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Water Main Break in D.C. Suburb; Home Sales and Values Take Another Big Plunge; Much Ado About Nothing?

Aired December 23, 2008 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Hello everyone. I'm Tony Harris in the CNN NEWSROOM.
And here are the headlines from CNN for this Tuesday, the 23rd day of December.

A massive water main break traps motorists in rushing waters. Dangerous rescues in Maryland to show you. And we'll do that in just a moment.

Home sales and values plunge in November. The median price skids the largest amount on record. Quite possibly the biggest decline since the Great Depression, if you can believe it.

Barack Obama losing his shirt in Hawaii, raising questions about his safety. Did paparazzi get too close to the president-elect?

So, drivers in the middle of their morning commute when a huge wall of water comes gushing down, paralyzing the vehicles and leaving them stranded.

Josh Levs is back, and he's going to take us through the developments on the story.

Which, Josh, I believe began to unfold for us about 8:00 a.m. Eastern Time.

JOSH LEVS, CNN CORRESPONDENT: That's when it happened.

Isn't the most incredible video you've seen in days?

HARRIS: Yes. Yes, it is.

LEVS: It's astounding. Let's just go right to it.

I mean, I want everyone to see, especially with these rescue baskets. It's kind of incredible what we've been seeing all day, ever since 8:00 a.m., when this news broke. Let me just take you through it step by step.

You know, what we were told is that these baskets lowered to vehicles that were trapped in these feet of water. This is along River Road. That's in Maryland. It's near Potomac and Cabin John.

And you know, rescuers had a really tough time getting down to them. We're told there were all these problems with wind, there were trees in the way, not to mention the power of that water gushing through.

This break occurred. As you said, it was about 8:00. And authorities told us about up to 15 vehicles were stuck. And they need to rescue, Tony, about 15 people, some of them by boat. Think of what it must have been like to be inside of one of those.

Here is someone who was stuck there.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: All of a sudden, just a gush of water came along with boulders and parts of trees, and I tried to turn to get out of it, and that was it. I couldn't. My car just got blocked in and the water was going over the top of the car, and then the fire department finally came and got me out.

(END VIDEO CLIP)

LEVS: And Tony, we also have this video of one of the rescuers talking about how difficult it was to get through to some of these people.

(BEGIN VIDEO CLIP)

ROBERT KATZ, RESCUER: This was extremely dangerous, extremely challenging, not just from the speed of the water, but how cold it is. And it decreases people's dexterity in the water.

Also, a number of hazards as the asphalt was really breaking away under their feet as they were moving around in the boat. Also, pieces of the roadway were coming down from them, and they had to be moved the boat to try to be able to not be hit by that debris as it came down.

(END VIDEO CLIP)

LEVS: So how big this water main break was, they tell us the diameter of it was 66 inches.

HARRIS: Yes.

LEVS: Best way to picture that, I think, is to picture your own height. I'm 6'1.

HARRIS: Right. Right.

LEVS: So you're talking about 7 inches shorter than me. I mean, it's massive. And when they looked at the water on that road, four feet high.

HARRIS: A couple of difficulties here, Josh. First of all, I'd like to get the latest information, if there is any, on those who might have been injured.

LEVS: Yes. I'm told that three people were in the hospital with hypothermia. We're going to check with the hospitals again and see where that stands. But at least three taken to the hospital for hypothermia.

HARRIS: Hey, can you show us exactly -- maybe we've got maps or something...

LEVS: We do.

HARRIS: ... of where this took place?

LEVS: Yes. Let me actually get out of the way.

You're seeing right now dot-com video, some of the latest video from the scene that we have on CNN.com. But let me take you through.

I pulled this up on Google. Now, this right here is the general area. I don't know if you know this area, but this right here is Potomac. This is Bethesda right here.

This is Cabin John. So you can see right near the Capital Beltway.

Now, this right here is really cool. Google does some amazing stuff.

This is what the road looks like, Tony, if you were driving along it on a normal day...

HARRIS: Yes.

LEVS: ... when it's not gushing with water. In fact, I pulled up the exact stretch of road where this happened, where authorities said they had to close down today.

So you can see, it's largely a residential road. Clearly, as you know, right near that water main. But obviously, this isn't what it's looking like today.

If you want to see the stretch of road that was closed, this is it right here. If you know this area, it's River Road between Bradley Boulevard and Seven Locks (ph) Road. That probably doesn't mean much to a lot of people who don't live in that area, but that's the area they had to close last traffic report I saw.

So Tony, you know, on a normal day, it's a huge road that people take all the way through to go to work. It's very heavily traveled; it's critical for a lot of people to commute.

Boom. That stretch obviously, all of a sudden, just gushing with massive water.

HARRIS: Well, terrific that we were able to turn around some of that sound of people who were living through this and folks in their own words.

You know, we talked to the paramedic who was a part of the Maryland State Police team that was in that helicopter trying to make that rescue of the two people who were trapped in that SUV. You remember that? We've been showing the picture a lot.

Maybe we can do this a little later. I interviewed him last hour. Maybe we can pull a bit of that sound.

LEVS: Yes, we're going to have that.

HARRIS: Oh, we're going to get him live, I understand. So even better.

All right, Josh. Appreciate it. Thank you sir.

LEVS: You got it. Thanks, Tony.

HARRIS: Some amazing stories coming out of that Maryland rescue. Reporter Sarah Lee of our affiliate WJLA has one of them.

(BEGIN VIDEOTAPE)

SARAH LEE, REPORTER, WJLA: You can see what's left of river road behind me, if we could just pan in. And you can see that there's still a significant amount of water that is rushing down the street, but this is really minimal compared to what we were seeing earlier. It was just a raging river, ironically, on River Road.

You can see down there where there's a black SUV with its flashers on. At the point when we got here, the water actually had submerged the tires on that SUV. And right behind it there's a smaller car, and there were two women, a driver in each vehicle, trapped.

When we came on the scene, just about 8:30 this morning, one woman who was in the black SUV looked absolutely paralyzed with fear. There was a helicopter when we first got here that had lowered a rescue basket to her. And then for some reason or another, they then abandoned that option and then instead brought a boat out to that car and the SUV, to be able to get the two women out.

At one point, the woman in the SUV did flash a piece of paper out of her window. We zoomed in with our camera and were able to get a telephone number off of that piece of paper, which then people confirmed using hand signals with her, so that I was able to then place a telephone call.

It was the phone number for her husband, who then did tell us that was his wife Marcia (ph) that was in the car, and was able to tell him that there were several highly skilled swift water rescue personnel out here that were working on getting her out, tried to give him reassurances that she was going to be OK. Eventually, after seemingly an excruciating long time, it felt like probably only about 20 or 30 minutes, but it was a very dramatic situation as all this played out.

They were able to get Marcia (ph) and the other woman into the boat, thrown on their stomachs, absolutely horrified, gripping on to the railings and the boat for their safety, and then able to get the boat to the side of the road, which at that point resembled a river bank. And then get them up to dry land and to safety.

Now, to give you an idea of just how much water was rushing down at one point today, they're talking hundreds of millions of gallons of water per minute from this 66-inch main. We're standing just near the source of the break. Again, that's where the water was coming out on River Road near Fenway Drive. We're just down the street from the entrance to Congressional Country Club.

Again, as you can see with all the gravel that's left in the road, this street has been compromised severely, and it could be some time until it is passable once again. So if you're familiar...

(END VIDEOTAPE)

(WEATHER REPORT)

HARRIS: Vice President-elect Joe Biden getting an update today on the country's financial crisis. Biden met with the Obama money team last hour. He got a briefing on new economic developments and plans for a recovery package.

(BEGIN VIDEO CLIP)

JOSEPH BIDEN (D-DE), VICE PRESIDENT-ELECT: We've got to face it, economists rarely agree, but on this score there's overwhelming agreement that we need a robust and sustained economic recovery package. There's virtually no disagreement on that point, with economists from left to right agreeing that the greater threat to our economy lies in doing too little rather than not doing enough.

(END VIDEO CLIP)

HARRIS: The economic stimulus plan proposed by the Obama team is projected to cost $775 billion.

Your home, probably your biggest asset. Home sales and values took another big plunge in November. Our Christine Romans will give us the numbers. Personal Finance Editor Gerri Willis will tell us what it means for you, the homeowner.

Christine, let's start with you. How would you describe these numbers? I'm looking at the word "dismal" here. It's what's what comes to mind.

Is that about accurate?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I would say they're horrible and predictable, frankly, because when you had the meltdown in the stock market in October, a lot of people were worried that that was going to put just another big hammer on home sales and home prices. So for five months in a row now, you've seen home prices declining, and declining pretty dramatically.

You look at existing home prices down some 13.2 percent over the past year. I mean, that's the value of your biggest asset. And it's declining, you know -- for years, we saw home prices go up, and now we're seeing them really go down. So let's take a look at the numbers.

Existing homes, year over year, the sales tumbled 10 percent year over year from the months before. They were down from 8.6 percent.

New homes, this is where it's really hurt. Wow, if you're a developer or a real estate agent and you're trying to sell a new home, those sales over the past year are down 35 percent.

Of course, the vast majority of homes for sale out there are existing homes, our homes. Home prices, median price now $181,300. That's down from more than $208,000 just a year ago.

And all of this happening for three reasons: the housing bubble that burst, then you had the meltdown in stocks in October, so a lot of people thought these November numbers would be ugly, and then you have jobs being lost quite rapidly. When I talk to economists, they say this is the kind of thing we're going to see heading -- continuing into next year.

And then quickly, on the economy, the third quarter in the summer, the economy worsened. It shrank.

It's very rare, Tony, for the economy to actually shrink, and it shrank 0.5 percent in the summer. That's also before the worst of the stock market rout and the credit crisis. So a lot of folks are looking for a pretty -- dismal, I think, is the word you used. That's what they're looking for the fourth quarter.

But we know it's coming. We know it's coming, and we know these home prices and home sales are something that happened in the fourth quarter. So we know that things have kind of worsened here to round out the year.

HARRIS: There she is, Christine Romans, part of our money team.

Christine, good to see you. Thank you. Thanks for the help.

And now to Personal Finance Editor Gerri Willis.

Gerri, perhaps here a silver lining in these number, if you're actually shopping for a home.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, I have to tell you, you know, in any market, somebody has an opportunity and advantage, and in this market it is homebuyers. Let me tell you why.

Inventories in this report from the National Association of Realtors, almost a year's worth of housing on the market right now. You're going to have your choice of houses. And what's more, getting that loan, you're going to get a fantastic interest rate.

The average right now, 5.18 percent. That's according to the Mortgage Bankers Association. That's down from just last week, when it was 5.45 percent.

We haven't seen rates this low since mortgage records began keeping records way back in 1990. So these are very good numbers. If you have a decent credit score, if you have money to put down for that house, now is the time to start shopping.

Now, you hear me say starting shopping, because prices could continue to go down well into next year, into '09. So you really want to understand your local market here.

Obviously, places like Detroit, places like Miami, the experts are still forecasting price declines for those markets. So you want to do some local research. Make sure you understand what's going on with prices in your area.

But to those numbers, I just want to say one thing. They may be a little misleading. They're pretty controversial among economists, this price from the National Association of Realtors. Because they take a median every month, it doesn't really take into account who's buying that month.

So if you see a lot of really wealthy people buying really expensive homes, that can drive up the number. Conversely, if you see a lot of people who are buying inexpensive homes, it can drive down the number.

HARRIS: Yes.

WILLIS: So it's not necessarily the best data we have out there. But, of course, it's not telling a story that's not true. The housing market is in big trouble.

HARRIS: And there she is, our personal finance editor, Gerri Willis.

Gerri, thanks for the help. Appreciate it.

WILLIS: My pleasure.

HARRIS: You know, I've been talking about him for the last 10 minutes or so. Sergeant Nate Wheelock, he is with the Maryland State Police, and he was actually the hoist operator that pulled off this really dramatic rescue earlier today of these two people trapped in this SUV.

There he is, on camera with us right now.

Nate, it's great to see you.

If you would, walk us through -- we've got a lot of pictures to assist us here. Talk to us about the difficulty you had in getting that basket to the two people who were trapped in that SUV.

SGT. NATE WHEELOCK, MARYLAND STATE POLICE PARAMEDIC: Yes. This morning, when we came up overhead, my pilot and I, along with the Montgomery County Fire Department, talked and decided that aerial rescue was by far the best way for us to get these people out of these cars, as much as we could. The first rescue went a lot quicker than the second. I was able to get the basket right down next to the door, the open window for that victim to climb in.

We were able to bring her up to safety, secured her inside the aircraft, sent the basket back down. On the second one, the downwash on the aircraft seemed to be throwing the basket around just a little bit more, as well with the door open. I had to get that basket around the door and into the opening for the woman and that child to jump inside the basket before bringing them up to safety.

HARRIS: Well, Nate, this is news. I didn't know you actually were a part of two rescues this morning.

So the first one went pretty smoothly and the difficult moments -- and let's be clear about it -- when you're trying to make a rescue like this, what we saw might be described as being difficult. It really, at the end of the day, came off smoothly, was with that second rescue, when you were trying to get the basket down to that child, and we presume the mother of that child. That's where we saw the picture of the basket being tossed around a little bit.

Is that correct?

WHEELOCK: That's correct. And on each side of the roadway were power lines ran along. And then with the canopy of trees overhead, it made it very challenging to get that basket right in the right spot for what I guess would be the mother, as well, to grab the basket and pull it to the door frame so the child could climb in.

HARRIS: Chad Myers was talking about a surge that occurs where you get a bit of a surge of electricity in that line. And you would prefer that people not grab that line.

Talk to us about that phenomenon and how important it is that the people who are being rescued not grab the line, but actually grab the basket itself, and that you try ground the basket against the vehicle.

WHEELOCK: Once we drop that basket down, the aircraft generates a lot of static electricity which transmits down that line and all the way to the basket. It's a metal connection all the way down and through. So we try to ground it in either the water, or tap the vehicle with the basket prior to anybody being able to grab it.

HARRIS: That's terrific. And what a sense of accomplishment -- maybe you can describe it for us -- when you are able to pull off a rescue as difficult as this was, as successfully as you did.

WHEELOCK: It was a good feeling getting the first victim in, secured in the aircraft, and then being able to go back and grab two more. With the air frame (ph) we have, we're blessed. Maryland's lucky. We're able to get the victims up, as well as have the capacity to be able to assess them medically speaking and determine whether or not there was some immediate medical attention that was necessary, which in this case it didn't appear to be.

We did take them to a local hospital so they could get evaluated and to get warmed up. They came up soaking wet and full of ice.

HARRIS: Yes, I've got to tell you, just one last thought here as I'm watching this rescue and you're actually lifting the basket. I mean, how tricky were those conditions? You're talking about the downdraft from the propeller blades, but I'm also seeing lines. I guess those are power lines -- I'm assuming, anyway -- and trees all over the place.

WHEELOCK: Yes. The basket came pretty close to the trees, but we had to keep it a little closer to that side because there were electrical power lines that ran parallel not just on one side, but both sides of the roadway. So we used -- we kept it as close to the trees as possible without actually the lines getting fouled up.

HARRIS: Sergeant, terrific work. Congratulations on an amazing job today.

WHEELOCK: Thank you very much.

HARRIS: Sergeant Nate Wheelock is with the Maryland State Police, and he was the operator of that hoist there, actually trying to get that basket in position to effect these rescues.

Nate, terrific job. Thanks for your time.

WHEELOCK: Thank you. Thank you very much.

HARRIS: No, no. Our pleasure.

Let's get to our Brian Todd. He is on the ground right now.

And Brian, this really has been the story of the day for us. So take a moment here and talk about this developing story as it began to unfold about 8:00 a.m. Eastern Time, and any new developments.

BRIAN TODD, CNN CORRESPONDENT: Well, Tony, the water main break is still presenting a lot of problems for local officials. We're going to show you live here, you see behind me on River Road here in Bethesda, the water is still gushing down this steep incline.

We're told that the road here goes about 600 to 800 feet downhill, and that's where this is going. And right behind me are two of the cars that were stranded here where some of these dramatic rescues took place.

You can see two of them right behind me. There are boulders that have essentially moored those cars in place. You can see the water is still gushing behind me here.

At its worst point, the water, we're told, was about four feet deep. But a rescuer just told me a short time ago it's not the depth of the water that's the problem. It's the speed with which it's moving downhill. He said he's never seen anything like it before.

I'm also going to show you a couple of other cars that were stranded. Some of the rescue workers are now going to that one down there.

Mike Green (ph), my cameraman, is going to try to zoom in. The windshield wipers on that one are still going. They've been going now for a few hours, and these rescue workers are kind of surveying the scene, seeing how they're going to be able to extract those vehicles from this gushing water.

Now, you can see the water's still really cascading down the road here. They've not been able to shut the water valve off yet.

We're told by a couple of officials up the road here that they were able to get to valves that were near this one to reduce the pressure. That's why it's not quite as deep as it was earlier today. But they've not been able to shut the valve off. As you can see, a lot of people around here are going to lose water service for at least several hours.

Now, earlier we caught up with one of the victims who was in one of these cars, and she told us just how frightened she was when all of this started to occur.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: All of a sudden I just saw a bunch of muddy water and rocks and parts of trees coming toward me, and I tried to turn around. But as I turned around, I was unable to turn around because of the force of the water, it was just too high.

It was going over my car. It was on top of my car. And I quickly -- I called 911, and I just -- it kept moving. The car was moving a little bit to the side. And I was afraid I was going to go off the embankment. I just put it in park and I just prayed.

(END VIDEO CLIP)

TODD: A total of nine victims, we're told, were pulled from this area. And we're told some of them were treated for hypothermia. But we are told by local officials here that most of them are fine. No major problems with the victims.

But this was not harrowing only for the victims. It was very, very dangerous for the rescuers.

You just talked to one of them, Tony. And they've been telling us all morning how difficult this was because of the incline, because of the speed of the water. We caught up to Captain Frank Doyle, of the Montgomery County Fire and Rescue Department. He told us about some of the problems.

(BEGIN VIDEO CLIP)

CAPT. FRANK DOYLE, MONTGOMERY COUNTY FIRE AND RESCUE DEPT.: Never saw anything like this. When we heard the first reports of a mountain of water running down River Road, your first inclination is, that's crazy, that could never happen. And we arrived on scene and we were met with that challenge. (END VIDEO CLIP)

TODD: And this from a man who is with the department that rescues people from the Potomac River, which handles a lot of swift water rescue missions, and they said they've never really seen anything like this, just the water cascading down the street.

We're going to take another shot of it here. Mike's going to pan down.

As we showed you earlier, the rescue workers still kind of surveying the scene, trying to figure out when and how they're going to extract some of these vehicles. You can see the water still really gushing down this road at a very rapid pace.

That, as we said, was the real problem for rescuers today. More so than the depth of the waters, which was four feet deep. It was carrying boulders. It was lifting cars off their wheels this morning.

A huge mess here, Tony. And they have not been able to shut off this water valve yet.

HARRIS: Because that main valve, we understand, is under water. So when they'll get to that...

TODD: Right.

HARRIS: Yes, who knows.

Brian Todd for us.

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

All right. Which members of Barack Obama's transition team were in touch with Illinois Governor Rod Blagojevich and his staff? We're expecting some answers today.

(COMMERCIAL BREAK)

HARRIS: Was it much ado about nothing? That's what the Obama transition team says about staff contacts with the embattled Illinois governor. The transition office releases it report in just a few hours.

Senior White House Correspondent Ed Henry live with us now from Honolulu, where the president-elect is vacationing.

Ed, I'm just sort of curious. It seems to me it's hard to believe this report will answer all the questions, but maybe it answers a few more.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Absolutely. I think you're right, Tony, that the Obama team is hoping this will turn the page on this whole controversy. It matters, of course, because there are lingering questions about exactly what contacts there were between team Obama and team Blagojevich in Illinois, and whether or not any Obama aides like Rahm Emanuel, the incoming White House chief of staff, were involved in any way at all with this so-called pay-to- play scandal in Illinois.

I can tell you, as you noted at the top, two Democratic officials close to the situation tell me that this report which is coming out later today will essentially say that there was limited contact between Rahm Emanuel and the Illinois governor about the Senate seat that the president-elect vacated there in Illinois and who was going to fill it. And that there was a little more contact between Emanuel and other aides with some of the Blagojevich staff. But that the bottom line is, there no wrongdoing in all of this.

You won't be surprised to hear that, because it's an internal investigation from team Obama itself. The report's coming out about 4:30 Eastern Time today, but the vice president-elect, Joe Biden, has already addressed it a little earlier today. Reporters asked him whether or not this report is going to exonerate team Obama.

(BEGIN VIDEO CLIP)

BIDEN: Oh, I don't think there's anything to exonerate. It's been clear that the president-elect has had no contact with Blagojevich and/or anyone on his team. That he's asserted and you'll soon find in the report being released today that there's been no inappropriate contact by any member of the Obama staff or the transition team with Blagojevich. And I think the report you'll see will reflect that this afternoon.

(END VIDEO CLIP)

HENRY: Now, Obama officials insist that the only reason why they waited a few weeks to release this internal investigation is because that was dictated by the prosecutor in this case, Patrick Fitzgerald.

He did not want an early release of this report to impede his criminal investigation that's still ongoing. And, in fact, some new information this morning where the prosecutor has told Illinois lawmakers that he doesn't want the impeachment probe of the Illinois governor to affect his criminal investigation as well. So he may want to curtail some of the investigations they're doing.

So there's a lot of investigations going on. But the bottom line is, today team Obama is going to try to make the point that there was no wrongdoing by their people and they want to try to turn the page on this whole matter -- Tony.

HARRIS: OK, there he is, our senior White House correspondent Ed Henry with the Obama team in Honolulu, Hawaii.

Ed, good to see you. Thank you.

Some environmental groups are raising questions about new regulations going into effect as the Bush team leaves office. Our "Energy Fix" team is checking out the allegations.

(COMMERCIAL BREAK)

HARRIS: A manhunt going on right now in Dallas. Police searching for a gunman suspected in four rush hour shootings on area roads. Two people killed, another injured. Police say the suspect, described as a balding Caucasian male in his 40s, drove up next to other cars and big rigs and opened fire. He was last seen on interstate 635 in a tan Ford F-150 extended cab pickup. We are expecting a news conference later this hour to provide us with the latest information on the investigation. We will monitor that news conference when it begins and bring you the news from it.

Environmentalists are up in arms over several recent regulations (ph) by the Bush administration, calling them a parting gift for industries that have been friendly to the outgoing president. CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.

Hi, Poppy.

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

Well, you know what, there is nothing new about an outgoing administration pushing through really what is called by some midnight regulations. But environmentalists say this time the potential for environmental destruction is unprecedented.

Let's go through some rules here. One new rule makes it easier for coal mining companies to dump debris from mountaintop mining into nearby rivers and streams. Now the White House says it's just clearing up confusion over how the waste should be handled. The EPA says there is no conflict with the Clean Water Act. But some environmentalists disagree.

(BEGIN VIDEO CLIP)

JOHN WALKE, CLEAN AIR CHAPTER, NRDC: Ever since the Reagan administration, we've protected waters against this abusive coal mining practice, and it's just in the 11th hour that the Bush administration is pushing this through. The Clean Water Act never intended coal mining waste and debris to be dumped into rivers and streams.

(END VIDEO CLIP)

HARLOW: Well, let's explain this for you a little bit. Under this rule, mountaintop minors will no longer have to maintain a 100 foot buffer between their operations and nearby waters. And the rule allows for the waste to be dumped in the streams if a company has no alternatives and if it tries to preserve the stream's health.

Now, the industry says the rule has been in public review for a long time. The White House tells us it's "ridiculous" to calling it and several other environmental rules last minute. Still, environmental groups are suing in federal court to try to stop this rule.

There's another one we want to tell you about. This has to do with hazardous chemical waste. Companies will now be allowed to burn it for fuel rather than having to pay an incineration firm to do that for them. And the EPA says the rule eliminates unnecessary regulation without harming people's health or the environment. The companies could face penalties, keep in mind, if the materials aren't destroyed. But the National Research Defense Council, the NRDC, says it takes away important hazardous waste oversight, leading to, it says, the likelihood of spills or other mishandling of these materials.

And, Tony, the White House says these charges have been received -- really have received full public comment and interagency reviewed. Critics, tough, stay it could take the Obama administration, coming in, in just a few weeks, or Congress years to undo these rules.

This is typical, Tony. We see this really at the end of an administrations.

HARRIS: No, that's correct. That's true.

All right, Poppy, good to see you. Thank you.

HARLOW: You're welcome.

HARRIS: You know, a lot of young people are watching all these scary economic headlines wondering what's ahead for them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I feel like the previous generations of this country, especially the baby boomers, have really left us with a nasty pile of something to deal with.

HARRIS: Are you -- a nasty pot?

UNIDENTIFIED MALE: Yes.

(END VIDEO CLIP)

HARRIS: Class is in session, next.

(COMMERCIAL BREAK)

HARRIS: Let's take you to the New York Stock Exchange now. A shortened week of trading. As you can see, the Dow just past three hours into the trading day, is down 67 points. At last check, the Nasdaq was down 13 points. Again, just past three hours into the trading day.

You know, it is hard to get most Americans to agree on anything. But a new poll from CNN and Opinion Research shows almost universal agreement on the state of the economy. CNN's Bill Schneider live from Los Angeles.

Bill, good to see you. If you would, walk us through the results. WILLIAM SCHNEIDER, CNN SR. POLITICAL CORRESPONDENT: Well, Tony, people are saying the economy is not just the top priority. It overwhelms all other issues to a degree we didn't even see during the campaign. Seventy-five percent cite the economy as the big issue. Terrorism, the big issue of '04. Iraq, the big issue of '06. Both are now in single digits. Even health care is in single digits.

How bad is the economy? Ninety-three percent say it's in very poor or somewhat poor shape. Things haven't been this bad in at least 10 years. You know, when Bush took office in 2001, 82 percent said the economy was in good shape. As he leaves office now, 93 percent say it's bad.

Now, look at the trend just over the past six months in the numbers who say the economy's in very poor shape. Thirty-nine percent in June became a majority by November. It's now two-thirds.

You know, people's view of the economy does have something to do with their partisanship. Right now, with a Republican president, Democrats are about 20 percent more likely than Republicans to say the economy's in very poor shape. But Democrats are also about 20 points more likely to say the economy will be in good shape a year from now when a Democrat will be in office -- Tony.

HARRIS: So the results always interesting. All right, Bill. Bill Schneider for us in Los Angeles.

Bill, appreciate it. Thank you.

SCHNEIDER: OK.

HARRIS: We're going to take a quick break. When we come back, I put on my spectacles, my professor's hat. Is there such a thing? Class is in session.

(COMMERCIAL BREAK)

HARRIS: You know, we are all affected by the economic crisis, but it's young people who will inherit it. So I headed to class to hear what teens are saying about the state of our economy and their future. Class it in session.

(BEGIN VIDEOTAPE)

HARRIS: Is there anyone surprised by the financial news right now? To find out that we're in the situation that we're in now?

MICHAEL, STUDENT: You can't really grasp the concept of it. Like you take a country like America and a society such as ours in that kind of trouble. So I think it's like caught everybody by surprise.

There are like fundamental issues with the economy right now. I mean we have to give the banks the $700 billion bailout so that they can keep spending? I mean the way that the financial sector is functioning right now and the way our entire government is functioning is with such high levels of debt and such high levels of risk. It's so unsustainable and I think that in the long term we will suffer the consequences of this.

HARRIS: Do any of you believe that the debt that has been accumulated in this country right now, that the responsibility for that debt is going to fall on your shoulders?

CLASS: Yes.

AKURE, STUDENT: To be honest, I don't think my generation really grasps the fact that this may fall on our shoulders. Because even for me, I mean, even though people -- you're saying that it may -- that that may happen, I'm like, that's not going to happen. Like this problem is going to get taken care of.

CAROLINE, STUDENT: Our generation in America in the future is going to have to have a decreased standard of living. We're going to have to spend more carefully. Not spend as much. But I think that that's just the natural cycle of things.

HARRIS: Yes?

MICHAEL: I feel like it's going to fall on us. And I feel like the previous generations of this country, especially the baby boomers, have really left us with a nasty pile of something to deal with.

HARRIS: Are you -- a nasty pile of poop?

MICHAEL: Yes.

HARRIS: A nasty pile?

MICHAEL: Yes.

MICHAEL: People look at new administration, President-elect Obama as -- like he instills that ideal of hope in people that he will be able to lead us out of this economic crisis. But when you face reality, it's going to get a lot worse before it gets better.

HARRIS: You believe that? All of you?

UNIDENTIFIED FEMALE: I think that we've weathered things like this before. And to say the sky is falling and that, I mean, you know, the streets are going to be filled with people rioting is a little dramatic. We've faced booms (ph) . . .

HARRIS: One point two million jobs.

UNIDENTIFIED FEMALE: I know, I know. I don't think the sky is falling.

HARRIS: Fifty-three thousand jobs to be cut in the coming months by Citigroup. UNIDENTIFIED FEMALE: Over the past, what, 250 years, this country's been in existence. I think we've gone through lots of hard times. I think that with the amount of people we have, the size of our economy today, it's a different situation. It's on a lot larger scale.

TAYLOR, STUDENT: People say it's not dire, but last week I listened to my aunt talk how she invested $20,000 in the stock market and watched it -- she lost it. She could have paid the last payment on her mortgage with that $20,000.

HARRIS: D.J. is it?

DEMARIUS, STUDENT: That is my name.

HARRIS: All right.

DEMARIUS: Great job.

HARRIS: Well, thank you, sir. I do this for a living.

DEMARIUS: I was talking with my little brother the other day and we were talking about how every weekend we used to go out with our father and we'd go out to dinner and we'd spend a whole day -- you know, every weekend having fun doing things and kind of gradually how that's changed. And gradually how, like, there's less, like, family time because parents have to work more. And there's less, you know, money, you know, to actually do things. So, I mean, it's more of a real thing now.

HARRIS: How old are you?

MICHAEL: Me? I just turned 16 Sunday.

HARRIS: So you're going to get that SUV?

MICHAEL: Probably not.

HARRIS: All right. What are you going to get?

MICHAEL: A skateboard.

(END VIDEOTAPE)

HARRIS: OK. All right. You're going to hear more from these bright, young people in the next couple of weeks for my "Class in Session" series. They will weigh in on education, terrorism and race in America.

Tis the season to give. Will the recession mean less for charities this holiday?

(COMMERCIAL BREAK)

HARRIS: It is the season of giving, but does the recession mean you will be giving less or not at all this year? Veronica De La Cruz has been watching the web for us and she joins us now.

Veronica, good to see you, lady. What are you finding?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, it is good to see you, Tony.

Well, obviously, because of the economic downturn, we've seen lots of changes when it comes to how charities might be asking for donations. You know, one of the biggest might be through the use of new media. And, Tony, you remember we reported on the Salvation Army. They've been using Twitter to raise money. You remember that, right?

HARRIS: Yes, sure do.

DE LA CRUZ: Well, Tony, now we're seeing Facebook, eBay, PayPal teaming up with celebrities to try to bring in cash. Maybe stars like skateboarder Tony Hawk, basketball player Yao Ming. They've been participating in this online effort called Regifting the Fruitcake, which makes fun of the perennial fruitcake gift that, you know, kind of ends up getting passed around. Passed around the office. Maybe, you know, ends up in your home. But Hawk says it really is an incentive to getting the Facebook generation into philanthropy. And how it works is you download this fruitcake application on Facebook and then you end up donating as much or as little as you'd like. So there you go.

And then elsewhere on the web, other celebrities are also finding creative ways to donate in light of the economic downturn.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You can go to feedingamerica.org and donate your food and call them up and they'll come pick it up for you.

(END VIDEO CLIP)

DE LA CRUZ: So feedingamerica.org. That was Entourage's Adrian Grenier and he's been working with the organization. He went out earlier this week during a blizzard here in New York and he went door- to-door picking up food donated by residents and restaurants. And Grenier says if you're feeling the pinch this holiday season, donating food instead of money can be a great alternative.

HARRIS: That's great. Yes, I like that.

DE LA CRUZ: Right? Right? And then also this article in mlive.com. They've got a few helpful tips on how you can make a donation if you are feeling the pinch. Like you just saw, they recommend donating food as well, toys, other items. Also shopping thrifty. Maybe buying things from Salvation Army or other charity organizations instead of maybe from a retail store. And then you can, of course, volunteer your time. Just volunteer your time. And we've been asking this question online this morning. Has the recession affected what the season of giving means to you? Will you be donating to a charity of your choice? And we got this Tweet in from Narcisco Tobar (ph). He says, "the recession has brought more meaning and focus to the season. I volunteered more time and have appreciated Bob Cratchit's kindness more."

Also Serena (ph) just sent us a Tweet. She says, "hey, why not give blood? Donate to the Red Cross."

HARRIS: Love it. Love it. Yes, that's a good idea. Sure.

DE LA CRUZ: There's another good idea.

And, of course, find us on Facebook. You can search Veronica De La Cruz in the CNN NEWSROOM. You can also follow me on Twitter at veronicadlcruz.

And, Tony, I'm taking off for the holidays. So Merry Christmas to you.

HARRIS: Yes, merry Christmas. Oh, I was going to suggest you get that Grenier guy on the set there with you there in New York.

DE LA CRUZ: Oh, I love that. All right. I'm going to go find him. I'm making a phone call.

HARRIS: We'll put that together for you.

DE LA CRUZ: OK.

HARRIS: All right. Happy holidays if I don't see you before.

DE LA CRUZ: You too.

HARRIS: All right. Thanks, Veronica.

Park your man and shop till you drop. Hassle-free shopping that makes everybody happy.

(COMMERCIAL BREAK)

HARRIS: The best of both worlds at a German Christmas market. Listen to this. Women shop, men relax.

Here's CNN's Fred Pleitgen and Diana Magnay.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN CORRESPONDENT, (voice over): The little town of Celle in Germany is well known for its lovely Christmas market.

Christmas is drawing closer and it's time to get those presents.

DIANA MAGNAY, CNN CORRESPONDENT: I love Christmas shopping. PLEITGEN: I despise Christmas shopping.

MAGNAY: But luckily this year.

PLEITGEN: We can have it both ways.

MAGNAY: That's because this Christmas market is offering something special. They call it "Man Parking," as in parking your man.

Hello.

UNIDENTIFIED FEMALE: Hi.

MAGNAY: This is Fred.

UNIDENTIFIED FEMALE: Hi. I'm Frosty (ph).

PLEITGEN: Hi. How you doing?

UNIDENTIFIED FEMALE: Hi.

MAGNAY: Please, could you look after him?

UNIDENTIFIED FEMALE: OK.

PLEITGEN: See ya.

And that means I can relax with the boys.

CROWD: Hi!

PLEITGEN: Hi guys.

MAGNAY: While I hit the shops.

And is this beeswax too?

This is next. Thank you.

PLEITGEN: Thanks.

Could end up losing more money here than going shopping.

MAGNAY: It's huge. Who on earth wears one of these?

PLEITGEN: Merry Christmas.

The makers of "Man Parking" stay it doesn't just offer a flurry of activities to pass the time, it can even save relationships.

PETER FEHLMABER, CHRISTMAS MARKET CAFE (through translator): Of course, there is a serious side to all this. It can be so stressful when the lady goes and wants another present here and there and the man just doesn't feel like it. So we think this could help restore peace and harmony.

MAGNAY: Or peace in our CNN office. In the end, I bought all my presents without Fred hassling me.

PLEITGEN: And I just didn't get hassled.

MAGNAY: Fred?

PLEITGEN: Bye, guys.

CROWD: Bye, Fred.

MAGNAY: Bye.

Have a good time?

PLEITGEN: What took you so long.

MAGNAY: Thank you.

PLEITGEN: Fred Pleitgen.

MAGNAY: Diana Magnay

PLEITGEN: ... CNN, Celle, Germany.

(END VIDEOTAPE)

HARRIS: That is an idea long -- long overdue!

CNN NEWSROOM continues right now with Betty Nguyen.