boudreau of CNN's Special Investigations Unit reports for us, a group of state transportation officials says, there is plenty of work down the road.
(BEGIN VIDEOTAPE)
ABBIE BOUDREAU, CNN CORRESPONDENT (voice-over): The report lists more than 5,100 projects around the country that the association says could be started within six months if they only had the money.
JON HORSLEY, ASSN. OF HIGHWAY AND TRANS. OFFICIALS: You have got states in every part of the country that have needs and have practical projects ready to go that can put a lot of people to work.
BOUDREAU: John Horsley, the group's executive director says the new construction and repair work will generate just the kind of economic stimulus the Obama administration is looking for, creating a possible 1.8 million new jobs. Just this past week, President-elect Barack Obama, told the nation's governors, he is looking forward to listening.
BARACK OBAMA, (D) PRESIDENT-ELECT: Where you think an investment on the part of the federal government will make the biggest difference. How we can reduce health care costs, rebuild our roads, our bridges, our schools and ensure that more families can stay in their homes.
BOUDREAU: The report says Utah needs $10.8 billion for crumbling roads and bridges. Florida, $6.9 billion. California, $5 billion. Pennsylvania needs $1 billion, partly for fixes to interstate 95 in Philadelphia. Fixes that can begin shortly after a check is written. I went along with bridge inspector James White, as he examined an elevated section of I-95, built in the 1960s.
This stretch of road has already had it's share of problems. I know it has been shut down due to structural problems just once before not too long ago.
UNIDENTIFIED MALE: That's correct, 95 was closed down just a little further north of our location right now.
BOUDREAU: That was in March when an inspector actually found a large crack in one of the support beams. It was two inches wide, six feet long and it caused an emergency closure of part of this road.
This was that giant crack. This is what the closure looked like.
UNIDENTIFIED MALE: We have a serious problem in Pennsylvania.
BOUDREAU: Charles Davies with the Pennsylvania Department of Transportation says there is state money for basic maintenance but he worries without federal funding needed overhauls won't get done. I asked him if he fears something bad could happen.
UNIDENTIFIED MALE: It has sort of become fatalistic. I sort of think, wow, my luck is going to run out at some point. It just is.
BOUDREAU: But Pete Sepp of the National Taxpayers Union cautions that it's a bad idea for congress to pick up the tab for something the states are supposed to pay for.
PETE SEPP, NATIONAL TAXPAYERS UNION: Many parts of our infrastructure need to be repaired, need to be fixed but they need to be done in a thoughtful manner. Throwing money out of Washington, D.C. and showering it across the country on state and local projects is not the way to do it.
BOUDREAU: Abbie Boudreau, CNN, Philadelphia.
(END OF VIDEOTAPE)
NGUYEN: No room to run for O.J. Simpson. A Las Vegas judge sets his sentence and it means a long stay in the gray bar hotel.
(COMMERCIAL BREAK)
LUI: O.J. Simpson's lawyers say they will appeal but the disgraced former football star faces at least nine years in prison. As Kara Finnstrom reports for us, Simpson's courtroom apology was too little too late.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Conspiracy to commit a crime, one year in the county jail.
KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Former football great, O.J. Simpson known for his remarkable agility on the field, has just side stepped the threat of a life sentence in Las Vegas. YALE GALANTER, SIMPSON ATTORNEY: We, you know Gabe and I are pleased, it could have been a lot worse. My expectations today were that it was going to be a much higher sentence.
FINNSTROM: We now know Simpson could face a maximum of 33 years behind bars. Courthouse officials originally figured that number at 15. But they say he will still be eligible for parole in as few as nine years. Clarence Stewart one of Simpson's cohorts in the crime was given a similar sentence. Both convicted of kidnapping and armed robbery for their role in staging a holdup involving guns to recover sports memorabilia from a hotel room. Simpson told the judge he was sorry.
O.J. SIMPSON, DEFENDANT: I'm sorry, I didn't mean to steal anything from anybody and I didn't know I was doing anything illegal. I thought I was confronting friends and retrieving my property. So I'm sorry. I'm sorry for all of it.
FINNSTROM: Judge Jackie Glass who is known for issuing harsh sentences lectured Simpson.
JUDGE JACKIE GLASS, LAS VEGAS DISTRICT COUT: I said to Mr. Simpson, I didn't know if he was arrogant or ignorant or both. And during the trial and through this proceeding, I got the answer, and it was both.
FINNSTROM: Glass then stressed her sentence should in no way be tied to Simpson's acquittal in the 1994 slayings of Nicole Brown Simpson and Ronald Goldman. Ronald Goldman's family was there as the sentences were read.
UNIDENTIFIED FEMALE: Count two, conspiracy to commit kidnapping.
FRED GOLDMAN, RON GOLDMAN'S FATHER: There is never closure. Ron is always gone. What we have is satisfaction that this monster is where he belongs, behind bars.
KIM GOLDMAN, RON GOLDMAN'S SISTER: To watch him sit there in shackles and walk back through that door, twice in our lifetime he has walked out the same door as our family. It was nice to see him walk back into his door, into his jail cell.
DAVID ROGER, CLARK COUNTY, NEVADA DISTRICT ATTORNEY: She could have teed off on these defendants and given them life sentences but under the circumstances, I think she was well within her discretion.
FINNSTROM (on camera): Simpson is still in the process of being taken to a nearby prison where he will undergo a psychological and a physical examination. Officials will determine where he'll serve his sentence. In the meantime, his defense attorneys are planning their appeal. Kara Finnstrom for CNN, Las Vegas.
(END OF VIDEOTAPE)
LUI: We will have much more on the sentencing of O.J. Simpson. Our legal team will take up the story when they join Fredricka Whitfield next hour, don't miss that.
NGUYEN: Investigators are following a possible lead in the Mumbai terror attacks to another Indian city. They have arrested two suspected black market dealers of cell phone chips in Calcutta. Police want to know if there is a link between the men and the attackers. Police originally thought the attacks were carried out only by people from outside their borders, most likely Pakistan. Police are also looking closer at an Indian man who was arrested last February with maps and drawings of some of the targeted locations. The attacks in Mumbai last month killed at least 179 people.
There has been more deadly violence in Iraq today. A suicide bomber struck in Kirkuk which is near a police academy in that area. Authorities say at least one police officer was killed. Two civilians and seven police were wounded.
It's been more than a year since 17 Iraqis were killed in a shooting incident in a Baghdad square and now CNN has learned that several guards from the U.S. based security contractor Blackwater have been indicted and one is negotiating a plea. Let's get more now from Suzanne Simons.
(BEGIN VIDEOTAPE)
SUZANNE SIMONS, CNN CORRESPONDENT (voice-over): It's a company familiar with being under the gun both in congress and in Iraq. Among it's many contracts, Blackwater has the job of protecting state department personnel in Iraq. Last year, it's contractors were involved in a deadly shooting in a Baghdad traffic circle. An outraged Iraqi government said 17 civilians were killed and threatened to expel the company.
NURI AL-MALIKI, IRAQI PRIME MINISTER: It cannot be accepted by an American security company to carry out killing. These are very serious challenges to the sovereignty of Iraq.
SIMONS: An FBI investigation into the circumstances of the shooting followed. It's conclusions were presented to a grand jury. CNN has learned that five Blackwater guards who were present have been indicted and a sixth is working with prosecutors on a plea agreement. It is not clear what charges they will face. The company says it will reserve comment until a public announcement has been made. Blackwater, owned by Erik Prince, has become a multimillion dollar business with government contracts in at least 13 countries, including Afghanistan and Iraq. It has about 1,000 contractors working in Iraq alone. Soon after the incident in Baghdad, Prince told CNN's Wolf Blitzer that he believed his men did nothing wrong and that they were only returning fire.
ERIK PRINCE, BLACKWATER: All I can say, the incident reports I have seen, at least three of our armored vehicles were hit by small arms fire incoming and one of them was damaged which actually delayed their departure from the traffic circle while they tried to rig a tow. So there was definitely incoming small arms fire from insurgents.
SIMONS: U.S. contractors have operated with immunity from prosecution in Iraq since a 2004 order by outgoing coalition provisional authority head Paul Bremmer. Sources tell CNN the prosecutors have been wrangling for weeks over what charges to bring against the men. Suzanne Simons, CNN, Atlanta.
(END OF VIDEOTAPE)
LUI: Holiday cards for heroes. The Red Cross is trying to get a million in the mail. These are live pictures. How you can help.
(COMMERCIAL BREAK)
NGUYEN: So, with all this talk about a possible bailout for the auto industry, we know many of you have a whole lot of questions. Well, our Josh Levs is here to get some answers for you. So bring it on, Josh.
JOSH LEVS: Hey, there, Betty. Here is the deal. Next hour in the NEWSROOM we are going to have an expert who is able to tackle these. We are inviting you to send in your questions. This is the question right here. We are asking you what questions do you have about the auto industry bailout. Send us an e-mail weekends@cnn.com. We are going to piece through them and throughout next hour, a couple of different times, we're going to present them, get you as many answers as we can. We know a lot of people have a lot of opinions about the bailout. We keep hearing those. We appreciate those. We also know a lot of you have questions. Things that throughout all the talk, you haven't had answered. Send them to weekends@cnn.com. Right now we'll jump on them, stick with us next hour we will get you some answers. Betty?
NGUYEN: All right, I like it. Thank you so much.
(WEATHER REPORT)
LUI: The American Red Cross wants to spread a little good cheer this holiday season. It hopes to collect at least one million holiday cards from you to send to U.S. troops. As you see there, first lady Laura Bush lending a hand.
(BEGIN VIDEO CLIP)
LAURA BUSH: Thank you all for coming out, happy holidays. I want to thank all the volunteers who are here behind me for volunteering. It was very sweet to start and read these cards and see what Americans have written to our troops. So, thanks, everybody.
(END OF VIDEO CLIP) LUI: Our Kate Bolduan is at the Red Cross headquarters in Washington with the details there. Kate, it's shoulder to shoulder now. Earlier this morning, there were not so many people there.
KATE BOLDUAN, CNN CORRESPONDENT: There are still a lot of people here. They just brought pizza in. They are going to continue working through the lunch hour Richard. This is the second year that the Red Cross has done this. They are doing a simple but a pretty big job, they're getting holiday cards together to send some holiday cheer, thoughts, prayers to wounded active veterans, all kinds of service members across the country and across the world. Here is just one example of a card that someone just handed to me. It's absolutely adorable. Deer soldier, thanks for serving our country. I hope you feel better soon. Happy holidays, you are my hero. It's absolutely adorable. Just one of the examples that people are sending around. There are about 175 people here. There are 16 sorting sites across the country. You said they are shooting for a million cards. Last year, they had over 600,000. So it looks like they could reach that. I wanted to introduce you to one very special volunteer we have been talking to, Sergeant Ed Griffin. Ed, what brings you here today?
SGT. ED GRIFFIN, RED CROSS VOLUNTEER: Just got told to come down and help out to let everybody know, I guess, to show our support for helping out, to get cards back to ourselves and the service members that are down range to bring some holiday cheer.
BOLDUAN: We were talking earlier of how tough it can be for many families. You said you have two kids and a wife and you have missed two thanksgivings, three thanksgivings and two Christmases during your two tours of duty in Iraq. What did it mean to get these types of cards when you were over there?
GRIFFIN: It was really nice to be able to get some little slice of being at home and something to let everybody know the people back in the states are actually thinking about us and want to make sure we have some kind of a Christmas or just something to let us know they are thinking about us.
BOLDUAN: This must be a pretty special Christmas that you are actually going to be home this time with your family, ah?
GRIFFIN: Yes. It is going to be quite a shock actually for me to be able to be home for Christmas. I know both my boys are really going to enjoy getting to see dad for once being home for Christmas.
BOLDUAN: You can see he is here on a Saturday, sorting cards for his fellow service men and women overseas. Now Richard I am going to get my hands dirty and I'm going to start sorting some cards myself.
LUI: You are going to have to keep up with those folks, Kate. They move fast and furious. Show us one of those boxes right in front of you. They are really full of lots of love in print would you say.
BOLDUAN: They are absolutely full. I can tell you, when I have been looking, a lot of them you see are handmade. You see so many things just saying a simple thank you. You can see they really have a system here. A green box for things that are really appropriate. They have to be sorted out if there are inappropriate things or just cards that cannot be sent. You can really see a lot of heart-warming, really great messages sent, just a simple thank you. I think that really is what counts this holiday season.
LUI: Really great stuff. Kate Bolduan thank you so much there in Washington at the Red Cross headquarters. Appreciate it.
NGUYEN: Let's talk now about jobs and loss. For some, hope is not far behind. Others try to get a leg up before it's too late. But, will the job market pull the rug out from under them.
(COMMERCIAL BREAK)
BETTY NGUYEN, CNN ANCHOR: It is half past the hour. Here is what's happening right now. The big three CEOs may get their Christmas wish. Sources say House Speaker Nancy Pelosi, is softening her stance against using funds from a fuel efficiency research program for a bailout. A congressional source tells CNN that work is being done this weekend on bailout loan legislation.
Other news, Barack Obama offering up an economic plan this morning in his radio address. His new five-point plan focuses a lot of attention on public works projects and education. In the address, the president-elect says we have to look beyond Friday's dismal jobs report.
RICHARD LUI, CNN ANCHOR: With an economy in freefall, companies cutting jobs in virtually every part of the U.S. and an unemployment rate at a 15-year high. Many folks in the United States are wondering what is next. Here is our Mary Snow.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): With the number of unemployed Americans climbing, job centers like this one are being flooded. People come not only to look for work but get coached on how to go about it.
UNIDENTIFIED MALE: The most success is based upon your own persistence.
SNOW: At the Yonkers Employment Center staffers say what is striking is people seeking jobs from a wide range of industries such as financial services that haven't been as hard hit in the past.
LILLIAN MORALES, YONKERS EMPLOYMENT CENTER: Everybody comes in and talks about the economy, how fearful they are, wanting to grab something before it comes be worse. We try to manage the fear.
SNOW: A majority of Americans are confident that the economy will improve as President-elect Obama takes office according a CNN Opinion Research poll.
BARACK OBAMA, (D) PRESIDENT-ELECT: As we chart a course --
SNOW: Obama says he wants to create jobs by spending money on infrastructure projects, such as building roads and bridges. His goal is to create 2.5 million jobs by the end of 2010. Nobel prize winning economist Joseph Stiglitz says that won't be enough and says Obama needs to double that number.
Five million jobs by the end of 2010?
JOSEPH STIGLITZ, ECONOMIST, COLUMBIA UNIVERSITY: That's right. That would seem to me the kind of level of aspirations. We may not make it, but clearly we need a more ambitious agenda if we are going to restore the economy to a strong situation.
SNOW: Economists expect conditions to get worse before they improve. Some aren't spelling doom.
LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INSTITUTE: The sharper the recession, the sharper the recovery. In this very dire kind of circumstance, we're in this sharp recession that may be a silver lining to take advantage of with the policy decisions that we are taking going forward.
SNOW (on camera): Economist Lakshman Achuthan says the timing of another stimulus package will be key. He says it will be more effective if it's not spent until we can see some signs that the economy is stabilizing. Mary Snow, CNN, New York.
(END OF VIDEOTAPE)
NGUYEN: One of our i-Reporters is upset with the ideal of bailing out banks and mortgage companies. He says, why give more money to those who got us in this position in the first place. Take a listen.
(BEGIN VIDEO CLIP)
JACK MOORE, LAKE ELSINORE, CALIFORNIA: Dear President-elect Obama and members of the house and senate, can you please tell me where this bailout is supposed to help me. I am always hearing, the bailouts have to help the homeowners. The bailouts have to help the homeowners. I don't see the homeowners really getting any help. The banks and the mortgage companies have gotten rich off the American people for years. Now, all of the sudden, they have ran their companies into the ground and who do they come running to? The very people who they got rich off of.
(END OF VIDEO CLIP)
NGUYEN: Our i-Reporter there stating what a lot of people are feeling. The FDIC chairwoman Sheila Bair thinks the best way to help end the mortgage mess is to freeze foreclosures. She's been a vocal supporter of dedicating some of the bailout money directly for troubled homeowners. But as Debra Feyerick reports, not everyone supports that plan.
(BEGIN VIDEOTAPE)
Yeah, that was you.
DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): When Eddie Morrison heard about the government's $700 billion bailout, his first thought was?
EDDIE MORRISON, HOMEOWNER: Can anybody help me then?
FEYERICK: Behind on his mortgage payments, Morrison, a truck driver making $65,000 a year was sure the foreclosure letter was in the mail. CORINTHIA MORRISON, HOMEOWNER: I was getting nervous to the point where I started packing.
FEYERICK: Instead, IndyMac, the bank which had given the loan was seized by federal regulators and it's new administrator FDIC chairman Sheila Bair put a freeze on foreclosures, giving people like the Morrisons a chance to modify their loans to rates they could afford.
UNIDENTIFIED FEMALE: Foreclosures keep going up and home prices keep going down and we have to just stop this spiral.
FEYERICK: Bair has publicly taken on the treasury and Federal Reserve saying it is critical to tackle the root of the problem by helping homeowners, not just big institutions.
Based on the model you've created with IndyMac, how many homes do you think you could save right now?
UNIDENTIFIED FEMALE: We could prevent 1.5 million foreclosures from occurring.
FEYERICK: Under her plan, people who are 60-days late paying would get a chance to reduce high interest rates and extend the length of their loan if they qualify. So why isn't it happening?
UNIDENTIFIED FEMALE: I have been in Washington for a long time. Why we haven't been able to garner the political world to tackle this problem more aggressively at the borrower level has been somewhat mystifying to me.
FEYERICK: Critics call Bair's proposal a subsidy for troubled borrowers.
BERT ELY, CATO INSTITUTE: In many cases, they would actually be better off giving up the home and renting for a while, restoring their financial health.
FEYERICK: Bair estimates her program would prevent 30 percent of foreclosures expected over the next two years.
SHEILA BAIR, FDIC CHAIRWOMAN: We think it works. We think we have the data to show it works. I just really wish we could all make a decision and move forward with it.
FEYERICK: As for families like the Morrisons --
MORRISON: It is not a bailout because I still have to pay.
FEYERICK: And they get to stay home. Deborah Feyerick, CNN, New York.
(END OF VIDEOTAPE)
LUI: And then they are struggling to pay for college. States getting graded but none is making the dean's list. (COMMERCIAL BREAK)
LUI: Well, it seems like every day we have some new, bleak economic news to tell you about. One of the latest stories is about the cost of college.
NGUYEN: I know it is bad. A new report finds it's actually getting worse. Not what you want to hear. But our Josh Levs joins us now with that. So how bad is it really getting?
JOSH LEVS: It's pretty bad. I get a lot of this news you don't want to hear to bring you guys issue number one, all the time. This is called the national report card on higher education. It's put out by the National Center for Public Policy and Higher Education. Let's zoom in here. I want to show you something. What they did was they graded each state on college affordability. This is the affordability list. It's all Fs except California, which got a C minus. The Fs just keep going. One more thing I'll show you, look at this, affordability, some arrows underneath it. They graded each state on whether things are getting better or worse in all but two states. They said, things are getting worse. Not good news. The two by the way, they say it's not getting worse, New York and Tennessee. I pulled out a couple of interesting figures. Let's take a look at this graphic. After financial aid, working and poor families are paying on average, 40 percent of family income for a child to enroll in a public college. Middle income families, 25 percent, upper income 13 percent. And as we know, public colleges are generally less expensive than private colleges. It's a mammoth sum. One of the reasons is this, check this out. College tuition and fees have gone up 439 percent since 1982. Median family income went up 147 percent. What that boils down to is, tuition and fees went up three times as much as median family income guys.
NGUYEN: All right, so if it's costing this much, means students must be turning to loans or programs like that, right?
LEVS: More and more, yeah. As a matter of fact, according to this report, this report says that student borrowing has doubled just over the past 10 years. We've actually reported that some programs, particularly some private loan programs have been closed. It was on CNN Saturday morning, I interviewed this student Eric Hahn who had to sell his savings at the last minute when his loan fell through.
(BEGIN VIDEO CLIP)
ERIC HAHN, COLLEGE STUDENT: What's happening is students that don't have co-signers, such as myself, have to apply for private unsubsidized loans. And when it falls through as in my case, you pretty much apply for other loans, you start settling for more expensive debt and in my case you pull out your savings, you go and sell your stock and pay four your short-term expenses.
(END OF VIDEO CLIP)
LEVS: He is not alone. This study says cost is one big factor that's adding to an education gap between students in the U.S. and then some students in other countries.
LUI: Good news Josh. Tell us what is actually quite positive in this report?
LEVS: What is quite positive in this report? I went through it, I found a couple little morsels. It does say states are making some advances in preparing students for college and also increasing access to higher education. But we have to reality check that, it also says that other nations are actually advancing even more quickly in those ways. So even in those categories, we are slipping behind. Sorry.
LUI: You tried, my friend.
LEVS: I did my best.
LUI: You did.
NGUYEN: It's tough in this state of affairs, isn't it. All right. So Santa Claus may use a smaller sleigh this year with the economy shrinking that pile of presents under the tree. How are parents explaining all of this to the kids.
(COMMERCIAL BREAK)
(WEATHER REPORT)
LUI: Tough economic times mean many of you will be scaling back your holiday gift-giving.
NGUYEN: Santa may have a shorter wish list for some kids. Here is our Ted Rowlands with that.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: So what should Santa bring you on Christmas eve?
UINDENTIFIED FEMALE: A cupcake maker.
UNIDENTIFIED MALE: A cupcake maker.
TED ROWLANDS, CNN CORRESPONDENT (voice-over): In malls across the country, kids are making their annual climb on to Santa's lap asking for Christmas presents.
UNIDENTIFIED MALE: What do you want Santa to bring you for Christmas?
UNIDENTIFIED FEMALE: A bicycle.
UNIDENTIFIED MALE: A bicycle?
ROWLANDS: But what do you do if your child really wants something you just can't afford.
UNIDENTIFIED MALE: What would you like for Christmas this year young lady?
UNIDENTIFIED FEMALE: A horse.
ROWLANDS: A horse, unfortunately, is probably not in the cards for Amanda Brenner. Her mother says the family business is a little off this year. So, like many families, they plan to cut back on gifts. She says they have told the kids not to expect a lot.
CODIE BRENNER, MOTHER: We want our kids to understand that to be content if we have and if we have not. They know that they are loved. Whether we have money or not.
UNIDENTIFIED MALE: What should Santa bring you this year for Christmas?
UNIDENTIFIED FEMALE: Everything that's at Target.
UNIDENTIFIED MALE: Everything that's at Target.
ROWLANDS: Many parents are talking to their kids now to avoid any disappoint on Christmas morning like Ralphie felt here in a Christmas Story.
UNIDENTIFIED FEMALE: We have talked to the kids about what to expect. Hopefully, Santa brings everything but everyone kind of knows that it might be a little lighter year this year.
ROWLANDS: Experts like momcentral.com founder, Stacy Debroff says with older kids, especially, be honest. It's the younger ones, you may have to get a little creative with.
STACY DEBROFF, MOMCENTRAL.COM: The last thing anybody wants is to see a look of disappointment as kids open the present and they say, oh, that's all you got me.
ROWLANDS: But they think Santa can do anything. How do you handle that?
DEBROFF: I think that this year Santa is going be on a bit of a budget.
ROWLANDS: Debroff says kids get it and if you bring them into the discussion, they will help come up with something you can afford that will also hopefully make them as happy as the Youtube kids on Christmas morning. Ted Rowlands, CNN, Los Angeles.
(END OF VIDEOTAPE)
NGUYEN: Don't you wish every Christmas would be like that?
LUI: Except when you get the onesie.
NGUYEN: Yeah, that's true. You know, hey, this is not a bad president for George Bush as you're seeing the unveiling of one of his new portraits there. Look at that. LUI: Mark carter of Birmingham, Alabama. Evidently he's done something like two or three prominent figures in addition to the president.
NGUYEN: His parents, George H.W. Bush and Barbara Bush and actually this was done in the treaty room of the White House back in March. The artist actually took several hundred photographs to capture the details such as Bush's skin color. It's really a beautiful sight. Nice portrait.
LUI: It's got to be strange when you look at a photo of yourself. I really don't like that nose area.
NGUYEN: Could you have made it a little bit better in the picture? That's probably what I would have said. Could you make me over a little bit?
LUI: I didn't play that many football games.
FREDRICKA WHITFIELD, CNN ANCHOR: I think you end up liking it knowing how much time and effort went into actually painting it.
LUI: That's true.
WHITFIELD: I'll take it, but that's a beautiful portrait.
LUI: We're just having fun.
WHITFIELD: I guess that would pretty nice, presidential standards, after all.
NGUYEN: Exactly, right.
WHITFIELD: All right, well I just kind of barged in on your conversation.
NGUYEN: Because you are coming up and lots to talk about.
WHITFIELD: That's right NEWSROOM comes up noon time, the question is still being asked not just on Capitol Hill, but really across America. Should the big three, American automakers be bailed out and will it indeed resuscitate a failing industry? And then O.J. Simpson going to jail. Our legal guys will be delving into whether indeed O.J. Simpson even after making his heartfelt plea to the judge there, getting a sentence handed down might an appeal mean that he actually won't be seeing jail time. Our legal guys will be delving into that, all that straight ahead, noon time.
LUI: I'll bet you those legal guys are going to have fun with it too, though, knowing them.
WHITFIELD: Oh yeah, they always do. And you know, by the way, on the big three, the bailout should it happen, we're also taking in a lot of e-mails and reading your e-mails on the air to find out what you think about whether indeed they should be bailed out, if it will help you as a taxpayer, if you want to pay for it. NGUYEN: That could be a heated conversation because some people really on both ends of the spectrum when it comes to that and it's hard to find that middle ground. All right thank you.
LUI: Thanks, Fred.
Armed bandits, some dressed in drag staged a daring robbery in broad daylight.
NGUYEN: And they actually got away with a King's ransom in fine jewels and diamonds. Robert Moore has this detail.
(BEGIN VIDEOTAPE)
ROBERT MOORE (voice-over): It was a robbery of astonishing audacity. The armed gang simply walked into this jeweler, one of the world's most exclusive stores and helped themselves. Even the police admitted it was in their words, terrifyingly efficient. A short time later they walked out. Two of the men still dressed in drag with a vast haul of Harry Winston's best jewels, diamonds and watches. To the astonishment of clients, it was a near replica of a heist at the same store a year ago.
UNIDENTIFIED FEMALE: We were here last year at the same time, they were robbed last year and now they were robbed again this year.
MOORE: What is it about Harry Winston and jewelry heists?
UNIDENTIFIED FEMALE: I don't understand it. It's ridiculous. Don't they have enough security here not to let these people in.
MOORE: Harry Winston is known for good reason as the jeweler to the stars. Providing diamonds and priceless accessories to many a Hollywood icon.
His reputation was secured when Marilyn Monroe referred to him in her songs.
(On camera): The gang's getaway strategy and the entire heist was based on one crucial element, speed. They were inside the store for less than a minute, then the gang members jumped on high-speed motor bikes and then by the time the police arrived, the jewels, the diamonds and the criminals were gone.
(voice-over): As detectives hunt for the gang, there is already speculation the robbery is linked to eastern Europe. One of the few places where on the black market famous jewels might be sold. The police are now studying security video acknowledging they're now pursuing complete professionals. Robert Moore, ITV news, Paris.
(END OF VIDEOTAPE)
LUI: Picking out the perfect present. One little girl is getting all she asked for thanks to a little help from the pentagon.
(COMMERCIAL BREAK) LUI: Grab a hankie for this one. A North Carolina girl has an added reason this year to believe in the magic of Christmas.
NGUYEN: Here's what happened. She asked Santa for a special gift. Not only did she get it, but it came early. Here's Kim Gebia, with CNN affiliate WXII.
(BEGIN VIDEOTAPE)
KIM GEBIA, WXII (voice-over): 3-year-old Kensley Penny promises this year she's been a good girl. She does just what grandma asks.
Look Kensley, give me a kiss.
GEBIA: And kisses her special American doll with dad's picture every night.
UNIDENTIFIED FEMALE: When we go to bed at night do we say prayers for daddy?
GEBIA: Kensley's hoping these good deeds will be enough for Santa Clause to give her the two special requests she has this Christmas.
UNIDENTIFIED FEMALE: I asked her if she wants dolls for Christmas and she said no. I said well what do you want? She said I don't know yet. We were out at Wal-Mart one day and she said I want a truck and my daddy.
UNIDENTIFIED FEMALE: Sing it for me one more time.
KENSLEY PENNEY, 3 YEARS OLD: Bring daddy home to me.
GEBIA: Her daddy is Sergeant Scott Penney. He's been serving in Afghanistan since March. It's been hard on mom April, but especially tough on little Kensley. How much do you miss your daddy? ? How much? That much?
Luckily the Santa here at Pine Hills Church has a lot of elves working for Kensley. Her wish has already been approved by the north pole and the pentagon and it's about to come true.
UNIDENTIFIED MALE: Ok, who is that?
KENSLEY PENNEY: Daddy!
UNIDENTIFIED MALE: That's your daddy! Would you like to go see your daddy?
KENSLEY PENNEY: Daddy! Daddy, hi, daddy! I missed you! I love you, daddy!
UNIDENTIFIED FEMALE: She always says, lord, take care of my daddy and bring him home and so this was something we really wanted to do for her for Christmas.
(END OF VIDEOTAPE)
NGUYEN: That is the most precious story especially when she realizes that it really was her daddy.
LUI: It's that time of year.
NGUYEN: Yeah. CNN NEWSROOM continues with Fredricka Whitfield. Wasn't that a great story, Fred?
WHITFIELD: That's the kind of stuff that makes you cry. I mean, happy tears, but it makes you cry.
NGUYEN: Keep it together.
WHITFIELD: I know. I have a whole hour. Hold it together. Ok.
All right you guys have a great day.
LUI: You bet.
