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Fighting Continues between Israel and Hamas; 2008 Could End on a Positive Financial Note; Ill. Gov. Blagojevich Picks Roland Burris for Senate Seat; "Vanity Fair" Examines Bush White House Years

Aired December 31, 2008 - 09:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Much of Gaza lies in ruins, hopes for imminent peace reduced to rubble. The latest on Israel's assault on Hamas.
And minutes ago, new numbers, new milestones, a grim new measure of the nation's unemployed.

And throwing a switch to ring in the new year. Why many are all too happy to bid good riddance to 2008.

Good morning, everybody. I'm Heidi Collins. It's Wednesday, December 31st, New Year's Eve. You are in the CNN NEWSROOM.

Israel says no to a 48-hour truce and calls up more reserves in its all-out war against Hamas. A government spokesman says Israel wants: "a solution and not a Band-Aid to the constant rocket attacks from militants in Gaza."

Israel is allowing humanitarian aid into the territory now, which has no fuel and no power. The area we're talking about, about twice the size of Washington, D.C., squeezed between the Mediterranean sea and Israel.

CNN's Paula Hancocks is on the Israeli side of that border, as close as journalists are, in fact, allowed to get to Gaza -- Paula, so tell us what you are able to see from your vantage point now.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Heidi, at this point, the border has been quieter today than it has been in previous days. But the air strikes are continuing. We just heard a loud explosion a few moments ago, which we believe came from Gaza itself. And the rockets are coming in the opposite direction. At least 30 have hit around different places in Southern Israel today. And they're hitting further than they've ever hit before. Beersheba, which is about 23, 24 miles from Gaza -- this is something that Hamas is not accomplished before. And it is claiming victory.

So there's no ceasefire.

Israel says it does not want a ceasefire. And the Israeli military clearly believes it hasn't achieved its objective, which was to stop the rockets. But as I say, these rockets are going even further. But a big disappointment for the international community and, obviously, for the one -and-a-half million Gazan residents who are having to cope with the daily pounding. And certainly the death toll is going up. We know at least 390 people have been killed, according to Palestinian medical sources. Many of those are Hamas operatives. But there are civilians involved in that, as well -- Heidi.

COLLINS: Of course. Yes. And that is always the worst part to hear.

And, Paula, I wonder, because there is no ceasefire now, does that mean that we're going to be talking a little bit more seriously about the potential of ground troops going into Gaza?

HANCOCKS: We could well be. The Israeli prime minister has said this is only stage one. Stage two, to him, clearly isn't a ceasefire.

So is it a ground operation? We're still seeing the tanks on the -- on many horizons on the border with Gaza that are just sitting there ready -- tanks, APCs, bulldozers and many soldiers just milling around waiting for that order.

The one thing to mention, though, is the weather factor. The weather is not good here at the moment. It has rained significantly over the past 12, 24 hours. And that isn't good for tanks. So certainly, that sort of thing is going to be a bit trickier for Israel. But we have heard this is only stage one.

COLLINS: Right.

HANCOCKS: We'll have to wait to see what stage two is. And so does Gaza.

COLLINS: Absolutely. All right, CNN's Paula Hancocks for us, reporting from the border.

Thanks so much, Paula. Appreciate that.

People all over the world are calling for an end to the attacks. Across the United States, pro-Palestinian groups are planning for a second national day of action. In Miami yesterday, they rallied at the federal courthouse. Pro-Israeli supporters also showed up.

In San Francisco, last night, protesters tied up traffic near the Bay Bridge, forcing city bus drivers to take detours. Marchers also took to the streets in Dearborn, Michigan. Many people think of that city as the heart of Arab America.

CNN iReporters also sharing their stories with us. iReporter Jesper Dahl caught this protest outside the Israeli embassy in Stockholm, Sweden Tuesday. Dahl says he was surprised to see so many demonstrators willing to brave chilly 39-degree weather to voice their dissent.

Our reporter Haldor Siegridsen captured this video of protesters gathered in the downtown area of Reykjavik, Iceland. Siegridsen says some people carried their protest against Israel to the U.S. Embassy, where they tossed shoes at the building. Of course, please keep sending us your iReporters of news as it happens. You can just send them direct to iReport.com.

A terror attack in northern Spain this morning to tell you about. There have been no reports of any injuries though. But there was damage to a regional TV station. You can see the blast there on the right hand side of your screen. The separatist group ETA is taking responsibility. And they tipped off police about the bomb in Bilbao. And police had about an hour or so to evacuate the area.

Just hours left in 2008, for those of us in Eastern time zones. But fireworks and New Year's celebrations are already in the books in Auckland, New Zealand. The city's harbor lit up in a big way to bring in 2009. Beautiful there. And in Sydney, Australia, a $3 million plus fireworks display entertained an estimated one -and-a-half million people along the harbor and other nearby areas.

The clock ticks down. Preparations ratchet up.

Here's a sneak peek of tonight's celebrations in New York's Times Square. As many as one million people are expected to cram in that little area. It looks quite chilly. I'm seeing snowflakes. And I'm sure you are, too.

Jacqui Jeras in the Weather Center now.

(WEATHER REPORT)

COLLINS: All right, very good, Jacqui.

We'll check in a little bit later on.

Thank you.

New Year's Eve trading is light in markets across the world. But there are signs that the year of 2008 could end on a positive note.

What's that?

Markets in Europe are mostly higher -- mixed in Asia. And that follows Wall Street's rally yesterday as investors tried to snap up end of the year bargains. The Dow Industrials closed up more than 184 points. And that's a gain of nearly 2.2 percent.

We'll take anything we can get.

2008 -- bad times for your wallet. Good riddance to a year of grim history-making headlines. It was a year that took your breath away, and maybe a good chunk of your investments, too.

Here now, a look back with CNN's Stephanie Elam. Yes, yuck.

STEPHANIE ELAM, CNN CORRESPONDENT: Yes, pretty much yuck is a good way to sum it all up, Heidi. This will go down as, perhaps, as the worst financial year most of us have ever endured.

The markets plunged, unemployment soared, home prices tumbled and the financial sectors seized up. So we can't say goodbye to 2008 without first saying hello to one more piece of news on the job front.

Let's take a look. Just about 30 minutes ago, we received the latest reading on weekly jobless claims. They actually dropped by 94,000 last week, the biggest decline in 16 years. Of course, it's important to remember that many government offices were closed on Christmas Eve and Christmas Day, making the time frame for workers to file two days shorter. And the total number of people collecting unemployment benefits surged to its highest level since 1982.

It's the terrible job picture that has weighed so much of the stock market down this year. Some investors, particularly those who put their money into the financial and mortgage industries, have seen the value of those stocks nearly wiped out.

(STOCK MARKET REPORT)

ELAM: But, you know, if you take a look at the economy, it has been a recession all year. And the problems began in the housing sector, which has still not bottomed out. Prices have continued to slump. And the number of vacancies and foreclosures has risen. And home builders and home improvement stores have taken big hits to their bottom line as people have put off any major moves to improve their homes, do any sort of those kind of projects.

And, of course, who can forget about the auto industry?

General Motors and Chrysler have come this close to going belly up, as drivers have steered away from buying their cars, especially SUVs.

As for what we can expect in 2009, economists say to brace for more wild market swings as companies and the economy attempt to rebound. A rise in stocks may not come in a straight line, but most experts say, hey, it's going to come.

COLLINS: Right.

ELAM: But the economy is likely to limp along for most of the year, with the unemployment rate expected top 8 percent, Heidi.

So we'll be looking for some good news. I've got to tell you, though, looking at those shots you were looking at with Jacqui there...

COLLINS: Yes?

ELAM: ... you couldn't pay me to go to Times Square.

COLLINS: I know.

ELAM: I just drove through there right now, it's already looking messy because of the snow coming down.

COLLINS: I agree a hundred percent. But here's the good news. You can stay home and watch Anderson Cooper and, you know, Kathy Griffin out there.

ELAM: I could. I will. I will definitely be at home...

COLLINS: That's the place to be, on the couch.

ELAM: Yes. Safe and warm.

COLLINS: All right, Stephanie.

We'll check in with you a little later.

Thank you.

ELAM: Sure.

COLLINS: The Bush White House years -- some thoughts from some former insiders. You don't want to miss what they're saying, in a moment.

(COMMERCIAL BREAK)

COLLINS: Just 49 votes separating the players in the Minnesota Senate race. That's the margin for Democratic challenger Al Franken's lead over Republican incumbent Norm Coleman. Of course, that's Franken on the left there. We could have an official final tally by this time next week, after absentee ballets are counted. But more lawsuits, in fact, could follow the recount results.

A defiant Rod Blagojevich has chosen Illinois' new senator, but his choice may never get to go to Washington. Senate Democrats say they will not approve the choice. And President-elect Barack Obama agrees.

CNN's Ed Lavandera has more now on the move by Blagojevich.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): The chutzpah shocks even the most passionate critics of Governor Rod Blagojevich.

GOV. ROD BLAGOJEVICH (D), ILLINOIS: To not fill the vacancy would be to deprive the people of Illinois of two United States senators, to deprive the people of Illinois of their appropriate voice and votes in the United States Senate.

LAVANDERA: Blagojevich's lawyer had said the governor would not fill Illinois' vacant Senate seat. But there he is now -- the scandal-tainted governor standing by his pick to become the next Illinois senator, Roland Burris.

BLAGOJEVICH: Please don't allow the allegations against me to taint this good and honest man.

LAVANDERA: Burris is a former Illinois attorney general who ran against Blagojevich for governor in 2002. The two quickly became friends. Burris was a key member of the governor's transition team. Some Illinois Republicans describe Burris as a Blagojevich crony who has spent years working as a lobbyist. Between his wife, his firm and himself, he's donated about $15,000 to Blagojevich's campaigns.

ROLAND BURRIS (D), FORMER ILLINOIS ATTORNEY GENERAL: The evidence that has been presented is pretty appalling.

LAVANDERA: But just a few weeks ago, Burris said the governor should be removed from office.

He's not saying that anymore.

BURRIS: I am humbled to have the opportunity and promise the citizens that I will dedicate my utmost effort as their United States senator.

LAVANDERA: The appointment sent shock waves across political circles in Illinois, many expressing dismay, outrage. And one Republican official says the governor is a very confused person.

LT. GOV. PAT QUINN (D), ILLINOIS: It's time that he gets the message that people of Illinois will not tolerate his antics any longer.

JAY STEWART, ILLINOIS BETTER GOVT. ASSOC.: This is really, to some degree, theater of the absurd. This is Governor Blagojevich thumbing his nose at the rest of the world.

(END VIDEOTAPE)

COLLINS: CNN's Ed Lavandera is joining us now live from Dallas with more on this story.

Boy, that was quite a press conference yesterday in case people missed it -- Ed.

Why would Roland Burris, though, put himself in this position of accepting the post, knowing that he probably isn't really going to be able to take this seat?

LAVANDERA: You know, that's the question everybody is, I think, having a hard time figuring out. He did speak with us earlier this morning.

We can listen to a little bit of what he told us in an interview with CNN this morning.

(BEGIN VIDEO CLIP)

BURRIS: The reason why I accepted it is, because this will take a major issue off the table for our state. We will be fully complemented in the 111th Congress when we go into session.

So based on that, Illinois will not be shorthanded, given the crises and all the major problems that we're facing in our state and in our nation. This is a solution to a major situation for our state. (END VIDEO CLIP)

LAVANDERA: But, Heidi, you know what a lot of people are wondering is why -- who by most accounts, is -- Roland Burris is somebody who has a very good reputation across the state. I spoke with some Republicans in Springfield yesterday who had nice things to say about his time as a public servant, as attorney general of the state. And they're wondering why they would associate -- why he would associate himself with Blagojevich at this time.

COLLINS: Yes. I'm sorry, Ed. I'm just kind of fascinated by this story.

So then who makes the final call here?

Who are the people or the person who says we are not accepting this, it's going to not happen?

Are we talking about the DNC here or exactly how does that work?

LAVANDERA: Well, it will be the Democratic leadership in the Senate, who -- they say they have the ability to stop this appointment. So we'll see how that plays out.

There's also the secretary of State in the State of Illinois, who says he will not certify this appointment. So we will see. I'm sure there will be legal challenges in the weeks ahead if Blagojevich and Burris continue to push forward. I'm sure if everyone else follows through with trying to block the appointment, you would imagine if they're adamant about pushing Burris through, that they might have legal challenges to those steps, as well.

COLLINS: Well, the news just keeps coming out of Illinois.

All right, thanks so much.

Ed Lavandera.

Appreciate it.

LAVANDERA: Sure.

COLLINS: The Obamas are coming to Washington this weekend. Transition officials say the family will move into a Washington hotel first and then they'll move to the Blair House on the 15th. Blair House is the official state guesthouse. Of course, the White House will be their home beginning on the 20th.

The president-elect and his family are coming to D.C. a little early so daughters Malia and Sasha can get started at their new school.

Inside the Bush White House, some former aides are giving a blunt assessment of the administration, one that's especially unflattering to the president and the vice president.

Here now, CNN's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): A president with blinders on and an inner circle who manipulated him -- in a new so- called oral history, "Vanity Fair" magazine disperses some stark, if not unfamiliar, assessments of the Bush White House.

Colonel Lawrence Wilkerson, Colin Powell's chief of staff at the State Department, on the assemblage of Powell, Dick Cheney, Condoleezza Rice and Donald Rumsfeld early on as the president's security team: "It allowed everybody to believe that this Sarah Palin-like president -- because, let's face it, that's what he was going to be protected by this national security elite."

We asked the White House for a reaction to that remark.

GORDON JOHNDROE, WHITE HOUSE SPOKESMAN: No, I have no response to Wilkerson.

TODD: Larry Wilkerson says Cheney was at the root of those early perceptions: "He became vice president well before George Bush picked him and he began to manipulate things from that point on, knowing that he was going to be able to convince this guy to pick him."

An aide to the vice president called that "another false assertion from a longtime critic of this administration."

(on camera): Wilkerson is one of several former aides who later turned on the White House given prominent space in the "Vanity Fair" piece.

(voice-over): But as the writer points out, they also spoke to people who had no ax to grind.

TODD PURDUM, "VANITY FAIR" MAGAZINE: And who speak, in many cases, to the president's good qualities: his enormous sense of personal loyalty, his kindness, his work on AIDS in Africa.

TODD: But one former aide describes the handling of Hurricane Katrina as a low point.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And, Brownie, you're doing a heck of a job.

TODD: Former Bush pollster Matthew Dowd: "Katrina, to me, was the tipping point. The president broke his bond with the public."

Former counselor to the president, Dan Bartlett, a consistent defender of Mr. Bush, says of Katrina: "Politically, it was the final nail in the coffin."

JOHNDROE: As the president has stated many times, the response at first was not what was needed. But that is why he made repeated visits to the region to help with Gulf Coast recovery. TODD: There are several inflammatory quotes about the Iraq war in the "Vanity Fair" piece. The former Canadian defense and foreign minister says Donald Rumsfeld: "was not about listening and being cooperative. Mr. Rumsfeld was about getting the way of the United States and don't get in my way or my juggernaut will run over you."

When we contacted his office, an aide to Rumsfeld said they had no comment.

Brian Todd, CNN, Washington.

(END VIDEO TAPE)

COLLINS: Run, don't walk -- your life may be longer because of it. A new study on the benefits of jogging.

(COMMERCIAL BREAK)

(VIDEO CLIP)

COLLINS: That's a lot of people, huh?

And here's to the new year. Run, people, run. A new study reveals a daily jog can help you live longer and better.

CNN chief medical correspondent and avid runner, Dr. Sanjay Gupta, is here now with more.

All right, so --

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: With a non- runner.

COLLINS: Well, yes, but we're going to get to that.

GUPTA: We'll talk about that.

COLLINS: The study proved that not only do runners live longer, but they have a better quality of life. They feel better.

GUPTA: You know, look, everyone knows that getting a little bit of exercise is good for you. I think that's been proven. What was interesting, when this two decade long study was started -- a long time ago, obviously -- they thought that runners were going to have a lot of problems later in life. They were going to need more joint replacements...

COLLINS: Sure.

GUPTA: ... they were going to have more injuries, all that sort of stuff.

COLLINS: Knees.

GUPTA: Knees -- all that. So they followed these runners along for, you know, 20 years, almost, and tried to figure out and see if there's a...

COLLINS: There they are now.

GUPTA: They're running right there.

(LAUGHTER)

GUPTA: I'm not sure if these are the actual runners from the study, but they're a good example of what running is.

(LAUGHTER)

GUPTA: And what they -- but what they found was interesting, that they compared the two groups -- the runners versus non-runners. And they found that the runners live longer, in general. And now a lot of that could be because they ward off heart disease and diabetes -- big killers.

But, also, look at this -- no increase in injuries in the long run.

COLLINS: OK.

GUPTA: So, again, all those worries about knee problems, ankle problems, hip problems -- no increase in injuries.

The last one, I think, was the one that really struck out to me -- delayed onset of disabilities -- this idea that you can delay disabilities by 12 to 16 years because you're a runner, I thought, was pretty remarkable.

COLLINS: Wow!

GUPTA: Osteoporosis, fractures, things like that, that can be quite limiting, especially to an older person, were really greatly delayed in the runners' group.

COLLINS: Yes. It seems like this is a pretty fascinating study, not only because of the findings, but also because it was done over two decades...

GUPTA: That's right.

COLLINS: And you and I always talk about how long the study was done and how many people were involved.

So that being said, a lot of people are afraid to start running because of these injuries.

Is there a specific way you can begin running if you are not a runner right now without hurting yourself?

GUPTA: Well, you know, most of the experts say, like anything else, like any other form of exercise, you've got to do it properly. And, you know, the right shoes, the right amount of running. You've got to be able to listen to your body. Not everyone is going to be able to do this. But most people will.

Also, I thought something that was interesting and maybe a little non-intuitive stretching was stretching is always a question that people get.

COLLINS: Yes.

GUPTA: It's always good to stretch a little bit at the beginning of exercise. But with running, in particular, it's probably best to wait until your muscles are warmed up a bit so that you're not stretching or even tearing ligaments or other soft tissues in your knees or in your joints.

So that's a little tidbit. But, you know, just about everyone can run. Start off walking, if you have to, and gradually build up.

COLLINS: And so I should run to the mailbox instead of walk, right?

I mean just a little bit of running.

GUPTA: You could skip...

COLLINS: Because for some people, it gets --

GUPTA: You could hop.

(LAUGHTER)

COLLINS: Some people say it's really just not realistic for me to fit in a run every day of my life.

GUPTA: I totally agree with that. And you know what, you and I are both busy people. And I think about this all the time.

The good thing about running is you don't need a bicycle or a gym. You can strap on some running shoes, get outside, walk fast, run, whatever it is.

And, you know, another things is we've been talking a lot about the president-elect lately. He fits in 90 minutes of exercise a day since he was elected, which I think is pretty interesting. He's, arguably, got one of the busiest schedules around and he's still able to do this.

So I think that that's at least a little bit of inspiration for people out there...

COLLINS: Yes.

GUPTA: ...who are trying to get some exercise.

COLLINS: Yes. We've seen President Bush to do the same thing.

GUPTA: That's right.

COLLINS: And that's...

GUPTA: That's right.

COLLINS: ...a stressful job, to say the least.

GUPTA: It is a stressful job.

COLLINS: All right, next time we're going to talk about what you can do if you can't run. We'll leave it alone for right now.

GUPTA: In the new year we'll do that.

COLLINS: In the new year. Love that.

(LAUGHTER)

COLLINS: Dr. Sanjay Gupta, thank you so much.

GUPTA: Thank you.

COLLINS: Extra time to enjoy your New Year's celebration. Getting our clocks back on track will force you to start the countdown at 11:00.

(COMMERCIAL BREAK)

COLLINS: All right. So the opening bell getting ready to ring there. At 9:30 every day we see that -- Eastern time, obviously.

There you hear it.

As we wonder what investors are going to be saying today, on this last day of the year. Most of them, we think, are probably going to be bidding a not so fond farewell to the year 2008.

Stephanie Elam is standing by now to talk a little bit more about this -- and we try to remain positive, Stephanie, but it's tough to do when we're looking at the markets.

STEPHANIE ELAM, CNN BUSINESS NEWS CORRESPONDENT: It is tough to do. And I think a lot of investors aren't even thinking about the market today.

COLLINS: Yes.

ELAM: A lot of people are just off getting ready to celebrate tonight as the New Year comes in. But so far, you know, it's one of those years that we're never going to forget. I can put it to you that way.

The final session today of what has been amazingly turbulent year on Wall Street. Over the last 12 months, we've witnessed historic market plunges, record layoffs, and a huge batch of company bankruptcies and government takeovers.

At this point, investors are just ready to close the books on 2008, and hopefully find a better start in 2009.

As for today, we're expecting a pretty tame session, little volume, as many people get an early start on their holiday vacation time, or probably just continue it.

We did get one piece of economic news about an hour ago. Workers filing new jobless claims fell by 94,000 last week - a welcome retreat from the number that's been steadily climbing over the last few months. Still, the total number of people collecting unemployment benefits surged to its highest level since 1982.

Meanwhile, take a look at oil prices. They're retreating by more than a dollar right now to around $38 a barrel. It's been a historic year for oil prices as well. Remember back in July, we saw them top $147 a barrel. But they've been in downward spiral mode ever since, and the global economic slowdown has taken a big bite out of energy demand.

For the year, oil prices are down 60 percent. A little bit of good news there.

We'll also be keeping an eye on shares of Dell today, after the P.C. maker said two top executives will be retiring. Both were involved in the turnaround plan that CEO Michael Dell laid out for the company.

So now, with all of those little tidbits, let's take a look at the early numbers. Right now ...

COLLINS: Woo!

ELAM: ... we've got a mixed market. Look at that. We've got up a whole nine points for the Dow, 8678. NASDAQ barely off. Same story with the S&P 500 at this point, Heidi.

Obviously, I need to point out that U.S. financial markets are open for an entire, full trading day today.

COLLINS: Yes.

ELAM: But tomorrow, don't look for anybody. There'll be nobody down here on Wall Street. The markets are closed. Traders and investors will be back to work on Friday to kick off a new year on Wall Street. Hopefully, a far better year ...

COLLINS: Yes. Yes, yes, yes.

ELAM: ... than 2008.

COLLINS: All right. Yes. We're all hoping the same thing on that one.

Stephanie Elam, thank you.

ELAM: Thanks. COLLINS: A couple of new celebrities have emerged among the alleged victims of Wall Street guru, Bernard Madoff. Actors Kevin Bacon and Kyra Sedgwick are among the investors ensnared in what's being called a $50 billion Ponzi scheme. That's according to their publicist, who won't say how much the married couple may have lost.

Today, investigators are hoping to get an idea of how much money might be available for the alleged victims of that scandal.

A defiant Israel is rejecting international calls for an immediate ceasefire in Gaza, but leaders there promised to work to bring humanitarian aid to Palestinians caught in the crossfire.

CNN's Ben Wedeman is live now for us this morning in Ashkelon in southern Israel.

Ben, tell us the situation there.

BEN WEDEMAN, CNN CORRESPONDENT: Heidi, today there's somewhat less military activity than we've seen over the last few days. And as you mentioned, today, Israel allowed in humanitarian goods into Gaza. According to our information, 106 trucks allowed into Gaza.

Obviously, the humanitarian situation there very difficult. I spoke with people there who said that there are long lines outside the few bakeries in Gaza that are still operating. There are electricity shortages, shortages of fuel and other basic goods.

Now, regarding the situation on the ground militarily, Israel conducted about 11 air strikes today over Gaza, including militant training camps, we're told. In addition to that, the latest target was a donkey cart, in which two people were killed. And this would seem to indicate that Israel may be running out of targets in Gaza.

As far as rocket fire from Gaza into Israel, according to the Israeli police, approximately 30 rockets have fallen - none in the last few hours. It was mostly in the morning. The militants take advantage of exactly this kind of weather - overcast and cloudy - in which it's very difficult for the Israeli drones and the blimp that's over Gaza, to see what's going on on the ground.

So, there's about, as I said, 30 rockets fired. Just a few injuries. No fatalities in that case.

Obviously, the next step in this operation that everybody is talking about is the possibility of a ground offensive.

COLLINS: Right.

WEDEMAN: We know - and we've seen, actually, here in Ashkelon, reserve forces being called up, their tanks and infantry concentrated on the border around Gaza - Heidi.

COLLINS: All right. That is certainly something that we are watching very closely for.

Ben Wedeman, live for us this morning with this developing situation out of southern Israel. Ben, appreciate that.

No immediate reaction from the White House on Israel's latest vow to continue its offensive in Gaza.

Israeli army tanks remain massed at the border with Gaza. But as we mentioned, Israeli leaders say they will allow humanitarian aid into that country.

President Bush remains in Crawford, Texas, today, with no public events planned. But a White House spokesman said yesterday, Hamas must agree to cooperate with the ceasefire for it to be effective.

The crisis in the Middle East could be the first major international challenge facing the man who will be the next president. For now, though, Barack Obama is deferring to President Bush.

CNN senior White House correspondent, Ed Henry, is with the president-elect in Hawaii.

(BEGIN VIDEO)

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): As his aides continue the mantra, "There's only one president at a time," the crisis in Gaza is not stopping President-elect Barack Obama from working on his golf game.

But Mr. Obama has been staying in the loop - a telephone briefing from Secretary of State Condoleezza Rice over the weekend, and phone calls with his own top advisers, Retired Marine General Jim Jones and Senator Hillary Clinton.

During a July visit to Jerusalem as a candidate, he had high hopes of a peace deal.

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: It's my hope that I can serve as an effective partner, whether as a United States senator or as a president, in bringing about a more lasting peace in the region.

HENRY: Now, Mid East experts say the best Mr. Obama can hope for is managing the conflict, rather than actually resolving it.

AARON DAVID MILLER, FORMER STATE DEPARTMENT ADVISER: He'll inherit the 100-year headache that many of his predecessors have inherited, except with a much weaker American hand, because, at the end of this, Israel and Hamas will still be at war.

HENRY: Mr. Obama is deferring to President Bush, who is also on vacation in Texas, and through a spokesman is blaming Hamas for the spiraling situation, without urging restraint from Israel.

JOHNDROE: In order for the violence to stop, Hamas must stop firing rockets into Israel and agree to respect a sustainable and durable ceasefire.

HENRY: There's not a lot of daylight between the Bush approach and what Mr. Obama said this summer during another round of violence.

OBAMA: If somebody was sending rockets into my house where my two daughters sleep at night, I'm going to do everything in my power to stop that. And I would expect Israelis to do the same thing.

HENRY: That statement was made in the heat of the campaign when Republicans were charging that Mr. Obama was not a strong defender of Israel.

MILLER: When we don't call the Israelis out on actions that they take that undermine and hurt American interests, when we have to run everything in negotiations through the Israelis first, then you have a problem, because then, America loses its credibility and effectiveness as an independent mediator.

HENRY (on camera): A major challenge for Mr. Obama if he doesn't want to follow in the footsteps of a string of predecessors, who all found a peace deal illusive.

Ed Henry, CNN, Honolulu.

(END VIDEO)

COLLINS: A briefing is planned at the United Nations at noon Eastern time. We expect to hear more about the humanitarian situation in Gaza and what exactly is being done to help.

Also, on CNN.com, you can get much more on the conflict and the history behind it, including a look at the important players and the latest video and photos. All that you will find at CNN.com.

A successful test flight for Air New Zealand. We told you a little bit about this story yesterday in our energy fix, how they're trying to green up the skies. Air New Zealand says the jet, partially powered by biofuels, passed the test during a two-hour trip. This is the longest biofuel flight for any big jet. One of the plane's four Rolls-Royce engines had a 50-50 mix of regular jet fuel and fuel made from chichesa (ph) - jatropha seeds. I knew I was going to screw that up.

Timekeepers of the world will hit the pause button just before ringing in the New Year. A leap second is being added to atomic clocks. The reason - the Earth's erratic rotation. That means a 61- second minute leading into the midnight hour. You have to wait just a little longer.

It's going to be a frosty New Year for many people. In fact, here's what it looks like in Buffalo. Snow falling there after a few days of warmer weather. The snow and ice making for dangerous driving, of course, as you can see there.

In Minnesota, the snow left some streets largely deserted. But where there was traffic, there were accidents. As much as a foot of snow fell in some areas.

But the good thing, Jacqui Jeras, as you know, is that we have that sort of skyway system there, so you never really have to go outside.

JACQUI JERAS, CNN METEOROLOGIST: Isn't that wonderful? I know. People say winter is so brutal up north, but, you know, you're inside for three months in the winter. But in the south, you're inside for three months in the summer.

COLLINS: Yes, there you go.

JERAS: What's the difference? Too hot or too cold. You can never get it just even-Steven, can you?

COLLINS: No, never.

JERAS: But that's the whole point of Mother Nature, tries to do that, balance things out - the warm, the cold, the wet, the dry.

(WEATHER REPORT)

COLLINS: The Jena 6 case. It ignited national outrage on both sides of the issue. Now, one of the teens at the center of the racially-charged incident is in the hospital, saying he blew the second chance that he so desperately wanted.

(COMMERCIAL BREAK)

COLLINS: We have an update on the Jena 6 case, the racially- charged incident in Louisiana that prompted a massive civil rights march. The only teen to face trial in the case shot himself after feeling he squandered the second chance he says he so passionately sought.

CNN's Sean Callebs now has the story.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): Mychal Bell said he just wanted a second chance to live up to his potential as a football player and put the controversy surrounding the so-called Jena 6 incident behind him.

MYCHAL BELL, JENA 6 DEFENDANT: I feel like, you know, at one time I was going down a bad path, you know. But now, you know, after everything, you know, I learned from my mistakes.

CALLEBS: But mistakes haunt him. Bell is not recovering from what police call a self-inflicted gunshot wound at a hospital in Shreveport, Louisiana.

Days earlier, on Christmas Eve, this once promising student athlete was arrested for shoplifting. Authorities say the arrest was Bell's breaking point.

His mother and grandmother told Monroe police that "Mychal had made comments over the past two days that, because of the current attention he had because of a shop-lifting arrest, he did not feel he could live anymore." In the hospital, he told authorities he shot himself because of all the media attention. And Bell had lots of attention from cameras.

It all began in September of 2006. Racial tension flared after three white students hung nooses from a tree. Tradition had long dictated only white students sit under that tree. A black freshman dared challenge the status quo.

The white students were suspended. Again, in an April interview, Bell says he realizes now, trouble was just starting.

BELL: It got real hot, you know, between blacks and whites, you know. But nobody really wanted to come together and do nothing, you know.

CALLEBS: In December of 2006, tension boiled over. Mychal Bell, now 18, and five other black students were charged with pummeling a white classmate, Justin Barker, who was briefly hospitalized.

The African-American students were originally charged with attempted second degree murder. Eventually, only Bell went to trial on the charges.

But thousands came from across the country to support the students and protest the charges many thought were too harsh.

REV. AL SHARPTON, CIVIL RIGHTS ACTIVIST: There should not be different laws for Mychal Bell than anyone his age of a different color.

CALLEBS: The charges were eventually reduced to battery. Bell pleaded guilty. He was the only one of the six to serve jail time.

When he was released to a foster home in January, he said he was excited to start fresh. Even so, hints the pressure on him was too great for his 18-year-old shoulders.

BELL: I feel like, you know, all the people who came down and supported me, you know, gave money to the defense fund and everything, I feel like, you know, if I was to do something now, you know, I'd let the whole country down.

CALLEBS: Sean Callebs, CNN, New Orleans.

(END VIDEOTAPE)

COLLINS: The Iraq war and the endgame coming into clearer focus. Iraq's government has signed agreements that will call for the withdrawal of British and Australian troops by the end of July. Britain is second only to the U.S. in the number of troops serving in Iraq. A separate agreement has been approved to allow U.S. troops to stay.

Life and death in Afghanistan. You're about to hear a remarkable story from a detention center in Kabul. A 14-year-old boy describes how a religious leader recruited him to become a suicide bomber. Atia Abawi has that story.

(BEGIN VIDEO)

ATIA ABAWI, CNN CORRESPONDENT: They may be teenagers, but to the Afghan authorities they are dangerous criminals.

Accused of theft, violent acts, even murder.

These boys are held in a juvenile detention facility in Kabul.

Shakirullah is one of them, just 14 years old, seized before he could kill himself and others.

SHAKIRULLAH, 14-YEAR-OLD DETAINEE (through translator): I have been detained for trying to commit a suicide attack.

ABAWI: Shakirullah tells us he kills time in a cell remembering his life in northwest Pakistan, before he was recruited by fanatics.

SHAKIRULLAH (through translator): I was studying in a madrassa when I finished reciting the Quran. A mullah then came to me and told me, "Now that you have finished the Quran, you need to go and commit a suicide attack."

ABAWI: He didn't even understand the Quran, which he learned to recite in Arabic. And he didn't want to go.

But without a chance to talk to his parents, he was driven to the Pakistan-Afghan border and handed over to strangers.

Weeks later, he was arrested while being trained as a suicide bomber.

ABAWI (on camera): Shakirullah is not the only boy here accused for planning an attack. Three others are, too.

ABAWI (voice-over): Including one of his cellmates. Both seem to be leaders in their block.

When the television is on, the two boys quickly order the channel to be changed to a reading of the Quran. Still very pious, Shakirullah says that he was cheated by his recruiters.

Now, he's hearing a different take on Islam at the detention center.

MIR FAYAZ AH-DIN, MENTOR (through translator): The teachers educate them on Islam, and explain to them that the acts they were doing are not right for them and for others.

The way you want to kill yourself and someone else, it in itself is a big offense in Islam.

ABAWI (on camera): The U.N. and other agencies are working here in Afghanistan to gather data on child recruitment, saying it's seen a growing trend in the use of children among armed groups and national forces.

CATHERINE MBENGUE, UNICEF REPRESENTATIVE: As you see in many places in the world, children are being used in armed conflict. They're being recruited as child soldiers. They're being recruited as armed groups. And the phenomenon is now impacting again Afghanistan.

ABAWI (voice-over): Shakirullah is now forced to wait - wait to hear from his family.

SHAKIRULLAH (through translator): I miss my parents, my mom and dad.

ABAWI: And wait to see what his future holds.

Atia Abawi, CNN, Kabul.

(END VIDEO)

COLLINS: Closing the curtain on 2008, a chance to remember those we lost this year - entertainers, politicians and friends.

(COMMERCIAL BREAK)

COLLINS: Closing the book on 2008. It's a time to say goodbye to those we loved and lost this year, family members and friends alike.

But first, let's take a few minutes now to remember some of the famous people that touched all of our lives.

(BEGIN VIDEO)

GEORGE CARLIN, COMEDIAN: Tonight's forecast: dark.

(LAUGHTER)

ESTELLE GETTY, ACTOR: Picture it: Sicily, 1922.

TIM RUSSERT, BROADCAST JOURNALIST: And it's not an easy job. But you know what, Larry? It's the best one you could ever have. It's a vocation, being a journalist.

PAUL NEWMAN, ACTOR: I think, above all things, I acknowledge luck.

CHARLTON HESTON, ACTOR, IN "THE TEN COMMANDMENTS": Behold his mighty hand!

HESTON: I'm going to miss you.

(APPLAUSE)

(END VIDEO)

(COMMERCIAL BREAK)