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Best Moments of 2008; Day Five of Attacks in Gaza; Senate Seat Showdown; Welcome '09!

Aired December 31, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Good morning, everyone. And an early Happy New Year to you.
I'm Tony Harris. And you are in the CNN NEWSROOM.

Well, ending the year with no end in sight to the violence, deadly attacks between Israel and Hamas now in day five. Israel saying no to a 48-hour truce intended to allow desperately needed aid to reach suffering Palestinians.

The U.N. confirms Israel is allowing some humanitarian aid trucks into the territory, but the situation is growing more dire by the day. Palestinian medical sources report more than 390 people killed, another 1,900 wounded. Many of them women and children. Hospitals overwhelmed.

Deaths on the Israeli side standing at four. Despite Israel's bombardment, Hamas rockets keep coming.

We expect White House reaction any minute now. And we will of course bring it to you live.

Let's get you to the region right now.

Our Paula Hancocks joining us from the Israeli city of Ashkelon. That's about seven miles north of Gaza.

And Paula, good to see you.

I guess in lieu of a truce or cease-fire, the positive development to report seems to be that some humanitarian supplies are being a allowed into Gaza.

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Hi, Tony.

Yes, we are hearing that. And the basics of food, water and medical supplies. These medical supplies are desperately need in these Gazan hospitals. But we're still hearing from the aid agencies that it's a drop in the ocean, it's not enough.

If you can imagine, 1,900 injuries, according to Palestinian medical sources, since Saturday lunchtime. If that was happening in an American hospital, they would struggle to cope in such a short period of time, but this is not an American hospital. This is a Gazan hospital. They have very few doctors. They have awful medical equipment. And they can barely cope without these airstrikes. So, certainly the aid agencies calling for far much more aid to be going in.

Now, we were on the border for most of today, and it did seem a little quieter, certainly quieter than it has been for a few days. We have some figures though from the Israeli Defense Forces. They're still carrying out these airstrikes, 25 targets hit so far. And we've just heard from our sources that they just hit a mosque as well because they believed that Hamas was actually stockpiling weapons there.

Now, also, the fire once again not one way. We are seeing many rockets coming into Israel -- 47 rockets -- well, 17 mortars, 30 rockets. About 10 of those are ground (ph) missiles. These are the ones that go a long way, these are the ones that are hitting Beersheba, which is 22, 23 miles from Gaza, an area which has not been hit before until last night.

HARRIS: And Paula, is there anything happening on the diplomatic front?

HANCOCKS: Well, certainly much of the international community was keeping their fingers crossed for this idea of a cease-fire, a 48- hour truce to get some humanitarian aid in. That didn't happen. Israel said no.

Clearly, the Israeli military believes they haven't done enough to cripple Hamas. And clearly they haven't. The rockets are still coming.

We know that the foreign minister of Israel, Tzipi Livni, is on her way to France tomorrow. Now, this was a French idea, to have this truce. Maybe something will come out of that. We just don't know.

But at this point, the Israeli prime minister said this is only stage one, these airstrikes. Clearly, a truce isn't stage two. So is a ground operation stage two?

HARRIS: All right. Our Paula Hancock's reporting live for us from the Israeli city of Ashkelon.

Paula, appreciate it. Thank you.

People around the world are calling for an end to the Israeli attacks on Gaza.

(BEGIN VIDEO CLIP)

UNIDENTIFIED GROUP: Free, free Palestine! Free, free Palestine!

(END VIDEO CLIP)

HARRIS: These protests gathered outside the White House last night. Their demonstration coming to an end of what pro-Palestinian groups dubbed a national day of action. It drew hundreds of supporters to streets from California to Michigan, and from New York to Florida. Today, a second round of protests is planned.

So, what's the fallout from this latest violence? Some say Hamas could ultimately gain support because of it. In a few minutes I will talk about it with acclaimed author and religion expert Reza Aslan.

Terror in Spain today. A powerful car bomb explodes outside a television station. The blast caught by cameras.

The separatist group ETA says it's behind the explosion. It called ahead to warn of the bomb. That's usual practice. And everyone was evaluated. ETA is linked to some 800 deaths in its battle for a Basque state.

The political drama playing out in Illinois gets even more surreal today. The man named to replace Barack Obama in the United States Senate says his appoint is legal.

Governor Rod Blagojevich wants the veteran Illinois politician Roland Burris in the job, but Blagojevich is facing criminal charges, accused of trying to sell Obama's seat.

Here is Burris on CNN's "AMERICAN MORNING" today talking with our Christine Romans.

(BEGIN VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: In normal circumstances, this would be a dream appointment for you. You're someone who has served your state. You are a history-making government official in the state of Illinois. You were the first African-American elected to office in that state.

Yet, today there is this firestorm of criticism about this particular appointment. Now this dream appointment must put you in a very uncomfortable position.

ROLAND BURRIS, BLAGOJEVICH'S PICK FOR SENATE SEAT: Well, it doesn't because I don't look upon the governor's problems as my problems. I look at the governor's problems as his problems. He'll have to deal with that.

And the governor is still the governor of Illinois. And as a former attorney general of the state, I would state that you're innocent in our judicial system until you're proven guilty. And I don't see where the governor has been found guilty of anything. And that will take its course in the court of law, and he has to deal with that.

But by the fact of him appointing me is an altogether separate situation. And no one will answer the question of whether or not the appointment is legal.

(END VIDEO CLIP)

HARRIS: OK. Well, Senate Democrats are threatening to black Burris's appointment. They insist anyone chosen by the governor is tainted.

CNN's Ed Lavandera is following the saga.

And Ed, Burris raises a good point. Is it clear what Illinois Democrats, what Senate Democrats can do, for that matter, to block this appointment?

ED LAVANDERA, CNN CORRESPONDENT: Well, clearly, Mr. Burris feels like the appointment should go through.

HARRIS: Yes.

LAVANDERA: But those Democrats in D.C. say they will not allow this. And even another Democrat in the state of Illinois, the secretary of state, says he will not certify this appointment. So it seems to be setting up the situation here where there will be more legal challenges in the days and weeks ahead.

(BEGIN VIDEOTAPE)

LAVANDERA (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's 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, but 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.

BURRIS: The evidence that's 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 get the message the people of Illinois will not tolerate his antics any longer.

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

(END VIDEOTAPE)

LAVANDERA: Now, Tony, everyone thought that what went on yesterday, by and large, the response out of Illinois, has been -- it was a bizarre press conference. Then at the end, it took an even stranger turn when Blagojevich essentially injecting racial politics in all of this.

HARRIS: Yes.

LAVANDERA: Congressman Bobby Rush, an African-American congressman from Illinois, shows up at the end emerging from the crowd, and essentially says that he would be the lone voice of support up to this point for Mr. Burris because he would be the only African- American in the Senate seat. And then as Blagojevich was leaving the press conference, he said, "Don't lynch the appointer."

HARRIS: Yes. That was just bizarre.

You know, Ed, a quick question. Have we gotten a clear answer from Burris as to why he would even take this job, a job that the president-elect doesn't believe he should have under these circumstances?

LAVANDERA: Well, what he is saying, and you heard it mentioned before you were tossed into the piece here, is that he believes that his situation is different from the governor's.

HARRIS: Yes. Yes.

LAVANDERA: Of course, you know, according to everyone we've talked to, they seem to be the only two people that seem to think that at this point. So the governor is saying that, look, this is in the best interest of the people of Illinois, that when the Senate reconvenes next week, that Illinois at this point only has one senator, they deserve two. That's what they're saying, but that is an argument that is not going very far for most people.

HARRIS: All right. CNN's Ed Lavandera for us.

Ed, appreciate it. Thank you.

Good-bye '08. Some say good riddance. Before we talk about '08 and '09 a little bit more, let's get to Crawford, Texas, now. The White House briefing is under way.

(JOINED IN PROGRESS)

GORDON JOHNDROE, DEPUTY WHITE HOUSE PRESS SECRETARY: ... to discuss the ongoing situation in Israel and Gaza.

The president also called Prime Minister Singh of India. And separately, President Zardari of Pakistan. President Bush urged both companies to cooperate with each other in the Mumbai attack investigation, as well as on counterterrorism in general. All three leaders from the United States, India and Pakistan agreed that no one wanted to take any steps that unnecessarily raise tensions.

In addition to the calls, the president also received his daily intelligence briefing. This evening, the president will spend a quiet New Year's Eve on the ranch with Mrs. Bush and some long-time friends from Texas.

And with that, any questions?

Toby?

QUESTION: The call to Olmert, what was the substance? Was the president asking him to do anything?

JOHNDROE: Prime Minister Olmert assured President Bush that Israel is taking appropriate steps to avoid civilian casualties. It was something the president asked for an update on, and got a -- President Bush got an assurance from Prime Minister Olmert that Israel is, as they have said they are doing, only targeting Hamas and that terrorist organization, and people involved with Hamas. And that they are working to minimize any civilian casualties.

I think the purpose of the call in general was to get an update from Prime Minister Olmert on where he sees the current situation right now as it relates to Gaza and to think about what the future steps are.

QUESTION: Does the president agree with Israel that the time is not right for a cease-fire right now?

JOHNDROE: I think President Bush thinks that Hamas needs to stop firing rockets, and that is what will be the first steps in a cease- fire. And that Hamas needs to agree not only to stop firing rockets now, but to not fire any rockets in the future, stop smuggling weapons in so they don't even have the ability to fire rockets, which also shows a good intent that they don't continue to target Israel. So I think they're certainly on the same page on that.

Mark?

QUESTION: Did the leaders discuss the idea of a 48-hour truce in Gaza?

JOHNDROE: You know, they discussed what steps could lead to a cessation of violence. I don't want to get into too many details, but no matter what the details are, it all begins with Hamas agreeing to stop firing rockets and to stop targeting Israel.

Lauren (ph)? QUESTION: Did they also discuss the possibility of a ground offensive by Israel in Gaza? And how much is the administration concerned about such a ground offensive? Is this something they're trying to prevent?

JOHNDROE: As I said, I'm not going to get into too many details of their conversation, but I don't look at a -- a ground offensive is a very -- it's a large -- it's a term that encompasses a lot of things and probably means different things to different people. And I think it is just part and parcel of the overall operation that Israel is undertaking to rid Hamas of its ability to fire rockets into Israel.

Deb?

QUESTION: Gordon, can you repeat the questions? Because we can't hear the questions. OK? So this might have already been asked, but is the U.S. still asking Israel to accept a cease-fire?

JOHNDROE: You asked the question is the U.S. still asking Israel to accept a cease-fire? I don't recall any specific announcements or requests that we've made on that front except to say that we want to see a cease-fire that is durable, that is lasting and that, in particular, is respected by Hamas. And that's...

QUESTION: (OFF-MIKE) U.N. yesterday, the EU, and all the other people in calling for a cease-fire.

JOHNDROE: Look, we all want to see an end to the violence. We absolutely all want to see an end to the violence as soon as possible. But we also don't want to see it start up again in, you know, two days, three days, two weeks, three weeks, two months, three months.

There needs to be a sustainable and durable cease-fire that Hamas respects. That's what we want to see.

QUESTION: Did President Bush express any reservations that they haven't accepted this thus far? I mean, is he disappointed that Israel hasn't accepted or responded to the international calls for one yet?

JOHNDROE: President Bush is disappointed that Hamas continues to fire rockets onto the innocent people of Israel.

HARRIS: Pretty clear. The position from the White House remains that any talk of a cease-fire is well down the road and that there can be no talk of a cease-fire until Hamas stops firing rockets into Israel.

And it doesn't appear that that is happening, according to our correspondents close to the scene, and certainly in southern Israel. So essentially a status quo at this point, as you heard from Gordon Johndroe. There are at least talks about talks under way, but not much action as Israel continues its offensive into Gaza.

Good-bye '08. Some say good riddance. Live pictures now of folks having a great time. Wow! What are we saying here?

Eddie, what is this?

Oh, this is the party in Thailand right now. Thailand less than an hour from ringing in the new year. And partying like crazy right now.

The world excited about a fresh start.

We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: This is fun, fun stuff. Here is to a better year and a much better bank statement, huh?

This fireworks spectacular over the Harbor Bridge in Sydney, Australia, always a showstopper, the first major city to ring in '09. Look at that.

Well, the bubbly just popped minutes ago in Hong Kong.

CNN's Anna Coren live there for us right now.

Anna, if you would -- first of all, good to see you. Happy New Year.

Describe that scene for us.

ANNA COREN, CNN CORRESPONDENT: Tony, Happy New year to you, too.

Well, I can tell you that there were tens of thousands of people lining the shores here in Hong Kong. We're at Ocean Terminal overlooking Victoria Harbor and one of the more stunning skylines in the world.

About 20 minutes ago it was lit up like a Christmas tree. We were treated to spectacular fireworks and a live show.

Now, this, of course, is the first of two New Year's celebrations. In about three weeks' time we will celebrate the Chinese New Year and welcome the Year of the Ox. Now, according to Chinese astrologists, we can expect prosperity in 2009 as long as there is hard work involved.

So there you go, Tony. That's a bit of a message to all of us.

HARRIS: I love it. That looks great.

Anna, great to see you. Happy New Year.

And CNN, of course, is rocking and rolling tonight with Anderson Cooper and the off-the-chain Kathy Griffin. Here is a preview.

(BEGIN VIDEO CLIP) KATHY GRIFFIN, COMEDIAN: I'm very excited about the highlights that we're going to have.

ANDERSON COOPER, HOST, "AC 360": We're going to have highlights?

GRIFFIN: Yes. They told me there's highlights. We're going to do like a recap.

COOPER: Oh, the recap of the year. And also, we're going to have New Year's celebrations from all around the world. Yes. So it's not just...

GRIFFIN: Who cares about the rest of the world?

COOPER: No, it's nice to see...

GRIFFIN: It's you and me talking crap about Don Lemon. Right? That's my kind of night. I mean, really, who does he think he is?

COOPER: He's going to be there in the crowd, along with Erica Hill.

GRIFFIN: I don't want to see Dobbs. I'm in no mood for Dobbs and his crap in this town.

(END VIDEO CLIP)

HARRIS: Oh, man. All right -- note to self: Send Kathy flowers and stay on her good side, huh?

You can see more funny moment from that dynamic duo next hour. And don't miss them tonight live and on the fly for real. The party starts here at 11:00 Eastern.

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Take a look at this scene. New Zealand. You know the Auckland area ringing in the New Year, 6:00 a.m. Eastern Time. Pretty good stuff all around the world.

It's time to ring out the old and ring in the new. Good-bye 2008. Hello 2009.

Accused investment swindler Bernard Madoff is supposed to show what's left in his wallet today. And investors may get some better idea whether they'll be able to recover any of their losses.

Per court order, Madoff must submit a list of his personal assets to the Securities and Exchange Commission, including bank accounts and property that could be tapped to make restitution to victims. Authorities say Madoff masterminded a $50 billion Ponzi scheme where investors were paid off with investments from other clients.

Meanwhile, more victims of the alleged Madoff scheme continue to come forward. A publicist confirms actors Kevin Bacon and his wife, Kyra Sedgwick, lost money with Madoff. No word on how much.

You know, when it comes to the stock market, 2008 brought bad times for your wallet and was chock full of grim history-making headlines.

Stephanie Elam is at the New York Stock Exchange right now with a look back at the year that took your breath away, and perhaps a good chunk of your nest egg.

And Stephanie, I think we all know it was bad. We may forget just how bad it was.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, I don't think people are ever going to forget this year, Tony, when it comes to their earnings, or I should say their savings. This will go down as perhaps the worst financial year most of us have ever endured. The markets plunged; unemployment soared; home prices tumbled; and the financial sector just seized up.

Going into this final day of trading, the Dow industrials have lost nearly 4,600 points, erasing more than a third of their value. It's the third worst year ever for the Dow. The only ones that were worse, 1907 and 1931. So, it's been kind of a minute.

It's also been a tough year for the tech sector. The Nasdaq plunged more than a thousand points, losing more than 40 percent. And the S&P 500 has lost nearly that much, as well. Now, if you're looking for a silver lining, I've got a small one here. Is that the Dow Industrials are actually up nearly 15 percent from their five-year closing low which we hit on November 20th. So, it's a small one. But it's there.

HARRIS: Thanks for that Stephanie.

You know, the recession has been going on for what -- well, no, a little more than a year now. And the problems really started in the housing market. Rewind that calendar for us.

ELAM: Yes, that's true. When we look back on the low lights, the drag-on stocks over the last 12 months, the housing market is a really large part of it.

And the sector still has not found its bottom just yet. Prices have continued to slump as the number of vacancies and foreclosures have risen and home builders and home improvement stores have taken big hits to their bottom lines as people have put off any major moves or improvement projects to their homes.

As for another big market drag, 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. So, with all of that cheery news there, let's take a quick look at the markets and see what it's been looking like today.

Pretty tame today. Maybe we'll have another up day here, in a row. Two in a row? The Dow up 104 points, 8,772. Nasdaq, that up by 1 1/2 percent right now, at 1,574. But, Tony, you know, the whole year wasn't awful. There were some good things.

Let's think about the Olympics, Michael Phelps, Dara Torres. You know, there were some good thing that happened.

HARRIS: Yes, Michael Phelps, my home boy from Baltimore.

ELAM: That's right! He is.

HARRIS: Heck, yes!

ELAM: And all these swimmers. You know, I got to give it up to the swimmers.

HARRIS: All right, Stephanie. Thank you, appreciate it.

Happy New Year to you.

ELAM: Happy New Year, Tony.

HARRIS: All right. Who will be the winners and losers in the Middle East? Our next guest says Hamas could end up winning hearts and minds. And he'll explain. That's next.

(COMMERCIAL BREAK)

HARRIS: Deadly attacks between Israel and Hamas, about to shoot over into the new year. Israel saying no to a 48-hour truce intended to allow desperately need aid to reach suffering Palestinians.

The UN confirms Israel is allowing some humanitarian aid trucks into the territory. But, the situation is growing more dire by the day. Palestinian medical sources report more than 390 people killed, another 1,900 wounded, many of them women and children. Hospitals are overwhelmed. Deaths on the Israeli side, standing at four. The White House says President Bush is concerned about the casualties. He has been talking to Israel's leader.

(BEGIN VIDEO CLIP)

GORDON JOHNDROE, DEPUTY WHITE HOUSE PRESS SECRETARY: Prime Minister Olmert assured President Bush that Israel is taking appropriate steps to avoid civilian casualties. It was something the president asked for an update on and got -- President Bush got assurance from Prime Minister Olmert that Israel is, as they have said they are doing, only targeting Hamas and that terrorist organization, and people involved with Hamas. And that they are working to minimize any civilian casualties.

(END VIDEOTAPE)

HARRIS: Well, the Gaza crisis will soon be Barack Obama's problem. The President-elect is spending New Year's Eve in Hawaii, although he is being briefed on the situation. Some don't appreciate his hands-off approach. CNN's senior White House correspondent, there he is, Ed Henry joins us from Honolulu. Ed, you know, the line from the President-elect on this crisis has been, there's only one president at a time. And some have criticized that stance.

ED HENRY, SENIOR WHITE HOUSE CORRESPONDENT: Absolutely. Especially some on the Palestinian side, who are saying the President- elect should be speaking out right now.

(BEGIN VIDEOTAPE)

HENRY (voice-over): After shooting hoops with some buddies at his old high school, President-elect Barack Obama was greeted by adoring fans. But, back in his rented beach house, a handful of pro- Palestinian protesters were reminding him of the challenges of his new job.

Ann Wright, a former U.S. diplomat who resigned in 2003, to protest the Iraq war declared Mr. Obama should do more to halt Israel's counterattacks.

ANN WRIGHT, PROTESTER: We're here to say to the president we know he's got a lot on his plate, but we expect that he will take this on very seriously and really get moving to stop the killing.

HENRY: But, technically Mr. Obama is not president yet. Which aides have used to justify why the President-elect has not spoken publicly about the crisis.

CAROLYN HADFIELD, PROTESTER: He's speaking out on every other issue. He's talking about jobs, how many jobs he's going to create. He's talking about all kinds of domestic policy and he's refusing to speak out on this. And I think that silence says a lot.

HENRY: At issue is whether for all the talk of the change for Mr. Obama, his Mid East policy will be a carbon copy of President Bush's approach. During a July visit to the region, candidate Obama got unusually personal invoking his daughters to express vociferous support for Israel.

BARACK OBAMA (D), PRESIDENT-ELECT: 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: Israeli officials are now using those words to justify their actions this week.

EHUD BARAK, ISRAELI DEFENSE MINISTER (through translator): And there he said, if someone were to fire a missile on my house while my two young daughters are sleeping, I would do everything I could to stop him.

HENRY: A sticky situation for the President elect. His unwavering support of Israel threatening to alienate some of the large anti-war vote who helped put him in office. HADFIELD: He has to be called out for being a pro-war president and not an anti-war president like he's sort of pretended to be as he campaigned.

(END VIDEOTAPE)

HENRY: Now, that's a dispute that could complicate Mr. Obama's role as an honest broker in the upcoming Mid East peace process, once he takes office. Though his aides insist that he's ready for that challenge, that basically he's down the middle. And they say that once he does take office, we all have to wait for that approach and that he needs this time right now in the transition. But, he'll be ready to hit the ground running on January 20th -- Tony.

HARRIS: Ed Henry, with the President-elect in Honolulu. Ed, good to see you, as always. And Happy New Year to you.

Thank you.

HENRY: Happy New Year.

HARRIS: Joining me from Los Angeles now is Iranian born author and religious scholar Reza Aslan. His book "No God But God: The Origins, Evolutions and Future of Islam," is a "New York Time's" bestseller.

And thank you for your time this morning, Reza. We appreciate it.

What is your reaction from statements from the Israeli defense minister Ehud Barack and former Israeli Prime Minister Benjamin Netanyahu, that this is a war to the bitter end with a stated goal of destroying Hamas?

REZA ASLAN, AUTHOR, "NO GOD BUT GOD": Look, if you're going to make that kind of statement at the onset of a conflict like this, you're really digging yourself a giant hole. Because you're not going to destroy Hamas militarily.

Even with ground forces, even with the complete reoccupation of Palestine, as Israel learned in its lesson with Hezbollah, you cannot just simply kill a force like Hamas. The only way to get rid of Hamas is to make it irrelevant. And its relevance comes precisely as an oppositional force.

I think Israel is in a very uncomfortable position right now. There really seems to be no end game here. As you said earlier, the 48-hour truce proposal was rejected. And now Ehud Olmert is talking about some kind of sustainable solution. Well, it's really difficult to figure out what that sustainable solution would be.

HARRIS: How do you make Hamas irrelevant?

ASLAN: Well, the way to do so is by addressing the aspirations of the Palestinian people.

HARRIS: Yes.

ASLAN: You have to understand that Hamas has essentially, a very important function in Palestine. It is the physical representation of the frustration of a sector of Palestinian society.

Even the Palestinians themselves, who support Hamas, recognize that a great deal of the conflict and the suffering that they're going through is Hamas's fault. They say this quite openly. I've been to the region, and the Palestinians are quite open in their criticism of Hamas. But, they also recognize, I think rightly, that there simply is nobody else speaking for their frustration.

HARRIS: Great. Great. I think we may be getting somewhere here.

So Reza, how do you address the aspirations of the Palestinian people? What does the international community do? How does the international community go about doing that?

ASLAN: There's been a great deal of effort right now in trying to figure out a way to create some kind of reconciliation between Hamas and Israel. This, I think, is a fruitless exercise.

What we really need to be doing is figuring out a way to create a reconciliation between Hamas and Fatah; between Gaza and the West Bank; between the secular nationalism represented by Mahmoud Abbas, the president of the Palestinian people and the religious nationalism represented by Hamas.

We very clearly gave the Palestinian people an opportunity to choose their own leaders and they chose Hamas. We did not give Hamas an opportunity to fail. That I think is the key here. Let's give them an opportunity --

HARRIS: What's the incentive to bring -- you're on it. I think you're on it.

What's the incentive to bring these two sides together, Fatah and Hamas. What's the incentive to bring them together? What do we offer? How do we negotiate, how do we make that happen? The international community.

ASLAN: The incentive for Hamas, of course, is relevance. Which is all Hamas really wants. Right now it has no political relevance. And so the only relevance it has is military. And that's of course, the avenue that it chooses.

The incentive for Israel is its own existential being. Look, the fact of the matter is, is that without a stable, economically-viable Palestinian state, the future of Israel, it cannot be ensured. And the only way to get that unified state is to bring Hamas and Fatah together.

The incentive of course, for the international community is that we don't have to deal with these kinds of conflicts over and over and over again. HARRIS: Reza Aslan, I think we're actually on to something. We're going to have you back. I think we're actually on to something.

Happy New Year to you. Thanks for your time.

ASLAN: Happy New Year, Tony. Thank you.

HARRIS: A thrilling and chilling New Year's Eve. Where's my live picture? There it is. Is that a live picture? Is that Time Square, pretty dark and cloudy right now. Maybe that's just the shot. We'll get the weather forecast with Jacqui Jeras for your New Year's Eve, Times Square in just a minute.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

(SPEAKING FOREIGN LANGUAGE)

(END VIDEOTAPE)

HARRIS: Well, that's got to make you smile. Come on, now. Celebrations in Seoul, South Korea. The clock struck midnight there just about an hour and a half ago. We're talking about New Year's Eve all around the world.

(WEATHER REPORT)

HARRIS: Remembering the people that left us in 2008. That's just ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

(SPEAKING FOREIGN LANGUAGE)

UNIDENTIFIED MALE AND FEMALE: Happy new year!

(END VIDEO CLIP)

HARRIS: I had to show them to you again. We just love these pictures from Hong Kong, the latest city to welcome in the new year. Bangkok, Thailand, due up in just about eight minutes. We'll try to time that out just right for you.

From Heath Ledger to Bernie Mac, we lost a lot of notable people near and dear to our hearts this year. Here's a look back.

(BEGIN VIDEOTAPE)

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

(LAUGHTER)

ESTELLE GETTY, ACTRESS, IN "GOLDEN GIRLS": Picture it: Sicily, 1922.

TIM RUSSERT, HOST, "MEET THE PRESS": 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 hands!

HESTON: I'm going to miss you.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CMDR. MIKE FINCKE, INTERNATIONAL SPACE STATION: Tonight our earth will have completed another orbit around the sun. And now we take stock of what we accomplished over the past year and what we hope to accomplish in the year ahead.

(END VIDEO CLIP)

HARRIS: Celebrating 2009 about 220 miles above Earth, the crew onboard the international space station.

Yeah, this will be fun. Any words you're just sick of hearing? The annual list of words to banish is out. Maybe you could add a few. I think we'll give folks an opportunity to do that, huh, Josh?

JOSH LEVS, CNN CORRESPONDENT: Got any you're sick of? Any words you want to get rid of?

HARRIS: I'm sure every one that I'm sick of is on this list.

LEVS: Yes, probably. We have just about a minute. I'm going to bang into it.

HARRIS: Did it mention meltdown?

LEVS: You know, you're the third person to say meltdown. Meltdown is not on the list.

HARRIS: It's not?

LEVS: But you all can add it, and so can you.

HARRIS: Good.

LEVS: We'll add it for next hour.

HARRIS: Go ahead.

LEVS: This is what we're going to do. So, it comes to us from Lake Superior State University, right? Check out these words. Green is on there.

HARRIS: OK. OK.

LEVS: They had someone who wrote them saying that if they see another company declare being green they're going to burn tires in their backyard.

HARRIS: OK.

LEVS: Maverick. This whole Wall Street versus Main Street thing, apparently people are too sick of it.

HARRIS: Well, I'm OK with -- if you get rid of maverick as long as we can keep Tina Fey's mavericky.

LEVS: (LAUGHTER) Mavericky's not a word.

HARRIS: If we can keep that, then you can get rid of maverick.

LEVS: I'll just do three more words.

HARRIS: All right.

LEVS: All right, so this is just a few more, what they're offering. Bailout, which, you know, I think we're going to be hearing it a lot. What can you do?

HARRIS: Yes, I think you're right. I think you're right.

LEVS: Game changer. What do you think? You sick of that one?

HARRIS: Yes, absolutely.

LEVS: All right.

HARRIS: And I use that one a lot, so it's, yes, time to get rid of that one.

LEVS: Maybe we'll get rid of it. Staycation. I have something to say about that, but I'll save it for next hour. This is what we're doing. Let's go to the last screen. E-mail us right now. Tell us what words you think should be banned for 2009 and why.

Cnnnewsroom@cnn.com, and put your name and city, cnnnewsroom@cnn.com. Here's what we're going to do. Next hour, Tony, we're going to share some of the responses and more words on the list, and we'll see what words everybody wants to get rid of. And then we'll be careful right here.

HARRIS: A notion of, a sense. And I wear those out, too. They're just like crutches at this point. So, I'm adding a bunch to the list.

LEVS: I don't use meltdown. But I guess apparently other people do. I don't know.

HARRIS: Thank you, Josh.

LEVS: You've got it.

HARRIS: (INAUDIBLE).

All right. It is New Year's Eve. I'm Tony Harris in the CNN Newsroom. Here are the headlines from CNN for December 31, the last day of 2008.