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Holiday Travel Hampered by Weather; New Economic Numbers, New Worries
Aired December 24, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALINA CHO, CNN ANCHOR: Thanks guys. Dreaming of a wet Christmas. Snow in the west, rainstorms in the east and holiday travelers caught in the middle.
Pulse of the economy, and more evidence of hard times. Minutes ago, new numbers, and new reasons to worry.
Just desserts, cookie makers go from the unemployment line back to the production line. We'll tell you why some of them are calling this a Christmas miracle.
Good morning everybody, I'm Alina Cho, Heidi Collins is off today. Today is Wednesday, December 24th, Christmas Eve and you are in the CNN NEWSROOM.
Good morning everybody. A winter wonderland for some, a travel nightmare for so many others. The number one challenge today, getting to the airport, bus terminal, or train station in all of that snow. More than two feet in Rochester, New York alone. And i-Reporter Shawna Nesbitt says it is still showing. It's especially icy in the Midwest. The slick roads there are causing more than a few chain reaction crashes. At least a dozen people were killed on the roads yesterday. And out west, where it has been snowing for a week, brace yourself, you're about to get hit again. What a mess. Be prepared to wait if you're trying to go anywhere. O'Hare airport in Chicago already backed up after canceling more than 500 flights overnight. Amtrak's also trying to get back on schedule. Hundreds of passengers stuck at Chicago's union station for nearly 24 hours because of frozen track switches and pipes. What a mess. Keep up with the latest conditions, of course, forecast travel delays throughout the day right here on CNN.
And who is watching it all for us, Bonnie Schneider in the weather center. If you are traveling today and millions of people are, get out the iPod and get something to read, you're going to be waiting, right?
BONNIE SCHNEIDER, CNN METEOROLOGIST: That's true. It really depends on if you're flying or if you're driving because on the roads we have a combination of ice sleet and snow and then a lot of airport delays Alina. I want to take a look and show you what's happening. You'll see that already even though it's still early in the morning, we have lengthy airport delays across the country. In Chicago, San Francisco and Newark, New Jersey, some ice on the roads in northern New Jersey. As you look towards Chicago, that airport, O'Hare, was actually closed because of runway treatment. Kind of early in the morning, around 3:00, 4:00 in the morning. It's now reopened, but playing catch-up with all the flights that are out there. We're anticipating even more delays than that. In fact, we're looking at delays across the country due to weather, rain, snow, and even fog. Clouds on the ground will slow you down in a lot of big cities across the U.S. If you're wondering what's the air travel like right now? Let's take a look at flight explorer. And we can show you that currently there are over 3,000 planes in the air.
We started showing you this at 6:00 this morning and there were about 1,000 planes. So the number has tripled in just a few hours. We're starting to get more activity off to the west. And we're also watching for wintry weather in the Pacific Northwest. Look for more snow to build into this region. So, we're going to be seeing probably more delays out west as well. We currently have one in San Francisco, but look for more as the day continues on. We're tracking wintry weather across the country. A big storm system is making a huge difference. In New York, for example, we have rain, but then just off to the north and west we're getting ice and sleet. The opposite is happening in and around Chicago. Rain and sleet will change to snow later on as we get cold air wrapping in behind this weather system that's coming in. So, all this rain is going to change over to snow and ice. And it's really tough as you look towards driving to really know what to be prepared for.
Alina, I would say right now be prepared for anything in terms of wintry weather. It's a mixed bag of just about everything in the northern half of the country. We'll be monitoring it here for you in the CNN weather center.
CHO: As I said, get something to read if you're at the airport and certainly give yourself enough space between cars if you're on the roads. You're going to need it. All right, Bonnie, thank you.
We want to get more now on the situation at one of the world's busiest airports, we're talking about Chicago's O'Hare of course trying to catch up after canceling hundreds of flights yesterday. Here's Regina Waldrip from our affiliate CLTV.
(BEGIN VIDEOTAPE)
REGINA WALDRIP, CLTV REPORTER (on camera): A lot of sleepy and anxious passengers here at O'Hare this morning. Yesterday more than 500 flights were canceled, so it's going to be a very busy day here as airlines work to rebook those stranded passengers.
(Voice-over): Long lines and lots of frustration. Holiday plans, up in the air on this Christmas Eve.
UNIDENTIFIED FEMALE: We've been here for 12 hours. We've been traveling for 24 hours almost now because we've come all the way from Spain.
UNIDENTIFIED FEMALE: Here I am about three nights into the airport. I don't know how much money is gone. I don't even want to know where my luggage is at this point.
WALDRIP: Chicago's cool weather caused major headaches for folks on one of the biggest travel days of the year.
UNIDENTIFIED FEMALE: Visibility was low and because of weather in other parts of the country, so we had about 500 canceled flights here yesterday, delays were running up to 90 minutes.
WALDRIP: Dozens of stranded passengers who thought they were headed to their holiday destinations, hunkered down where they could, at the nation's second busiest airport. It made for a sleepless and frustrated-filled night. The only wish many have today is to make it home by Christmas.
UNIDENTIFIED FEMALE: We're here for one week, and we spent already almost two days. So half of our vacation in the airport. But, anyway, hopefully we'll get someday, today or tomorrow.
WALDRIP (on camera): Officials say crews have been working throughout the night clearing runways. As far as cancellations and delays go for today, aviation officials say they should know more by later this morning. Reporting from O'Hare, I'm Regina Waldrip, CLTV News.
CHO: It's already getting nasty in parts of the northwest. And holiday travelers are packing the airports. Reporter Mark Miller with our affiliate in Seattle, KOMO is right in the middle of it.
(BEGIN VIDEOTAPE)
MARK MILLER, KOMO REPORTER (on camera): We've got a lot of nervous passengers arriving here at Sea-Tac Airport this morning. They are lining up. A lot of folks just getting their flights out today, those scheduled to leave today. We have many more who have been here for days hoping they will get out today. So far word is airport operations are dealing well with the new snow we're getting. They're equipped to handle this. But as you can see, we've got a lot of people lined up here on the entryway to the driveway at Sea-Tac. People here are telling me they're worried about being able to get to the airport in time to make their flights. These folks will be ok. But Seattle is now getting hit with another blast of winter. We're expecting anywhere from 3 to 6 inches of snow in some of the outlying areas.
We just checked here, though, we only have one flight canceled this morning. This is a flight to Chicago. This is good news, because we have dealt with thousands of canceled flights over these last few days. So, while things look good so far, we're just beginning. People here are definitely a little worried about whether it's going to stay calm here in Seattle. This is Mark Miller, for KOMO 4 news.
(END OF VIDEOTAPE)
CHO: Well, the holiday shopping season and more proof Americans are cutting back on their spending. Just minutes ago, we learned that consumer spending has dropped yet again. November's decline, 0.6 of a percentage point. That's the fifth straight month of decline and the longest stretch in a half century. Last hour we also learned of shrinking orders for durable goods. Those are products expected to last longer than three years, such as appliances. In November, durable goods orders fell by 1 percent. That was less than expected.
Also this morning, we learned that more Americans are standing in the unemployment line. It's becoming a popular refrain, unfortunately. In fact, new claims have hit a fresh 26-year high. Here with details now, CNN's Alison Kosik, she's joining us from the NYSE in New York. So, how bad is it Alison?
ALISON KOSIK, CNN CORRESPONDENT: Hi, Alina. Right now stock futures are looking like they're flat. We could be heading for a flat opening. Not much reaction from those economic reports that you mentioned that came out. We will have one of the quietest trading days of the year though today because of the holiday the session ends early today, three hours early at 1:00. But lots of reports to go through for investors. Those weekly jobless claims rose by 30,000 in the last week. That was five times the increase that was expected. Claims hit another 26-year high of 586,000. The total number of people continuing to receive benefits actually, though, fell slightly but remains very high, over 4.3 million Americans are receiving unemployment benefits.
Those job losses have mounted steadily every month this year. Over 500,000 jobs were lost in November, and we are expecting another big number for this month. Last week, major cuts announced from Bristol-Myers Squibs, Sirius XM Radio and Caterpillar, just to name a few. And just yesterday over 3,000 total cuts announced by tech services company Unisys and industrial conglomerate Textron. Other data out today that we're watching a smaller-than-expected drop in durable goods orders. Durable goods are those big ticket items, everything, you name it, from washing machines to jet engines. Orders fell by just 1 percent in November. And analysts were expecting a bigger drop, a 3 percent drop. This is the fourth straight monthly decline for durable orders. And personal spending fell for the fifth straight month. That's another troubling sign for retailers, as this holiday spending season comes to a close. That is, of course, a big deal.
But Alina, I'm going to go ahead and end with a little bit of good news. In the past week, potential borrowers have come out in droves to refinance. They were lured by record-low mortgage rates. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week that ended December 19th soared 48 percent and that's the highest level in over 5 years. And for many homeowners, it's really good news, because they'll wind up avoiding those resets on adjustable rate mortgages and the refis also prevent some foreclosures for those homeowners. So, ending on a bit of positive news there. Alina?
CHO: Alison, that's so great. In fact, coming up in the next hour, we're going to be talking about a company and to the CEO. This company, actually canceled their holiday party and they are doing something great for people who are in trouble in terms of paying their mortgages. So, this is all a glimmer of good news in what is a lot of bleak news out there. Alison, thank you so much. Tis the season when we think about who's been naughty or nice and that usually applies to our kids, of course, but which politician should top Santa's naughty list? Take a look at this. 56 percent of Americans think that distinction goes to Illinois Governor Rod Blagojevich. As you know, he had been arrested on corruption charges for allegedly trying to sell Barack Obama's Senate seat. The CNN/Opinion Research Poll, puts former New York Governor Eliot Spitzer second amid the call girl scandal and former Senator John Edwards third. He, of course, admitted cheating on his wife during his presidential bid.
A new report by President-elect Obama's own transition team officially concludes there was nothing inappropriate about any contacts they had with disgraced Illinois Governor Rod Blagojevich. No surprise there. But one of Obama's closest advisers did discuss possible picks for the empty Senate seat with Blagojevich. CNN senior white house correspondent Ed Henry explains.
(BEGIN VIDEOTAPE)
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): There was one bombshell. Even before taking office, President-elect Barack Obama quietly sat down for an interview last week with federal prosecutor, Patrick Fitzgerald. To tell all he knew about contact with embattled Illinois Governor Rod Blagojevich, who's engulfed in a criminal investigation over whether he was auctioning off Obama's old Senate seat. It's extremely rare for an incoming president to be interviewed in a criminal matter. But transition officials stress there was absolutely no wrongdoing by Obama or aides Rahm Emanuel and Valerie Jarrett, who were also interviewed by the U.S. attorney.
UNIDENTIFIED MALE: I don't think there's anything to exonerate.
HENRY: Obama officials note their internal probe shows the president-elect had no contact or communication with the governor or his staff about the Senate seat. Top Obama aide, Rahm Emanuel, did have one or two telephone calls with the governor, but one was a courtesy heads up that he was going to be White House chief of staff. In the second call, Emanuel recommended Blagojevich appoint Obama friend, Valerie Jarrett. But the report says Emanuel did that, quote, before learning in further conversations with the president-elect that the president-elect had ruled out communicating a preference for his successor. Emanuel pulled back, after Jarrett agreed to take a top White House job instead. And transition officials, from Vice President-elect Joe Biden on down stressed the conversations were not improper.
JOE BIDEN, VICE-PRESIDENT ELECT: 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 -- the Obama staff or the transition team with Blagojevich.
HENRY: The report does reveal that after Jarrett removed herself from consideration, Emanuel spoke several times with a top Blagojevich aide about the seat. But the Obama camp maintains there was never a quid pro quo. The governor's aide did not make any effort to extract a personal benefit for the governor in exchange for the Senate appointment. Now the transition team is trying to turn the page. On the same day of the report's release, they scheduled a Biden event on the economy, not that they are trying to change the subject or anything.
BIDEN: We need a robust and sustained economic recovery package.
HENRY (on camera): But this report is not the final word. That will come from the prosecutor. Ed Henry, CNN, Honolulu.
(END OF VIDEOTAPE)
CHO: Not a bad assignment.
The honeymoon between President-elect Obama and the American people are still going on strong apparently. A new poll by CNN and Opinion Research Corporation shows his ratings are going through the roof, 82 percent of people polled approve of how he is handling his transition. Only 15 percent disapprove. Now the poll also suggests that the public approves of the president-elect's cabinet appointments. 56 percent say his choices have been outstanding or above average. 11 percent say they have been below average or poor. And those numbers, by the way, better than Ronald Reagan, Bill Clinton and both Bush presidents.
Take a look at that, cookies. The bread and butter of one Ohio town. That is, until the company closed its doors and laid off its workers. Then something incredible happened. And some are calling that a Christmas miracle.
(COMMERCIAL BREAK)
CHO: Welcome back. For dozens of laid-off workers in Ohio it's nothing short of a Christmas miracle. With job prospects bleak, bills mounting and the holidays looming, hope, well, seemed lost. That is, until they got some phone calls that literally changed their lives. CNN's chief national correspondent John King explains.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Oatmeal cookies fresh from the oven, 20,000 pounds worth in a 10-hour shift. Chocolate chip in this line. A bakery shuttered just days ago now bustling with 60 eager employees who had expected a Christmas on the unemployment rolls. Kathy Sexton had told her children it would be a very modest holiday.
KATHY SEXTON, LANCE EMPLOYEE: They understood. They said, that's all right, mom. You always want to give them more, but I didn't think I'd be able to.
KING: Like many small towns, Ashland is struggling. Some things have been especially bleak since Archway Cookies was abruptly closed in early October by the private equity firm that owned it. UNIDENTIFIED FEMALE: Shutting down the operation was the only course left to take.
KING: Then the Lance snack company bought Archway at a bankruptcy auction. Last week 60 workers were asked to return immediately, hopefully the rest in the months ahead.
TERRY MOWREY, LANCE EMPLOYEE: It's hard to describe. You just saw life being breathed right back into the face of these people.
KING: Terry Mowrey is in the first wave as is Rita Devan.
RITA DEVAN, LANCE EMPLOYEE: I walked in the garage last night and my husband said you actually smell like a cookie again. He said, boy, I miss that smell.
UNIDENTIFIED FEMALE: We don't know any more answers than what Jenny knows.
KING: Two months ago workers felt betrayed by bosses who at first said there would be more work in a day or two, then changed the locks.
DEVAN: They just kept taking and taking and taking until there was nothing more to take. They didn't care they were putting 300 people out of work at the time.
KING: Things are very different now. With a promise to reopen the bakery, Lance handed all former Archway employees an early Christmas gift, a $1,500 prepaid debit card.
DEVAN: I was crying. I was like, pinch me, pinch me, and then it just kept getting better, you're getting your seniority and I'm like -- and you're going to get your card tonight. I'm like, what are these people doing? They don't know me. They didn't know us. They didn't know any of the Archway people and they're giving each and every one of us $1,500?
SEXTON: That's awesome. My first thought was, I can give my kids a Christmas.
KING: The plant CEO David Singer says the gift cards were a way of letting Ashland know the new owners are different.
DAVID SINGER, CEO, LANCE INC.: We wouldn't do it willy-nilly, we do want to make money. But this is a pool of folks that we intend to hire and we just wanted to let them know who we were. It's great to see these folks come back to work. We're proud of what we've been able to do.
KING: These are Lance cookies sold to big chains like Target and Wal-Mart, but Archway production will resume soon. And the new owners say if the new orders keep flowing in, more jobs will follow. John King, CNN, Ashland, Ohio.
(END OF VIDEOTAPE) CHO: Once again, Lance Armstrong is being declared a human phenom, but this latest news has nothing to do with sports. What he's done that's shocking the world.
(COMMERCIAL BREAK)
CHO: Take a look at the chair. Guess who's going to be sitting there in just a couple of minutes? Santa Claus. He's in the house right here in CNN, he just went in to makeup. Who knew Santa needed makeup is what Elizabeth Cohen says. This is a very special stop of course as Santa gears up to deliver all of those presents. Look at those cute kids. What's on your list, guys? Think about it. Santa will be here in the next hour and you do not want to miss the big man in red. I'm so excited about it.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It's a great Santa to kid ratio, one to two.
CHO: I think we're going to get more kids. But any way, I want to talk about this story, the stork dropped off a huge Christmas surprise for cycling legend Lance Armstrong and his girlfriend, Anna Hansen, they are expecting a baby. You just saw her, CNN medical correspondent Elizabeth Cohen joins us now with more on why this is so incredible. As many people know he was diagnosed with testicular cancer back in 1996. He had lots of rounds of chemotherapy and he was told he couldn't have children. So what happened?
COHEN: That's right. A lot of men 10 years ago who went through what he went through were told the same thing. Evan Handler, the actor on "Sex in the City" had leukemia, he had chemo and he was told you know the chances of you fathering a baby were slim to none, and he also fathered a child. So now I think they realize that despite testicular cancer, despite chemo, despite having only one testicle, that you can father a baby.
CHO: Well it basically shows his body recovered, right?
COHEN: Exactly. And it can take years. But one third of men who do have testicular cancer and treatment do get their fertility back. It can take three or four years, but it often does happen.
CHO: I think the natural next question, then, is should we be concerned at all about the baby? You go through chemotherapy. There's a lot of radiation there.
COHEN: Right.
CHO: Should they be concerned?
COHEN: Right, it would seem logical that there might be problems. But actually studies have shown that the children of fathers who had chemo, they're no more likely to have birth defects than children of fathers who didn't. Yes, it's amazing.
CHO: He has three other children, of course, but that was done in the nontraditional way, right? COHEN: Right, exactly. He has three other children from his ex- wife and what he did, was he froze his sperm before he underwent chemo which is a common thing for men to do and they then used that sperm through artificial insemination or through some artificial means to get his wife pregnant. He probably thought that if he ever was going to have any more children, he would probably have to do the same thing. But look, it just happened.
CHO: Who knew?
COHEN: I'm sure that's what they're saying right now.
COHEN: When he came out in September and said I'm going to return to cycling and who knows maybe win the Tour de France in 2009, I guess we should have seen this coming.
COHEN: Right, if he can do that, he can father a child.
CHO: That's right, Elizabeth Cohen, thank you so much.
Minutes before the opening bell on Wall Street, will the shortened trading day see a traditional Santa Claus rally? A live report from the New York Stock Exchange is next.
(COMMERCIAL BREAK)
CHO: And welcome back on this Christmas Eve. And stocks are about to open in New York. The Dow is going to open at 8419, down about 100 points from yesterday, on this shortened Christmas Eve trading day. Generally it's light trading on this day. And generally we see a Santa Claus rally, but we'll have to wait to see if that happens, because there has been so much bad economic news.
The latest reads on the economy point to more trouble, so how will stocks react? Alison Kosik at the New York Stock Exchange with details on this. Hey Allison. As we wait for the opening bell here, what are we expecting to see?
KOSIK: Well right now stock futures are flat. We did get a bunch of economic reports showing that the economy is still in trouble. But things are a bit festive here at the stock exchange. At the opening bell we're going to be seeing IAMS pet food with some orphaned animals, cats and dogs, they're going to ring the opening bell. Hopefully get people into the holiday cheer, get investors willing to spend some money today. There we go with the opening bell. We'll see how things stand.
But you know we got that trio of reports this morning showing that the economy is still sinking. The unemployment lines are getting longer. The number of people applying for first-time jobless benefits hit a 26-year high. There were 586,000 new claims last week. That's the highest number since 1982, in November. And it's much worse than expected. The commerce department also reporting today, orders for durable goods fell 1 percent in November, and that's actually not as bad as expected, but still a sign that the economy is continuing to contract. Durable goods, of course, are those big-ticket items like washing machines, televisions and jet engines. And one reason orders for these items are down, spending overall is down. The commerce department is also reporting that personal spending fell more than more than a half of one percent in November. It's the fifth straight monthly decline and that's not only worrisome for retailers but it's worrisome for the economy too as a whole, because when people stop spending it's harder for the economy to get back on track. But let's go ahead and check the very early numbers right now. The Dow Industrials right now are in the green, up 26 points. The NASDAQ is up 3. And the S&P is higher as well, almost 2. So, we'll see if we can keep things in the green here in the Christmas spirit until the closing bell which is at 1:00 today because we do have half a day of trading today. Alina, back to you.
ALINA CHO, CNN ANCHOR: Well, Alison, I hope that means a half day for you as well.
KOSIK: Me, too.
CHO: We'll check back with you later.
Turning to the weather now, a messy mix of snow, ice and rain, making it downright miserable for last-minute shoppers and holiday travelers, of course. Airports are packed coast to coast. Flight delays already piling up. Chicago's O'Hare, for instance, still trying to sort things out, after weather forced the cancellation of more than 500 flights yesterday. If you're headed anywhere, check with CNN first for the latest conditions and delays. A lot of people, Bonnie Schneider, watching from the airports, of course. They want to know maybe they've been told their flight's going to be delayed but they don't know quite by how much. So, fill us in. What's going on out there?
BONNIE SCHNEIDER, CNN METEOROLOGIST: Well Alina, I can tell you the people that are at the airport now are the smarter ones. The earlier you get there, the better chance you have of getting to your destination. We didn't have any delays until around 9:00 this morning and now they are starting to pile up. Here's a look at our current airport delays. In Chicago, we have delays all the way up to an hour and 40 minutes. Newark, New Jersey, this has gone up in just the past 30 minutes. It's well now over an hour. San Francisco, we have some low clouds and a little bit of wind. That's slowing you down. Ground delays there. And this just popped up in Atlanta where we have a live picture to show you what it looks like outside in Atlanta. That's right, low clouds and fog which is a big problem. We've been talking a lot about snow, but low clouds are really going to cause a lot of airport delays throughout the day to day, especially in the southeast, like in Raleigh, or even in Memphis, Nashville. So if you are traveling in any of those cities, watch out for that.
Let's take a look at what else is going on in terms of what we can expect and this is one of the unique things we can bring you here on CNN. Show you what's to come for airport delays later this afternoon. Some of them you may not be expecting. Like in Cincinnati, watch out for wind and freezing rain. Also in St. Louis we could see airport delays. In Portland and Seattle is expected to see more wintry weather. Another batch of Snow. It's been a very snowy season across Portland and Seattle.
I want to take you to cnn.com and show you our website. On ireport.com, we want to hear from you. Many of you are traveling all over the country to get to your Christmas Eve destination. You can see we have a page set up for holiday travel. So if you scroll up on the page, you'll see there's an area here, this yellow box where it says "Share your story." Send in your pictures and video of your travel experience and we will show it right here on CNN and on cnn.com. So thanks for showing it to us. I'm sure it's going to be quite a lot of stories to be told, actually.
CHO: Yeah, Bonnie, somehow I don't think we're going to get the good stories.
SCHNEIDER: Maybe the bad ones.
CHO: But please send them in. We look forward to sharing them with all of you. Bonnie, thank you.
SCHNEIDER: Absolutely.
CHO: Shutting down Guantanamo Bay detention center in Cuba, president-elect Barack Obama has been vowing to do it. Many of you know that. But nailing down the nuts and bolts may not be that easy. We have more now from CNN Pentagon correspondent, Barbara Starr. Barbara, any word on when this might happen?
BARBARA STARR, CNN SENIOR PENTAGON CORRESPONDENT: Well, not at this point Alina. But what the president-elect is making very clear is he wants it to happen.
(BEGIN VIDEOTAPE)
STARR (voice-over): President-elect Obama has already given the order, unofficially, of course.
OBAMA: I have said repeatedly that I intend to close Guantanamo and I will follow through on that.
STARR: The pentagon is now trying to figure out how to make it happen. One thing that could help? Germany and Portugal are now indicating a willingness to take some detainees who might be released but fear going back to their own countries. Defense secretary Robert Gates ordered a new review of plans to be ready as soon as possible on how to close the detention facility at Guantanamo Bay.
GEOFF MORRELL, PENTAGON PRESS SECRETARY: The president-elect has made it perfectly clear, throughout the course of the campaign that he wishes to address this issue early on in -- in his administration.
STARR: Since the 9/11 attacks, the U.S. has sent nearly 800 men and some teenagers to the navy-run prison. Most were captured in Afghanistan, many have been sent back to their home countries. But about 250 detainees are still there. If Guantanamo is closed, alternative sites include Ft. Stewart, Georgia, the navy brig at Charleston, South Carolina, and Fort Leavenworth, Kansas. But like other states, Kansas' congressional members are opposed to the idea.
SEN. SAM BROWNBACK, (R) KANSAS: The problem is this is the terrorist level that we're anticipating. They're going to be people trying to break them out or to make political statements around them, and we are not at all set up for that.
STARR: Closing Guantanamo may be a legal nightmare. If the detainees are sent to U.S. soil, the big question -- would they get the right to a trial in a U.S. court for the first time?
(END OF VIDEOTAPE)
STARR: Now, while the Bush administration has long said that the detainees at Guantanamo Bay are not tortured, the specter of mistreatment continues to hang over that facility. Many in the military now believe shutting it all down is the only way to move ahead. Alina?
CHO: It will be interesting to watch, and I know you'll be watching it all for us. Barbara Starr at the pentagon, Barbara, thank you.
STARR: Thank you.
CHO: We have an update on last month's terror attack in Mumbai, that's the Indian city formerly known as Bombay, a judge there has order the lone surviving suspect to remain in police custody for another two weeks. For the second time, police refused to bring the Pakistani national to court because of security concerns. He's being held on a dozen charges, including murder and waging war against the country. 164 people were killed in the three-day siege that targeted luxury hotels, a restaurant and other sites across Mumbai. India blames a Pakistan based militant group for the killings, while Pakistan says India has not provided any proof of Pakistani involvement.
A Christmas message to the Brits from Mahmoud Ahmadinejad. A British television channel will broadcast a, quote-unquote, spiritual address from the fiery Iranian president on Christmas Day, it's sort of a tradition for the network which has presented an alternative to the queen's Christmas day broadcast fort 15 years. Imagine that. The network says Ahmadinejad is an enormously influential leader in the Middle East.
Imagine this. Your entire life savings, vanished in an instant. You're going to be hearing from a victim of the alleged Madoff fraud scheme next.
(COMMERCIAL BREAK)
CHO: Welcome back on this Christmas Eve. We won't know for sure until later today or possibly tomorrow, but New York police say it looks like a New Rochelle hedge fund adviser whose firm said it lost $1.5 billion with Bernie Madoff has committed suicide. The 65 year old man was found dead yesterday in his Madison Ave. office. Police say the cuts on hi wrist and arm were made with a box cutter. Pills were also present but it's still unclear whether any of them were ingested.
You've heard a lot about the rich and famous losing millions in the Madoff scandal. But how about all of those smaller investors you never heard about? I recently spoke with a 68-year-old grandmother 2ho said she lost her savings in an instant.
(BEGIN VIDEOTAPE)
ALINA CHO: At 68, Norma Hill should be enjoying retirement, but two weeks ago everything in her life unraveled.
NORMA HILLS: I'm calm on the exterior, but I am dying inside. I cry at night. That's not now.
.
CHO: 20 years ago her husband, Jack, invested his life savings with Bernie Madoff. Two weeks later he died of a heart attack, leaving Norma alone to raise five children. She knew nothing about money or investing. So, she went to the man she thought knew everything, Bernie Madoff.
HILLS: He put his arm on my shoulder, and he said, I'll take care of your money.
CHO: Did you believe him?
CHO: That was two weeks after my husband had died, and I didn't know where I was -- you know, which way to turn, and I decided that he was sincere.
CHO: For years, Norma had no reason to be suspicious. These are blue-chip stocks.
HILLS: Yes, Exxon, Intel, JP Morgan.
CHO: And when the markets began to tank, Norma felt safe, because her monthly statements said Madoff invested her money in treasury notes. Then on December 11th, her son called with the news that Madoff had been arrested.
HILLS: I thought it was totally incredulous. Why would a man who was so highly regarded by all the financial wizards in the United States be arrested?
CHO: Her entire nest egg, more than $2 million, gone.
What about the whole notion of not putting your eggs all in one basket?
HILLS: Well, hindsight is 20/20. I have social security, period.
CHO: It's not the first time Norma has been victimized. In 1981, she was taken hostage in the infamous Brinks heist and held at gunpoint. The news was splashed across the headlines, not unlike what is happening now. HILLS: My car was commandeered with my mother in it.
CHO: Do you feel like you've been commandeered in another way?
HILLS: Yes, actually that's a good way of putting it.
CHO: It really is like a house of cards, isn't it?
HILLS: Yes it is. And it finally collapsed.
(END OF VIDEOTAPE)
HILLS: Norma Hills by the way says she only has about two months left in her savings. After that she will likely have to sell her only asset, which is her home.
Coming up, he needed work, he has a family to feed, so this carpenter took matters into his own hands.
(COMMERCIAL BREAK)
CHO: Are you in the Christmas spirit? Well, imagine out of nowhere, your mortgage is suddenly paid. You're never going to believe who is helping some struggling homeowners. It's a Christmas story you don't want to miss. Certainly turns a negative into a positive, and it gives new meaning to the old adage, it's better to give than to receive.
Well, for 60 years, she has lived and worked in one of New York's most famous buildings and she's not about to move out no matter what anyone says. CNN's Richard Roth talks with the duchess of Carnegie Hall.
(BEGIN VIDEOTAPE)
RICHARD ROTH, CNN UN CORRESPONDENT (voice-over): Carnegie Hall in New York has been a stage for classical musicians and other performers for more than a century. But it's not only a concert hall it has been a home to many artists who have rented apartments above it for decades.
UNIDENTIFIED FEMALE: Here I am with (INAUDIBLE), because he had an exhibit over at St. Regis and so we walked out, together. And he came up here.
ROTH: Edita Sherman has lived and worked in the Carnegie Hall Studios as a portrait photographer since 1949. Many celebrities have made their way into her home and in front of her camera.
UNIDENTIFIED FEMALE: Andy Warhol. Yes, take him here, while he was photographing me.
ROTH: But now Edita and six other tenants are in jeopardy of losing their homes. The non-profit corporation that manages the city owned building wants to use the studios for rehearsal space and classrooms. Edita believes they are missing a very important lesson. EDITA SHERMAN, CARNEGIE HALL TENANT: Andrew Carnegie built Carnegie Hall for the artists to live and work, in which Carnegie Hall now just forgets about that. They don't know about it.
ROTH: Earlier this year a group of tenant artists rallied at New York's City Hall asking for the mayor to intervene.
JOHN TURTURRO, ACTOR & ACTIVIST: It's really a treasure and the people who are in them are a treasure. You know, I'm a person who went to Yale drama school, I went to Suny (INAUDIBLE), but the best teaching I had was in that place. And even going to class it was an intimidating and inspiring atmosphere to work in and to learn in.
ROTH: About 40 tenants lost their battle to stay this past year. The building management says it will help Edita and the remaining tenants find other rentals and pay the difference. Edita, who pays $650 a month for her rent-controlled apartment is not giving up without a fight.
SHERMAN: I'm not moving out. Unless they want to pull me by the hair and pull me out. I'll have to be here until I die. And since I'm 96, I'll be 100 in 3 years. Maybe they can have it after I'm gone. You know what I mean?
ROTH: Until then, Edita says she'll stay right where she is, behind her camera, snapping photographs. Richard Roth, CNN, New York.
(END OF VIDEOTAPE)
CHO: What a beautiful apartment and what a pistol. Boy.
A daring water rescue after a massive water main break in Maryland. You watched it unfold right here on CNN yesterday at this time. Just listen to the terror-stricken 911 calls from one of the victims as the gushing water threatened to sweep her away.
(BEGIN AUDIO CLIP)
UNIDENTIFIED FEMALE: I can't stand it! I need help!
UNIDENTIFIED FEMALE: Ma'am, we're on our way. We will be there very shortly. I have units responding to you now.
UNIDENTIFIED FEMALE: I can't see anything, please!
(END OF AUDIO CLIP)
CHO: Oh, my goodness. Gives you chills. The ruptured water main sent a wall of water cascading down a suburban street, transforming the road into a raging river, as you just saw there. Nine motorists were trapped and needed to be rescued. Emergency workers pulled out all the stops using helicopters, boats and divers to rescue those victims. In all five people were hurt, but thankfully none of those injuries were life threatening.
Moving on to the weather now, Bonnie Schneider in the weather center watching it all for us. A lot of people flying today, so what can we expect Bonnie?
SCHNEIDER: Lots of delays Alina and they're already happening right now. In Chicago the delays are almost two hours long. We're also looking at lengthy delays in Newark, New Jersey, they're now up to an hour, maybe a couple of minutes more. In San Francisco, due to low clouds, we had some delays an hour and 20 minutes. It's still pretty early in the morning to have delays there. We're anticipating even more than that as we go through the day. Delays in all the New York City metropolitan areas. Possibly up towards Boston, Philadelphia to the south. And then in the Midwest also into Cincinnati, St. Louis and the Pacific Northwest, an area where we've seen some heavy snows recently, it's snowing right now in Seattle. We're going to see more of that as we go through the afternoon hours. It's going to make for some tough travel across this Christmas Eve.
One place we've been seeing some ice and some rain is in northern New Jersey. And in Chicago and up towards Wisconsin and further off to the south, we're seeing a changeover which makes it very dangerous when you're driving because you're not really quite sure what sort of weather you're going to get. You will be seeing rain changing over to snow in the Midwest because the cold air is coming. Alina, it's going to be one cold Christmas Eve tonight. I'll talk more about that coming up.
CHO: Oh boy, get out your coats. Bonnie, thanks.
He has the skills and the time. All he needs is a little bit of work. CNN's John Zarrella tells us how one man turned his luck around helping others along the way.
(BEGIN VIDEOTAPE)
JOHN ZARRELLA, CNN CORRESPONDENT: This is literally a sign of the times. Joe Cappelluzo, a carpenter, was out of work but not ideas. So he came here to interstate 95 with this sign. And it turned out the idea wasn't bad at all.
(BEGIN VIDEOCLIP)
ZARRELLA: Even before the economy went belly up, Joseph Cappelluzo stretched every dollar he made working as a carpenter.
UNIDENTIFIED MALE: Lettuce, carrots, parsnips, in the back is 12 tomato plants.
ZARRELLA: His backyard is a vegetable garden. It saves money on groceries. His wife Judith hangs their laundry to dry. Less electricity used and the clothes last longer. The Cappelluzos share their two-bedroom, one-bath house with five kids who they home school. At mealtime, everyone helps out. But as resourceful as Joseph is, there was no getting around it when his carpentry work dried up.
JOSEPH CAPPELLUZO, CARPENTER: I was fearful. I mean, I would wake up in the middle of the night with pains in my stomach. Like, am I going to have work today? ZARRELLA: So on his 46th birthday, Cappelluzo did the unimaginable. He took his family down to this highway on-ramp and held up a sign. Joseph said he wasn't looking for a handout.
CAPPELLUZO: Every time somebody offered me money, I was like, no. If you have a need for a carpenter, here's my information. Please consider me.
ZARRELLA: The Miami Herald did a story. Work poured in from readers. So did offers for Thanksgiving dinners and Christmas presents for his kids. Some jobs Joseph wasn't able to do or in places where he isn't licensed to work. He found carpenters like him hurting for work. Danny Walsh was one.
DANNY WALSH: We got some leads from Joseph Cappelluzo.
ZARRELLA: Every little bit helps.
WALSH: If we dig down and help each other through this, we'll all make it. That's really been the American way.
ZARRELLA: Joseph has more work now, enough to keep him going for a while. But he said it's never been just about him.
CAPPELLUZO: You have your neighbors, on both sides of you and across the street. If they're not doing good, then you're not doing good, even if you were loaded. That's just the way I feel.
ZARRELLA: Cappelluzo is far from loaded, but he's hammering out a better life a day at a time.
(On camera): Cappelluzo says business isn't what it once was in South Florida, but he is booked up now until the end of February. And that means his family is going to have a much better holiday than they ever thought they would. John Zarrella, CNN, Hollywood, Florida.
(END OF VIDEOTAPE)
CHO: Tis the season of giving. And a state park makes sure one little girl gets her wish this Christmas. It could be her last.
(COMMERCIAL BREAK)
CHO: Something we see every year. They are arriving by the thousands in Bethlehem, believed to be the birthplace of Jesus. At midnight, as they do every Christmas, Christians gather for midnight mass at the church of the nativity right there in manger square.
All she wants for Christmas is snow and if she lived in any northern state, no problem at this time of year. But Sophie (INAUDIBLE) lives in the sunny south and this may be her last Christmas. Brooke Baldwin has her story.
(BEGIN VIDEOTAPE)
Oh! BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): A snowy surprise for Sophia.
UNIDENTIFIED FEMALE: Get daddy. Tell daddy. Get daddy.
UNIDENTIFIED MALE: Oh.
BALDWIN: A 4-year-old who dreamt of a white Christmas. It's a welcome gift she definitely deserves. Just before her third birthday, doctors discovered a cancerous tumor on her brain.
WAYNE LANGFORD, SOPHIA'S FATHER: My stomach started hurting and I still have the same ache in my gut today, a year and a half later. Yeah, your life changes forever. It just changes utterly.
BALDWIN: Sophia has endured months of chemotherapy and radiation. She's also lost some of her sight and most of her hearing.
SHIRLEY LANGFORD, SOPHIA'S MOTHER: She asked me to sing lullaby after she lost her hearing -- I had already started to sing it. She said, mommy sing me a lullaby. I had to stop and put my lips against her ears so she could feel the vibrations.
BALDWIN: Four brain surgeries later, these parents realized this is a battle their daughter will likely lose. In October, doctors gave Sophia anywhere from two weeks to two months to live.
S. LANGFORD: Here we go.
BALDWIN: That is why this snow is so special.
S. LANGFORD: When she threw the snowball at you will stay with us forever. Each laugh is just that important to us.
BALDWIN (on camera): Seeing snow in the holiday season may not seem like a miracle to most. But we're in Georgia where this stuff is hard to come by unless you make it yourself.
(Voice-over): That's one of the things these employees from a Georgia state park do during the winter. They caught wind of Sophia's story and wanted to help.
UNIDENTIFIED MALE: I'd definitely come out, no matter what the temperature is, and be a part of that.
BALDWIN: One snow machine, 30 tons of snow, and four dump trucks later, Sophia got her winter wonderland.
UNIDENTIFIED FEMALE: Knowing that we were able to be a part of her wish and her family's wish and make a little girl's dream come true is exciting and very fulfilling.
BALDWIN: Sophia's parents find fulfillment in providing their little girl with joy and laughter for the rest of her days.
W. LANGFORD: It's cliche but every day is Christmas. BALDWIN: As long as they're filled with smiles and perhaps a sudden Georgia snowball. Brooke Baldwin, CNN, Atlanta.
(END OF VIDEOTAPE)
CHO: The sputtering economy, new numbers, new milestones and new reasons to worry. Over the river, through the woods and out of luck. Miserable weather snarled holiday travel from coast to coast.
Tapping into his Christmas bag just a few hours early. Santa Claus in the house at CNN.
