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Israel Launches War with Hamas; First Payout of Auto Bailout Made

Aired December 29, 2008 - 13:00   ET

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

(BEGIN VIDEO CLIP)
PHILLIPS (voice-over): Three days now of what Israel's calling all-out war with Hamas. Attacks on Gaza by air and sea and a threat of the ground assault. We've seen it before, so what's different this time?

UNIDENTIFIED MALE: Like I said before, I'd die for my family.

PHILLIPS: And when you find out what he did for his family, you know he means what he says. Some bad guys mess with the wrong dad.

Too much snow. Not much time. An avalanche buries a group of snowmobilers in Canada's back country. A dangerous search now enters its second day.

(END VIDEO CLIP)

PHILLIPS: And hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM. We're going to get right to it this hour.

Israel's defense minister calls the assault on Hamas a war to the bitter end. The question is, when will the end be in sight? Well, we can tell you, it won't be today.

Israel has been pounding Gaza for three days now, amid signs of a possible ground invasion. More than 300 people in Gaza are dead, nearly 1,500 hurt. Israel says its forces are targeting Hamas leaders, but the U.N. reports about 50 civilians have been killed.

The White House says the Palestinian militant group can end the violence by not shooting rockets into Israel, but apparently, they still are. At least two Israelis have been killed since the shooting began over the weekend.

CNN's Paula Hancocks has been at Israel's border with Gaza, hearing the sirens, hearing and feeling the rocket explosions.

(BEGIN VIDEO CLIP)

PAULA HANCOCKS, CNN CORRESPONDENT: I think that's actually a red alert in this particular area now. We're hearing rockets coming in. This is -- get down. We're hearing Kassam rockets coming in from Gaza. Now, where we are at this point, I'm not going to tell you where we are exactly, but it's about half a mile from the border itself. We heard one land. Shooting was in that direction.

(END VIDEO CLIP)

PHILLIPS: Well, Paula's out of that spot now. She joins us on the phone on the road to Jerusalem.

Paula, did it just get too hairy, that you had to leave that area?

HANCOCKS: Well, Kyra, the fact is, it got dark. And obviously, we're just half a mile from the border there, and the last thing you want to do is put up television lights to try and -- to try and illuminate a reporter. So that's the reason we headed out of that area as it got dark.

But we headed to Askalan (ph) after that. This is about ten miles north of Gaza. This is an area where one person died a little earlier this Monday from another rocket attack.

So even though Israel is carrying out a tremendous amount of air strikes -- well over 300 in the past three days -- it's still not stopping these rocket attacks.

PHILLIPS: And you know -- and that is the tremendous concern here, Paula, and what everybody is trying to find an answer to. Back and forth, back and forth. Years, decades. You look at what happened in 2006, what happened in Lebanon. You heard Benjamin Netanyahu say, "Hey, look, in a short period of time we could end this violence." Yet, how do you define a short period of time? I mean, somebody -- something has to happen where the violence has to end on both sides.

HANCOCKS: Well, certainly, you'd hope so, but looking at the precedents, you don't see how.

The thing that most people are looking at for now is if Israel is going to deem a ground operation necessary. Certainly, they've been pounding Gaza, the Hamas installations in Gaza, for the past three days. These rockets are still continuing.

We had at least 30 rockets and ten mortars heading into Israel from different positions across Gaza today, and certainly, so we saw the tanks moving into position. We saw bulldozers moving into position. Bulldozers have been one of the first things to go in on a ground operation.

Will Israel deem it necessary to try and cut these rocket attacks down even further by carrying out this ground offensive? And of course, that could lead to far more Palestinian casualties and, of course, the thing that Israel will really be thinking of, that could also lead to Israeli soldier casualties.

PHILLIPS: Paula Hancocks, I'm glad you're in a safe position. We'll continue to talk with you. Appreciate you joining us by phone, as you close into a safe spot for the evening.

Meanwhile, the White House says that Hamas has chosen not to renew the six-month ceasefire that Egypt had arranged. A spokesperson says that Israel and Hamas need to work on a ceasefire that actually sticks.

(BEGIN VIDEO CLIP)

GORDON JOHNDROE, WHITE HOUSE SPOKESMAN: This goal is for the sustainable ceasefire, as I discussed. Secretary Rice has been on the phone throughout the weekend with various heads of state, primarily foreign ministers, to try and urge the various parties involved to get behind a sustainable ceasefire. That is what the United States is working on right now. Secretary Rice has been the primary electorate (ph) on that, and that's our goal.

(END VIDEO CLIP)

PHILLIPS: Well, Johndroe added that the U.S. has asked Israel to avoid civilian deaths in Gaza as much as possible.

And this Mid-East crisis could easily spill over into Barack Obama's presidency. Right now, the president-elect's still in Hawaii. He's also in the loop, talking with the secretary of state about what's happening.

CNN's Ed Henry has us covered there in Honolulu.

Bring us up to date, Ed.

ED HENRY, CNN CORRESPONDENT: Well, good afternoon, Kyra.

As you mentioned, on Saturday, the president-elect had an eight- minute phone call with Secretary of State Condoleezza Rice to make sure he was in the loop. And then last evening, the resident-elect had phone calls with two of his top incoming national security officials, retired Marine General Jim Jones, his incoming national security advisor inside the White House, and Senator Hillary Clinton, the incoming secretary of state, if she's confirmed by the United States Senate, as is expected.

The point here is that he's trying to huddle. He wants to make sure that he's on top of the situation, but it's a delicate balancing act for the president-elect, because he has not been sworn in yet. So aides say he does not want to step on President Bush's toes, but he does want to get up to speed that it -- so he's ready to go early next month to deal with this or any other national security crisis.

And yesterday on NBC's "Meet the Press," senior advisor David Axelrod noted that, as a candidate, Barack Obama over the summer visited Israel and noted they have a right to defend themselves in a situation like this, but again reiterated that he wants the U.S. right now to speak with one voice.

(BEGIN VIDEO CLIP)

DAVID AXELROD, SENIOR OBAMA ADVISOR: He did, as you said, visit Steroot (ph) in July, and he said then that he thought that when bombs are raining down on your citizens, it's obviously unacceptable. And there is an urge to act.

And so -- but again, I don't want to go beyond that, because we have one government and one president at a time. And he's going to continue to consult with Secretary Rice and the president and the administration on this, and monitor these events. And he'll be prepared to take over on the 20th and discharge his responsibilities then.

(END VIDEO CLIP)

HENRY: So they want to hit the ground running. As our colleague, Tony Harris, was making the point just a couple of moments ago. For all the focus we've had in recent weeks on the financial crisis, this is the fresh reminder that national security crisis could still define the Obama presidency. You think back to Thanksgiving, Mumbai terror attacks. Again, that was a reminder.

Now, here on the eve of New Year's almost, we're seeing this crisis play out in Gaza. Some fresh reminders of the challenges ahead for the incoming president, Kyra.

PHILLIPS: Yes, challenges indeed. Ed Henry, thanks so much.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hey, ho, ho!

UNIDENTIFIED MALE: Hey, ho, ho!

UNIDENTIFIED MALE: Hey, ho, ho!

UNIDENTIFIED MALE: Occupation must go.

UNIDENTIFIED MALE: Occupation must go!

UNIDENTIFIED MALE: Occupation must go!

UNIDENTIFIED MALE: Occupation must go!

(END VIDEO CLIP)

PHILLIPS: Well, protests over the fighting in Gaza spilled into the streets in various American cities. In Phoenix, pro-Palestinian demonstrators demanded an end to the Israeli attacks. Mixed protests erupted in Houston, Palestinian-Americans waving flags, denouncing Israeli air strikes, and Jewish demonstrators defended the Israeli action.

The Israeli consul general in Houston says Israel is targeting terrorists, not innocent civilians.

Well, the fighting in the Middle East comes just seven weeks before crucial national elections in Israel. Joining us now with her take on the impact of the fighting, CNN senior editor for Arab affairs, Octavia Nasr.

Now, you have actually been to this exact region within Gaza, and you were telling me it's extremely dangerous.

OCTAVIA NASR, CNN SENIOR EDITOR FOR ARAB AFFAIRS: It is dangerous. It is chaotic. It is also closed off. It's very hard to get to Gaza, because it is sandwiched in between Israel, on one side, and Egypt on the other side. You have to cross borders in order to get there, so it's not like open borders, can drive your car. It's pretty difficult to get in there.

And once you're in there, life is very dire. It's a very difficult situation, and it's also very dangerous. And not just because of the Israeli air strikes but also inside. Assassinations go on and also, Hamas running the show is -- makes life very difficult for many.

PHILLIPS: And Benjamin Netanyahu has come forward, someone we should say is running for prime minister come February, coming forward saying Hamas must be toppled, that this action must take place.

However, there are even Israelis saying, "Wow, the government is being too harsh." And you brought this to my attention, which I thought was interesting, from "The Haaretz" newspaper, and the op-ed, you know, calling Israel the neighborhood bully, saying, "Once again, Israel's violent responses, even if there is justification for them, exceed all proportion and cross every red line of humanness, morality, international law and wisdom. What began yesterday in Gaza is a war crime, and the foolishness of a country."

It seems like now even Israelis are coming to the point where they're, "OK, we've got to stop this fighting. There has to be another way to solve this issue."

NASR: You know, people like, you know, the op-ed that you're reading from "Haaretz," I mean, many people are making those comments, basically saying that Israel is losing the P.R. war at this point, because people looking at those images, 300-plus people dead in only as much days, as many days, it's too much for them to handle.

You're looking at demonstrations. You're looking at condemnation, but not action. If you look at the demonstrations, for -- for example, across the Arab world, people are demanding an end to the violence in Gaza.

People are not even thinking beyond that. All they want is for an end. They want their leaders to step up to the plate, do something to end that violence. But it seems that they're looking at the situation on the ground, and there's no end in sight for this violence.

So you're hearing, you know, in op-eds. You're hearing the commentators.

PHILLIP: A lot of criticism.

NASR: And also in the Arab world, on Arab media. A lot of that is going on, basically saying, "Is this going to take us anywhere?" There are people in Arab world who would like to see Hamas scalped (ph). That is not a secret. But they're thinking about the methods. They're thinking about the end result.

And of course, they compare the situation on the ground today to what happened in Lebanon in 2006 between Israel and Hezbollah. And they say that power, the air-strike power, and those raids might not be the solution, as this article in "Haaretz" says.

PHILLIPS: Kept getting worse, as well. Octavia, appreciate it.

Well, much more detailed coverage of the Gaza fighting ahead in the NEWSROOM. What's the impact on the U.S.? I'm going to talk with Aaron David Miller (ph), an adviser to six U.S. secretaries of state.

And his family's life was on the line. A Maryland man with no time to think figured out a way to outwit two would-be bank robbers who were holding him and his wife and kids hostage.

And when will it end? Another knock-out punch for the West Coast as a big winter storm dumps more snow and ice on that region.

(COMMERCIAL BREAK)

PHILLIPS: Payday for two of the Big Three. GM and Chrysler pocketing the first installment of the government's massive auto bailout.

(COMMERCIAL BREAK)

PHILLIPS: And it's the payday GM and Chrysler have been desperately waiting for. Two of the Big Three automakers are getting $4 billion each today. It's part of the government's massive bailout, aimed at preventing the automakers from going belly up.

Chief business correspondent Ali Velshi joins us with the nuts and bolts on how the bailout is intended to work. We should emphasize, intended.

Hi, Ali.

ALI VELSHI, CNN CORRESPONDENT: Kyra, it's -- the issue is that that the auto companies asked for more money than they're getting. So they have to stop bleeding as much money.

Today, what's going to happen is they're getting $4 billion each to Chrysler and General Motors. We point out often, if we can, that Ford is not a recipient of this -- any of this bailout money. They've asked for some as a line of credit but said they wouldn't need to use it.

So today, Ford and Chrysler are getting $4 billion a piece. January 16, GM will get another $5.4 billion. And then, if Congress approves it, on February 17, General Motors will get another $4 billion. So the issue is, will they be able to use this money to sort of stabilize their financial situation, Kyra, so that they can put off any other debts that they've got. They can maybe try and raise money elsewhere and keep on going. Because if they get to the end of March, and they're not viable, this deal is not supposed to continue to give them money. In fact, they can -- have -- be asked to give the money back.

PHILLIPS: OK. So basically, if they don't show proof...

VELSHI: Right.

PHILLIPS: ... of how this $4 billion is working, and that it's basically -- I mean, how do you determine if it is worth it to, you know, our economy? I mean, they may say, "Oh, it's working really well," but...

VELSHI: Right.

PHILLIPS: ... how do you really measure that worth?

VELSHI: Yes, you make a good point. It may not be whether or not it's working for the companies. It's what's the cost to the rest of the economy of them not working or them failing.

And really, the impetus behind this bailout loan was that the damage to the economy would be too great. I think most people were past the point that they were doing this just to save the companies, that the damage to the economy would be too great, considering how many jobs we've lost.

So they have some criteria that they've got to meet by -- by the end of March, but it will be unclear. Most analysts are saying right now, you can expect that, at least from GM's perspective, they're going to come and look for more money. Maybe they'll get a more -- a friendlier ear in the new Congress and the new administration.

PHILLIPS: All right. We'll keep monitoring it. Thanks, Ali.

VELSHI: Yes. OK.

PHILLIPS: A Maryland man and his family held hostage by a gunman. His 11-year-old son has a gun to his ribs. Wait until you hear how he was able to outsmart those would-be robbers.

And red-faced utility officials offering pledges today as they deal with more than one billion gallons of nasty coal ash sludge.

(COMMERCIAL BREAK)

PHILLIPS: Well, imagine this. It's the day after Christmas. You're sitting at home with your wife and the two sons when suddenly two masked gunmen force their way into your home. Here's their demand. Your wife, who is a bank manager, must help them rob it or else the family dies. Sounds like something out of a movie, right? Well, that was reality for James Spruill. The gunman made Spruill drive to the bank with his wife in the front seat. One robber sat in the back with his gun pointed at Spruill's 11-year-old son.

Mr. Spruill told "AMERICAN MORNING's" John Roberts what happened next.

(BEGIN VIDEO CLIP)

JAMES SPRUILL, FAMILY ACCOSTED BY GUNMEN: The gunman had took his mask off, so when he was taking his mask off, that's when I started weaving -- you know, weaving in and out of the traffic, just weaving and swerving the car. And then the state trooper pulled us over.

So what I did was, I handed him my bank card instead of my license, and then I -- which made him kind of sense that something wasn't right.

So I said, "I can give you my driver's license if I can unbuckle myself, you know, from my seat belt."

JOHN ROBERTS, HOST, "AMERICAN MORNING": Right, right.

SPRUILL: So when he let me unbuckle myself from my seatbelt, that gave me the opportunity. I looked at my son, gave him a look. He moved to the side, and that's when I jumped on the assailant. I jumped on his back and held him down and told -- said to the assailant, "He has a gun. He has a gun."

ROBERTS: Wow.

SPRUILL: And that's when the trooper responded quickly. He drew his weapon, and back-up came, and he apprehended his suspect.

(END VIDEO CLIP)

PHILLIPS: Now, police have arrested two of the three men suspected in that robbery plot. They're still searching for the third suspect.

Well, it sounds like the plot of a scary movie. A stranger sneaks into your attic and settles in. He's dropping, creeping down into your house when you go out. That's exactly what happened to a family in Pennsylvania who realized something was up when their stuff just started disappearing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: He ate the same food we ate. He was wearing, you know, some of our clothing, which is a little bit disturbing, to know that he actually went through our dresser drawers and took some clothes.

(END VIDEO CLIP) PHILLIPS: Now, after seeing some strange footprints one day, well, they called the cops. An officer showed up with a canine. The squatter came right out. He faces multiple charges of burglary and criminal trespass.

After weeks of heavy snow, avalanches thundered down on a mountainside in western Canada, trapping 11 snowmobilers. Eight of them are still missing. We'll get an update on the search.

(COMMERCIAL BREAK)

PHILLIPS: Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.

One twenty-five Eastern Time. Here are some of the stories we're working on right now.

Expanding fears about the carnage in the Middle East. Israel's pounding Hamas targets in an all-out war, making plans for a possible ground invasion. Meanwhile, a chorus of international voices, including the U.S., calling for the fighting to stop.

A new worry adding to the winter storm warnings around the country. The threat of flooding from Iowa to Ohio. Warmer temps are melting snow and ice, creating a one-two punch, pushing rivers over their banks.

Two of Detroit's Big Three automakers getting an infusion of cash. General Motors and Chrysler receiving the first slice of that emergency loan pie: some 4 billion bucks each from the federal government.

More now on our top story. Gaza has a past filled with long foreign occupations, conflict and bloodshed. Josh Levs gives us some context for this latest round of violence and details of the history of Gaza, dating back to the 1940s.

(BEGIN VIDEOTAPE)

JOSH LEVS, CNN CORRESPONDENT: As we look at these images out of Gaza, I just want to give you some context on what the area looks like, how it all fits in.

Let's zoom in on the screen right here. What you're seeing here, everything in this light beige color is Israel, and this little section right there, that's Gaza. Now, 1.5 million people live in that area, but it's only about twice the size of Washington, D.C. It's a relatively small area, about 140 square miles.

Now, what we've been seeing recently is this. Hamas, which controls this area, there have been Hamas militants firing rockets into Israel. We've been they're going northward, up toward here, Ashqelon. Also, eastward, some toward this area, Beersheba. These Israeli cities in the south.

And what we're seeing today is Israel attacking key installations, key Hamas installations inside Gaza that are right there. And Hamas controls that area.

Let me also give you a little bit of history on Gaza. And for that, we have a graphic. We're going to start in 1920, which will bring you back to when it was part of the British-ruled mandate of Palestine.

1948, Egypt gained control during the Arab-Israeli War. And that's when Israel officially came into existence.

1956, Israel briefly got control of Gaza. But then it was in 1967, in the war then, the six-day Arab-Israeli War, that Israel took control of Gaza.

Now, in 1993, Israel signed some agreements that it was the next year after those agreements with the Palestinian Liberation Organization that Israel, most Israeli troops pulled out.

But it was in 2005, as we reported right here, that Israel and its historic occupation of Gaza, pulled out those settlements and left that area altogether.

Now, I want to show you one more thing on the board before we go. Let's zoom back in really quickly. I mentioned that Hamas controls this area. This section up here, however, this is the West Bank. There it's Fatah, that political party that controls Palestinian life. Israel also still has occupations, still has troops inside the West Bank.

That is one thing that makes it different from that area of Gaza, which is controlled by Hamas. Some important context to keep in mind as you hear about the actions between Israel and Hamas militants in Gaza.

Back to you.

(END VIDEOTAPE)

PHILLIPS: Well, joining us now with his unique perspective on the fighting in Gaza and its impact on the U.S., Aaron David Miller. He's a scholar at the Woodrow Wilson Center, an author of the book, "The Much Too Promised Land." He's also a former adviser to six U.S. secretaries of states.

And Aaron, I'm curious. Out of those six that you have been an adviser to, did anybody come close to solving what we're seeing happening today? Something we have seen for years and years and years.

AARON DAVID MILLER, FORMER ADVISOR TO U.S. SECRETARIES OF STATE: Well, we've had three basic breakthroughs, Kyra, in the course of the last 40 years, under American auspices.

The first was Kissinger's disengagement diplomacy following the October War. The second was Jimmy Carter's brokering of an Egyptian- Israeli peace treaty in 1979. And the third was Jim Baker and George H.W. Bush's efforts in 1990 and 1991 to put together the Madrid Peace Conference.

For the last 15, 16 years, despite efforts and a lot of great intentions, American diplomacy has essentially fallen short. And that -- that is why it's important to point out that all three of those breakthroughs were proceeded by insurgency, violence and war.

The problem with this one is that I don't see the political silver lining here. When all is said and done and the killing has stopped and the grieving is over, the fact is, Israel and Hamas...

PHILLIPS: They're still going to hate each other.

MILLER: Israel...

PHILLIPS: There's still going to be a confrontation.

MILLER: Israel and Hamas are still going to be at war. The Palestinian national movement is still going to be a mess. And the Israelis are still going to be divided, with elections scheduled for February 10.

PHILLIPS: All right. Ambassador Riyad Mansour, the Palestinian -- observer to the U.N., said -- he mentioned also those recent unilateral ceasefires, and he said the problem was that, even though they came to -- to a ceasefire, it wasn't respected each time.

Take a listen to what he had to say.

(BEGIN VIDEO CLIP)

RIYAD MANSOUR, U.N. PERMANENT OBSERVER TO PALESTINE: The cease fire, it is an obvious issue that is addressing the party that is conducting the operation against the Palestinian people. So, when we talk about the cease fire after 24 hours of aggression by the occupying power in which 1,000 Palestinians, most of them are civilians, killed and injured, then the cease fire is addressing the party that is conducting this aggression of the Palestinian people.

(END VIDEO CLIP)

PHILLIPS: I apologize. That's the wrong sound bite that I wanted to use, but he had talked about the past three. And that still the cease fires were not respected. There were assassinations that were going inside Gaza. Still humanitarian aid was not being let in and able to come through the border.

And so at what point will there be peace because Israel obviously is the super power and is able to topple Gaza if indeed it wants to.

AARON DAVID MILLER, AUTHOR: "THE MUCH TOO PROMISED LAND": It probably could reoccupy it and probably root out the regime, but the cost to that sort of enterprise in political terms, in humanitarian terms, and people killed and wounded would be prohibitive.

This cease fire ended because it simply ceased to serve the purposes and the intentions of both sides. The Israelis were sick and tired of rockets on their southern communities. And Hamas wanted, well, wasn't gaining what they thought they needed from the cease fire was to open up the crossing points and to normalize and regularize economic life in Gaza.

So the fact is, this cease fire and the ones that will follow, and there will be other ones, will be subject to the same shifting interests. The basic problem that you have two parties, Israel and Hamas, with mutually antagonistic and fundamentally divergent goals is the root of this particular piece of this conflict. And that's not going to be fixed anytime soon.

PHILLIPS: So, let me ask you this. Can the U.S. -- should the U.S. be playing a bigger role? Or does the U.S. need to sort of sit back and may be have quiet talks with Mahmud Abbas and the new prime minister, whomever that will be come February and -- and Egypt.

I mean, isn't this sort of, hasn't the talk been focused there that Egypt is the -- they're the ones that should step in and do something here?

MILLER: Well, Kyra, without running out of hope, I think honesty and clarity is really what's called for.

The fact is a conflict ending agreement between Israelis and Palestinians right now that resolves Jerusalem borders, security and refugees.

The prospects of that are slim to none. We can manage or try to manage this Israeli-Palestinian track. We can train Abbas's security forces. We can pour economic aid in to Gaza. We can quietly nurture discussions between the next Israeli prime minister and Mahmud Abbas.

But you will not solve this, which is why there is a negotiation between Israel and Syria, it seems to me, that is doable. If in fact you can make a serious run at that, while attending to the Israeli- Palestinian problem, who knows.

You might be able to circle back, and under better circumstances, with American credibility restored, even take a serious run at the Israeli-Palestinian problem.

PHILLIPS: That's an interesting way to look at it. Never going to be solved. Just figure out some way to continue to negotiate.

Aaron David Miller.

Always appreciate your insight. Thanks so much.

MILLER: Thank you.

PHILLIPS: We're into the final three trading days of the year and for most investors saying goodbye to 2008 can't come soon enough.

Stephanie Elam at the NY Stock Exchange with some details on just how brutal this year has been for Wall Street. Yes. I think the brutality is pretty obvious, Steph.

(BUSINESS HEADLINES)

Well, keeping hope is probably something you want to do when you're going through a divorce. Rates of divorce is actually usually spike during a recession. But not this time we're told.

Divorce attorneys say that more and more couples are actually staying together because it's not, well, but it's not because they necessarily want to.

A psychologist talked to CNN's AMERICAN MORNING.

This is what he had to say.

(BEGIN VIDEO CLIP)

DR. JEFF GARDERE, CLINICAL PSYCHOLOGIST: Now that we have this really tough economy, we're seeing more and more people fighting about money. Those people even who are looking for amicable divorces now become very conflicted because they have this whole issue of the upside down mortgage.

They can't divided the marital assets, so it becomes a very contentious situation. It's just reality tough out there for people who are divorcing or the people who decide to stay together because they can't afford to divorce.

Normally in a recession or hard economic times, we see divorce rates go up, but in this particular recession, we've seen divorce rates start to go down.

In Cook County in Chicago, divorce filings have dropped by five percent. In Miami, Florida, they've dropped by 18 percent, which is close to that 20 percent foreclosure rate, by the way.

But the last time we actually saw divorce rates actually go up was during the Depression between 1930 and 1935, so what we're really seeing here is when there is a recession, when there are tough economic times, and the severity, the severity is very extreme, that's when we tend to see divorce rates really, really start going down.

People are rethinking that this is really an investment. That this is something they really need to work on. It's not something that you just can get rid of. So there is that silver lining there.

People are working harder to make their marriages work because they just can't afford to break up.

(END VIDEO CLIP)

PHILLIPS: And some other advice from the doctor, he says separated couples who stay under one roof must do two things: set boundaries and respect each other's privacy. As 2008 winds down, another round of brutal winter weather in parts of the western U.S. Storm warnings are in place again.

The region battered for weeks is getting more heavy snow today, up to two feet in places.

In the Midwest, there's a threat of flooding from Iowa to Ohio. Warmer temperatures are melting snow and ice, and in creeks and rivers above their banks.

And in Michigan, hundreds of thousands of people woke up this morning without power. Winds of up to 60 miles an hour knocked down power lines yesterday.

And in upstate New York, hurricane force winds also knocked out power for thousands of customers.

Chad Myers keeping track of what's happening right now.

Chad, what are you seeing?

(WEATHER REPORT)

All right. That's good news. Thanks, Chad.

Well, as dawn broke in Canada, a desperate search resumed. Rescue crews in British Columbia are looking for eight snow mobilers believed buried under heavy snow. Three others were rescued and taken to hospitals.

Two avalanches struck yesterday in a small town near the Alberta border. Some of the snow mobilers were trying to help victims of the first avalanche when the second one hit. That search has the entire town of (INAUDIBLE) hoping for a miracle. In our next hour in the NEWSROOM, we will hear from the mayor and the search that's going on right now.

And the search is still on for a missing cruise ship passenger. Mexican Navy and U.S. Coast Guard crews are searching the Gulf of Mexico for 36-year-old Jennifer Seitz (ph). Her husband reported her missing from the Norwegian Pearl cruise ship Friday morning. Some passengers aboard the ship are speculating about what may have happened. One woman says the couple may have had an argument after they played a game on the ship.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE, CRUISE SHIP PASSENGER: There was a lot of rumors about everything, but all the stories were pretty consistent, that they were at the No-So-Newlywed Game, and something happened, something maybe said. They went back to the room, and the neighbors heard arguing.

From that point, that's when all the stories and speculation started of her maybe being murdered or thrown off the balcony. And so, the guy was supposed to be in isolation, but on Saturday, he was walking around the ship like nothing had happened.

(END VIDEO CLIP)

PHILLIPS: Well, authorities have not confirmed anything and are still trying to figure out what happened to Seitz. So far, they have covered more than 2,500 square miles in their search for her.

Want to live to a ripe old age? Instead of hereditary -- heredity, rather, it may be a question of geography. We're going to tell you where folks are living the longest.

And a GOP guy who sent out a controversial CD still not changing his tune, defending his party music as lighthearted satire. Our Jim Acosta sees how it's all playing out next hour.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's the kind of secret everyone wants to know, how to live a long and healthy life. Now, researchers say living in certain hotspots can increase your odds for surpassing your 100th birthday. Our chief medical correspondent, Dr. Sanjay Gupta, takes us to one of these so-called blue zones.

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DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): On the Nicoya Peninsula in Costa Rica, families are close, hard work is the norm and there's no such thing as retirement. Take this man, Evincio (ph). He's 80 and still wakes at 4:30 every morning to work on his ranch.

DAN BUETTNER, FOUNDER, QUEST NETWORK INC.: This 80-year-old has the vigor of a 40-year-old.

GUPTA: Dan Buettner and his research team have found Evincio (ph) and other men here 60 and older are four times as likely to reach 100 as compared to their counterparts in the United States or Europe. Buettner travels to longevity hotspots around the globe. He calls them blue zones.

BUETTNER: Because most of longevity is dictated by our lifestyle as opposed to our genes. We believe that by going to these blue zones and methodically looking at what these people do, we can distill out a de facto formula for longevity.

GUPTA: Costa Ricans on the Nicoya Peninsula eat a healthy diet. Plenty of vegetables and fruits like papaya and citrus fruits. The tortillas they eat are made using a special process that takes the husk off the corn and puts more calcium into it, helping to keep bones strong into old age.

Buettner's team has also studied why people live so long in Sardinia, Italy, Okinawa, Japan, and Loma Linda, California. Buettner says the blue zones offer a recipe for healthy living that could add eight good years to your life. And he offers this advice: BUETTNER: Eat a plant-based diet, mostly plants. Number two, regular low-intensity exercise. And then number three, invest in family and friends.

GUPTA: Buettner hopes the blue zones will ultimately teach people how to extend their golden years.

Dr. Sanjay Gupta, CNN reporting.

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PHILLIPS: That's a weight off mama's mind and her belly. Check out this bruiser of a baby boy born last week in California. When he entered the world -- by Caesarean, thank God -- Baby Richard tipped the scales at 14 pounds. Hospital says he's one of the biggest births ever in Orange County, California.

Well, there goes the neighborhood. Enough sludge to fill more than 1,600 Olympic-size swimming pools swamps one community. We're going to show you the mess.

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PHILLIPS: Promises of a clean-up amid cries of a foul-up after more than one billion gallons of coal ash waste spilled in an east Tennessee community. Utility officials say that they'll test the air and water to make sure that it's safe.

Our Brooke Baldwin has the latest on the spill.

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BROOKE BALDWIN, CNN CORRESPONDENT (on camera): Here the biggest question today in Kingston, Tennessee, is when will the sea of slurry be cleaned up? The short answer, according to TVA, they have no time table as of yet. But the pictures really tell the story.

If you take a look, this is the sludge. This is the stuff. More than one billion gallons of this sludge essentially toppled out of this retention wall at the plant right here. This is the Kingston Steam Plant. Some people referring to it as a tidal wave of slurry, covering about 300 acres of land.

On the other side of the plant, it took down trees, turned over cars, moved one dock 100 yards to the next side of the river. Some of the biggest concerns among residents and the TVA, of course, water and air quality. One man we spoke with whose backyard essentially is now full of this sludge told us his biggest frustration is what he doesn't know.

TOM VEREB, HOMEOWNER: We're hearing all kinds of stories. We're hearing everything from this is perfectly fine to be around to get away, as far as you can from it. So, we really don't know what the right answer is there. We're not going to panic about it.

BALDWIN: A number of agencies including the EPA and TVA are conducting and will be conducting for the next few months air and water quality testing. At least one bright spot amidst this muddy mess. The fact that no one was injured. Keep in mind, Kyra, this area was a very popular recreation area. Think of fishing, boating, jet skiing. And a lot of people agree, both TVA and folks who live here. Had this spill happened over the summer, things could have been much worse -- Kyra.

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PHILLIPS: All right. Brooke Baldwin, thank you so much.

Meanwhile, a tanker hauling 10,000 gallons of gas ignites into a fire ball. The wreck shut down both sides of I-5, south of Portland, Oregon, yesterday. Emergency crews were on the scene in minutes but couldn't even attempt to rescue. They saw no way the driver could have survived. His remains were pulled from the cab hours later. And according to police, the truck hit an icy spot, left the road overturned and just blew up.

She served her country. Now it's time to put soldiering aside.

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UNIDENTIFIED FEMALE: Overseas, they're you know -- they're not mothers, they're not daughters, they're not anything but soldiers. And they kind of lose that identity.

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PHILLIPS: Making soldiers feel beautiful with mission makeover.

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PHILLIPS: Well, it's called a military mission makeover. Female troops returning from Iraq, rewarded with a day of beauty. A Maryland hair stylist made it her mission to match soldiers with salons and spas for a day of pampering.

CNN's Brianna Keilar has our story.

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BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): Kristina Moffett is a wife and mother of three young boys. At home in Maryland, she does playground duty and referees her kids' dance contests. It's a departure from the role she's played the last 16 months. Captain Moffett, Army nurse, stationed in Baghdad.

CAPT. KRISTINA MOFFETT, U.S. ARMY: I really can't imagine not taking care of them. Being over there, though, it was -- you kind of forgot. You kind of just put it aside. It was hard. I was the only female, I was the only mom.

KEILAR: As Kristina adjusts to home life, she's reporting for another mission. A makeover at the hands of Evangelin Pesci, the local hair stylist and makeup artist offers up her talents free of charge to veterans returning from war.

They're sort of thrown back into that life. Where overseas, they're, you know, they're not mothers, they're not daughters. They're not anything but soldiers. And they kind of lose that identity. So, me having them in my chair and saying to them, what do you want? What's going to make you feel beautiful. It's all about them at that moment.

KEILAR: Pesci launched the program, Military Mission Makeover, earlier this year, recruiting dozens of salons across the country. Today, Kristina is getting the works at the Renaissance Salon and Spa in Hunt Valley, Maryland. Manicure and pedicure, makeup, hair color and a hair cut. As her husband and sons await the big reveal.

MOFFETT: I'm still a soldier. I'll put on my uniform on tomorrow and go to work. But, I'll feel pretty.

KEILAR: It's just a few hours at the salon, what some might call frivolous pampering. But after living in a war zone for more than a year, Captain Moffett's new look is a new beginning. And for Eva Pesci, it's a way to say thank you.

Brianna Keilar, CNN, Washington.

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PHILLIPS: Now, bad memories of 2008, shredded away. Some people shredded worthless stock certificates and depressing bank statements from the financial meltdown. A few looking to make clean starts also shredded photos of their cheating lovers. You name it, people shredded it yesterday in New York, with hopes of a better 2009. Amen.

The next hour of CNN NEWSROOM starts right now.