Return to Transcripts main page

CNN Newsroom

Winter Wallop; Bailout Outrage: Big Bonuses to Top Executives; Fighting Foreclosure

Aired December 22, 2008 - 12:01   ET

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

TONY HARRIS, CNN ANCHOR: And hello again, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.
And here are the headlines from CNN for Monday, December 22nd.

Extreme weather and weather extremes from sunny Hawaii to the frigid Northeast.

Bonuses for top executives. It's your dollars, and we are on the bailout money trail and fighting foreclosures. One man's battle to help his congregation.

So winter arrives with a vengeance in Michigan. A snowstorm and poor visibility cause this deadly pileup. You'll see it in just a moment.

One hundred cars and half a dozen semis on Interstate 94. One person was killed in that accident.

The season's first snowstorm pounded the upper half of the country. This video from Seattle. Cars needing a push here from west to east. Shovels getting a lot of use. Heaping piles of the white stuff in Rochester, New York, and bone-chilling temperatures.

Man, winter definitely packing a punch already this year. CNN's Rob Marciano has more.

(BEGIN VIDEOTAPE)

ROB MARCIANO, CNN METEOROLOGIST (voice-over): From Washington State to Oregon to Michigan to Massachusetts, millions of people spent the first day of winter beaten by snow in winter cold.

UNIDENTIFIED MALE: Like I'm in the Arctic somewhere.

MARCIANO: In many states, whiteout condition made a mess on the highways. So bad in Minnesota that they pulled the plows off the road. On Michigan's Interstate 94, a massive pileup involving dozens of vehicles. At least one person was killed. More deadly wrecks in Indiana.

And in Wisconsin, another chain reaction accident. More than 20 vehicles involved and about a dozen people injured there. In Oregon, travel pretty much out of the question. Buses, trains, and even the Portland airport were all but shutdown. People spent hours, and in some cases days camped out waiting. UNIDENTIFIED MALE: It was supposed to take three hours and here I am 13 hours later.

MARCIANO: Sometimes there was a wait just to wait.

UNIDENTIFIED FEMALE: I was told I had to wait by the airlines just to get on stand-by.

MARCIANO: Similar problems in the Midwest caused ripple effects as far south as Houston which posted five hour delays. But what about the folks who delayed their holiday shopping? The rough roads didn't scare off these bargain hunters in Connecticut.

UNIDENTIFIED FEMALE: It's bad, you know. There's trouble getting here, but I made it.

MARCIANO: Or get these people to trade their tickets for a warm couch and a TV in Kansas City.

Rob Marciano, CNN, Atlanta.

(END VIDEOTAPE)

(WEATHER REPORT)

HARRIS: Turning from the freeze to a story that will get your blood boiling, big bonuses going to top executives at banks that got your tax dollars in bailout money. I'm talking $1.6 billion worth of bonuses. Hard to believe this.

Live now to Christine Romans in New York on the money trail.

And you know what? I want to do exactly what you just did. Take a deep breathe as you explain. I know you've been following the money trail a bit here.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes. So let's start with the money trail, because there's $250 billion that was earmarked for banks, right, from the TARP known as the Troubled Asset Relief Program, a $700 billion bank bailout.

Where has it gone? You know, the 21 biggest banks that accepted it, where has it gone? How have they spent it? Are they lending?

You know, we don't know. There is no disclosure in the law. You know, we've been complaining about that for weeks.

No disclosure in the law. We just don't know how they're spending it, and the companies aren't saying.

It's not like every two weeks they're giving out a new disclosure press release saying this is how we've spent American taxpayers' money. They just aren't, Tony. We don't know where it's gone. It's a mystery, it's a black hole.

The money has gone out the door. It's in the banks. The banks don't have to tell us. They don't have to tell us what they're doing with it, and it is our money.

So then here is the outrage part of it. The AP did an analysis of CEO and executive pay last year, so 2007. So this is as these banks are barreling toward the abyss. Right?

HARRIS: Yes.

ROMANS: This is before they have to go on the public dole. They take home $1.6 billion to the bailout bank executives in 2007. These are cash bonuses, stock options, company jets and chauffeurs, home security, country club memberships, professional money managers, of course, to manage their money.

Now, none of this is unusual. I mean, this is the way Wall Street works. And we're told they have to have all of these perks and stuff so they can keep their minds on returning shareholder value and growing their business.

They take private cars and have security so that they can't be bothered with -- they can really just focus on doing their jobs. So, how well did they do their job? They did their jobs so well that these companies now have to take all of this taxpayer money.

HARRIS: How do you get away with -- all right. I'm going to let you finish.

ROMANS: No, listen, you're paid for performance. Right? They thought they were being paid for performance. Well, their performance was miserable by any -- I mean, look, the economy is on the brink and the financial system absolutely imploded. And they took all of that money home last year.

So this year, of course, they're cutting back bonuses, they're cutting back salaries and all this stuff, because now they've got public money in their coffers, although we can't know what they're doing with it.

HARRIS: But Christine, wait a moment. Christine, don't we have someone who is supposed to be providing oversight? Isn't his name Neil Barofsky? Is it Neil Barofsky or am I thinking Kashkari?

ROMANS: Yes. But people...

HARRIS: The names are melding together for me.

ROMANS: But people on sort of the Congressional Oversight Panel are saying, gosh, they have a lot of questions, they would like to know more about how this money is being spent overall. And you know, we're told that -- the money doesn't have fingerprints. So they can say we're not going to pay CEOs, we're not going to pay out bonuses with the money from taxpayers. But how do we know? We can't follow it.

Credit Suisse had a real -- this is a Swiss bank.

HARRIS: Yes. ROMANS: It had a very interesting way that they're paying some of their big investment bankers. They're paying them with the troubled assets that got them into trouble in the first place. Essentially, the idea being, if it's good enough to sell to our customers, it should be good enough for your bonus.

HARRIS: Well, I like that.

ROMANS: And there are people who are not very happy about that.

HARRIS: Well, all right. Christine, good to see you. I like that. Thanks, Christine.

And Veronica De La Cruz has been gauging reaction to this on the Web. She's been checking out Facebook and Twitter this morning.

Veronica, what are you finding? Good to see you.

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, nice to see you.

We're going to pick up where Christine left off. Like she was just saying, lots of outrage over this story.

We want to go ahead and start with Twitter, Tony.

Sara Place had this to say. She said, "It is difficult for me to understand the value of these executives and rights to massive bonuses when their companies are failing. It seems that these executives should consider the fact that they have a job as a bonus! It's a shame to take taxpayer money for this!"

And Steven Grande sent us this tweet. He said, "I fell that the execs that received bailout money should be on a performance based salary/bonus structure because the money is crazy!"

And then Brian Buchanan adds, "In a few months, when they come back to the government for more money, they should" -- and he's talking about the $1.6 billion -- "they should give that as the reason for why they won't be getting anymore."

And Tony, we've also been keeping an eye on Facebook this morning. Ed Frazier in Charlotte, North Carolina, writes, "These guys are cashing in huge sums of money for only marginal performance at best. It makes one think where we will be in 20 years at the current pace. All of this sets the standard for more cheating and lying to get ahead of your competition."

And then finally from John Gordon Hudson, who writes, "The worst thing about it is most of us don't really pay attention to it and feel powerless to do anything about it. Where is the accountability and where is our Robin Hood when we need him most?"

And of course we are looking for your thoughts on this. What do you think? Go ahead and send your thoughts and opinions to us via Facebook. You can log on, search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris. You can also follow us on Twitter at VeronicaDLCruz -- Tony.

HARRIS: Terrific. All right, Veronica. Thank you.

A priest in California bringing banks and parishioners together to keep families in their homes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You know, it seems like the sales -- just been walking through the stores today -- that they're like the after- Christmas sales. So we're getting some really good deals. We already had to take a box full of things out to the car so we could have free hands to finish our shopping.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HARRIS: Keeping a roof over your head. The economic downturn has made it a difficult challenge for many to overcome, but there are folks out there who want to help.

From Los Angeles, Father John Lasseigne, trying to help some of his parishioners avoid foreclosure. And Jose Hernandez, himself struggling to keep the home he lives in with his parents.

Gentlemen, good to see you both. Thanks for your time. We appreciate it.

REV. JOHN LASSEIGNE, MARY IMMACULATE CHURCH: Thank you very much.

Father Lasseigne, let me start with you. You have a really big church, 5,400, mostly Latino families. How did you come to realize, Father, so many of your parishioners were having problems staying in their homes?

LASSEIGNE: Tony, in late July, a family approached me at the end of a mass and asked me to pray for them because they were about to lose their home. I was stunned. But after talking to more people, I learned there were thousands of such families in my community. And I began working with other member organizations of the Industrial Areas Foundation to identify these families, to train them to speak for themselves, and to organize and speak to banks and elected officials.

HARRIS: Well, how difficult has it been to train these families to speak for themselves, to defend themselves, and to find out what their rights are?

LASSEIGNE: They begin with a lot of fear and a lot of -- a sense of isolation, as though they're the only ones that are in this crisis. We pull them together. We tell them, you are not alone. And we give them the tools they need to understand their mortgages, and then to try to negotiate with the banks for a modified mortgage.

HARRIS: Well, Jose, let's talk about your story for just a moment.

You're 28 years old and you're trying to save the home that you live in with your parents. The family owes more than $500,000 on the home. The home is now valued at $300,000.

How did you find yourself in this mess? And I should tell you, you're not the only one who finds themselves in this position.

JOSE HERNANDEZ, TEACHER/ACTIVIST: Yes. Well, you know, I'm a teacher at a local high school. And I find myself still living and home and trying to help my parents out with this situation.

Four years ago, they have sold their townhouse and they took the profit that they made from that sale and bought this larger home. Originally, the loan was for $488,000. They gave $100,000 down.

HARRIS: $100,000 down?

HERNANDEZ: They gave $100,000 down. And because of that amount, they thought that they would get a traditional 30-year mortgage with a fixed rate. But they were steered towards this adjustable rate mortgage, and they were not told that the only payment that they would be able to afford would be the 1 percent, which made the balance of the loan increase every month where, you know, we owe like $513,000 now.

HARRIS: Got you. Well, now -- so you're upside down on the house right now.

What are the options for you? First of all, have you considered just selling the house, short-selling the house and taking the hit on it?

HERNANDEZ: You know what? After giving that amount of money, I mean, it's just -- I'm going to try all I can to save the house.

HARRIS: Yes. Yes.

HERNANDEZ: But unfortunately, IndyMac, the bank that services our loan, has not really given us much options. They have been contacted by AIF, and unfortunately, they have not yet responded.

HARRIS: Well, Jose, let me stop you there. I'm a little surprised by that, and certainly believe what you're telling me.

But IndyMac is one of the banks that's owned bite FDIC. And our understanding is that the FDIC is trying as best it can to modify loans for folks who are facing foreclosure. Essentially, people who are in your position.

What's been you were experience with IndyMac? And maybe that's a call we can make.

HERNANDEZ: Well, my experience has been that I tried to contact them. And unfortunately, they did not have much options for my mom because we were still current on the payment. Basically, we would have to stop making a payment...

HARRIS: I think that's the issue. I think that's the issue, that you're at least staying current on your payments.

Father Lasseigne, let me ask you, what has been the result? How would you quantity the results of your efforts to help families so far?

LASSEIGNE: It's a two-part strategy, Tony. We're organizing lenders -- or borrowers, rather, according to their lending institution, and then we're calling on these lending institutions to come and meet with them as a group, as a cohort.

In December, we met with Chase and with Washington Mutual. In January, we're going to be meeting with Countrywide, Bank of America and Wells Fargo.

Unfortunately, the banks have been unwilling to lower principle or interest on the loans. In other words, they've not been willing to make the payments affordable so these families can stay in their homes.

HARRIS: Well, that's the key. Father, pardon me for interrupting, but that's the key, isn't it, for a family like Jose's family to get some kind of a modification? So it has to be a little disappointing to find banks unwilling, at least in the cases that you're talking about, to offer some kind of a modification.

LASSEIGNE: It's a big disappointment. The bailout in October, the $700 billion bailout, was given with three goals, according to Alex Blinder (ph), a former vice chair of the Federal Reserve.

In "The New York Times" yesterday, he said the three goals were to prevent foreclosures, to buy up the trouble mortgage-backed securities, and to recapitalize the banks. So far, the billions of dollars have been used only to recapitalize banks.

HARRIS: All right. Well, Father, we will of course stay on top of this story.

And Jose, great to see you. And the best to your family and your efforts to keep your family in that home. We will check in with you.

HERNANDEZ: Can I just add one thing?

HARRIS: Sure. Please. Please.

HERNANDEZ: Last month, our payment was $2,300.

HARRIS: You're up to close $4,000 now, right?

HERNANDEZ: This month our payment went up to $4,000.

HARRIS: Well, that's untenable. You can't stay in your home much longer with that kind of a payment. All right. We will check in with you and find out how things are going, and maybe find out if there's something perhaps we can do, make a call to the folks at IndyMac and our friend at the FDIC for you.

All right. Thank you both. Thanks for your time.

LASSEIGNE: Thank you very much.

HERNANDEZ: Thank you.

HARRIS: The nation's mortgage crisis -- foreclosure rates are climbing in both good neighborhoods, as well as bad. But there is one small group that sees homes losses of less than one percent. It's among those who earned their homes through Habitat for Humanity.

What is the secret to the group's success? CNN's Ted Rowlands takes a look.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): There were plenty of tears this weekend as the Gaxiola family received a key to a brand- new Habitat for Humanity house in Los Angeles.

VERONICA GAXIOLA, 21 YEARS OLD: It's so beautiful. Our thanks to everyone of you guys that has helped us to get our dream come true house.

ROWLANDS: The family of five, including father Jose, who's legally blind, are going from an apartment in a crime-ridden area, to this three bedroom, two-bathroom home, complete with an elevator for Jose and a much safer neighborhood for the kids.

CARLOS GAXIOLA, 17 YEARS OLD: The most I go outside is either go to school or church and come back home.

ROWLANDS: The Gaxiolas don't get this house for free. They do have a mortgage like anyone else. Given Habitat for Humanity's track record, odds are they'll be able to live here as long as they'd like. Of the more than 250,000 homes built by Habitat for Humanity, less than one percent have ended up in foreclosure.

JO-AN TURMAN, HABITAT FOR HUMANITY: A family that worked so hard all these years to become homeowners and finally have obtained homeownership, they usually try to do whatever they have to do to keep their homes with us.

ROWLANDS: The reason for Habitat's success can be traced back to the lending system. The Gaxiolas, for example, will be paying about $750 a month, about 35 percent of their income. The mortgage is no interest for $135,000 over 20 years. There was no down payment required, but the Gaxiolas, like every family, put in 500 hours of work during construction. They also took classes in basic finance and home repair.

But most importantly, organizers say the lender is Habitat for Humanity. So if a payment is missed or a job is lost, there's an open line of communication to help keep them in the house.

TURMAN: We have worked with a lot of people, especially the past two years, who have been late on their payments and almost near default. But somehow they've been able to come back through.

ROWLANDS: Although Jose Gaxiola was hospitalized this week, the family is looking forward to spending their first Christmas of many together in their new house.

Ted Rowlands, CNN, Los Angeles.

(END VIDEOTAPE)

HARRIS: We will take you to the other side of the world later. Find out how people in one Indian neighborhood are coping with the global financial crisis.

(COMMERCIAL BREAK)

HARRIS: Want to party the night away in an eco-friendly way? From Hollywood's Eco Lounge to Rotterdam's WATT, green nightclubs are the latest trend. I can't wait to hear more about this.

CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.

Hi Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Tony.

Yes, we went out and checked one out here in New York. You should have come along. It was very cool because...

HARRIS: Send the e-mail next time.

HARLOW: I will. I'll let you know.

You know, everything about being green is cool these days, from organic clothing to hybrid cars. Now you can party at green nightclubs as well.

Check out this one. This is in London. It's Club Suria (ph).

The dance floor actually helps power the club. There are these special crystals underneath. They bump together, they generate a charge.

That goes into a battery. And the club says it saves them thousands of dollars a month.

Well, here in New York, we decided to check one out for yourselves.

We went to greenhouse. This club just opened in November. And what it has, well, bamboo floors, recycled glass everywhere, high- efficiency heating and cooling, and also LED lights. The club says it uses 40 to 60 percent less energy than a standard nightclub, but it certainly did not come cheap.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I would say that the average club in New York comes about $1 million. And this easily cost double that.

(END VIDEO CLIP)

HARLOW: And this was all his own money. No investors there.

The big question, will people actually choose, especially during a recession, to spend their money at an energy-efficient club over one that is not? We asked some of them. Take a listen.

(BEGIN VIDEO CLIP)

EVAN GOTLIEB, GREENHOUSE GUEST: You want your money to mean something. So if you're going out and you're going to spend the money anyway, why not do it in a green nightclub where at least you're reducing your impact on the environment a little bit?

LEAH MELBY, GREENHOUSE GUEST: I think it's a little bit gimmicky just by nature of what it is, and being green is so trendy right now.

(END VIDEO CLIP)

HARLOW: So Tony, as you can see, a difference of opinion. But hey, not everyone is going out to save the planet. Right, Tony?

HARRIS: Yes. Yes. Good point there.

But $2 million for that one club mentioned just a moment ago. Look, Poppy, we're in a recession. People are spending less, and this club was really expensive to build.

What kind of a challenge does that pose?

HARLOW: A big one. We asked him about it, the owner.

He said he does expect to break even in a year and a half. People here in New York, they like to go out and spend money. But still, it looks like they really spared no cost.

Here's one that really had us scrunching our noses. Take a look here.

That's the men's bathroom. Those urinals are waterless. No flushing. They're sanitized every day, of course.

The club says this saves 15,000 gallons a year. The low-flow sinks, those save another 15,000 gallons. That's an energy fix.

We're not recommending you try it at home though, Tony. Do not try it at home.

HARRIS: No, it won't happen at my house. I can tell you that. All right, Poppy. Appreciate it. Thank you.

HARLOW: You're welcome.

HARRIS: Barack Obama's inauguration, millions expected to be on hand. And the nation's capital looking for help to cover the costs of the celebration.

(COMMERCIAL BREAK)

HARRIS: The Dow heading a bit south right now. It's certainly close to session lows. I believe we're really close to session lows right now. We start out flat and have been heading in negative territory ever since, about three hours into the trading day now. As you can see, the Dow is down 73 points.

A little R&R for President-elect Barack Obama. He and his family are vacationing in Hawaii for the holidays. But it's a working vacation for Obama with jobs and the economy high on the agenda. Senior White House correspondent Ed Henry traveling with the president-elect, live now from Honolulu. First light, it looks like.

Ed, as we mentioned just a moment ago, jobs and the economy and an economic stimulus package that may be even more ambitious than first thought.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: That's right. Good afternoon again, Tony.

What's interesting, when you look at the back story here, is that transition aides say last Tuesday the president-elect, back in Chicago, sat down with his economic team and he got some real dire forecast, that this recession may be even worse than expected. We've already been hearing all these gloom and doom predictions, but that it could be even worse than that already. So he basically told his staff, think bolder, that's what his aides are now saying, and go back to the drawing board and make this economic stimulus plan even bigger, even bolder. To do something dramatic.

And you heard it yesterday from the vice president-elect, Joe Biden. He was sending that message. Maybe putting a little pressure on both Democrats and Republicans in Congress, we're going to have to deal with this in January, and maybe a little skittish about the price tag, maybe a little bit skittish about bailout fatigue. The automakers, on after another, lining up for federal money. And Vice President-elect Biden basically said, we have to do something to prevent the economy from absolutely tanking.

That, obviously, raises a lot of eyebrows, catches people's attention. And what we're hearing now is this price tag is anywhere from $675 billion, to $775 billion in economic stimulus. They want to do it in terms of weatherizing people's homes, they want to try to rebuild some broken down public schools, to try to have some short- term stimulus with construction jobs and infrastructure, roads and bridges, et cetera, but long-term try to help communities across the country rebuild with their schools, with -- try to reduce energy usage, et cetera.

And so I think the broad brush here is that Barack Obama is trying to recharge his batteries here in Hawaii because he knows this is really his last vacation probably for a long time to start going back to Washington on January 20th and grappling with this financial crisis -- Tony.

HARRIS: Hey, and Ed, a quick pivot here. When will we know, in your estimation, what Obama knows about his team's contacts with Illinois's governor?

HENRY: Two transition aides now tell us this morning, in fact, that we will find out tomorrow, Tuesday, from the Obama team, the contents of their internal investigation into exactly what the contacts were between Obama's staff and Blagojevich's staff in Illinois. We're largely expecting that this report, obviously, is going to say that there was a little bit of contact but nothing sort of criminal.

Because, let's remember, this is a report, an internal investigation, by team Obama. So it would be highly unexpected for them to come out and say that there was a lot of wrongdoing, number one.

So I think we also have to remember that this is not the final word on the situation. This is the Obama team's report on what happened. Everyone's going to get a chance to evaluate that. But then we're also going to have to, obviously, let this investigation in Illinois play out and see what the prosecutor, Patrick Fitzgerald, has to say in the weeks and months ahead -- Tony.

HARRIS: Our senior White House correspondent, Ed Henry, traveling with team Obama in beautiful Honolulu.

Ed, good to see you. Nice assignment.

HENRY: Good to see you.

HARRIS: You know, the challenge facing the Obama administration are enormous and the expectations are really high. In an interview with CNN's Larry King, Vice President-elect Joe Biden talked about the road ahead for the Obama team.

(BEGIN VIDEO CLIP)

JOE BIDEN, (D) VICE PRESIDENT-ELECT: The truth of the matter is, this new administration, our administration, has a gigantic task and responsibility, but also a real opportunity. And I think Barack Obama -- although the expectations at home and abroad are very high -- I think he has the capacity to meet the expectations of getting this economy back on track and reestablishing our place in the world.

(END VIDEO CLIP)

HARRIS: The Iraqi reporter charged with whipping a pair of shoes at President Bush will go on trial next week. President Bush was holding a news conference a week ago with Prime Minister Nuri al Maliki, remember this scene, when he had to duck twice. The reporter was tackled and taken out of the room. Since then he's been hailed as a hero by many Iraqis protesting his detention.

The U.S. military is boosting its forces in Afghanistan. Officials say up to 30,000 additional troops could be sent there next year. Let's get the latest from Pentagon correspondent Barbara Starr live in Washington.

Barbara, good to see you.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good to see you, Tony.

Well, 30,000 is the magic number to watch because if the U.S. really does send 30,000 troops to Afghanistan, that will mean they are doubling the size of the current force there. Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, spoke about this over the weekend in Afghanistan. Have a quick listen.

(BEGIN VIDEO CLIP)

ADM. MICHAEL MULLEN, JOINT CHIEFS CHAIRMAN: Some 20,000 to 30,000 is the window of overall increase from what -- where we are right now. I don't -- I actually don't have an exact number.

(END VIDEO CLIP)

STARR: Not an exact number. But this number, whatever it is, has been creepily up steadily. Just a few weeks ago they were talking about sending 15,000 troops. Now 30,000 to join the 30,000 already there.

But it's all going to be very problematic. This is all looking like it might be U.S. troops, Tony. NATO doesn't appear to be interested at this point in sending more troops -- the more U.S. troops.

Secretary Gates is already warning that the U.S. should be concerned about not having too big a foot print there. That the Afghans could begin to resent that. And Afghanistan, of course, is a country that needs a lot more than just troops. It needs billions of dollars in aid and reconstruction. Money that will be very tough to find in these economic times -- Tony.

HARRIS: And, Barbara, quickly. We know there is a helicopter unit heading that way after the first of the year. What's that all about?

STARR: Well, you know, this is what they call a combat aviation brigade. This is very interesting to watch. This really is the first step down the road to this significant plus-up of troops in Afghanistan. You have to put helicopters in there. That's rough mountain territory, 14,000-foot mountain peaks. If you're going to put 30,000 troops in, you have to have a way to get them around, to move them to where the combat is happening. And these helicopters are going to be it. So consider this a first step down the road.

Tony.

HARRIS: OK. Pentagon correspondent Barbara Starr for us.

Barbara, appreciate it. Thank you.

We are just getting word that jurors have reached a decision in the Fort Dix terrorism trial. The case against five foreign-born Muslims charged with plotting an attack on the south Jersey military base. The Associated Press is reporting a verdict will be announced in about an hour's time.

Cancellations and long delays. The nightmare caused by the winter weather.

(COMMERCIAL BREAK)

HARRIS: Boy, this weather. Stuck at the airport. Today, hundreds of stranded passengers are trying desperately to get out. Valerie Hurst is with affiliate KATU. She's at Portland's international airport.

And, Boy, if you would, tell us about the situation there, Valerie. Last hour we talked to folks in Seattle. What's the situation in Portland?

VALERIE HURST, KATU CORRESPONDENT: Well, we know things are going a lot better at the Seattle Airport than they are here in Portland, unfortunately. Just talked to airport officials. We're looking at more than 120 flights that have been canceled just today. Very disappointing for passengers, especially those we've been talking to the last couple of days who are still here at the airport. So it's very, very discouraging for them.

And just look at the lines all around me. Don't even have to move much to see the lines here. They are pouring out toward us. We've had to move back a couple times now just to get the full scene for you, so you can see it. Not even sure what line people are in at this point there are so many of them.

But then if you look just a little bit to the left here, our photographer, Brian Smith, is going to show you how checked baggage isn't all that busy. It kind of shows you here how a lot of these flights are canceled. So there's just no bag to even check in. So they're not doing too much business. However, the lines at the check- in and rebooking counter, they are packed.

We have word of 300 people who spent the night at the airport. We talked to a couple of people, familiar faces that we've seen over the last couple of days. Just talked to one man who said, you know, Valerie, I almost made it. He said, I've been here three days. I got on the airplane and I sat there for three hours. They were still plowing the runways there and just getting things fixed up. Our staff changed. Everything you could imagine, it just -- it happened to him. So it is very unfortunate, but he's not the only one. And, you know, also, the runways here are clear. The taxiways are clear. Airport's doing a great job keeping up with maintenance. But you have to worry about the weather outside of the airport. Weather all around the nation. That's what these carriers are dealing with, especially Alaska Horizon. They suspended all their flights yesterday and they were planning on picking everything up this morning, but then they haven't gotten anything off the ground we are told.

HARRIS: Well, I've got to ask you, it may sound like a silly question when you've been there for hours and hours and hours, but how have you found spirits among those who are just sort of stuck right now?

HURST: I'm sorry, say it one more time for me.

HARRIS: How have you found the spirits of people who have been stuck for hours on end?

HURST: The stewart (ph) people? People who are helping out?

HARRIS: No, just the passengers. How are their spirits?

HURST: Spirits, I'm sorry. Sorry. A little hard to . . .

HARRIS: No, that's OK.

HURST: Yes, you know, a couple of people that we've talked to this morning have been wearing Santa hats. They're still -- yes, they're really doing OK. You know, obviously, everyone's a little frustrated. But mostly smiles. People say, hey, we've been watching you just trying to keep up with what's going on. There is still some holiday spirit here at the airport despite the delays. People are just hopeful they'll get to squish in a little bit of their vacation time.

We have not seen any brawls, anything too nervous.

HARRIS: Well, good.

HURST: Yes, we've been doing OK. So I think, for the most part, we have seen some holiday cheer out there. And then, of course, the people who work at the coffee shops. I had to wait 20 minutes just to get a plain cup of coffee. And they're all cheerful as well.

HARRIS: Yes. All right. Valerie, appreciate it. Thanks for your time today.

HURST: Sure.

HARRIS: Let's get a check on conditions here. Chad Myers is in the severe weather center.

And, Chad, you know, you just -- boy, I don't know how you get so backed up. It just takes forever to get those flights moving again. CHAD MYERS, CNN METEOROLOGIST: You get so backed up because of what she said. They've canceled 120 flights, Tony. You want to see all the flights that are in the air?

HARRIS: Yes, I would. I would, actually.

MYERS: One, two, three, four, five.

HARRIS: Is that it?

MYERS: That's it.

HARRIS: And normally at this time . . .

MYERS: And that one's going to Pendleton. That doesn't even really count. There are four commercial jets. There's a -- that's an American Airlines plane, here's a Delta jet going to Atlanta. And that's it.

So how do you get all those people on four planes? You don't. And they're going to be working this out for a long time.

You don't have planes on the ground to put them in, for one problem. You know, you've got to get planes there now because they got them all out of the way because they knew the storm was coming. Now you've got to put them back in the way.

Current temperatures, though, from Minneapolis, at 7 below. Chicago, 1 above zero. Many of the gate workers and the people that are working outside for you at the runways at the airports and the jetways, everything's going slowly today. Baggage claim going slowly. You're going to have to pack a lot of patience with you today because you just -- the guys and the ladies, they can't move that fast. They have to go in and warm up every once in a while because the air is literally just frigid here across parts of the upper Midwest, all the way down to Cincinnati where wind chills are well whether zero as well.

Everywhere you see a red box, a county, something, whatever it is, there's a mountain range, all warnings. Heavy snow warning. Winter storm warning. So if you're driving through the mountains, you need, this week especially, you need to take your survival gear with you and probably the chains as well. This is going to be one very big snowy mess out in the west. And the people that are going there to ski in it, they're all happy about it.

HARRIS: Loving it. Yes, that's great advice though.

All right, Chad, appreciate it. Thank you, sir.

MYERS: You bet.

HARRIS: Is Russia's former president planning a political comeback. What a move by the country's parliament today could mean for Vladimir Putin.

(COMMERCIAL BREAK)

HARRIS: Russia moves a step closer to a six-year presidential term. The upper house of parliament approved the term extension today. Many see it as an effort to bring former President Vladimir Putin back to the country's top office. Senior international correspondent Matthew Chance live via broadband from the Kaluga region of Russia, southwest of Moscow.

And, Matthew, good to see you.

I'm curious, was this decision by the Russian parliament met with any strong negative reaction?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Tony, there's certainly been critics of this move. Critics of democracy in Russia who say that this constitutional change, which extends the presidential term from four years to six years, is merely an attempt by Vladimir Putin to return to office as soon as possible before the term of the current president, Dmitry Medvedev, his hand successor, runs out in 2012. And so, in that sense, yes, it has.

But I have to say that the vast majority of people in Russia, according to opinion polls, are firmly, squarely behind this move because Vladimir Putin is still overwhelming the most popular politician in the country. They prefer him overwhelming than any other politician in the country to lead them, particularly through these difficult financial times. And if there is any way of bringing Vladimir Putin back into the Kremlin before 2012, which is when the next presidential elections are due, I'm sure it will be backed by a lot of people in this country.

Now, I have to say, Tony, that for the Kremlin's part, and for the prime minister's office, they say that's not their plan. They're not going to call fresh elections. But that's certainly the speculation and what most people are speaking about on the streets.

HARRIS: And, Matthew, I'm just curious, is President Medvedev, is he unpopular in Russia?

CHANCE: No, he's not unpopular at all. Just that in comparison to Vladimir Putin, his mentor, the man who hand picked him to be his successor, you know, he's not really in the same league. He's pretty much an unknown figure. Vladimir Putin is still the man who appears on national television answering the questions (INAUDIBLE). He did that just last week in a live televised Q&A. He's the figure who most people believe has his hands on the levers of power in Russia, despite the fact that he left the president's seat and took on the job of prime minister back in March.

HARRIS: Our senior international correspondent Matthew Chance for us.

Matthew, good to see you. Appreciate it. Thank you.

We are looking at the global economic downturn. Find out the impact in India next. (COMMERCIAL BREAK)

HARRIS: You know, when it comes to the financial crisis, we're all in this together. So we've been checking in with our correspondents around the world for how people are coping in their neighborhoods. Right now we take you to New Delhi, India, on the streets, with our Sara Sidner.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: This is one of my streets in my neighborhood in New Delhi, India. In this city, supermarkets are pretty much nonexistent. Instead, each neighborhood has its own market. And this one's mine.

The Defense Colony Market opens in the morning, but does most of its business at night, due in part to its many eating joints. There's Indian, western, Japanese, you name it.

I frequent this restaurant, Moets, probably more than I should say, due in part to my poor cooking skills, but also because they make great food and drinks. In the summer, they make a mean fresh lime soda.

Moets was one of the first restaurants to open in this market in the 1970s. And just like India's economic boom, over the past five to seven years, it's enjoyed about 10 percent growth per year until now.

And you've been here since the '70s? Have you ever seen it this bad before?

SANDEEP BINDRA, MOETS OWNER: No, you see the portfol (ph) has increased over the years. Business has come up. But this is the first time it has really -- it's cut back. First time that we are really having falling sales.

SIDNER: Bindra says sales have fallen by 10 percent to 15 percent and he expects things to get worse. He's trying to cope by using good, old-fashioned customer enticement.

So you're going to actually bring down prices.

BINDRA: Prices we have to bring down.

SIDNER: But this market has a variety of economic stories to tell. In part because it's popular with India's much talked about growing middle class.

So, after dinner, if you're looking for something beautiful to bring home, these florists seem like they never close. The question is, for these non-essential items, is business blossoming or fading away now?

How is business?

"Work is fine," he says. "This occupation depends a lot on seasons. There hasn't been any effect on business yet. As of now, business is normal."

While everything seems to be coming up roses here, there's a feeling of doom and gloom a few feet away at a stall that's been here since the 1950s.

And this is where I buy all my magazines and newspapers in the morning. Mr. Sing's (ph) News Agency. And that's Mr. Sing. He brings up another point that's hurting Indian business, and that is terrorism. He says ever since the bombing in Delhi, never mind Mumbai, he's seen his profits slide. And he's only hoping that next year this country won't have to deal with the heart-breaking loss of life or the frustrating loss of business.

Sara Sidner, CNN, New Delhi.

(END VIDEOTAPE)

HARRIS: Sara just mentioned the terrorist attacks in Mumbai, India. Evidence now that the city is moving on. Two luxury hotels seriously damaged in last months siege, they're now back in business. They reopened just yesterday. Representatives of the hotel say they've got new guests and the restaurants are booked with diners. More than 160 people were killed during the three-day terrorist siege.

The eight day Jewish holiday of Hanukkah, also known as the festival of lights, began at sundown Sunday. Many gathered at the Western Wall in Jerusalem last night for the lighting of the first candle on the Menorah. One light is added each night. For many Jewish people, Hanukkah symbolizes Judaism's triumph, even in facing great odds. It's also a celebration of religious freedom and hope.

CNN NEWSROOM continues right now with Betty in for Kyra Phillips.