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Governor Blagojevich Clings to Office; President-Elect Obama Meets With Security Team; Second Mortgage Meltdown Heading Our Way
Aired December 15, 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: Power play in Illinois. A scandalized governor clings to office as lawmakers move from both parties move in for the kill. This morning, your safety is his mission. Barack Obama meets with his national security team. We'll keep from behind the closed doors.
Good morning, everybody. I'm Heidi Collins. It's Monday, December 15th, and you are in the CNN NEWSROOM.
Will he or won't he? The question many people in Illinois are asking as calls mount for their governor to step down. Lawmakers meet today to considering options including impeachment.
Drew Griffin with our Special Investigations Unit is following the governor's every move.
So, Drew, what could we see happen today on this?
DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: A lot of moving parts here mostly in Springfield where the legislature is going to meet to talk about a whole range of issues related to this governor, stripping him of powers, starting impeachment, perhaps getting the Supreme Court to declare him unfit.
But everybody is hoping, speculating, that the governor will actually resign. His press secretary says that is not happening at least not today.
(BEGIN VIDEOTAPE)
GRIFFIN (voice over): It may be a cold day in Chicago but the governor is feeling the heat.
PAT QUINN, ILLINOIS LIEUTENANT GOVERNOR: I hope the governor goes resign. I think it's best for the people of Illinois as well as for himself and his family.
GRIFFIN: The Illinois legislature meets today to talk about stripping him of power or outright impeachment.
LISA MADIGAN, ILLINOIS ATTORNEY GENERAL: It is absolutely obvious that he is incapable of governing and -- the best thing to do is to move aside.
GRIFFIN: At the same time, Illinois attorney general, Lisa Madigan, is trying to get the state Supreme Court to declare Blagojevich unfit for office. But will Blagojevich give them a chance?
MADIGAN: We have heard that there is a possibility that tomorrow he will make an announcement that he will step aside.
GRIFFIN: His office denies it, and there are signs he's preparing for a fight. He spent nearly eight hours Sunday talking to a high-priced Chicago attorney known for helping big shots in a bind but gave little hint as to his next move on the way out.
GOV. ROD BLAGOJEVICH, ILLINOIS: There'll be an appropriate time to talk about this so let me just wish everybody happy holidays and things will be -- work out just fine.
UNIDENTIFIED MALE: The rumor is you intend to resign. Is that true or false?
BLAGOJEVICH: I just think you should all have a great holiday season.
GRIFFIN: One issue could be money. The governor accused of trying to sell a Senate seat is said to be in a tough spot financially. One option could allow him to step aside but keep his salary.
MADIGAN: I have heard as well that that is one of his main concerns, his financial circumstances right now.
(END VIDEOTAPE)
GRIFFIN: One thing they're working on, will the governor actually sign legislation that cedes the power of appointing that U.S. attorney instead sending this to a special election. We have not heard back from the governor on if he'll sign that, but the governor still clearly is the governor, Heidi. Still in power, and still wielding some of that power.
COLLINS: Yes, in fact, I wonder, Drew, is it possible for him to sign away that right? That one particular right of, you know, signing who is going to take over for President-elect Obama? That Senate seat. And then still stay in office? Is that really the thing that everybody wants to happen? Or do they just want him out?
GRIFFIN: Well, everybody wants him out. But it's -- it's what can we do to get him marginalized at least. That's coming from the state legislature. They really want to take away this decision about the U.S. Senate from the Governor Blagojevich. If he resigns, obviously, he gets rid of that power immediately.
COLLINS: Sure.
GRIFFIN: But if he won't resign, if he's going to go grudgingly, perhaps they can pass this new law, a law that would say, look, if we have a vacant U.S. Senate seat it goes up for special election. Other states have that as well.
COLLINS: All right. Very good. Drew Griffin of our Special Investigations Unit.
Thank you, Drew.
In the midst President-elect Barack Obama is trying to stay focused on matters of state. This morning he, along with Vice President-elect Joe Biden, are set to meet with members of his national security team. So that includes the people you see there.
Senator Hillary Rodham Clinton, who is Obama's choice for secretary of state. She is currently the junior senator from New York, as you know, and, of course, a former first lady. Before she entered politics she was partner at law firm and on the faculty of the University of Arkansas Law School.
Now, Secretary of Defense Robert Gates also will be attending today's get-together. He had been asked by Obama to stay on at the Pentagon for at least another year. Gates is former director of the CIA and a former president of Texas A&M University.
CNN's Brianna Keilar is joining us from Chicago. 36 more days to go for these teams to sort of gel together, if you will, Brianna. How does it all look to you?
BRIANNA KEILAR, CNN CORRESPONDENT: Well, one of the big questions, Heidi, is, can President-elect Barack Obama sort of keep the focus where he wants it, which is today, on national security, and not on this scandal involving Governor Rod Blagojevich here in Illinois.
So President-elect Obama meeting today with his national security team in what an aide describe as part of a series of talks really aimed at making sure that this administration can hit the ground running on January 20th because this is an incoming administration that from day one is going to be confronted with two wars in progress, a recent terrorist attack in India as well as, you know, the threat from Iran.
The list really just goes on and on, but the scandal involving the governor here in Illinois is making it very difficult for President-elect Obama to keep the focus where he wants it. That is in part because of some unanswered questions about interactions between Obama's staff and Governor Blagojevich's staff about who will replace Obama's Senate seat.
Now, Obama said on Thursday that he would basically be conducting an internal investigation looking at those conversations, that information, will be put out in the next few days, and even though prosecutors not alleging any wrongdoing, there's these unanswered questions and it's going to be very difficult for Barack Obama to keep the focus without answering those questions, Heidi.
COLLINS: Yes. In fact, he's going to be having a news conference. What's the focus of that going to be?
KEILAR: It's the energy and the environment and we're expecting the official announcement of President-elect Obama's environmental and energy team, the -- his appointment for the secretary of the Energy Department. That's expected to be Dr. Steven Chu, Nobel Prize winner, and Carol Browner, expected to be appointed as his climate czar.
Now, this isn't, you know -- this is just going to be official. We've reported these announcements before, but you can see he's really filling in his Cabinet. We're still waiting, though, Heidi for his interior and labor secretaries to be announced.
COLLINS: All right. Very good. Brianna Keilar, watching the new team for us, if you will. Thank you, Brianna.
Well, today is the day Barack Obama is formally elected the country's 44th president. And you thought you did that last month. Well, it's actually the electorate's turn today. Their vote tallies will be certified at the 50 state capitols and then sent on to Washington where Congress will count them on January 8th.
This video on its way to being the YouTube favorite. The president coming under unfriendly fire at a press conference during a surprise visit to Iraq. His attacker's weapon of choice? Ooh. Shoes. An angry Iraqi journalist hurled his size 10s at the president.
In Arab culture throwing your shoes at someone is a sign of contempt. Yes.
President Bush took the whole thing in stride and kept going on with interview. The journalist is now in police custody.
And no worse for ware, after his shoe incident, the president continued his farewell tour with an unannounced stop in Afghanistan. The president landed at Bagram Airbase at about 5:30 local time this morning. He met with Afghan's President Hamid Karzai and talked with the troops.
CNN correspondent, Nic Robertson, is joining us live now from London with more on the president's trip.
Good morning to you, Nic Robertson.
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Heidi.
Well, the message was one of continuity. The message is one that I may be leaving office, but what he told President Hamid Karzai, the United States remains committed to helping him and his government in Afghanistan with the many troubles they face.
The Taliban getting stronger inside the country, its concerns there aren't enough police and army inside Afghanistan to secure the country at the moment. So the message is, United States, President Bush may be leaving office, but the support for United States continues for Afghanistan, Heidi.
COLLINS: And there's awful lot more to do, of course, with Pakistan and its border as well. Was there talk about that? Or what seemed to be the next step there?
ROBERTSON: Well, you can be pretty sure that behind the scenes that's what they were talking about. I mean this is a regional war in Afghanistan. Now it's not just an Afghan conflict.
COLLINS: Right.
ROBERTSON: It spilled across the border in -- into Pakistan. So for sure, they were talking about it. At the press conference they didn't get into that, they didn't get into some of their differences about what to do about the former Taliban leader, Mullah Omar.
President Karzai has said he will give him immunity. The United States still has a $10 million bounty on Mullah Omar's head. Is he ready to sort of -- be brought into the political fold? That's one of the current questions right now.
But the real question is, how do you secure a country where the Taliban are getting stronger? How do you do -- how do you do that? Do you put in the more troops? Do you -- do you take on tribal militias? How do you strengthen the place?
So those were likely the things that were being discussed behind closed doors there, Heidi.
COLLINS: Yes, and when you're talking about how complicated it is, then you - certainly, in these horrible attacks that happened in India as well. I mean there's definitely a connection there as well.
ROBERTSON: There is. I mean, those -- the group Lashkar-e-Taiba who were behind the attacks in India, trained in Pakistan. They have got -- some of them -- benefited from the experience of others inside Afghanistan. Pakistan now faces pressure on both its borders. India wanting it to do more about the terror groups this country. Afghanistan wanting Pakistan to do more about the terror groups in their -- within its borders.
So Pakistan is really being squeezed in the middle. Really coming under pressure. A weak government. It's having a hard time coping with any of this right now. And unless they do, then whatever the United States and its coalition allies in Afghanistan plan for in the coming months and probably years ahead, won't be successful unless Pakistan is stable. So -- Pakistan being under more pressure because of the situation in India.
It's just another thing that President-elect Obama, another problem he'll inherit here, Heidi.
COLLINS: All right. Very good. CNN international correspondent Nic Robertson for us this morning from London. Thank you, Nic.
Well, your money in the headlines again today. Everything from the interest you pay to the billions they want.
CNN's money team breaking it all down.
ANNOUNCER: CNN NEWSROOM brought to you by...
(COMMERCIAL BREAK)
COLLINS: Another shivering morning for thousands of people in the northeast. Days after a deadly and paralyzing ice storm -- look at some of those pictures. An estimated 400,000 homes and businesses still without electricity this morning. That a number, though, is down from about half a million last night.
The storm is also blamed for four deaths.
It's been so cold the ice hasn't had a chance to melt. In many roads, people still can't get through. Dozens of shelters are open across New England offering food and a warm bed. Crews working 24/7 but it could be several more days, in fact, before everyone gets heat and light once again.
Rob Marciano standing by now in the Severe Weather Center with more on this.
Boy, it looks just awful there.
ROB MARCIANO, CNN METEOROLOGIST: It is, but the good news for the northeast, at least where that ice is happening, much more mild today. Temperatures already up in the 50s. Been there all night. So melting quickly.
That doesn't quite put the power lines up but certainly helps those crews get around what was some ice there. So a big thaw there, but more nastiness on the way. The coldest air in the season, by far, and in some cases the coldest air that this part of the country has seen in several years coming down the pike from Canada.
(WEATHER REPORT)
COLLINS: Wow. Man, an awful lot of nastiness going on.
All right. Rob, we're going to check back later with you and see how the situation is then. Thank you.
MARCIANO: All right.
COLLINS: In fact, our iReporters are sharing some glimpses of that ice storm. Here now is what it looked like the night the storm hit on Mohawk Mountain. That's in Cornwall, Connecticut.
The storm packed a lot of fury. This is damage in Suffix County, New Jersey. Along with destruction, there is beauty, of course. This is upstate New York to reminder you that nature itself can be art.
If have any pictures or video of the storm, we do want to hear from you. Just send them to ireport.com. We'll try to get some more of those on the air for you.
Big questions hanging over Wall Street on his last full trading week of the year. Will the White House offer a bailout auto loan to the industry? Will the Fed knock down interest rates yet again? And will investors be further undernerved by what may have been the biggest fraud in Wall Street of history?
On other money matters, have gasoline prices bottomed out now? Over the weekend, the national average climbed two straight days and that came after 86 straight days of decline. So sort of a different picture there now.
A lot of questions, too, a lot of ground to cover. We want to make sure we get the big picture.
From CNN money team, our Christine Romans is in New York this morning.
That's right, an awful lot going on yet again today.
CHRISTINE ROMANS, CNN CORRESPONDENT: It is a really big week, Heidi. I mean already have Fed in about, you know, less than 45 minutes. The Fed will begin meeting -- the Federal Reserve board will begin meeting to talk about what to do with interest rates. That decision comes tomorrow. But this is a rare two-day meeting of Fed officials.
They're going to talk about whether to lower interest rates. But more importantly, a lot of people want to know what they're going to say about what we call quantitative easing. What are some of the non- traditional, the unconventional ways that they're going to try to heal the financial system and blunt the economic crisis for the American people?
So there could be some pretty interesting stuff coming out of and also you're talking about when the White House is going to come up with some sort of short-term options for the auto industry. We know late last week after the Senate bill, to help the auto industry failed, the White House stepped in and said they would consider using the bailout money, that Troubled Asset Relief Plan money, to do something.
We don't expect any kind of an answer on today but just the idea that there's going to be some help for the automakers from the White House and the Treasury Department helped stocks overseas and it's sort of keeping a floor under stocks here.
A quick word about stocks as well, Heidi. Since the week before Thanksgiving the S&P 500 is up 15 percent. It's been -- it's been a horrible year.
COLLINS: Yes.
ROMANS: I mean a really horrible, terrible year, but we know that at least very recently there has been some relief in the stock market, and if you just, if you just look at isolation over the past weeks or so, there has been a pretty substantial, what we call bear market rally, so all heading into the last week.
We'll be looking for more details on that -- the bailout money and how much of that will go for the automakers. Waiting to hear from the Fed. What the Fed has to say about what it's doing to heal the financial system and the overall economy and just trying to get through another week around here, huh?
COLLINS: Yes. Can you say that one more time for me, though? A bear market what?
ROMANS: Bear market rally.
COLLINS: Wow. Haven't heard that in a long time.
ROMANS: Rally. Yes, well, you know, I have to always preface it by saying...
COLLINS: I know.
ROMANS: ... it's such a terrible year, but the last 3 1/2 weeks there has been buying in this market.
COLLINS: All right. Well, we're watching closely. Thanks so much.
ROMANS: Sure.
COLLINS: CNN's Christine Romans, thanks.
An immigrant beaten to death on a New York City Street. Cries of outrage and accusations of a hate crime.
(COMMERCIAL BREAK)
COLLINS: In New York, marchers demand justice in the beating death of an immigrant from Ecuador. They say he was a victim of the hate crime, savagely beaten by three men who were yelling anti-Semitic slurs.
CNNs Susan Candiotti has the story.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN CORRESPONDENT (voice over): A protest against hate following the two fatal attacks against Latino immigrants.
DIEGO SUCUZHANAY, VICTIM'S BROTHER: My heart is broken.
CANDIOTTI: A family of Ecuadorian immigrant Jose Sucuzhanay is trying to understand why he was fatally beaten.
(On camera): It was on this corner that the two brothers were attacked. Witnesses say said the car pulled over and they started yelling racial slurs at the two brothers. One of them was hit with a bottle and then with a baseball bat, savagely beaten.
(Voice over): His family tells CNN Sucuzhanay was not robbed. The 31-year-old was on life support, brain dead, until his heart gave out hours before his mother arrived from Ecuador. Jose's brother escaped serious injury. Police are investigating the attack as a possible hate crime.
SUCUZHANAY: Race is -- has been always an issue in the United States.
CANDIOTTI: Saying race was an issue a few weeks ago on long island when another Ecuadorian immigrant was fatally beaten by seven teens. Investigators say they specifically looked for a Latino to target. He had pleaded not guilty.
FBI crime statistics show a 40 percent uptick in hate crimes against Latinos from 2003 through 2007. Last year Latinos made up 60 pr percent of those attacked. In Jose's Sucuzhanay's case, several suspects remain on the loose.
MAYOR MICHAEL BLOOMBERG, NEW YORK: We have zero tolerance for hate crimes in this city. There is no such thing as a second-class citizen.
CANDIOTTI: For the Sucuzhanay family, it's too soon to talk about healing. The pain is too fresh, but not too early to realize they cannot be silent.
(On camera): What do you think your brother will most be remembered for?
SUCUZHANAY: As the victim of a hate crime.
CANDITOTTI: Susan Candiotti. CNN, Brooklyn.
COLLINS: The nation's economy. Home is where the heart break up is. New numbers that measure the deepening pain.
(COMMERCIAL BREAK)
COLLINS: Good Monday morning to you, everybody. 9:28 Eastern Time now. I'm Heidi Collins. Big questions on Wall Street this week. Questions about a possible auto bailout, interest rates and oil prices as well.
For a preview of today's trading let's go on over to Susan Lisovicz now who's standing by at the New York Stock Exchange with more details on all this. Hey there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, Heidi. Do you know it is the last full trading week of the year?
COLLINS: I do know that.
LISOVICZ: A lot of people are saying, thank goodness.
(LAUGHTER)
COLLINS: I know. And I'm one of them, Heidi, believe me. And yet there are questions. Yes, big questions investors are waiting for answers.
But in the meantime, stocks are set to open mixed. Tomorrow we get a decision from the Federal Reserve on interest rates. Analysts expect the Fed funds rate, which currently stands at 1 percent, go even lower. The consensus is for half point cut, some say a three- quarter point cut is possible.
Remember, you know, a lot of critics say that it was the super low interest rates for so long that really fueled the housing bubble.
Investors also waiting some definitive news about a possible auto bailout. President Bush said today he may use money from the $700 billion bailout to help the big three but he's not providing a lifeline -- timeline, rather.
GM shares are up about 5 percent in the pre-market.
Finally, the losses from an alleged $50 billion scheme ran by ex- NASDAQ chief, Bernard Maddof...
COLLINS: Yes.
LISOVICZ: ... are growing. Banco Santander, that is from Spain, BNP Paribas, from France, Royal Bank of Scotland Group, and Japan's Nomura, all revealing significant exposures to the pyramid schemes that defrauded investors, and that is one of the dangers and vulnerabilities of a global financial marketplace.
You know, we're talking about subprime earlier in the year and then you have something like this. A giant Ponzi scheme and the repercussions are just absolutely enormous.
We're also going to be looking at oil prices. They were up three bucks nearing $50 a barrel. OPEC is expected to cut production at its meeting on Wednesday because they've come down so low in such a short amount of time. In the meantime, we're seeing some very modest gains in the first minute, first half a minute of trading, Heidi. You know kind of a quiet day, and a very tumultuous year as we wind down this year.
COLLINS: Yes. No kidding. Maybe a whole bunch of Wall Streeters are out Christmas shopping or something today.
LISOVICZ: Something to help the economy. There's a lot of sales out there. A lot of retailers could use it.
COLLINS: I know. All right. Susan, we're going to check in with you a little bit later on. Thank you.
LISOVICZ: You're welcome.
COLLINS: Detroit auto makers are still waiting on the Bush White House to throw them a financial lifeline. That's not expected to happen today though as two of the big three companies slide ever closer to collapse. CNN's Kathleen Koch has the latest.
(BEGIN VIDEOTAPE)
KATHLEEN KOCH, CNN CORRESPONDENT: Treasury Department officials spent the weekend poring over automakers' balance sheets but there was no news on a bailout for Detroit. On the Sunday talk show, senators from auto producing states argued the White House needs to act immediately.
SEN. ROBERT CASEY (D), PENNSYLVANIA: I'm confident they will but I think they must come through now and provide help from here to there. Meaning get GM, especially GM, through December and January and then with the new administration we can put in place a longer strategic approach to this.
UNIDENTIFIED FEMALE: We're in a situation where a short-term bride loan makes sense and then it's not about just continuing to give additional loans. It's about giving them time to be able to restructure.
SEN. SHERROD BROWN (D), OHIO: I'm optimistic they're going to do something significant. I don't think the White House wants some bankruptcy of one of the big three automakers as part of their legacy.
KOCH: But bankruptcy is precisely what some republican are advocating.
UNIDENTIFIED MALE: I actually agree that the federal government could do that bridge loan, but that bridge loan could be done in chapter 11 reorganization.
SEN. JOHN MCCAIN (R), ARIZONA: If they believe that the taxpayer's going to continue to bail them out they're not going to make the fundamental changes that will make them truly competitive.
KOCH: One senator says the administration might have more leverage to force change on the automakers and unions than Congress did.
SEN. BOB CORKER (R), TENNESSEE: Of course, the benefit they have, they don't have to negotiate. They can say, this money's available. But it's only available under these conditions.
KOCH: The autoworkers' union says it has made concessions before and will again as long as it's not a loan.
RON GETTELFINGER, PRESIDENT, UNITED AUTO WORKERS: We have said we are ready to come forward with all of the other stakeholders. That means everybody from the board to the management to suppliers, the dealers, the bondholders, creditors. The whole works. Let's get everybody in a room. Let's work it out.
(END VIDEOTAPE)
KOCH: White House officials won't give a time frame for action on the bailout noting they want to get it right, but the clock is clearly ticking with GM and Chrysler saying they could run out of cash in a matter of weeks. Kathleen Koch, CNN, Washington. COLLINS: For many Americans, the struggling economy looms as close as their doorstep. The nation's housing crisis has caused trillions of dollars in value to simply evaporate into thin air. Millions of Americans now owe more than their home are worth. New numbers often crushing detail. Here now to explain, CNN's personal finance editor Gerri Willis.
And Gerri, we do keep on hearing more and more about what people's homes are really worth
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right, Heidi. Let's take a look at some of these new numbers out from zillow.com. They're a real estate web site. They say home values year to year are down $2.2 trillion. There's some 11.7 million homeowners that are underwater. They owe more on their houses than they're actually worth. Prices year over year down 8.4 percent. That's for the first three quarters of the year. Now Zillow as you know tracks this stuff on the web. You can go on the web and find out how much your home is worth according to their data.
Some of the solutions in the future, this weekend we just heard from President-elect Obama, he may lower interest rates below five percent as part of a plan to really help distressed homeowners. There have been a lot of questions about what the next administration is going to do to really help folks out. Analysts think the economic crisis could continue throughout next year and even part of the following year. So Heidi, obviously, lots of questions out there for people who are in this situation. It's there biggest asset, it's declining in value.
COLLINS: So I imagine it's pretty important to have your home properly appraised. I mean, how do you go about really gauging the true value of your own home?
WILLIS: Right. Well if you don't want to pay for the appraisal, what you can do - here are the web sites as we've talked about like zillow. But one way to get really up-to-date sense on what your home is worth, is to understand what homes have sold for recently in your neighborhood. Now it takes months typically for this information to be filed in local courthouses but often folks in the neighborhood already know, particularly real estate agents, developer real asset act as a contact. Get that information.
Interpret it in terms of square footage. So if you know the price, divide by the square feet in the house and then you'll be able to figure what your home is worth right now. Of course, taking into consideration the differences for homes and their layouts, and their styles, et cetera. But I think it's you know in critical, for people who think they'll be in the marketplace with that home in the next year or so, to figure out what's happening with that price. I know a lot of people worried out there. We will see some turn around but we haven't hit the bottom yet, Heidi.
COLLINS: Yes, I doubt it. That's what block parties are for. Aren't they? Where you just sit around and kind of try to find out who sold their house for what? WILLIS: Yes. That's right. I think that you know word of mouth is often a reliable indicator. But again, you want some hard facts, and some of the most recent information, some of the most reliable information is about those homes that have just recently sold. You really see where prices are going and what the trend is. The other fact to know, of course, is days on market. How long that house has been on the market is critical as well. Heidi.
COLLINS: All right. CNN's personal finance editor Gerri Willis. Gerri, thank you.
WILLIS: My pleasure.
COLLINS: Retailers are also bracing for a grim holiday season. Both analysts and shopping malls say shoppers are still heading to the stores but they're gobbling up the deep discounts and keeping a tight hold on their money. One data service estimates sales of electronics and clothes have been down more than 20 percent. Luxury sales have dropped by more than a third. Consumers worried about their jobs and a deepening recession may create the worst shopping season in decades.
And expect to stand in line a while if you go to the post office today. Postal service gearing up for its busiest day of the year. Mail sorters and carriers expect to handle almost one billion letters and packages. That is up from about 700 million on any average day.
One person was killed, another got trapped after a pair of avalanches in the Utah mountains. Heather Gross had been skiing in the mountains when she was suddenly buried under two feet of snow. She died from her injuries after being airlifted to a nearby hospital.
In a separate snow slide nearby, at least one person was buried by the snow, but he did manage to make it out alive. Boy.
Well, the northwest is known for rain. Today people in Oregon are cleaning up from rare snow and ice. The storm was so bad, drivers are still warned to still stay off the roads. From Portland, here's Kyle Iboshi of affiliate KGW.
(BEGIN VIDEOTAPE)
KYLE IBOSHI, KGW REPORTER (voice-over): This arctic blast cause delays, fender benders and countless near misses.
UNIDENTIFIED MALE: Look out!
IBOSHI: It was a wild day of driving after snow and ice blanketed the Portland area. From sky 8, you can see how slick conditions turned the Markham Bridge into a slalom course. There were stalls and spinouts.
UNIDENTIFIED MALE: I don't know whether he's going to make it off there. We'll watch.
IBOSHI: Getting over Sylvan Hill required some help. UNIDENTIFIED FEMALE: I've never done the chains before. It's quite an adventure. I recommend knowing how to put them on before you get into a snowstorm.
IBOSHI: And those that didn't make it got a tow.
UNIDENTIFIED MALE: Got to get the job done somehow.
IBOSHI: Chains or studs were required on highways, and drivers who didn't have them, often ended up here. This driver spun out on 217.
UNIDENTIFIED MALE: For the first time in my life, you know, I got scared and my car just went - 360 degrees.
IBOSHI: Road crews tried to clear the way but the icy conditions were unforgiving.
UNIDENTIFIED MALE: I had a four-wheel drive and the wind and the ice just spun me, and I hit the curb.
IBOSHI: On i-84 in the gorge, there were fender benders both big and small. Ice made driving slick. Road conditions don't appear to be getting any better, and you hate to mention it, but the morning commute is just hours away.
(END VIDEOTAPE)
COLLINS: Ah! Rob Marciano standing by in the severe weather center now to talk to us a little bit more about that. You know, you just can't - it doesn't matter what kind of vehicle you have. SUV, four-wheel drive, whatever. The ice is going to win.
ROB MARCIANO, CNN, METEOROLOGIST: Yes, it is. In that part of the country, pretty hilly, as you saw. So it doesn't take snow removal and salters just don't have it. I was just talking to my friends yesterday, they're just trying to stay home up there in the Pacific northwest. High pressure diving in from British Columbia, really bringing in the Arctic air. Portland to Seattle all the way down to the (inaudible) Valley. And then more moisture coming in although the snow for the most part had stopped at least for now.
Cold air is going to be in place for quite some time. You kind of see it here. Here's the west coast. Any time you see these popcorn-like clouds driving down into the west coast, you know there's some cold air, going over that relatively mild water. Our focus of attention today goes all the way into southern California where heavy rain is falling here in the valleys and some snow in the mountains, but more concern where we have those tires the last couple of months. Those scarred areas may very well slide.
As you know without the vegetation that becomes a problem. So flash flood watches even some warnings north of Los Angeles this morning as that rain continues to pour in to southern California. So we'll be watching that with the potential of seeing the land move. We saw the snow move in the mountains in Utah and Colorado, especially southern Colorado today. Avalanche danger remains high.
All right. Tennessee Valley in the mid-south, all the way down to Memphis. The potential for seeing ice today. Could see an inch or two of a mixed bag of snow and ice beginning this afternoon and lasting overnight, tonight into tomorrow morning in this part of the country. So that will be an area that will see, what they saw in northern New England, where, by the way today they're thawing out quite rapidly even though there's over 100,000 are still without power there.
Look at the temperature. New York 53. Chicago 5. 13 below in Denver. This is not including the wind. You factor in the wind chill factor, and there you're talking about temperatures that feel more like 40 and in some cases 50 below zero. So I would say that certainly is frigid, Heidi.
COLLINS: Yes.
MARCIANO: This air getting all the way down into Texas, although it won't make that much of an inroad to the east coast. We'll get colder once we get through this mild air. But the bulk of the really frigid life-threatening cold will remain I think across the western Great Lakes in through the central plains.
COLLINS: Yikes. And so not a good time to go climb Pike's peak and stand up there and feel the wind chill, I guess?
MARCIANO: No. You want to stay away from Pike's peak and any of the collegiate mountains there in Colorado as well.
COLLINS: Yikes. All right. Stay on top of that one as well. Thanks so much, Rob.
MARCIANO: You got it.
COLLINS: If your holiday budget is a bit sparse, try what other people are doing and get creative with your gift-giving.
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COLLINS: All right. So the market is open, but it doesn't really look like it. Just down a tiny bit there. The Dow Jones industrial average is showing a negative stream right now but trading day obviously only 15 minutes old. We'll continue to watch that on this last week of trading for the year.
Many American households are deep in debt and people are searching for ways to ease their burden. Stephanie Elam take as look now at one strategy to get your finances under control and right on your money.
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STEPHANIE ELAM, CNN CORRESPONDENT (voice-over): Getting your finances back on track can be a bumpy ride. But debt consolidation may be one solution to smooth your road to financial stability. SHEIRESA MCRAE, CONSUMER AFFAIRS ED., BLACK ENTERPRISES: You might want to consider consolidating your debt, if you have several high interest credit cards and you're having a lot of problems paying down the bills each month.
ELAM: One benefit is you only have one bill coming to your mailbox each month instead of several bills and you get a lower interest rate, but there is a potential downside.
MCRAE: One pitfall in consolidation is you have more cash freed up every month. So it looks like you have less outstanding debt. And as a result, you'll be more likely to spend that cash and get into a cycle of overspending. And then you'll be right back where you started.
ELAM: The state of the economy could also be an issue. Consolidating your debt is a loan.
MCRAE: If you feel you may be losing your job in the future, you should definitely re-consider consolidating a loan. Especially if you're taking out a loan that uses your home as collateral, because if you can't keep up with the payments you could definitely lose your home.
ELAM: And if you're finances are too overwhelming, seek help from a credit counselor. Stephanie Elam, CNN, New York.
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COLLINS: Violence in Iraq today. A suicide car bomb attack killed at least three people and wounded 31. It happened west of Baghdad, according to officials people were deliberately targeted.
Thailand's parliament has chosen a new prime minister now. But will he help ease tensions and stop the protests that had crippled the Asian nation over the last few months? CNN's Dan Rivers has more now from Bangkok.
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DAN RIVERS, CNN CORRESPONDENT: Vain, good looking and young. The 44-year-old new Prime Minister of Thailand Abhisit Vejjajiva apparently has it all. What he hasn't got is a commanding parliamentary majority. The Oxford educated leader of the democrat party was elected by just 37 votes after previous political enemies changed sides to support him.
ABHISIT VEJJAJIVA, THAILAND PRIME MINISTER: I'd like to thank parliamentarian and the people, and we know there are tough times ahead.
RIVERS: And the size of the challenge was immediately apparent outside parliament. Abhisit selection was greeted with violence from supporters of the previous government which was loyal to the billionaire premier Thaksin Shinawatra ousted in a coup in 2006. They smashed cars as they left parliament trying to find out which one contained the new prime minister.
The mob rule was over here in Thailand, it seems to have come back with a vengeance. The prime minister is barely able to leave parliament without his vehicle being sat upon. These people are convinced Thailand's powerful army persuaded politicians to switch sides ensuring Abhisit's victory. A claim the Army rejects.
This man says Abhisit is a nominee of the anti-taxing group the P.A.D. and the military dictators are behind this. They are the military and they're all together. I don't like it. It's undemocratic, he says. Barely a few hours into the new government and already there was an air of strike about it. An afebrile political atmosphere is nothing new there. For months yellow-shirted anti- taxing crowds have occupied key government buildings and even blockaded Bangkok's main airports, determined to force out the previous government. When a court ruled the pro-Thaksin PPP Party had rigged the last election, the yellow shirts proclaimed victory. Analysts say now that that Abhisit is in power he needs a good cabinet to win over his enemies fast.
DR. PANITANI WATTANAYAGORN, POLITICAL ANALYST: Some of that, of course, he needs to reach out to the people who didn't really agree with him, who didn't work for him and who are now opposing him in front of the parliament.
RIVERS: Thaksin remains out of Thailand, only able to address his supporters by video link. He's a fugitive from justice after being found guilty of corruption. His influence over Thai politics continues to inflame passion on both sides of this color-coded divide and all the world, Thailand's reputation as a holiday paradise takes a battering as tourists look forward to their Christmas holiday in the sun and watch scenes like this. Dan Rivers, CNN, Bangkok.
(END VIDEOTAPE)
COLLINS: The president drops into Iraq on a surprise visit, but he gets a surprise of his own. You got to see this.
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COLLINS: With pretty much everybody pinching pennies this holiday, some people are turning back the clock, remembering what they did when they were young and did not have a lot of money for gifts. Here's CNN's Kate Bolduan.
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KATE BOLDUAN, CNN CORRESPONDENT (voice-over): This the season to be shopping, or not.
UNIDENTIFIED MALE: It's the fun of making things, at least for me. UNIDENTIFIED FEMALE: I think it's a wonderful thing. I think we're going back to what they did many, many years ago. People have to be creative. I think it's great.
UNIDENTIFIED FEMALE: You just wrap it around.
BOLDUAN: Facing the demands of holiday gift giving and the pinch of shrinking budgets, many shoppers are buying less and making more.
UNIDENTIFIED FEMALE: I have six nieces and nephews and two brothers. It makes more sense just to make it myself. It could be cheaper.
BOLDUAN: With near limitless options ranging from ornaments and picture frames to baked goods and olive oils, homemade gifts may once again be a hot holiday trend.
ANGIE LEE, ASST. CULINARY COORDINATOR: We do see a lot of people are turning back to the kitchen as a source of holiday gifts. Everything from cookies to homemade breads. Anything home and cooking related. We'll see a lot of that.
BOLDUAN: In a resent survey commissioned by arts and crafts giant, Michaels stores, more than half of their respondents said they're more likely to make gifts this year than last.
BOLDUAN (on-camera): Meanwhile retailers continue to slash prices but experts say holiday retail sales could see the slowest growth in 17 years.
UNIDENTIFIED FEMALE: They know it's going to be tough. They're expecting meager gains, if any. And they know it's going to take a lot to get people to stores and get them to buy.
BOLDUAN: And while home-made, it isn't for everyone.
UNIDENTIFIED FEMALE: I don't do any crafts. Because I don't have the patience for that.
BOLDUAN: Tough economic times may mean good old creativity is making a big comeback this holiday season. Kate Bolduan, CNN, Arlington, Virginia.
(END VIDEOTAPE)
COLLINS: When his boss is on the way out, but Barney is still running things around the White House. A holiday tradition we've all been waiting for. Come on, you know you have. One last look at the lovable first canine.
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COLLINS: A heartfelt good-bye to a beloved resident of 1600 Pennsylvania Avenue. Barney, we won't forget you. We've kept up with his antics over the years, especially at the holidays. Here's one final "Barney Cam." (BEGIN VIDEOTAPE)
PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: It's really great to have the whole family together like this.
LAURA BUSH, FIRST LADY: It really is special.
UNIDENTIFIED FEMALE: In fact, I think these are the memories that we're going to cherish most about our time in the White House.
UNIDENTIFIED FEMALE: That, and when Barney decorates the whole house for the holiday.
MICHAEL PHELPS, OLYMPIC MEDALIST: Hey, Barney. I'm glad the decorations are finally coming together, and you're using my favorite color, gold.
(END VIDEOTAPE)
COLLINS: We are going to miss you, Barney. But you know I have to tell you when the Barney cam first came out I thought they were going to mount the camera actually on the dog so that we would see his perspective all around the White House. But I don't think they really did that. Anyway, Barney, see you later. Happy holidays.
Ahead in the NEWSROOM. Nearly Bush whacked in Baghdad. Shoes fly and the president ducks. The power of nature. The powerlessness of man. Days after a devastating ice storm hits, thousands of homes are still without electricity.
