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After-Christmas Shopping; First Family Spends Christmas at Camp David; California Woman Gives Birth After Flat Lining; Renting Homes to Hollywood
Aired December 26, 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: Evil Santa. A costume wearing killer launches a vicious spree at a Christmas party. And the crime wave continued even after he died.
Dire times, desperate measures. Retailers hope to salvage a dismal shopping season by slashing prices. But will it be enough?
And hunkering down in the heartland. Winter storms march across the west. What does it mean for holiday travelers on this day after Christmas?
Good morning, everybody. Heidi Collins is off today. I'm Alina Cho. Today is Friday, December 26th. You are in the CNN NEWSROOM.
Enough with the snow. Washington State is setting records. More than 46 inches in Spokane just this month. In Olympia, so much snow has fallen the roof of a high school collapsed. And no word when capital high will reopen after the holidays.
Winter storm warnings are out again for much of northern Arizona. Expect another 4 to 13 inches depending on where you live. And in New Hampshire, utility crews played Santa, getting the power back on after fierce winds there left more than 100 communities in the dark.
What's in store for today? Reynolds Wolf watching it all for us in the storm center, weather center, whatever you want to call it.
REYNOLDS WOLF, CNN METEOROLOGIST: Yes.
CHO: I mean lots of storms all across the country today, including the Great Lakes.
WOLF: Absolutely. Great Lakes, where we're going to be seeing there mainly some weather glaze in places like Chicago. We actually have a live image out of Chicago at this time. Let's show you what we have.
And with that live picture, I can tell you that around parts of Chicago, one thing they're dealing with this morning, icing on the roadways. It's going to be a big issue for you at both the major airports. I would certainly anticipate some delays there.
(WEATHER REPORT)
CHO: Reynolds, it's going to be very busy today. WOLF: Absolutely.
CHO: Reynolds, thank you very much. We'll check back with you later.
Murder, arson and suicide. Police in Covina, California say a man dressed as Santa went on a deadly Christmas Eve shooting spree. The target, his ex-wife, and when the rampage ended, at least eight people were dead, a house in ashes.
CNN's Chris Lawrence is up early this morning in Covina for us.
So, Chris, the death toll rose dramatically overnight. What is the latest from there?
CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Alina, the latest is that the developments didn't even end with the attack here with the home.
Just last night, at another home in another suburb, the home where the suspect allegedly killed himself, police, a bomb squad was trying to diffuse what looked to be a suspicious device inside the rental car that the suspect had. As they were trying to diffuse that device, it exploded inside the car.
Meantime, back here at the house, there is still a ninth person who is considered missing and the search team is going to be going back in when the light comes up to try to account for that person.
(BEGIN VIDEOTAPE)
LAWRENCE (voice over): Just minutes before midnight on Christmas Eve, a visitor came to this home intending to burn it down.
CHIEF KIM RANEY, COVINA, CALIFORNIA POLICE: There was a knock at the front door and a gentleman dressed as Santa Claus was at the door carrying a large, wrapped package.
LAWRENCE: He carried no gifts. Just two guns and a homemade flame thrower.
RANEY: An 8-year-old girl at the party ran to the door, opened the door.
LAWRENCE: And he immediately shot her in the face.
Police say the fake Santa stepped inside and shot anyone he saw. The family ran screaming from anywhere they could.
LT. PAT BUCHANAN, COVINA, CALIFORNIA POLICE: Through windows, through doors, through windows upstairs, off the roof. We have talked to almost everyone and any place that they could escape from, they were throwing furniture out the windows, we understand.
LAWRENCE: Police say this man set the house on fire, changed out of his Santa suit then drove to his brother's house and killed himself.
ROSA ORDAZ, FAMILY FRIEND: It was almost like he planned it, you know, for him to come and do this on such a special night.
LAWRENCE: Investigators say he did. They think Bruce Pardo was upset about his recent divorce. This home was owned by his ex-wife's parents and friends say it was well known the family would be having their traditional Christmas party that night.
(END VIDEOTAPE)
LAWRENCE: And it was tradition that may have made that little girl open the door in the first place. You see, every year, for this party, a neighbor would dress up as Santa Claus and come over to help get the kids in the holiday spirit.
That little 8-year-old girl suffered some horrible injuries to her face, but she did survive. Alina?
CHO: Chris Lawrence live for us in Covina, California. Chris, thank you.
And Long Island, the Hanukkah party went from festive to chaotic. Police say an elderly driver lost control of his car yesterday. He plowed through the plate glass window of a building, 14 people were hurt, six of them children. About 150 people were inside at the time. No charges have been filed against the 78-year-old driver.
Well, it's the day after Christmas and retailers are hoping for a big rebound from a dismal shopping season. But with so many bargains so early on this year, how low can retailers go on this day after Christmas and will it be enough to get the shoppers in the stores?
CNN's senior correspondent Allan Chernoff is at Roosevelt Field Mall on Long Island.
Allan, a mall I haven't been into. How about that? So two for one, that's what I -- two for the price of one, that's one of the bargains that you're going to see there, right?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Two for one. That's true. Let me find -- I can find a two for one right now for you, over here, let me find one. Buy one, get one free, there you go.
Alina, I know that this, for you, must be just awful, being stuck in the studio on a day like today because, Alina, everyone at Santa knows you are one of America's great shoppers...
CHO: You know what?
CHERNOFF: And look what you're missing.
CHO: Listen, I ask you do...
CHERNOFF: 60 percent off here.
CHO: I asked you to do a live shot and you just totally dog me.
(LAUGHTER)
CHO: OK, carry on.
CHERNOFF: Alina, 60 percent off here, 50 percent off here. Have a look at this. Black tie affair bath collection, I'm sure you could use this at only half price.
And let's see what's some shoppers have been doing. First of all, Melissa has been here for well over an hour.
Melissa, now I see you don't have anything you've purchased just yet, but you are returning?
UNIDENTIFIED FEMALE: I was returning first, now I'm ready to buy.
CHERNOFF: OK. So now we get down to business, huh? The strategy is first unload and now...
UNIDENTIFIED FEMALE: Absolutely.
CHERNOFF: Now load up?
UNIDENTIFIED FEMALE: My hands are free and now I'm ready to shop.
CHERNOFF: It looks like you're ready for serious shopping.
UNIDENTIFIED FEMALE: I am. I came by myself, my daughter is home and I'm ready to shop.
CHERNOFF: OK.
UNIDENTIFIED FEMALE: (INAUDIBLE), outside Nordstrom, I'm ready.
CHERNOFF: And Caitlin over here has been shopping for several hours. First, Alina, I have to show you Caitlin's nail polish. Check this out. Is that, is that a holiday polish or what? I mean that's gorgeous.
CHO: Wow.
CHERNOFF: Caitlin, you've got some bargains, too?
UNIDENTIFIED FEMALE: Yes, I have. I have been shopping since 7:00 a.m. And I'm ready to keep going.
CHO: Hey, Allan...
UNIDENTIFIED FEMALE: JCPenny, H&M, great sale today.
CHO: Allan, I have to ask you, though.
CHERNOFF: Everybody's got great deals here. CHO: Yes.
CHERNOFF: Alina?
CHO: Well, I just wanted to ask you, though, because I saw your live shots a bit earlier, it looked a little bit busier, frankly, around 7:00 a.m. It's pretty empty, isn't it?
CHERNOFF: It is not packed. I mean, it is -- you know, a modest crowd.
CHO: OK.
CHERNOFF: 7:00 a.m., we had, we had a fair number of people. But the -- the fact is that people who are here are getting great bargains, but the truth is, yes, certainly not a packed mall. Nothing at all like black Friday.
CHO: All right.
CHERNOFF: Alina?
CHO: Well, it is early. It is early yet. 9:00 a.m. on the East Coast. So we'll wait to see how it plays out.
Allan Chernoff, thank you. I think.
(LAUGHTER)
CHO: We'll talk to you later.
At the bottom of the hour, Wall Street rings in a full day of business after a half day on Christmas Eve.
And will this light week of trading end on a positive note?
CNN's Alison Kosik live in New York with a preview for us.
So Alison, we ended up -- there was a bit of a Santa Claus rally on Christmas Eve. What's it looking like today?
ALISON KOSIK, CNN CORRESPONDENT: Alina, good morning.
Stock market futures are indicating we could -- we could start the market today in the green. We can only hope. It's likely, though, to be another day of very light trading. People are still taking the day off because of the Christmas holidays.
Today, though, retail stocks are in focus. And here's why. The first post-Christmas report on holiday sales is out and it shows, now surprisingly, it was a rough season for retailers.
According to figures from Shopper Track, sales in November and December fell by 5.5 to 8 percent compared to a year ago. And part of that was due to lower gas prices. But any way you look at it, this really was a dismal season for most retailers. Luxury goods like shoes, handbags and high end clothing which are usually considered safe in an economic downturn are taking the hardest hit, down 21 percent. And when you throw in jewelry with all the other luxury goods, it's even worse, down 34 percent.
And this is really worrisome, not only for retailers, but for the economy as a whole because consumer spending accounts for more than 2/3 of the economic activity in the U.S. and getting consumers to spend is really essential to getting the economy back on track.
But Wall Street is nervous that consumers will continue holding tight to their cash into 2009. But, you know, I want to give you a bit of bright spot. Amazon.com said the holiday season was its best ever on its peak day, in fact, December 15, the company sold over 6 million items.
Amazon also says it shipped more than 99 percent of its orders in time to meet holiday deadlines. Amazon shares right now in premarket trading are up 5 percent, by the way.
Oil prices have rebounded slightly. Prices are hovering close to $37 a barrel. Up more than a dollar. Part of the reason key OPEC measures are going along with the proposed output cuts so they're squeezing the supply.
However, think of it this way, the price of oil is still $110 below the July highs. Remember that when oil was $147 a barrel?
And gas prices continue to drop, another bright spot. The nationwide average price for a gallon of regular is at $1.64 and we haven't seen gas prices this low in more than 4 1/2 years.
Shares of General Motors are reporting higher ahead of the opening bell today. That's after the Federal Reserve late Wednesday approved GMAC, the former financial arm of GM, to become a bank holding company. That allows the lenders to qualify for part of the $700 billion rescue fund.
It also means GMAC owners, GM and Cerberus Capital Management, will both have to give up some control. They'll have less of a stake on GMAC and what this essentially will do is buy GMAC some time to turn itself around. It should also make it easier for potential GM customers to get loans.
You know, without the help, there's been much speculation, Alina, that GMAC would have had to file for bankruptcy protection or shut down.
So the New Year, you know, just a few days away, but we'll see if investors can come out and buy a few stocks today, Alina.
CHO: Yes, I know, we could use it, right?
KOSIK: Yes.
CHO: Alison Kosik live for us at the NYSE. Alison, thank you. KOSIK: Sure.
CHO: The New Year just days away, so have you made your financial resolutions for 2009? For many of us, "ISSUE #1" may be paring down our debt after spending so much around the holidays.
CNN personal finance editor, and my friend, Gerry Willis joining us now.
So, Gerri, it happens very year. People overspend around the holidays, they buy a lot of gifts, so how do we get out of debt?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Alina, good to see you, first of all. You know this is a big issue for Americans, right, getting this debt under control. I have been blogging all week on "AMERICAN MORNING" and folks are on fire about this topic.
The first thing to consider is do I have too much? You know one signal that you have too much debt is you borrow from one credit card to pay off another. You make only minimum payments on your credit card.
Now, I know that sounds strange but believe me, if you're making only minimum payments on a card with a lot of debt, you're in trouble. Maybe you don't even know how much debt you have. You really have -- to start thinking about paying it down and making that a priority.
Look, tough love here, Alina, if you have special channels beyond basic cable, you've got to think about narrowing that down. Maybe the gym membership has to go. A lot of people out there are spending extra though, they don't even realized that you've really got to look at your spending. Alina?
CHO: Well, Gerri, so what do you do if you're hemorrhaging money then?
WILLIS: That's the big thing. People hemorrhage money they don't even know that they're spending. And it has a lot to do with fees. Out-of-network ATM fees now approaching $3 and more for some banks.
You know, move to a bank with a lot of ATMs if you're the kind of person who never goes inside a bank branch. And also think about courtesy overdraft fees if you bounce a check. There are big fees for that. Link your savings account to that checking account so you can avoid it.
The big thing here is not to pay those fees that you typically can get around, actually. And look at these trends here, Alina, these are big numbers and kind of frightening, really. One in three purchases are made with plastic in this country.
CHO: Wow.
WILLIS: You got to move to the debit card. You've got to start paying cash if you really want to get that debt under control. One in six families pays the minimum monthly payments on their credit card. So you want to make sure not to do that.
Another thing to think about here is handling debt collectors the right way. A lot of people this holiday season are having to deal with these debt collectors and they can jut be own onerous, calling you early in the morning, late at night, understand your rights here.
The Federal Trade Commission regulates debt collectors and there are very serious and strict rules about what they can and cannot do. Go to their Web site, FTC.gov to find out what the rules actually are.
And remember, if you have a debt that is seven to 10 years old, it may be so old that they can't collect anymore. There is a statute of limitations on debt.
CHO: Wow.
WILLIS: To find out what that is in your state, go to your state attorney general's Web site.
Remember, if you pay even a little bit on a debt that's old like that, all of it becomes due and owing, so it's your responsibility to figure out what you really have to pay and what you don't. Alina?
CHO: I did not know that. As always, great tips, Gerri.
WILLIS: My pleasure.
CHO: Merry Christmas one day late.
WILLIS: Happy Holidays.
CHO: Good to see you, Gerri Willis.
Pakistani troops on alert. Military sources tell CNN the Pakistani military has called back troops on leave and placed all personnel on active duty.
Pakistan's armed forces have been on high alert around anticipating a possible conflict with India following those terrorist attacks in Mumbai last month. India blames the deadly assault on militants from Pakistan.
A senior Pakistani official tells CNN troops have been moved to the Indian border in anticipation of an Indian ground incursion, something we're watching very closely.
A new strategy in Afghanistan, the U.S. military plans to help arm the locals so they can fight militants and it's raising some eyebrows.
(COMMERCIAL BREAK)
CHO: No peace in the war zone this holiday season. The U.S. military says its forces killed 11 Taliban militants on Christmas day. It happened in the southern city of Kandahar. The military says the raid targeted militants suspected in bomb attacks that killed NATO soldiers.
And in a separate incident, two civilian contractors were wounded when a suicide car bomber targeted their convoy in western Afghanistan.
A new strategy in Afghanistan, the U.S. military plans to arm locals to help battle the resurgent Taliban. But will it work?
CNN's Pentagon correspondent, Barbara Starr reports.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice over): It works in Iraq, arming and paying tens of thousands of former Sunni insurgents to fight al Qaeda. The tactic was a major reason for the drop in violence.
But will the same idea work in Afghanistan?
The U.S. military now plans to help the Afghan government arm local Afghans to fight the resurgent Taliban. U.S. military officials say it will begin early next year in Wardak province, an area in central Afghanistan where insurgents have found a safe haven.
It's all part of a new U.S. counterinsurgency strategy commanders are to the incoming Obama team. It's an open admission even the plan to potentially double the U.S. force with up to 30,000 additional troops won't be enough.
MAJ. GEN. MICHAEL TUCKER, DEP. CMDR. FOR U.S. OPS., AFGHANISTAN: There is a big push for us to reach down in cooperation with the Afghan government to touch people in their villages. As you well know, the center -- the center of gravity in a counter insurgency fight is the population. And so we need more forces.
STARR: But there are worries. Putting more weapons in the hands of local communities could lead to tribes fighting each other instead of the Taliban. U.S. troops could get caught in the middle. And President Hamid Karzai's break government in Kabul would bear the major responsibility for ensuring this new local security force remains loyal.
(END VIDEOTAPE)
STARR: Now U.S. commanders warn if you thought Iraq was tough, Afghanistan is getting tougher. Iraq has two major groups, the Sunni and the Shia. Afghanistan, the U.S. calculates, has hundreds of separate tribes that could be part of this new fighting force -- Alina.
CHO: Two fronts on the war on terror. Barbara Starr at the Pentagon.
Barbara, thank you.
When the spirit is willing but the clock is ticking. Religious downloads straight to your iPhone. That's next.
(COMMERCIAL BREAK)
CHO: Self proclaimed sex kitten Eartha Kitt has died. The singer, dancer and actress became an international symbol of sensuality, famous for her cat like purr, and of course that song you've been hearing for weeks, "Santa Baby."
Kitt died after a long battle with colon cancer. Eartha Kitt was 81 years old.
Kwanzaa begins today. It's an African-American holiday which started back in 1966. It celebrates family, community and culture. Kwanzaa it encourages people to focus on seven principles -- unity, self-determination, collective work and responsibility, cooperate economics, purpose, creativity and faith. Each night a candle is lit to mark the principle for that day.
Kwanzaa, by the way, runs from December 26 to January 1st.
Well, consider it faith through your iPhone. A Catholic priest in Rome has developed that will deliver prayers and scriptures directly to your handheld device.
CNN's Alessio Vinci takes a look.
(BEGIN VIDEOTAPE)
ALESSIO VINCI, CNN ROME BUREAU CHIEF (voice over): 2008 has been the year of the app, mobile phone application, whether it's rolling dice, tinkling the virtual ivories, or keeping up with comics. And now you can even address the Almighty.
"Yes," the Italian priest, Father Paulo Padrini has a knack for the faithful on a schedule. "You can use your iPhone to pray," he says.
Concerned that in today's fast-paced world, good Catholics can't find the time to step inside the church, Father Paulo, a self- described Mac fan, described i-Breviary, the application for devotees who need to commune with the Lord while on the go.
It contains a collection of the most important prayers and readings of the Catholic Church known among the clergy as the Breviary. It's one of thousands of applications available on iTunes at the same price as the latest from Britney and Beyonce.
"The new media are not all evil or all angels," he said. It is good that on a Web site like this one, visited by both believers and those who don't believe, you can find rock stars and prayers together.
(on camera): Do you expect that people will one day go to church instead of using (INAUDIBLE), using an iPhone?
REV. DON PAOLO PADRINI, WEB PRAYER DESIGNER: No.
(LAUGHTER)
VINCI: "No, I don't think so," he laughs. "It is not meant to replace the prayer in church. It is just a tool, a convenient way to help you pray anywhere, whether on a train, in a car or on a bus.
The application is available in many languages, including Latin, English and Spanish. And Vatican officials say the modern missionary needs to conquer the digital world.
MONSIGNOR PAUL TIGHE, COUNCIL FOR SOCIAL COMMUNICATION: Traditionally, people talk about the continents, the fact to be evangelized. There's no doubt that the digital world is a new continent that is in need of evangelization.
VINCI: It is also a world often criticized by Pope Benedict for leading the young down the dead end street of consumerism. And to be sure, there are plenty of consumer goodies passing through ever smaller, ever smarter, ever faster handheld. But if you pray, Father Paulo says, the Lord can always forgive.
Alessio Vinci, CNN, Rome.
(END VIDEOTAPE)
CHO: Something else.
Worries on Wall Street. There was no Santa Claus rally this week, so will we see some post holiday cheer when the opening bell rings? That's just minutes away.
(COMMERCIAL BREAK)
CHO: Bottom of the hour now. It's official, a really lousy holiday season for retailers. But that was expected. How will stocks react?
Alison Kosik at the New York Stock Exchange with details on that. Opening bell just a minute away.
Alison, what can we expect today?
KOSIK: Well, Wednesday's half day of trading wound up breaking a five-session losing streak for the Dow. We'll see if that continues today.
There was very light trading on Wednesday and trading is expected to be light again today with many still celebrating with families. We will, however, have a full session of trading today.
Retail stocks are expected to be in focus. One before on holiday shopping as now it shows across-the-board weakness, was scaled down as much as 8 percent. It was even worse for expensive goods. Shoppers were very cautious this year. SpendingPulse says luxury sales were particularly hard hit, down 21 percent excluding jewelry. And when you put jewelry in the mix, it was a 34 percent tumble for those high- priced items. Electronics taking a big tumble as well. Expending calls shows that shoppers were very reluctant to purchase an item that cost more than $1,000. But there is a bright spot to tell you about. Amazon.com said the holiday season was its best ever. On its peak day, in fact, December 15th, the company sold over 6 million items.
Amazon also said it shipped more than 90 percent of its orders in time to meet holiday deadlines. Amazon's results, however, were not enough to let the overall sector. Overall e-commerce sales were down more than two percent from last year. None of this, though, much of a surprise for Wall Street. Those dire predictions have been out there for some time.
Well, in the very early minutes of trading, let's check the numbers right now. The Dow Industrials right now are higher 40, and the Nasdaq up 5, the S&P 500 also higher as well. Oil prices have also rebounded. Prices are hovering close to $37 a barrel. That's up more than a dollar.
Meantime, gas prices, they continue to drop. The nationwide average price for a gallon of regular is at $1.64. And we haven't seen gas prices this low in more than 4-1/2 years. Alina, maybe give some incentive to people to get in their cars and go shopping on this somewhat Black Friday with those deep discounts, right?
CHO: That's right.
And you mentioned amazon.com, Alison. You know what's number two on amazon.com right now?
KOSIK: What is?
CHO: The 2009 Sarah Palin calendar.
KOSIK: Go figure.
CHO: Go figure. Good to see you.
KOSIK: Good to see you.
CHO: Well, the shoppers hit the stores early this morning hoping to take advantage of deep discounts and after Christmas sales that Alison just mention. So far, it's been a less than cheery Christmas for retailers. And as Alison also mentioned, initial reports showed that sales are down as much as eight percent compared to last year. So how will the post holiday sales turn things around? Or will they be enough to turn things around?
Marshal Cohen is a retail analyst. He joins us live from New York City this morning, my home.
Good morning, Marshal. Thanks so much for joining us.
You know, more and more we're hearing people say, listen, we can celebrate Christmas on Christmas Day, but how about we exchange gifts on the 26th or sometime thereafter so that we can take advantage of the sales. Are we going to see people out today?
MARSHAL COHEN, CHIEF RETAIL INDUSTRY ANALYST FOR THE NDP GROUP: You know the interesting thing is we're really seeing a change in consumer spending. Consumers traditionally didn't see discounts before Christmas. And now, you know, we're seeing the discounts happen even before Thanksgiving.
So a lot of the early shopping was what the retailers wanted. They got their wish, but now, guess what, the consumer is kind of tapped out. So a lot of what's going on is there's going to be a post-Christmas spending power. A lot of people -- it's what I call postpone purchasing. They waited to spend. They're not buying for themselves the way they have in the past. 26 percent of consumers would be shopping for themselves even while shopping for others. And this year that just didn't happen.
CHO: Yes, I have to say -- I mean, this is the first time I have ever seen 75 percent off well before Thanksgiving. I like to call it retail fatigue. By now, you know, a lot of people have seen these sales so they're not really surprised by them or moved by them. Now having said that, a power retailers then going to come back, what do they have to do?
COHEN: You know the key really is to watch the retails and see what they do. They really right now recognizing -- the holiday season for most of the retails was over back in September and they knew that. They could adjust certain things like inventory coming in and certainly the staff in the store. But they still had to move this merchandise out. So now what it's all about is inventory management.
They're going to really offer you the best possible deals like buy one, get one free. Buy one, get two free. They're going to be bundling. If you don't need two refrigerators, they'll say buy a refrigerator and we'll give you dinnerware as a gift. So what really is happening is they're finding ways to move as much inventory out the store as possible. They're going to continue to use the discount as the lure, but they can't really discount much more. Anymore, and they're going to be paying you to come into the store and take it out.
CHO: Yes. At some point it's going to be free as I like to say. You know, my dad is looking for a flat screen TV. I'm just wondering what are the deals out there, right now? Not necessarily electronics, right? You say clothes?
COHEN: Apparel is by far the most discounted item. You know, we're seeing 75 percent off plus an additional 25 percent, 30 percent off on top of that. So apparel is the hardest hit when it comes to -- traditionally, it's the most often gift giving item. This year it will be lucky to make it into the top three.
But electronics, really, we are seeing a lot of extra deals out there because it's so competitive across a wide sector of retailers. You can buy a big name brand big screen TV from a Wal-Mart to a Best Buy to an electronics boutique. The same brand. Maybe a different model, maybe different prices, but guess what, you're going to be able to get really good deals. And don't be afraid to tell the retailer the other deal that you found somewhere else because they're willing to bargain.
CHO: Right. That's right. You know, a lot of people are afraid to do that. But don't be shy. You're going to get a better price. Now I want to ask you about this because I find this really interesting. The country's largest retail trade group is asking President-elect Obama to actually add sales tax exempt shopping days to the economic stimulus package. We're looking at three periods in 2009. Is that going to help?
COHEN: You know, we've actually seen the states actually offer up the incentive days, the tax free days. And we have seen a lift when those days do get offered. But, you know, with the discounts that we're seeing right now, those eight percent off or six percent off days are going to look pretty small in comparison. But every little bit helps.
CHO: I was just going to say, yes.
COHEN: You know, a lot of talk was about the stimulus check that came from earlier on. And what we're seeing is, you know, it did provide a little bit of a lift. So every little bit does help. Particularly, when the sale period isn't in full force.
CHO: Well, and especially now when everyone is pinching pennies. Marshall Cohen, retail analyst, joining us from New York. Marshall, thank you.
COHEN: My pleasure.
CHO: Washington State has seen more than it's fair share of snow this season, and things could go from bad to worse. Once people finish digging out, the weather is expected to warm up, then they'll have flooding to worry about. Reporter David Quinlan joins us from Seattle affiliate KIRO with the very latest on that.
Hey, there. I used to live in that area. I was born and raised just outside of Portland, Oregon. I never saw anything like this. This is crazy.
DAVID QUINLAN, KIRO CORRESPONDENT: I know, Alina. You know, last few days we've been talking about the snow and ice, and how treacherous it was on the roadways. Well, now that snow, well, it's actually melting so we're actually having this concern and this new danger of rapid snow melt, and of course urban flooding.
The side streets this morning, Alina, still a mess. This is Jefferson and Martin Luther King Jr. way here in Seattle. We're just east of downtown Seattle, as you can see. I mean, it's just a mess. In fact, we had to help one driver get out of his parking spot this morning. So this is what commuters were having to deal with today on one of the busiest shopping days of the year.
But the National Weather Service now sending out a flash flood alert for ten counties here in western Washington. And all this -- you know, moisture and all this snow is actually concerning a lot of folks with the storm drains, because once those storm drains start filling up, those low land areas, that's the concern that they're going to have major flooding over the next few days. So, the plows are still out. They're still trying to clear the roadway. But the flooding over the next few days, that could be a real problem.
COHEN: David Quinlan, live for us from Seattle. David, thank you.
A real downer of a deja vu in New Hampshire. Thousands of people who spent days without power from an ice storm two weeks ago got their power knocked out again, and on Christmas Day, no less. This time wind gusts exceeding 30 miles per hour were to blame.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Your heart stopped because we went through seven days of no power in the store, which meant a loss for our dairy and ice cream, and all that was gone.
(END VIDEO CLIP)
CHO: Emergency crews were tirelessly to restore power throughout Christmas Day. Talk about a Christmas present you could use. More storms on the horizon. Let's get back to Reynolds Wolf in the CNN weather center.
Hey, Reynolds.
(WEATHER REPORT)
CHO: Reynolds, thank you.
We have this just in to CNN. President Bush is heading to his ranch in Crawford, Texas for the New Years holiday. There you see him, getting on to Air Force One at Andrews Air Force Space. By the way, this will be his last Christmas as president of the United States. He has spent 12 Christmases at Camp David if you can believe it. Eight as president. Four during his father's tenure as president. He will be at Crawford through the New Year. And then when he gets back to the White House, just three weeks left until the Obama's move in. By the way, no public event scheduled for today.
A big Christmas reunion for the First Family. Here's a photo of President Bush and his wife, Laura, spending the holiday with extended family at Camp David. Take a look at that. Almost everybody was there. Joining the president at the Maryland Retreat, by the way, his parents, of course. His mother is recovering, siblings and their families, daughters Barbara and Jenna, and Jenna's new husband Henry Hager. They Bushes feasted on a traditional Christmas dinner of turkey, sweet potatoes and pumpkin pie. There was pecan pie, too.
President-elect Barack Obama took some time out for the troops during his holiday vacation. He paid a visit to the Marine Corp base in Hawaii yesterday. And he spent about an hour visiting table to table with marines, sailors and their families.
Stick around. Going Hollywood? Guess who's renting out their homes to the big studios. That's next.
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CHO: This just in to CNN. There you see it. Air Force One departing from Andrews Air Force Base after President Bush spent his last Christmas at Camp David as president. He spent 12 Christmases at the Maryland Retreat -- eight as president, four during his father's tenure as president.
Many members of the extended Bush family were at Camp David, including his parents, his daughters Jenna and Barbara, his new son- in-law Henry Hager, by the way. The Bushes, we should mention because everybody wants to know this, feasted on roast turkey with corn bread dressing, green beans, sweet potatoes, mashed potatoes, gravy, spinach salad, cranberry sauce rolls, and for dessert, pumpkin and pecan pie.
He is headed to Crawford, Texas, by the way where he will ring in the New Year with his immediate family. And then, once he returns to the White House, just three weeks before President-elect Obama and his family take over and move in there.
Again, you are looking at pictures of Air Force One, Andrews Air Force Base, President Bush departing right now with his family for Crawford, Texas after spending Christmas at Camp David, the Maryland Retreat, where presidents past have spent their holidays and many long weekends.
The president, again, spent 12 Christmases, I was surprised to learn, at the Maryland retreat. Many of them with his family, of course. Eight as president during his two terms, four when his father was president. He was there with many, many members of his extended family. His mother, who is recovering from surgery. That provided a scare just a couple of weeks ago. And also his daughters, Barbara and Jenna, new son-in-law and brothers and their families as well. Again, Andrews Air Force Base, President Bush departing for Crawford, Texas.
Jailbreak in western Iraq at a Ramadi police station. According to an interior ministry official, a group of imprisoned militants overpowered a police officer and took his gun. They killed him and five other officers. Officials say seven prisoners were killed in a gun battle with police shortly after their escape. Three others got away.
It is a day of mourning in the Ukraine. A series of blasts destroyed a five-story apartment complex yesterday. Rescue workers continue to comb through the rubble today. At least 17 people died. Two dozen others are missing. A spokesman from the emergency situations ministry says oxygen canisters being stored in the basement of the building could have triggered the blast.
And for the first time in ten days, Israel has opened three border crossings with Gaza. About 80 trucks were expected to cross into Gaza. They're hauling goods including fuel and cooking gas. Officials say the decision to open the crossings came after requests from international aid groups in Egypt. Now whether the crossings remain open will be a daily decision. A near tragedy with a happy ending. An astounding story for the holidays is next.
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CHO: There you have it. A live picture of New York's Central Park. I believe that's (INAUDIBLE), right? That's not far from where I live in New York City. Earlier this morning, it was a little over 50 degrees. I'm sure it will warm up a little bit. But Reynolds Wolf will have more on that. Snow, ice and wind.
What do you see on your weather maps, Reynolds Wolf? Hey, so, is it going the warm up a little bit there in New York -- there, Reynolds -- you think?
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CHO: Stick around for this. A terrifying medical emergency with an ending no one could have predicted. A California woman pregnant with twins, collapses, then flat lines. What happened next? Here's Will Frampton with our affiliate KXTV.
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WILL FRAMPTON, KXTV CORRESPONDENT (voice-over): Theresa and Sam Fatu are the proudest of proud parents. But even with all the joy they get from holding their newborn twins, Miracle and Marley, it's nearly impossible to not think of how their story could have ended.
THERESA FUAVAI-FATU, MOTHER: The last thing I remember was looking down at my husband, my feet, started crying. And I knew something was going on.
SAM FATU, FATHER: Her color was changing. Her eyes rolled back.
FRAMPTON: It was November 10th. His wife was just under seven months pregnant. She said she was having trouble breathing. As a precaution, they went to the hospital.
T. FATU: I was telling the nurses and the doctor I can't breathe. Seriously, I can't breathe right now.
FRAMPTON: Before long, Theresa was unconscious, then flat lining. For nine minutes, no pulse. Doctors had to do an emergency C-section. That means no anesthesia and no sterilization on a mother who was on the edge of death.
DR. BOB KAHLE, MERCY SAN JUAN MEDICAL CENTER: I have taken care of literally hundreds of babies a year for 30 years and never have been faced with this kind of situation.
FRAMPTON: Dr. Bob Kahle was one of several doctors who helped on that dramatic day. The hope was to save the babies. They were taken out, Miracle weighing two pounds, her brother Marley, just one. Doctors feared mom was lost.
KAHLE: It could have been a real tragedy. A large family losing the mother.
FRAMPTON: But Theresa wasn't going anywhere.
T. FATU: Everybody was telling me, did you see God? Did you see angel? No, I didn't get to that point. So I knew I was in a dream. So I knew I was coming back.
KAHLE: Merry Christmas.
FRAMPTON: It has been six weeks. Marley now weighs three pounds, Miracle is up to five. And mom feels just fine. Her husband is forever changed by those tense hours of near tragedy.
S. FATU: It was a big experience for me, and something that will be with me for the rest of my life.
T. FATU: It's the grace of God that saved me and my babies.
(END VIDEOTAPE)
CHO: That is a miracle. The twin babies could be sent home within a month.
Lights, camera, action. Well, take a look at why more people are renting their homes to Hollywood.
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CHO: Making extra money in these hard economic times by thinking outside the box. For some people that means getting out of their homes so Hollywood can move in.
Here with the story now, CNN entertainment correspondent Brooke Anderson.
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BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (on camera): Homeowners are getting creative when it comes to making money during this slumping economy by opening their homes to Hollywood.
(voice-over): This may look like a typical Hollywood studio set, but, in fact, this set is the Pasadena, California home of Linda Pawlik.
LINDA PAWLIK, HOMEOWNER: They move out what they need to move out. And for instance, all of our living room furniture went into a moving van and left.
ANDERSON: Pawlik, a former actress, began renting her home for film, TV and commercial shoots six years ago following the example of a neighbor.
(on camera): What prompted you to do it?
PAWLIK: The money, first. ANDERSON (voice-over): Today a crew is on site shooting scenes for the television vision series "Monk."
UNIDENTIFIED MALE: Hi, guys, picture, please.
ANDERSON (on camera): Do you see it as, especially during this economy, a great supplement to your income? How do you view it?
PAWLIK: I do right now. I do this week.
ANDERSON: Because it can be very lucrative. How lucrative can it be?
PAWLIK: Lucrative.
ANDERSON: So lucrative that more and more people are leasing their homes for this purpose. David Hatfield runs CAST Locations which represents more than 1,000 homes in the Los Angeles area.
DAVID HATFIELD, OWNER, CAST LOCATIONS: People, I mean, literally, are flooding my e-mail box, submitting their homes, wanting to get into this as an alternative source of income. The real estate market is slow. Houses are sitting. They think what else can I do with the house?
ANDERSON: Hatfield and his team write contracts, photograph properties and submit them for gigs. And just like talent agents, there's a payout for them as well.
HATFIELD: We work on commission, exactly.
ANDERSON: So what's the potential profit for homeowners? Hatfield reveals pay ranges from a couple thousand dollars a day to as much as $15,000 total. And for 14 days per calendar year in California, it's tax-free.
PAWLIK: To see your house completely changed and reinterpreted, and then watch these dramas go through, it's fun. It is fun.
ANDERSON (on camera): In terms of how these shoots impact neighbors, it's an inconvenience. But Hatfield told me some savvy residents into the vicinity seize the opportunity to make money themselves by renting a driveway for catering.
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