Return to Transcripts main page

CNN Newsroom

Israel Says No to Cease-Fire; Protesting the War; Humanitarian Crisis; Energy Efficient '09; Words to Banish

Aired December 31, 2008 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: It is New Year's Eve. I'm Tony Harris in the CNN NEWSROOM.
Here are the headlines from CNN for this Wednesday, December 31st, the last day of 2008.

Gaza begins 2009 in ruins. Israel says no to a cease-fire and pummels Hamas targets for a fifth straight day.

This is the scene live from the beaches of Thailand. Residents and tourists there are ringing in 2009. How close are we? Let's take a quick listen.

All right, we're moving on.

With retailers closing out a dismal 2008, we will revisit some friends of ours, a couple of small business owners, to check on their prospects for the new year.

A deadly end to 2008 as attacks between Israel and Hamas push into day five. Israel saying no to a 48-hour truce. Instead, its airstrikes today targeting more tunnels, rocket launching sites, and militant training facilities inside Gaza. Despite the pounding, Hamas militants still able to fire more rockets into Israel.

The U.N. confirms Israel is allowing some humanitarian aid trucks into the territory. Residents there are growing more desperate 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.

Let's get you to the region now. Our Paula Hancocks joining us from the Israeli city of Ashkelon. That's about seven miles north of Gaza.

And Paula, this hour, let's start with the latest on the level of violence.

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Tony, I was on the border for most of today, and it certainly seemed a little calmer than we've seen definitely in the past few days. Now, there is still plenty of rockets coming into Israel, hitting further into Israel, and Israel clearly saying no to a cease-fire today, which would devastate 1.5 million Palestinians in Gaza and also disappoint the international community.

But Israel's military clearly doesn't believe it's done enough to cripple Hamas. And clearly it hasn't done enough to cripple Hamas. The rockets are still coming.

Now, does this now mean a ground operation is more likely? We heard from Israel's prime minister the airstrikes are only stage one. Clearly, a cease-fire is not stage two. Does this mean the ground offensive is stage two?

The weather could play a part in this. Over the past 24 hours we've had a lot of rain here, and a lot of it has been torrential. So the ground conditions on the road to Gaza are not good. They could almost be waterlogged in areas, and this is not ideal for Israeli tanks. That could play a part in this.

But of course, it also plays a part with Hamas. They are launching rockets less detected with this low cloud cover, because the Israeli drones are finding it more difficult to pick them out -- Tony.

HARRIS: Yes. And Paula, just curious as to what is happening, if anything, on the diplomatic front. Any updates on this idea of a possible truce, a possible cease-fire?

HANCOCKS: Well, this was an idea coming from France. Forty-two hours they wanted to get some humanitarian assistance into Gaza, which is very much needed, but Israel said no.

We heard from President Shimon Peres saying, it's not a time for cease-fire, it's a time for stopping the terrorism, the cessation of terror. So certainly Israel does not have any intention of having a cease-fire at this point. It does not believe it has done enough to stop these rockets, which is the entire reason it said that it's carrying out these airstrikes.

We know that Tzipi Livni, the Israeli foreign minister, will be heading to France tomorrow. So we could see if something comes out of that, but there are still talks going on in the background.

Of course, it's very important to remember that the defense minister and the foreign minister, while taking all these decisions, are also -- or were campaigning to become prime minister. We have elections here on February the 10th.

HARRIS: That's right.

HANCOCKS: So every decision has a political mind behind it as well.

HARRIS: OK. Paula Hancocks for us from the Israeli city of Ashkelon.

Paula, appreciate it. Thank you.

Now let's go inside Gaza. Joining me is Taghreed El-khodary, a "New York Times" reporter covering the story in Gaza. And it's good to see you, Taghreed.

You're inside Gaza. If you would, describe what you've been seeing.

TAGHREED EL-KHODARY, REPORTER, "NEW YORK TIMES": I went today to Jabalya refugee camp, which is the most densely populated refugee camp in the Gaza Strip. It was terrorizing to be there. F-16s terrorize the people by being over all the time in the skies over there.

The drones, it was -- it was an awful scene I've never seen in my life in Gaza, while covering Gaza. I covered the second intifadah, but this is the worst that happened to the population here.

Israel has continued its airstrikes against Hamas targets, but these targets are embedded with the population of Gaza. Many civilians have been killed. According to -- 25 percent of those killed are civilians.

The latest figure I got from hospital sources, 393 have been killed. Among them 38 children, 25 women. And two doctors last night were killed while trying to save -- while they were in ambulances, cars, inside Jabalya camp.

Today, also in the hospital, two hospitals I've been to, I saw many children less than 5 years old. It was really awful, gruesome to see, the injuries they are suffering. I went to ICU units in both Shifa in Gaza and in the north, and it was unbelievable. I think images will be paralyzed to describe the pain the civilians are living under here.

HARRIS: Can I ask you, is it clear to you -- I want to talk about aims and goals on both sides of this conflict right now. Is it clear to you at all what the goals for Hamas were at the outset in terms of firing rockets into southern Israel?

EL-KHODARY: I met many Hamas senior leaders right before this crisis. They were very interested in the -- through mediators, international mediators they sent to Israel, they showed their interest.

They said to Israel, we are willing for this tadia (ph), but the only condition is opening the crossings, opening Rafah, opening the commercial crossings to the Gaza Strip to make people happy, to make people feel that they are not living in jail. And Hamas, of course, wanted to succeed in government, and that was the card they played with. And they told Israel, we are willing to stop firing these rockets if you open the crossing.

Now Israel and Ehud Barak praised Hamas several times for the calm they achieved in the past few months, for stopping firing the rockets into Israel. All of a sudden, Israel decided to go into this military option.

Hamas now, even if you will ask Hamas to go for the tadia (ph), to go for the truce, they will not accept, because they will say first, we have to respond, we have to retaliate...

HARRIS: Oh boy.

EL-KHODARY: ... to maintain our popular support, and then we can accept the tadia (ph) and stopping the rockets.

HARRIS: And therein lies the cycle. We just continue the cycle again and again and again.

EL-KHODARY: Of course, yes. Sadly, yes, and the civilians will end up paying the price.

HARRIS: Are in the middle.

EL-KHODARY: Yes.

HARRIS: Taghreed El-khodary is a reporter for "The New York Times," reporting from Gaza.

We thank you for your time.

The United Nations has consistently called for a cease-fire since the start of the violence. We expect U.N. officials to come out any moment now with another statement.

And you are looking here at live pictures of the United Nations headquarters in New York. We will take you there for their comments as soon as they begin.

Some Arab leaders are blaming Palestinians for their own problem. The Arab League is holding an emergency meeting in Cairo today.

In opening statements, Saudi Arabia's foreign minister said the terrible massacre would not have happened if Palestinians were united behind one leadership. He went on to say the Arab nation cannot offer a real helping hand if Palestinians don't extent hands of love to each other.

The Bush administration also placing blame. A White House spokesman last hour repeated President Bush's stance that Hamas must stop attacking Israel in order for a truce to take hold. The White House says President Bush is concerned about civilian casualties and has been discussing it with 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. That 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.

(END VIDEO CLIP) HARRIS: Well, people around the world are calling for an end to the Israeli attacks on Gaza.

And you are looking here at a protest in front of a mosque in Indian-controlled Kashmir. Hundreds of Muslims taking to the streets.

(BEGIN VIDEO CLIP)

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

(END VIDEO CLIP)

HARRIS: Protesters in Iraq burned U.S. and Israeli flags, and demonstrators chanting anti-Israeli slogans and pro-Palestinian chants.

These protesters gathered outside the White House last night. Their demonstration drew hundreds of supporters to the streets from California to Michigan, and from New York to Florida. A second round of protests is planned across the United States today.

The fighting has not only touched off protests across the Islamic world, but also in the United States.

Joining me from Washington is Ibrahim Hooper, communications director for the Council on American-Islamic Relations. Hooper is part of several Muslim groups that dubbed today "Muslim National Day of Action."

Thank you for your time. We appreciate it.

IBRAHIM HOOPER, COUNCIL ON AMERICAN-ISLAMIC RELATIONS: Thank you.

HARRIS: Best case scenario here, what do you hope is achieved by these protests today?

HOOPER: Well, we hope to bring forward the notion that you're going to have endless cycles of violence like this for the -- for the next 100 years unless you address the core issue. That's dealing with the legitimate aspirations of the Palestinian people.

So far, for the last few decades, America has done nothing but side with the most extremist wing of the Israeli political spectrum. We need to be a neutral party. We need to offer good offices that recognize the rights and responsibilities of all parties in the region, not just what is perceived to be in Israel's interests.

HARRIS: In your view -- sure. In your view, tending to the aspirational desires of the Palestinian people, does that also include making Hamas irrelevant in the region?

HOOPER: Well, what you want to do is give the Palestinians an idea that their future can be better, that their children can actually eat. Can you imagine right now in the 21st century that we have a situation where there is a blockade keeping children from eating in any part of the world? And America is supporting that blockade.

It's outrageous, it's illegal, it's immoral, and it's against international law. At a minimum, we have to end the siege of the Gaza ghetto.

HARRIS: What role, in your view, do Palestinians have to take in controlling their own destiny and deciding on its leadership, a leadership that moves forward with their aspirations?

HOOPER: Again, until you have a normalized situation in which people can live normal lives, you're going to have these endless cycles...

HARRIS: OK. All right. And we're in an endless cycle now.

So who brokers that? Who makes that happen? It's not just the United States. It's also other members of the international community. It's also the Arab states as well.

HOOPER: Well, the international community is speaking out loud and clear. They want this Israeli aggression to stop. It's the United States that's giving the green light to the Israelis, and as long as the United States is...

HARRIS: Ibrahim, I'm sorry for interrupting. Look -- got you.

HOOPER: ... supports one side over another.

HARRIS: Got you. I'm sorry for interrupting, but we just told a story about the Arab League coming together and meeting. Saudi Arabia's foreign minister said the terrible massacre would not have happened if Palestinians were united behind one leadership.

HOOPER: Yes, they should be united, but unfortunately...

HARRIS: Can't it begin there? Can it begin there?

HOOPER: ... has sought to create divisions.

HARRIS: OK. Can it begin there? I understand what you're saying, but can it begin with Palestinians coming together for Palestinians?

HOOPER: Yes, definitely. The Palestinians need to come together and end their internal bickering, and present a united front that can say, here's what we want to do to go forward so that the rights of everyone in the region are protected, and there's a better future for all people, that we can all move towards and get out of these endless cycles of violence.

HARRIS: And will that be part of the message today at these protests?

HOOPER: Yes.

HARRIS: Good. HOOPER: We're calling on the Bush administration to be -- to adopt an evenhanded approach to the Middle East, and also President- elect Obama, who's been relatively silent on this issue, needs to come out in terms of changing policy. Because if we adopt the same policy we've had for decades, we're going to see the same results for the coming decades.

HARRIS: Ibrahim Hooper is a communications director for the Council on American-Islamic Relations.

We appreciate your time.

HOOPER: Thank you.

HARRIS: Thanks. And Happy New Year to you.

The world is ringing in the new year as many Americans check their weather forecast. We will get an update on the cold and the wind in your area just ahead.

(COMMERCIAL BREAK)

HARRIS: Spending meager this holiday season. That has analysts predicting bankruptcies will be plentiful in 2009.

Here's CNN's Bill Tucker.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): The list of retailers already in bankruptcy includes Circuit City, Sharper Image, Linens-n-Things, KB Toys. Retail and consulting firm Alex Partners (ph) says expect more to come. It predicts that a quarter of the 182 major retailers it watches are facing major financial difficulties or at risk of filing for bankruptcy in either 2009 or 2010.

Wall Street ratings firms Standard & Poor's warns a weak economy means 2009 will be tough on retailers.

CHRYSTIA FREELAND, "FINANCIAL TIMES": I would say the consensus forecast is that next year will be really, really pretty dire.

TUCKER: Dire, tough, challenging, all of which comes down to a fight for survival.

SCOTT KRUGMAN, NATIONAL RETAIL FEDERATION: I think the theme of 2009 is going to be belt tightening. And because of that, I think you're going to see retailers do what they can to keep their operating costs under control.

TUCKER: That means closing stores, reducing inventory with aggressive sales and firing employees. The International Council of Shopping Centers says job losses in 2008 could be close to 800,000 with no letup for 2009, at least in the first half of the year. The ICSC estimates that 148,000 retail stores will close in 2008. It is projecting another 73,000 stores will shut down in the first half of 2009.

MICHAEL NIEMIRA, INTL. COALITION OF SHOPPING CTRS.: We are saying that we are expecting that the '09 store closings will continue at a very high level, probably consistent with the pace that we're seeing in '08.

TUCKER: The American economy is driven by consumption. People buying things. When unemployment is rising, not even a 72 percent plunge in energy prices can get people spending again.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

HARRIS: My next guests are successful business owners, one from the West Coast, one from the East, who have fallen on some difficult times because of the economy. We've been following their progress over the last couple of months.

Monique Hayward owns the Dessert Noir Cafe & Bar in Beaverton, Oregon, outside of Portland.

I don't know why I'm saying it that way.

How are you, lady? Good to see you again.

MONIQUE HAYWARD, OWNER, DESSERT NOIR CAFE & BAR: Hi, Tony. Good to see you again, too.

HARRIS: And Fletcher Steele owns the Pine Hall Brick Company in Winston-Salem, North Carolina.

Fletcher, good to see you.

FLETCHER STEELE, OWNER, PINE HALL BRICK COMPANY: Hello, Tony. Good to see you.

HARRIS: Yes, it's been a while here.

You know, Fletcher, let's start with you.

I want you to have a listen to how you described your business difficulties in early October, and then let's get a bit of an update on your business.

STEELE: OK.

(BEGIN VIDEO CLIP)

STEELE: We are brick manufacturers and, as such, we are right in the middle of the effects of the housing crunch that is going on. And that we are seeing orders now that are 40 percent under what they were two years ago when things were at their peak.

(END VIDEO CLIP)

HARRIS: So, Fletcher, what's happened to your business in, say, the last six weeks since we left off?

STEELE: Well, I can tell you, Tony, that they've taken a dive downward since that point in time with the stock market crash and the banking crisis that we had. Things have pulled back even further.

HARRIS: Wow. And describe that for us, expand on that. When you say your business has taken a dive, I mean, housing and construction, those are the people that you count on. What's been happening to their businesses? And maybe you can tell us how it's impacted you.

STEELE: Those businesses are the ones we count on, the home builders and the construction industry, and they've seen a sharp drop in sales and also in housing starts, just in the last couple months.

HARRIS: So how has it impacted your business and how are you responding?

STEELE: Well, we've increased inventory faster than we planned. And so we've got shutdowns that we are going through right now. Some inventory reductions, also we do maintenance shutdowns this period of time. And unfortunately, Tony, those maintenance shutdowns will be a little longer this year than we would have forecast here just a few months ago.

HARRIS: How many people do you employee?

STEELE: We employ about 350 right now.

HARRIS: Layoffs?

STEELE: It's down about 75 from where it was this time last year.

HARRIS: Have you been laying off employees? Do you anticipate laying off employees?

STEELE: We have had to lay off at all levels in the company, but I think that's just about done by now.

HARRIS: What are your prospects for the new year?

STEELE: Prospects are we're ready to kick this year good-bye and...

HARRIS: Yes.

STEELE: ... send it packing. We're not kissing this one good- bye. We're going to pack this one up and forget it, hopefully.

HARRIS: I love it. You've got to smile about it.

Yes, but what are your thoughts? When do you think you'll see some kind of a turnaround?

STEELE: We really think that springtime comes -- these lower energy prices, gas prices, fuel, oil and heating home prices, putting more money into some consumers' pockets. By springtime, if they're feeling comfortable about their job situation, we think they'll be ready to go out and spend a little bit of money.

HARRIS: You're rooting for a big...

STEELE: And when that happens, we think we'll see a little uptick in the economy. And hopefully they'll be looking to buy or trade up in the house they've got.

HARRIS: Monique, boy, talk to us about your business. How has your business fared? Let's zero in on the last quarter of the year.

HAYWARD: Sure. So when I was here last time, I actually told you that September was my worst month ever. Well, December is turning out to be my worst month ever.

It turns out that we had a good start to the holiday shopping season, as well as the movie season. As you know, I'm right next to a movie theater.

HARRIS: That's right. That's right.

HAYWARD: And unfortunately, we had a major winter storm that hit the Portland area around mid-December.

HARRIS: Oh, yes.

HAYWARD: And that shut my business down for six straight days. And counting the days that we were planning to be closed already for the holidays, basically we were closed nine days in December.

HARRIS: So what's the ripple effect of a shutdown, unplanned, unscheduled shutdown like that?

HAYWARD: Oh, it's a disaster. So I had to go and tap into some emergency funds that I wasn't anticipating having to pull on to get through the rest of the month and into the early part of 2009 in order to pay my bills and make sure that my employees got paid.

HARRIS: Are you having to lay any additional people off?

MONIQUE HAYWARD, OREGON BUSINESS OWNER: 2009 in order to pay my bills and make sure that my employees got paid.

TONY HARRIS, CNN ANCHOR: Are you having to lay any additional people off? I know that you're doing everything you can to keep your staff intact.

HAYWARD: Yes, I'm doing everything I can to keep my staff intact. It's going to be a little difficult, though, moving into 2009. The minimum wage in Oregon is going to increase from $7.95 an hour to $8.40 an hour. And in the middle of a recession, when I have no pricing power with consumers kind ever going underground, it's going to be really tough. But I only have nine employees and I'm hoping that I can hold on to everybody.

HARRIS: Are you rooting for a big stimulus package? And in that stimulus package, some kind of a tax cut with dollars back into the pockets of consumers?

HAYWARD: Yes, I'm absolutely looking for the Obama administration to come in with a huge stimulus package that will get the economy moving and put some money into people's pockets, as Fletcher was just described.

HARRIS: And, Fletcher, is that the same for you? Are you rooting for a stimulus package of some considerable size, included in that a tax cut?

FLETCHER STEELE, NORTH CAROLINA BUSINESS OWNER: I think we've got to see a stimulus package. I think we've got to let people feel that the bottom has occurred. And so that they'll be looking for things to get better instead of continuing to get worse.

HARRIS: Well, we love you guys.

HAYWARD: Right.

HARRIS: Yes.

HAYWARD: I think it's about confidence, right? I mean I think if people could see some movement and see the new administration actually getting some things done, then I think that will go a long way toward increasing people's confidence, that the economy will start to turn around.

HARRIS: Well, we are certainly rooting for you. Absolutely. And we're going to check in with your often during the new year.

Fletcher, we appreciate your time. Monique, you as well. And happy new year.

HAYWARD: Happy new year to you too.

STEELE: And to you, too. A look forward to '09.

HARRIS: Yes. Let's talk again soon.

HAYWARD: Yes, thank you.

HARRIS: And as we ring in the new year, what are the biggest issues incoming President Obama will face around the world? A couple of our top correspondents join me for a look just ahead.

(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 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 are overwhelmed. Deaths on the Israeli side standing at four.

As we've seen all morning, the humanitarian situation in Gaza is desperate. Here's what the U.N. said about it in a briefing just a few moments ago.

(BEGIN VIDEO CLIP)

JOHN HOLMES, U.N. HUMANITARIAN AFFAIRS: But apart from that the biggest need remains a cease-fire, an immediate cease-fire. One which is fully respected by all sides so that we can have the chance to get humanitarian goods in, in a more systematic way and to deal with all the casualties and damage that's happened so far. So we're very obviously very disappointed that the proposal for a 48-hour lull or cease-fire, whatever you want to call, has been rejected. But we hope that diplomatic efforts to achieve a cease-fire will bear some fruit in the coming days.

(END VIDEO CLIP)

HARRIS: And joining me now is senior U.N. correspondent Richard Roth.

And, Richard, what else beyond that statement is the U.N. saying about the situation in Gaza? RICHARD ROTH, CNN CORRESPONDENT: Well, the U.N. secretary-general continues to work the phones. Two days ago he was upset with the level of pursuit of peace by international partners, such as the U.S., Russia, the European Union. We may have another Security Council meeting in coming days if the Israeli assault does not stop.

Washington would stop any type of diplomatic action that would substantially target Israel. The Security Council is on record with a press statement calling for both sides to have a cease-fire. But the U.N. is trying all diplomatic means. But as we know, so far, no cease-fire, no truce.

HARRIS: OK. Richard, stand by for just a second here. The crisis in the Middle East could be the first major international challenge facing President-elect Obama. Let's bring in our senior White House correspondent, Ed Henry. Let's move him into this conversation that we're having.

And, Ed, talk to us about international challenges for Barack Obama. Has team Obama come up with something of a list, say, of international hot spots it wants to tackle? And maybe not in some top-down way, but a list, nonetheless?

ED HENRY, CNN CORRESPONDENT: Absolutely, because I think they are approaching this, that it's not just individual problems around the world. It's about trying to rebuild America's image all around the world. And specifically what we know is that probably within the first couple of months, the president-elect is planning to go somewhere in the Muslim world to give a dramatic speech about, you know, the U.S. role in the world. How he wants to remake it. Obviously, that could be an even higher priority now, given what's going on in the Mid East right now. The crisis that you're talking about. And so I think they're probably thinking about it.

When you talk to senior advisers more than just about, well, how do we deal with Gaza, how do we deal with Iraq? Well, they're trying to look at it in a broad brush picture so that maybe there's a new approach to all of these conflicts, especially in the Mid East because you have a whole bunch of them from the war in Iraq, Afghanistan. Don't forget the threat from Iran. And obviously Israel is very much concerned about that threat from Iran, as is the U.S., among others. And so they are thinking about, perhaps, a new approach, trying to bring in more allies, trying to bring in the EU. But let's face it, the Bush administration has tried many, many times, with tough sanctions against Iran. We've heard it many time. And it's hard to get those allies onboard. I think that the incoming Obama administration has high hopes, though, that with a fresh start, maybe they can actually make a difference. We'll see, obviously.

HARRIS: Well, yes, that's very interesting. And, Richard, let me loop you back in on the discussion. Perhaps that more comprehensive approach that Ed is alluding to from Barack Obama, tell me how that potentially plays out there at the U.N.? Maybe that could be one of the places to begin this process. Perhaps even a meeting of the minds in the Security Council to that end. How is -- I don't know, Hillary Clinton thought of there at the United Nations, and Susan Rice, who was set to be the U.S. ambassador to the U.N.?

ROTH: OK. Several points there.

First of all, Bill Clinton, in his final general assembly speech at U.S. president, received a standing ovation. That was in the days during the Monica Lewinsky event. It is no secret that many countries here favor the Democrat in office. So some of them are eagerly awaiting Barack Obama's arrival. I wouldn't be surprised if he gets a standing ovation in his first appearance here in September.

They've had four years of Rice as secretary of state. Now they're going to have Susan Rice as the new U.S. ambassador. I think they're pleased that the Democratic president, incoming, has re-elevated the ambassador post to cabinet level. It was downgraded by President Bush.

But they, you know, this could all change as soon as the U.S., under Obama, adopts a muscular approach somewhere. Susan Rice, in a private role, favored more aggressive approach in Sudan, using force. That will not go down well with African nations and some Arab countries.

HARRIS: And, Ed, are we likely to see more envoys, more special envoys, around the world sort of parachuting in, maybe taking up more permanent positions in some of the hot spots around the world?

HENRY: We very well may. In fact, when you talk to Obama advisers, they throw out the names of someone like Dennis Ross, who Richard knows was very active in the Clinton years, as a Mid East negotiator. Maybe putting him back in a Mid East envoy role.

I've also heard the name of retired General Colin Powell. People close to him say that he was never really interested in a cabinet post in this administration. And, obviously, he didn't get one. But that he is interested that if the incoming president comes to him, someone that Colin Powell endorsed, you'll remember, very dramatically, he'd be willing to go to the Mid East, go to Pakistan, go to some hot spot around the world and try to help in any way he can.

I've also heard the name of Richard Holbrooke. Someone very active in foreign policy circles. He's someone who could be brought in somewhere Afghanistan, Pakistan, in that region, to try to have someone who's dealing with it day to day. Because, as you mentioned, incoming Secretary of State Hillary Clinton is going to be dealing with the whole world, as Secretary Rice is right now. And, let's face it, there's a whole host of problems. Maybe if you have all hands on deck and some mini envoys all around the world, that could help.

On the other hand, we've also talked about how there are a lot of big egos coming in on this national security team. Retired Marine General Jim Jones. You've got already Defense Secretary Bob Gates. A lot of heavyweights. And there might not be a lot of room to run in there. And if you add in all these other big name envoys, it makes you wonder whether how much you're really going to get done and whether there are just too many elbows. So it will be interesting, Tony.

HARRIS: All right. And let's leave it there. Ed Henry and Richard Roth for us.

Gentlemen, thank you both and happy new year to both of you.

A few good pedalers are need for tonight's New York ceremonies in Times Square. We will find out why in today's "Energy Fix."

(COMMERCIAL BREAK)

HARRIS: Final day of trading in 2008. Yeah, yeah, yeah! Collectively. You know? Let's move on to 2009. As you can see, we're having a good day, after a good yesterday. And the Dow is up, positive territory. Well past three hour into the trading day. Up 111 points. The Nasdaq, at last check, Joe, what was that, up 12? Up 21. Even better. Up 21. And we will follow the markets throughout date for you right here in the CNN NEWSROOM.

The man named to replace Barack Obama in the United States Senate says his appointment is legal. Here's Roland Burris on CNN's "American Morning" defending his appointment.

(BEGIN VIDEO CLIP)

ROLAND BURRIS, FORMER ILLINOIS ATTORNEY GENERAL: 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 would 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)

HARRIS: CNN's senior legal analyst, Jeffrey Toobin, doubts efforts to keep Roland Burris out of the Senate will be successful.

(BEGIN VIDEO CLIP)

JEFFREY TOBIN, CNN'S SENIOR LEGAL ANALYST: Article One of the Constitution says that the House and Senate can control their own membership. The requirements for membership in their bodies. But what does that mean?

It is not an unlimited power. There's a famous case from 1969 in the U.S. Supreme Court where the House of Representatives tried to strip Adam Clayton Powell, a famous congressman from Harlem, of his seniority, tried to keep him out of the House and the Supreme Court said the House couldn't do that. That was an abuse of the House's power.

So the question of how much power the House and Senate have over their own membership is somewhat of an open one. And I don't think anyone knows for sure whether Harry Reid can follow through on the threat to keep him out.

(END VIDEO CLIP)

HARRIS: Governor Blagojevich says don't let allegations against him taint a good and honest man.

So later today, thousands of people will gather in Times Square to welcome in the new year. But this time they will do so with a nod to the past. Good old-fashioned peddle power will light up the sky in New York. What is this all about? CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York. Good to see you, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Tony.

Everyone's chipping in this year. People from across the country helping to power tonight's New Year's Eve celebration in Times Square. The 2009 sign that will be lit up when the ball drops will actually be powered by peoples biking. Check it out. Here's how it works.

Earlier this month, Duracell set up an area in Times Square where people could pedal on what you see right there, those snowmobikes (ph). Now the energy generated is stored in batteries. It will be released at the stroke of midnight tonight. It will light up that 2009 sign. Duracell said it takes 230 hours of pedaling to light that sign up. That is 9.5 consecutive days. Tony, if you can make it up here in time, you can still jump on those bikes. People can help power the sign up until tonight.

Tony.

HARRIS: I appreciate the offer. I'll think about it.

HARLOW: Come on and party with us up here.

HARRIS: Jump on a bike. Go to work.

Hey, what about the ball itself? How energy efficient is that?

HARLOW: Well, it's a brand new ball this year. It's quite expensive. A few million bucks for the new ball. The Times Square Alliance says it's bigger, it's brighter than ever. Take a look right there. It claims, though, this new ball will only use the same amount of energy that's need to power two traditional ovens per hour. Now over at Rockefeller Center, that famous massive Christmas tree, that will eventually be used to build homes for habitat for humanity. Both the Rockefeller tree and the Times Square ball use energy saving LED lights. They're doing their part.

Tony.

HARRIS: That is terrific. All right, Poppy, I'm booking a flight, all right?

HARLOW: Great. Can't wait.

HARRIS: Hope to see you soon. Happy new year if I don't make it in time, all right? HARLOW: You, too, Tony.

HARRIS: All right.

What words cropped up this year that you'd like to banish? We'll share some of your suggestions. That's next.

(COMMERCIAL BREAK)

HARRIS: So what words need to be banished in 2009? We asked you. You answered and now our Josh Levs of maverick game changer who says he needs a staycation is here with your suggestions.

How was that? I've worked in a few, right?

JOSH LEVS, CNN CORRESPONDENT: That was pretty good, Tony.

HARRIS: All right. OK.

LEVS: Too bad they're not banishing great journalist and awesome guy. Next time, maybe.

All right. So here's the deal. We told you just last hour. I want to show you really quickly. The annual list is out. What words need to be kicked out of our language for 2009. Let's take a look at this graphic from Lake Superior State University. They want everyone to get rid of green, Tony, and maverick and this whole Wall Street/main street thing. They're saying, please, put that to bed.

Let's show one more screen with three more words. Check these out. They want to get rid of bailout, game changer, like you just said, and staycation, which I like. But I think I'm the only person left in America who actually liked that word.

HARRIS: Well, are there rules to this? I mean, how do you banish a word and how does a word make the list? And how do they decide?

LEVS: I'll so you than and then I'll show you what our viewers are saying.

So we have one more graphic here. Let's skip ahead to that. That is what the rules are. And basically they say, it has to be a word that is being misused, overused or is generally useless and people just keep saying it.

So we asked our viewers, what do you think? Let's zoom in on the board. You're going to like some of these. A lot of people saying change. That's what Joy in Pittsburgh, Pennsylvania, is saying, get rid of change.

HARRIS: Yes, I can see why folks would be a little tired of that. Yes.

LEVS: Not liking economic downturn, incentivize. Now this one I like. It's fairly new, but I'm already sick of post-racial.

HARRIS: Right.

LEVS: As soon as you say something that's post-racial, you're pointing out race. Just drop it.

HARRIS: And what does it mean? But, anyway, OK.

LEVS: That too. I know, what does that even mean.

HARRIS: Yes.

LEVS: Any joke involving being able to see Russia from Alaska, Tony. Oh, we've got a couple more. Please ban actually. It's actually driving me actually nuts from Mary Ellen.

All right, we can end with this one. Can we stop saying awesome now? It's lasted longer than groovy and isn't as much fun to say, from Dean Stelmach there in Oakland Park, Florida.

HARRIS: We can get rid of awesome if we can get rid of dude.

LEVS: You know, I don't think I could get by a day without using awesome or dude, but that's just me.

HARRIS: Dude. And wow. I've got to get rid of wow. That's just my personal list.

LEVS: Yes, I'm not that into wow.

HARRIS: I've wore that one out.

Josh, appreciate it. We're so late in the segment. Thank you.

LEVS: Thanks a lot, dude. You're awesome.

HARRIS: Anderson Cooper shares the stage with comedienne Kathy Griffin tonight. Boy, oh, boy, will Times Square ever be the same?

(COMMERCIAL BREAK)

HARRIS: Get outta here. It is time for 2008 to go. This is New York's world famous Times Square. A live picture for you now. A million people are expected on hand tonight for the glittering ball drop that welcomes 2009. Among them, CNN's Anderson Cooper and his New Year's Eve co-host, the off-the-charts Kathy Griffin. The comedian dropped by "AC 360" last night for a few laughs at her mom's expense.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN'S "AC 360": A dress rehearsal for tomorrow's big show. That's the New Year's Eve ball in reverse going up today. The glimmering orb is covered in 2,600 Waterford crystals. These are all facts that Kathy Griffin's been memorizing. I'm told it's going to be illuminated by some 32,000 low energy light bulbs.

KATHY GRIFFIN: Is this show on are you rehearsing?

COOPER: No, no, this is actually happening.

K. GRIFFIN: Are you sure?

COOPER: Yes, we're going live.

K. GRIFFIN: People are watching this?

COOPER: We're live right now.

The Waterford crystal ball may be the star of the show, but a couple of political superstars are going to be there. Bill and Hillary Clinton are going to push the ceremonial button that lowers the ball as the clock strikes midnight. They'll also be in Times Square. I'll be there.

K. GRIFFIN: Push the button up (ph) in (ph) New York?

COOPER: I can't pronounce t's. Two t's together.

K. GRIFFIN: What does that mean?

COOPER: Manhattan.

K. GRIFFIN: Is that just you screaming money? It's you throwing your money at my face again. Can we call a special viewer who's a big fan of yours?

COOPER: Yes. Sure.

K. GRIFFIN: All right. They said that you guys had dial-up (ph). So will you dial it and put it on speaker? Does anybody work here?

COOPER: Yes, I think -- what do you say, hello?

K. GRIFFIN: Cooper control? Cooper control? Oh, mom?

MAGGIE GRIFFIN, KATHY GRIFFIN'S MOM: Yes.

K. GRIFFIN: Hi. It's Kathy.

M. GRIFFIN: Hi. How are you doing?

K. GRIFFIN: Good. Do you know who we're here with?

M. GRIFFIN: Oh, tell me.

K. GRIFFIN: It's Anderson Cooper.

M. GRIFFIN: Oh, hi, Anderson.

COOPER: Hey, Mrs. Griffin. How you doing?

M. GRIFFIN: Oh, fine. How are you?

COOPER: I'm doing well. Now are you having some wine right now?

M. GRIFFIN: You know what? I hate to admit it, I just had a glass of wine.

K. GRIFFIN: What?

M. GRIFFIN: Only one, Anderson.

COOPER: Really? Was it from a box?

M. GRIFFIN: No, no. Actually I've kind of gotten to the, like, 750 millimeters or whatever they are. I'm really getting classy now.

COOPER: You're getting classy now. That's what -- I like the boxed wine. There's nothing wrong with it.

M. GRIFFIN: Oh, I do, too. Actually it doesn't taste that much different to me. But, you know, I have to kind of pretend it does.

K. GRIFFIN: Mom, you have to say good-bye. It's all about Andy tonight.

COOPER: No, no, no. It's so nice to -- it's so nice to talk to you.

M. GRIFFIN: Oh, all right.

K. GRIFFIN: And you should hear the stuff he was saying about you. Oh, harsh.

Bye. Love you.

COOPER: Are you going to watch us tomorrow night?

M. GRIFFIN: Oh, I certainly am going to watch you tonight and tomorrow night.

K. GRIFFIN: You hear how she goes, certainly. Oh, come on. Have some cheese and crackers.

M. GRIFFIN: Certainly. And I'm for you. And I know you'll both be great.

K. GRIFFIN: And you're not going to watch Ryan Seacrest, right?

M. GRIFFIN: Oh, is he even on?

K. GRIFFIN: Who cares. Thank you. You nailed it, Maggie.

M. GRIFFIN: Oh, OK. No, no, I'm going to watch you guys.

K. GRIFFIN: All right.

COOPER: Well, next year you'll have to come and join us live in Times Square.

(END VIDEO CLIP)

HARRIS: How good is that going to be tonight?

FREDRICKA WHITFIELD, CNN ANCHOR: I think it's going to be great.

HARRIS: Anderson Cooper, Kathy -- she is insane, right?

WHITFIELD: Oh, yes. She's . . .

HARRIS: And they're good together. So . . .

WHITFIELD: I think so. That's why you're seeing them again this year.

HARRIS: Last year it started the two of them together. It was terrific. And here they are back tonight, 11:00 Eastern is when the party gets started for us. Times Square live.

Hi, Fred.

WHITFIELD: Hi. Happy new year.

HARRIS: Haven't seen you in forever.

WHITFIELD: I know.

HARRIS: Enjoy some time off?

WHITFIELD: You had a good Christmas?

HARRIS: Yes, yes, absolutely. WHITFIELD: Good.

HARRIS: And I know you did.

WHITFIELD: Couldn't complain. Spent it with family. I'm happy.

HARRIS: All right. We're getting the wrap.

WHITFIELD: Happy new year.

HARRIS: CNN NEWSROOM continues right now with Fredricka Whitfield.

WHITFIELD: All right. Thanks so much, Tony.