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Closing in on a Deal for Detroit; Governor Corruption: Who is Blagojevich?; Talk Show Queen Battles the Bulge

Aired December 10, 2008 - 09:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Closing in on a deal. An auto bailout loan could come to a vote today. What could keep it from passing, though?
And the day after the fall. What's ahead for a disgraced governor and his state?

It is Wednesday, December 10th. I'm Heidi Collins, and you are in the CNN NEWSROOM.

The changing of the seasons. We're watching severe thunderstorms in Texas and Louisiana now and very heavy snow in Wisconsin as well.

CNN meteorologist Rob Marciano is tracking it all from our Severe Weather Center.

Boy, this is sort of an uptick, if you will, from yesterday, huh?

ROB MARCIANO, CNN METEOROLOGIST: Yes, definitely an uptick and everything is kind of sliding off to the east. Cold air and warm air mixing and you know when that happens, especially this time of year, you get some rough-and-tumble weather.

COLLINS: Yes.

MARCIANO: So less of an event as far as snow goes today, but more of an event as far as severe weather goes, especially across the Gulf States into the Florida panhandle. Alabama has been -- getting hit hard this morning. You can see the moisture stream just to the east of Mobile, towards Pensacola, now heading into Atlanta.

This watch box in effect until 3:00 p.m. Eastern Time. So, we've got some definitely hours to go here before we're in the clear.

Heavy thunderstorms now rolling through Peachtree City, up through Roswell, northeast up the I-85 corridor.

At the moment we don't have any tornado warnings posted, but we have several throughout the morning across the state of Alabama, even some reports of some minor damage.

All right, rainfall across the northeast, this is all warm rain. It will become colder once the front comes through. But note that the sliver of cold air is really up across the Canadian border, so our threat for snow today is a little bit more narrow. But look at the difference in temperatures here, Heidi, 2 in Minneapolis, 62 degrees in Boston. Yesterday, the daytime high in San Antonio was 85, and the temperature dropped to 35 at midnight.

So big time difference in temperature. We'll talk more about this throughout the hour.

COLLINS: Yes, turn up the electric blanket, I guess.

All right. Rob, we'll check in later. Thank you.

MARCIANO: You got it.

COLLINS: We could see some action on Capitol Hill today to rescue the struggling auto industry. Congressional Democrats and the White House have reached what's being called an agreement in principle.

But is there enough Republican support for a bailout plan?

Lawmakers could actually vote on it today. If it passes, General Motors and Chrysler could get emergency loans within days. How much money are we talking about? Well, and at what cost to automakers and the taxpayers, lots of very big questions to say the least.

CNN's Gerri Willis is here now to fill in the blanks for us from New York this morning.

Good morning to you, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning, Heidi.

Yes, first off, let's first about parameters of this -- of this legislation which is not in contention. That's the amount of money we're talking about here, $15 billion for the automakers. That's your taxpayer dollars at work.

The money coming from the Energy Act, not from the $700 bailout bill. The president would appoint a car czar, as we've been talking about all week, and that car czar would really serve almost as a bankruptcy trustee, making very important decisions for those companies negotiating with unions, negotiating with vendors, et cetera. The GAO would also have a role in overseeing that program.

Now, to the news today -- it appears, according to Kathleen Koch, she's reporting this morning from the White House, that the Rules Committee on the Hill could have this up in front of the committee by 10:00 a.m. so a little less than an hour right now could start talking about this.

I have to tell you, though, Heidi, there are still two sticking points on this legislation. One, whether the auto companies can sue states over greenhouse emissions. And, two, how to ensure that taxpayers get repaid if Chrysler were ultimately to go out of business? It's held by a private holding company...

COLLINS: Yes. WILLIS: ... called Cerberus, so that's an outstanding issue. The White House pushing back on these two issues.

But we do have some important things resolved here. One, how much can these companies spend on their own without asking the government's approval? That number now at $100 million. Republicans have sought to boost that number from $25 million, because they sort of felt like the companies would be hamstrung in operations.

Also the ability of the government to revoke some of these loans. You know, we talked a lot about if you don't meet our standards, what we want to do, shouldn't we be able to revoke these loans. That language changes from "shall be able to revoke" to -- from "could" to, shall."

And I have to tell you, you know, obviously there's still a lot in contention in this bill. Lots of conversation about what needs to be done.

I want you to hear from Senator Mitch McConnell who had some comments about this legislation. What he would like to see happen.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: I want to support a -- bill that revives this industry, but I'll not support a bill that provides the patient with taxpayer dollars yet doesn't secure a commitment that the patient will change its ways so future help isn't needed.

To do so would be a betrayal of the millions of hard working taxpayers who are not at fault for the troubles in the auto industry.

(END VIDEO CLIP)

WILLIS: All right. So there is some threat of Republican filibuster on this. We'll have to wait and see. Of course, you know, Heidi, we'll be following this all day long to see what happens.

COLLINS: Yes.

WILLIS: Fascinating story and a big tug-of-war over the numbers here.

COLLINS: Yes, no question. Could actually something could happen today, though, so we are watching closely. Sure do appreciate it.

WILLIS: That's right.

COLLINS: Gerri Willis, thanks.

WILLIS: My pleasure.

COLLINS: Progress also being made to end a nearly weeklong sit-in in a Chicago factory. Republic Windows & Doors abruptly closed last week after its creditor, Bank of America, canceled its financing.

Workers got three days notice. Now the bank has offered limited loans to help pay these laid-off workers. Unions say there are still sticking points, though. Workers want severance and vacation pay. Talks are set to continue later today.

The state of Illinois, in a state of disarray. Governor Rod Blagojevich released on bail facing federal corruption charges. Technically he is still the governor, though there are calls for him to step down as you might imagine.

Blagojevich still does have the power to fill Barack Obama's Illinois Senate seat. Prosecutors say there's nothing they can do about that. But Senate majority leader, Harry Reid, says Democrats don't want anyone appointed with this controversy hanging over their head.

Governor Blagojevich accused of using his office to pad his pocket and to exact revenge from critics.

CNN's Susan Roesgen is joining us now live from Chicago with the very latest this morning.

Hi there, Susan.

SUSAN ROESGEN, CNN CORRESPONDENT: Hey, Heidi, how are you? We are right outside the governor's house right now. There's been a gaggle of reporters behind me here it waiting for him to come out. He's supposed to go to his office this morning. We think that he will any minute. So if I get the high sign from the producer, I'll let you know.

COLLINS: OK.

ROESGEN: In the meantime, I don't know if you checked the morning papers, Heidi, but extra, extra.

COLLINS: Oh yes.

ROESGEN: Read all about it.

COLLINS: Everywhere.

ROESGEN: Extra edition last night. "Arrested," yes. And this is the "Sun-Times" today. Just one word, "Shame." Shame on the governor. And they were selling these extra editions right outside "The Chicago Tribune."

You know, "The Tribune" is important because there was this allegation -- is this allegation that the governor tried to extort the editorial board of the "Tribune" to get rid of some critics, otherwise he would not free up state money so that the Cubs could be sold.

There's something else going around out there, Heidi. Anybody on the Internet right now should check out eBay. They are selling...

COLLINS: Oh boy.

ROESGEN: ... quote-unquote, the -- yes, selling that Senate seat. Of course, this would be the wood and leather actual seat that you sit down on. It's just a joke this morning. They have prices on that seat anywhere from $9 million down to about five bucks, so people are, you know, trying to make light of this, but, of course, it's a very serious situation.

And we tried to talk to some neighbors around here. Most of them don't want to talk. They may warm up later this morning as it warms up out here.

Also, Heidi, I don't know if you can hear it. We've got two helicopters in the sky.

COLLINS: I can hear it. Yes.

ROESGEN: Yes, everybody is here waiting to see the governor come out. We believe that one of his two young daughters is getting ready to go to school, so some of the activity may be the state troopers helping the daughter get in the car to go to school. But I'll let you know when we see him. We're staking him out.

COLLINS: All right. Yes, you know, it's interesting people are making jokes about it, obviously, as you might expect. But the people of Illinois, I don't think they are there just yet. A lot of people very upset about this.

Susan Roesgen, sure do appreciate it. We'll check back with you a little bit later on.

So what does happen to Barack Obama's Senate seat? Recordings showed Blagojevich considered giving himself the job if no one else stepped up to make it worth his while.

Here to talk more about the ramifications and of course, the next step now is CNN's senior legal analyst, Jeffrey Toobin, in New York.

Yes, you know, I'm -- actually not very surprised by that, at least at this point, from what we have seen so far that he might just, you know, try to step into the job himself.

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, he thought about it, and historically there have been governors who appointed themselves to Senate vacancies. But the situation now is really just an extraordinary mess, because today he is the governor.

COLLINS: Yes.

TOOBIN: He can go in to work and sign bills, and even in theory, appoint a senator. Frankly, I think that is really not going to happen, because who would accept an appointment from Rod Blagojevich at this point?

And under the rules of the U.S. Senate, the Senate has control over its own membership. So I am certain that the Senate would not seat anyone appointed by Blagojevich. But the fact is, he's the governor today. He can do whatever it is governors do, and that's why the state is scrambling. The state legislature is starting to gear up for an impeachment. But that is likely to take a while. COLLINS: Yes, you know, it makes you kind of think about the people who are involved in all this, i.e., you know, the possible candidates for this position. I'm so curious about what will happen next in all of this and whoever makes this decision, as we move forward, if it is not Blagojevich.

Do they have to start from ground zero? I mean, there's going to be so much investigation, is there not, that needs to be done into the people who he was considering?

TOOBIN: Well, it is going to be back at square one. And if Blagojevich leaves office, the office will pass to Lieutenant Governor Patrick Quinn, also a Democrat. But it will be in his sole discretion whom to appoint.

That is the situation we're in now, except with a different governor. And the political machinations and the references in the complaint to the various efforts by the would-be candidates who are only identified by number, that will certainly become an issue.

There are going to be other people embarrassed by this situation besides Blagojevich. Barack Obama so far seems more or less to have escaped, fortunately for Obama. Blagojevich on the tape is furious at Obama. He says Obama's not doing anything for me. He's not helping. That criticism is actually good news for Obama.

COLLINS: Yes. Do you think it's possible that he knew absolutely nothing about it at this point? I know full well that there's no evidence at this point of any of that, but I'm just curious, you know, as a senator from that state, if that's realistic?

TOOBIN: Well, it depends what you mean by "knew nothing." The newspapers have been full of speculation about whom Blagojevich might appoint, Valerie Jarrett, a close friend of Obama, for a while was considered then withdrew her name from consideration.

So certainly Obama knew about the politics of the situation. The question is, did he know about Blagojevich's corrupt attempt to get money, jobs, favors, whatever in return for the appointment. And at this point, there's no evidence he knew anything...

COLLINS: Yes.

TOOBIN: ... about Blagojevich's corruption.

COLLINS: All right. So, you were a former U.S. attorney, which is another reason...

TOOBIN: Assistant. Assistant U.S. attorney.

COLLINS: Forgive me.

TOOBIN: I wish.

COLLINS: Well, I'm sure that you found, either way, the news conference yesterday with the U.S. attorney Patrick Fitzgerald pretty remarkable. I want to play a little bit of that sound just in case some people missed it at home and get your comments.

(BEGIN VIDEO CLIP)

PATRICK J. FITZGERALD, U.S. ATTORNEY: The most cynical behavior in all this, the most appalling, is the fact that Governor Blagojevich tried to sell the appointment to the Senate seat vacated by President- elect Obama. The conduct would make Lincoln roll over in his grave.

(END VIDEO CLIP)

COLLINS: Obviously Fitzgerald not very happy. That news conference went on and on. There were many comments made like that. Where's it go? Where's it go today and throughout the rest of this week?

TOOBIN: Well, it goes to a grand jury next. A grand jury will decide whether to return an indictment against Blagojevich and for what charges. There are only two charges in the complaint. But the custom is for once a case goes to the grand jury, the number of charges is expanded a great deal.

COLLINS: Yep.

TOOBIN: You know, I consider myself a reasonably worldly and cynical person. I prosecuted political corruption cases when I was an assistant U.S. attorney in Brooklyn, but I never heard anything like that...

COLLINS: Yes.

TOOBIN: What was on those tapes. I mean, it is extraordinary. Fitzgerald said the cynicism, the delusional nature of Blagojevich, the -- the greed is just shocking to me. And -- you know, I don't think I'm easily shocked.

COLLINS: No, you're not. I never see that.

All right, Jeff, we sure do appreciate it. CNN's senior legal analyst Jeffrey Toobin.

TOOBIN: OK, Heidi.

COLLINS: Be talking a lot more about it today and as we learn even more.

Meanwhile to Greece now in the grips of strikers and those striking out. More riots linked to the police killing of a teenager and now a shutdown of services. We'll get an update from Athens.

(COMMERCIAL BREAK)

COLLINS: Another day of chaos in Athens. Greek police are still trying to take back the streets after a fifth day of rioting. It all started with the police shooting of a teenager. The officer's lawyer says a ballistics report on the bullet shows the boy was killed by a ricochet and not a direct shot. But authorities have not released the official results. Meanwhile, thousands more marched today in a labor strike in the Greek capital.

(BEGIN VIDEO CLIP)

TASOS TELLOGLOU, JOURNALIST: Most of them are pupils of the schools or students in the universities. They are also some anarchist that take part usually in classes like that. But the spectrum is much bigger. It's a sense of frustration, especially in the youth that are in school and in university, a frustration that -- of the schooling system that doesn't work and of a market that can't provide them employment opportunities.

(END VIDEO CLIP)

COLLINS: Most of the country is already at a complete standstill. Banks, hospitals, and schools were all closed today. And many local and international flights have now been grounded.

To Pakistan and the hunt for the Mumbai attackers. Authorities have arrested two leaders of the terrorist group India blamed for the massacre last month. A Pakistani security official says the government continues to raid suspected militant camps and several arrests have been made. India insists the gunmen were trained in Pakistan.

Well, it's still not quite winter yet, right? But you sure can't tell in parts of Wisconsin. Look at that. Residents digging out from the first major snowfall of the season. Eight inches of snow blanketed Sheboygan. In Grafton, it was kind of hard to see with all that snow.

The snow plows, though, were cleared out the roads. Schools are closed in Madison. Icy roads near Beloit, that is, sorry, caused a semi truck to jackknife, as you can see. That shut down traffic along two interstates for about an hour.

In Louisiana, it was tornadoes toppling trees, scattering debris and collapsing roofs. The National Weather Service says at least three touched down in and near Alexandria. Two hit near the town's Red Cross headquarters, in fact, but no injuries were reported.

The storms were part of a severe weather system moving across the state.

In fact, I think it's moving a lot further than that. Rob Marciano standing by now to talk a little more about it. And it's huge you're saying.

MARCIANO: Yes, it's big. I mean look at the map. It takes really the eastern third of the country and it's...

COLLINS: Yes.

MARCIANO: ... slowed down quite a bit. So that means a little bit more in the way of trouble here, especially for the south. This low, kind of like a little wave that's developed along this front. When that happens, it puts the brakes on the bottom half of it. And we're going to gather some energy here. Not only are we going to see severe storms but we're going to see an ongoing day and a half or two of some heavy rain here and the potential for seeing some flooding.

(WEATHER REPORT)

COLLINS: Nasty. All right. We're going to check back with you, Rob, because it sounds like these things are obviously still developing. Thanks so much.

MARCIANO: All right.

COLLINS: He lost his wife and his two young daughters. Now a man speaks after a military jet crashed into his home.

(COMMERCIAL BREAK)

COLLINS: In California, firefighters recovered the body of a 15- month-old child buried beneath the debris and rubble of a home after an F-18 crashed into a San Diego suburb on Monday.

The man who lost his wife, two children and mother-in-law says he doesn't blame the pilot who survived.

Here now, our Ted Rowlands.

(BEGIN VIDEOTAPE)

DONG YUN YOON, FAMILY KILLED IN ACCIDENT: You know I cannot believe that they're not here right now.

TED ROWLANDS, CNN CORRESPONDENT (voice over): A day after losing his entire family, Dong Yun Yoon return to see the devastating from a Marine Corps F-18 jet that crashed into his home. At the time of the crash, Yoon's wife was inside the house with the couple's two little girls, one just 2 months old, the other 15 months. His mother-in-law was also inside and also died.

YOON: Such a horrible thing to happen. She's just such a lovely wife and mother. I know God is taking care of them.

ROWLANDS: As the Marine Corps investigates exactly what happened, witness accounts seemed to back the theory that both engines of the F- 18 fighter jet failed before impact.

JASON WIDMERE, WITNESS: And then I could see where he was landing into the trees.

ROWLANDS: Jason Widmere not only saw the crash but actually talked to the pilot, who, after ejecting, ended up in a tree. His friend took these photos. Widmere says the pilot told him that he lost one engine over the Pacific Ocean, then lost the second over the neighborhood as he was preparing to land at Miramar Marine Air Base.

WIDMERE: He tried to aim it into a clearing, but he had to eject before he could steer the bird any farther because it was descending too fast, so he had to eject it -- you know, make sure he was out of harm's way as well. The only thing he kept reiterating to me is, I hope I didn't kill anybody.

ROWLANDS: Dennis Connor took these photos with his camera phone seconds after the crash. He says there was no engine noise as the jet fell to the ground which backs the theory that both engines went down.

DENNIS CONNOR, WITNESS: It was eerily silent. It was, you know, it's scary because you know -- you just hope he makes it to the canyon and you see it and you just pray.

ROWLANDS: The house next door to the Yoons was also completely destroyed. Luckily nobody was home.

(On camera): The pilot hasn't been officially identified by the Marine Corps. He did talk to several other witnesses basically telling them the same story about what happened. Experts say landing an F-18 with just one engine is relatively routine, however, they say if both of those engines did, in fact, fail, the pilot would only have a few seconds to react.

Ted Rowlands, CNN, San Diego.

(END VIDEOTAPE)

COLLINS: Accused of trying to sell a Senate seat. Who is the man behind the corruption charge? A profile of Illinois governor Rod Blagojevich.

(COMMERCIAL BREAK)

COLLINS: Quickly now opening bell about to ring any second as the trading day for Wednesday will begin. Investors are hoping for a rebound after yesterday's nearly 260-point tumble.

Susan Lisovicz is at the New York Stock Exchange now with more on how this trading day will look.

Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, we're looking for some gains at the open. Yesterday's losses, I should say, nearly erased all of Monday's gains.

These are the times we live in and, there's the opening bell.

Worries over the nation's economic health were major drag on the stocks yesterday, particularly after a wave of layoff announcements. Well, we're hearing more of the same today.

Rio Tinto will cut 14,000 jobs worldwide to cope with the global recession. The miner has witnessed weakened demand for its iron ore and other metals. Its shares right now are surging nearly 20 percent.

Meanwhile, Electronic Arts, the popular gaming company based in California, also announcing an unspecified amount of staff reductions. And also cut its earnings guidance for next year. EA's games include Madden NFL and The Need for Speed series.

Yahoo! begins handing out pink slips today. The Internet giant following up on its previously announced plans to cut about 1,400 employees or 10 percent of its workforce. Office Depot closing more than 100 underperforming stores, North America over the next few months. And an additional 14 when their leases expire next year. GMAC has said in the last hour that it doesn't have enough capital to become a bank holding company and may be forced to drop the effort, which leads us to, when we're speaking of dwindling capital, Washington, and its response to the big three automakers.

Lawmakers expected to finally sign off on $15 billion in aid to GM, Chrysler, and Ford, in what is being described as a band-aid for the industry. And that's a catalyst for some gains in the first minute of trading, Heidi.

Checking the numbers. Right now, the Dow industrials are up 85 points or about one percent. The Nasdaq, meanwhile, is up 14. Also about one percent. Oil prices gaining about $2 ahead of the government's weekly inventories report. That's due in an hour. We'll talk about that later. Heidi, back to you.

HEIDI COLLINS, CNN ANCHOR: All right, very good. Susan Lisovicz, thank you.

Closing in on a deal for Detroit. Automakers could get emergency loans next week, if they agree to conditions and if lawmakers can get on the same page. The White House is helping steer the negotiations. CNN's Kathleen Koch is there for us this morning.

So, what's the very latest now, Kathleen? We have heard this word that there's an agreement in principle.

KATHLEEN KOCH, CNN GENERAL ASSIGNMENT CORRESPONDENT: An agreement in principle indeed, Heidi. This coming after days of wrangling. A senior administration official I spoke with just a few minutes ago says they are still finalizing the language, dotting the "Is," crossing the "Ts." But let's talk right now about the major provisions.

First of all, automakers would have to by March 31st, submit to a car czar, who would be appointed by President Bush, their plans for restructuring. The car czar would determine whether or not those plans were workable. If they weren't, this car czar could then submit his or her own plans for restructuring, which could include Chapter 11 Bankruptcy.

Now, what this would do immediately as far as if this measure passes, the automakers would have access within a matter of days. Some $15 billion in emergency bridge loans. Now if the automakers, either don't on their own or with the car czar come up with a very workable and acceptable restructuring plan, then they would have to repay those loans immediately and have no further access to federal funds. On Capitol Hill, Democrats are saying this is a must-pass measure.

(BEGIN VIDEO CLIP) REP. BARNEY FRANK (D), MASSACHUSETTS: For most of us, this question is how to do it, not whether, because this economy would -- which is already in trouble, would take a staggering hit if you had this kind of collapse. And there are debates about how to do it. It is also something, by the way, that can be redone. You know, these bills aren't forever.

(END VIDEO CLIP)

KOCH: One aspect that had caused quite a lot of debate was something that would have forced automakers to drop any lawsuits they had, challenging state's tough emissions standards. Many Republicans and the White House opposed that. A senior administration official last night says he does not expect that that will be in the bill, and if it is, that the bill will not succeed.

Now, one thing that has definitely been changed was a limit that Detroit would have to let the car czar know if they spent more than $25 million on anything. Many people thought that was just burdensome, that it would hamstring the automakers. That's been boosted we're told by a Democratic aid to $100 million. But this is not a done deal, Heidi. They say if they do work things out, there could be a vote as soon as today.

COLLINS: Yes. And there's a news conference a little bit later on today as well by this group of conservatives who possibly may sort of scrap the whole deal.

KOCH: They're talking filibuster. They're talking about a group of fiscal conservatives, Senate Republicans and they still have a lot of problems with this measure. The senior administration official I spoke with today, then another one who brief reporters last night, they're saying, you know, we're reaching out to them. We're talking to everyone. So pressure is being applied, Heidi. But yes, that could be a big sticking point here.

COLLINS: Obviously a developing story today. We'll be watching really closely. Thank you, Kathleen Koch.

KOCH: You bet.

COLLINS: Appreciate it.

Well, he's still the governor, but don't expect to see Rod Blagojevich do any serious work today. He, as you know by now, facing federal corruption charges. Prosecutors said he tried to sell Barack Obama's Senate seat. CNN's Gary Tuchman with the profile.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): On the day before he was arrested, Rod Blagojevich was supporting laid off Chicago factory workers, and playing tough guy toward authorities who have been investigating him for years.

GOV. ROD BLAGOJEVICH (D), ILLINOIS: I don't care whether you take me privately or publicly, I can tell you that what whatever I say is always lawful.

TUCHMAN: But the authorities feel oh so differently.

PATRICK FITZGERALD, U.S. ATTORNEY: Governor Blagojevich has taken us to a truly new low. Governor Blagojevich has been arrested in the middle of what we can only describe as a political corruption crime spree.

TUCHMAN: The first Democrat to be elected governor of Illinois in three decades was taped all right. The allegations against him stunned even reporters steeped in Illinois' sorry history of corrupt politics.

RICK PEARSON, "CHICAGO TRIBUNE": It just defies explanation.

TUCHMAN: Rick Pearson has been a political reporter with the "Chicago Tribune" for 20 years. He says in the first year of Blagojevich's first term, he made an effort to be a reasonable governor.

BLAGOJEVICH: I support the governor's decision on the moratorium.

TUCHMAN: Blagojevich's backed the moratorium on the death penalty, supported by previous Republican Governor George Ryan, imprisoned now because of his own political troubles. But after Blagojevich's first year, he started making a lot of enemies, not just Republicans but his fellow Democrats.

PEARSON: He's a very difficult person to try to figure out. People were always asking about, will Blagojevich do X or do Y, and somehow he'll end up doing Z.

TUCHMAN: A "Chicago Tribune" poll on October showed the governor's approval rating at 13 percent. But even recently, the governor, who used to be a state representative and congressman, characterized himself as a popular guy when talking about who he would pick to fill Barack Obama's Senate seat.

BLAGOJEVICH: I've never had more friends than I do today and when I make the final decision, I won't have nearly as many as I have now.

Thank you very much. God bless all of you.

TUCHMAN: Blagojevich made some politicians so mad that one Democratic state senator said he would have kicked his tail end if an argument ahead was in a tavern. Some have questioned whether Blagojevich is stable.

In a Chicago magazine article, Democratic state Representative Joe Lyons told reporters the governor was, quote, "insane." And another Democrat, Representative Jack Franks, says he has, quote, "delusions of grandeur."

PEARSON: A lot of people have raised a number of questions including fellow Democrats, including I believe the spokesman for the House -- Democratic House speaker, you know, wondering if there isn't some kind of psychological imbalance going on. TUCHMAN: Only hours before his arrest, a smiling governor declared --

BLAGOJEVICH: I don't believe there's any cloud that hangs over me.

UNIDENTIFIED FEMALE: Getting back to that --

BLAGOJEVICH: I think there's a lot of sunshine hanging over me.

TUCHMAN: It should be noted when he was taken into custody, there was no sun to be seen in Chicago's gloomy sky.

Gary Tuchman, CNN, Chicago.

(END VIDEOTAPE)

COLLINS: Tainted office. Governor Blagojevich accused of using Barack Obama's Senate seat to get paid. What's the president-elect's take on all of this? Well, CNN Elaine Quijano is joining us this morning now from Chicago.

And that is the question that people are asking about all of this. Where does President-elect Obama fit in, if at all?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, good morning to you, Heidi. President-elect Barack Obama made it a point to address this story during a meeting that he had yesterday with former Vice President Al Gore. They were meeting to discuss climate change and energy issues. But at the end of that meeting, in fact, reporters were called back into the room. They started to leave after the president-elect made a statement. And then a reporter asked a question, the president-elect said he wanted to answer that question. And here is what the reporter asked -- whether he had any contact with or was aware at all of what was happening with his Senate seat. Here is how the president-elect responded to that question.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: I had no contact with the governor or his office, and so we were not -- I was not aware of what was happening. And as I said, it's a sad day for Illinois. Beyond that, I don't think it's appropriate to comment.

(END VIDEO CLIP)

QUIJANO: Now, what he said there contradicts something that a senior adviser, David Axelrod, said to a local TV reporter here in Chicago a couple of weeks ago, that Obama did have a conversation with Governor Blagojevich about his Senate seat.

Well, late yesterday, David Axelrod released a written statement saying that he was mistaken when he said that, that Obama and Blagojevich did not have a conversation at any time to discuss that subject.

Now, we should make clear that the U.S. attorney here, Patrick Fitzgerald, has said there is nothing, no allegation, in the federal complaint against the president-elect. Nevertheless, there are still open questions, including who on Obama's team had a conversation with the governor, or somebody in the governor's office, about this issue. Heidi, that's still very much an open question right now.

Heidi?

COLLINS: Yes, there are an awful lot of open questions certainly. Just one day after all this went down on the air here in the CNN NEWSROOM.

All right, Elaine, we know that you're following it very closely for us from Chicago this morning. Thanks.

Some severe weather to tell you about, too. Rob Marciano standing by now in the weather center. I'm talking about this pretty huge system, Rob.

(WEATHER REPORT)

COLLINS: Yes. I don't blame you. All right, well, listen, we know you're busy so let us know if we need to come back to you to follow this tornadoes keep going on in the southeast.

ROB MARCIANO, CNN METEOROLOGIST: You got it.

COLLINS: All right. Thank you, Rob.

MARCIANO: OK.

COLLINS: Oprah Winfrey says she's fallen off the wagon when it comes to healthy living. What's behind her weight gain of 200 pounds?

(COMMERCIAL BREAK)

COLLINS: It's a never-ending problem for a woman who seems to have everything. Oprah Winfrey's constant battle with the bulge. And she is talking about it openly now on her show. But are there medical reasons for her weight gain? CNN medical correspondent Elizabeth Cohen is joining us now live to talk a little bit more about it.

It's a good question.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It is a good question. And what she says, Heidi, is that it's a combination of a medical problem, hypothyroidism and a killer schedule that kept her from really getting that problem under control. That is a bad combination.

But first, let's talk about how much weight Miss Winfrey has gained. Let's take a look at this photo. In white -- you'll see this photo in a minute. She weighed 130 pounds in 2005; in black, she weighs now 200 pounds. She says that she is mad at herself and she is embarrassed. So, again, she weighs -- there you go. So in the purple there, she is now 200 pounds. In the white outfit, she weighed 160.

And, Heidi, it's interesting. She said back when she weighed 160, she got very cocky and she basically said to people, you know, eat less, move more. You can do it. And it's much more complicated than that.

COLLINS: Yes, absolutely. Now, talk a little bit about this hypothyroid. Because there is hypo and hyper, correct?

COHEN: Right. And she has hypo, which means that her thyroid gland had slowed down. And that can lead to weight gains. Let's go over a little bit. A lot of women have this problem. It's more common that you think. It's also sometimes under diagnosed.

What happens is that the thyroid gland becomes under active. Bodily functions start to slow down, and that can lead to fatigue, forgetfulness, sore muscles and, as we've been discussing, weight gain.

COLLINS: Is there anything that she can do? I mean, we have seen her go down in weight obviously from a lot of the pictures that we've been showing? So can she do that again, or does it get progressively harder? Do you have to take drugs?

COHEN: You know, it probably will be harder for her this time now that she has that hypothyroidism. But she's come up with a plan, and the plan is very simple. The plan is to not have a diet plan. In other words to not choose a particular brand name plan and go with that.

She really said that she's going to sit down and she's going to put herself first. She's got this killer schedule that sends her all around the world. She's traveling a lot. And she said, she's going to put herself first, which means she's going to make sure that she has the time to eat right. She's going to make sure that she has the time to exercise. So she's going to make sure that she has the time to really tend to her health problems. And it sounds sort of vague. But that's kind of what you have to do.

COLLINS: Yes.

COHEN: If you wanted to take it off and keep it off. Americans by and large are great at taking weight off. They're not great at keeping it off. So in many ways she's really a typical American.

COLLINS: Yes. And it sounds like a good plan for almost everybody, that's for sure.

COHEN: Right. Absolutely.

COLLINS: All right. CNN medical correspondent, Elizabeth Cohen. Thank you, Elizabeth.

Out of work or worried about losing your job? We'll take a look at where the jobs are in just a moment.

(COMMERCIAL BREAK)

COLLINS: A fourth person arrested in California in the disturbing case of a teen allegedly held captive for a year. Police say charges against the new suspect include torture and false imprisonment. Three others already in custody. They are accused of torturing a 16-year- old boy and keeping him shackled in a house near San Francisco. The teen escaped on December 1st.

Death or life behind bars? Jurors resume deliberations this morning in the case of Brian Nichols. He was found guilty last month in a March 2005 killing spree that began at a downtown Atlanta courthouse. Nichols confessed to the four murders but claimed he was legally insane.

Today is World Human Rights Day. It marks the 60th anniversary of the universal declaration of human rights by the United Nations. The document is the backbone for any U.N. action aimed at stopping human rights abuses worldwide. U.N. secretary general Ban Ki Moon says on going political unrest and global financial problems remain the key threats to human rights.

Gas prices keep falling, and we don't hear anybody complaining. AAA reports prices have dropped another penny and a half. That's the 84th drop in the row now. The average price of regular unleaded going for $1.68.

Much more on gas prices. In fact, coming up next hour. The president of Shell Oil Will be joining us. That is coming your way a little less than an hour from now.

And watching these numbers as well. Dow Jones Industrial Averages to the positive now by double digits, about 55 points or so after yesterday's close. Down almost 250. So, as always, watching the numbers on the stock market today.

Meanwhile, major companies chopping jobs. We hear it almost everyday. So who is hiring? Anybody? Our senior correspondent Allan Chernoff looks at where the jobs are.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice-over): Maria Tessinari changed careers to become a nurse, knowing that in her new profession she'd be marketable no matter how bad the economy.

MARIA TESSINARI, NURSE: I knew that I would graduate and have a job, and all my friends who have graduated nursing schools will all have jobs.

CHERNOFF: Even during the worse recession in decades, health care professions added 34,000 positions last month, while the economy was losing more than half a million jobs. An important reason, more Americans are following Maria's example.

(on camera): Columbia University School of Nursing has a program specifically for career changes. Its entry to practice program. Applications this year are up by 50 percent.

(voice-over): Dean Mary Mundinger says applicants are driven by more than the economy, they want career that make a difference. MARY MUNDINGER, DEAN, COLUMBIA UNIV. SCHOOL OF NURSING: Do they come home inspired and wanting to talk about what they accomplished that day. Every nurse can do that. They can come home, (INAUDIBLE), come home at night with a riveting story about having made a difference in the life of some family or some patient.

CHERNOFF: To meet demand for nursing education, Columbia is hiring instructors. Many other universities are hiring, in spite of the recession, because in tough economic times, many people go back to school to boost their skills.

In fact, some for profit schools are thriving. The stock of education company Apollo Group has climbed 60 percent in the past six months, while the Dow industrial average was plummeting.

Beyond education, other fields are still seeing job growth -- computer systems design, management and technology consulting, oil and gas drilling, and logging. Accounting and financial analysis also remain in demand.

DAWN FAY, REGIONAL V.P., ROBERT HALF INTERNATIONAL: It will almost create more opportunity in the analysis, budgeting and forecasting area when times are tougher, because people are watching every dollar that much more closely. So there's certainly opportunity that does get created.

CHERNOFF: Allan Chernoff, CNN, New York.

COLLINS: It's the Grinch who stopped red light runners. A seasonal twist to keeping the roads safe in Central Florida.

(COMMERCIAL BREAK)

COLLINS: Yes, the Grinch, that's for sure. It's a holiday tradition that you don't want to be a part of. Orlando area deputies reporting to duty as an elf and the Grinch. Their funny costumes aside, they have a serious purpose, ticketing red-light runners.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Last year in Orange County, there were 186 traffic fatalities. Probably about 45 percent of those were related to people running red lights or stop signs.

UNIDENTIFIED MALE: Well, 13 people in the last week, week and a half alone. That's more than all the homicides that occur in the month.

(END VIDEO CLIP)

COLLINS: In a two-hour period, the Grinch and the elf caught 50 red- light runners. Good for them.

Show and tell. A learning experience for a fourth grade class and their teacher. A deer broke a window and burst into their Michigan classroom, just a little too close for one student.

(BEGIN VIDEO CLIP)

DRAKE MCKINLEY, STUDENT: It jumped over my desk. And then I'm pretty sure the hoof hit me somewhere right here. And I touched it and I saw blood on my hand.

LESLIE VENLET, TEACHER: There was this loud crash and I see glass flying through the air. So what I did was I just dropped down on my knees like this and kind of covered my head a little bit. And I screamed. I said get down to the kids.

(END VIDEO CLIP)

COLLINS: Does everyone at that school have red hair? Or is it just me? The deer was only in the classroom for about 20 seconds, and then jumped back out through the broken window and ran away. This is the teacher's first year in the classroom. What a way to start a career there.

Well, you may have noticed something a little bit different on the bottom of your screen this morning. The CNN logo has turned green. That's because the second installment of CNN's award-winning series "PLANET IN PERIL" debuts tomorrow night at 9:00 p.m. Eastern. Make sure you don't miss that.

Final touches. Negotiators get an auto bailout loan ready for a vote in Congress. What roadblocks, though, remain?