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Israeli Strike Kills Hamas Leader and Family; Russian Professor Predicts U.S. Break-Up; Avalanche Kills 8 Canadians; What's in Store for 2009

Aired January 01, 2009 - 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: Hello, everyone, and welcome to the new year. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines from CNN for Thursday, the first day of January, 2009.
Israel pounds Gaza for a sixth day. Palestinian sources say a senior Hamas military leader has been killed in one attack.

(BEGIN VIDEO CLIP)

JEFF ADAMS, AVALANCHE SURVIVOR: We made the decision that it was unsafe to go in there, and that's when we had to make the gut- wrenching decision.

(END VIDEO CLIP)

HARRIS: He dug himself from the snow and walked away from an avalanche, but that meant leaving eight friends behind.

And the world welcomes 2009 and wonders what's going to happen to the economy this new year? It is issue number one.

New year, new bloodshed, Israel unleashing a new round of air strikes across Gaza. Pictures just hours ago show dead and wounded being pulled from the rubble of a building demolished in an Israeli missile strike on a Palestinian refugee camp. Palestinian sources say a Hamas military leader and members of his family were among 10 people killed in that Israeli strike, the Jewish state vowing to continue its bombardment until Hamas militants stop firing rockets into southern Israel.

Four Israelis have been killed in the rocket attacks. Palestinians report more than 400 people killed so far in the Israeli attacks, women and children among the dead. Israeli media reports the military commander assassinated today is the most senior member of Hamas killed in this six-day air offensive on Gaza.

Our Ben Wedeman is in the Israeli city of Ashkelon. And Ben, tell us who this Hamas commander was and why he was such an important target.

BEN WEDEMAN, CNN CORRESPONDENT: Well, his name was Nizar Rayyan. He's one of the principal figures in the Hamas movement, largely active in the military wing. He was involved, according to the Israelis, in the planning of a suicide bombing in Israel in 2004 that left 10 people dead. Now, obviously, this explosion not only killed him but several of his family members. We're seeing anywhere between 10 and 12 people being killed in this blast, including children. He was -- he lived in a four-story building, and it seems to have been largely destroyed, not only his home but severe damage to the homes around him.

This is part of an intensified Israeli air bombardment of the northern Gaza strip. We saw a good deal of that from the other side of the border just about three kilometers or two miles from Gaza itself, and it was just one air strike after another. According to the Israeli army, they were targeting buildings that were being used to -- weapons were being stored in, as well as their rocket-launching sites, as well.

What was interesting is that despite these -- this intense air bombardment, it didn't really seem to have much of an impact on the rocket fire, the outgoing rocket fire. In fact, in one instance, there was an air raid, and just minutes later, we saw three rockets being fired in the direction of Sderot -- Tony.

HARRIS: And Ben, just a point of clarity here. Israelis view this refugee camp as a legitimate military target not only because this Hamas leader called it home but also because rockets have been fired from this camp. Is that correct?

WEDEMAN: Well, it is the home of Nizar Rayyan, but it's the home of tens of thousands of other people who may not have anything to do with Hamas. This is the problem, that Gaza is a very, very crowded -- one of the most densely populated stretches of land in the entire world. And so if you're going to be hitting a building in any neighborhood, it's almost inevitable that there are going to be civilian casualties, and this has been the problem.

Now, at this point, more than 400 Palestinians have been killed in these six days of air attacks and more than 2,000 people wounded, among the dead more than 60 civilians. This is, in a sense, what's going to happen when you have a military operation in this kind of area.

HARRIS: CNN's Ben Wedeman for us. Ben, appreciate it. Thank you.

Israel's foreign minister says the Israeli offensive is yielding some changes in Gaza, Tzipi Livni defending her country's military action a short time ago in Paris.

(BEGIN VIDEO CLIP)

TZIPI LIVNI, ISRAELI FOREIGN MINISTER: We want to weaken Hamas in Gaza strip. At the end of the day, Hamas is a problem not only to Israel but to entire Palestinian people. They are a problem to those who understand what is the nature of Hamas. They are the problem to all the Arab states that understands that they have the -- they are on radical elements that come, including Muslim brotherhoods in different places. So what we are doing now is changing the equation, making it a better reality to our citizens, stopping the rockets on Israel. (END VIDEO CLIP)

HARRIS: Does Israel have an exit strategy? Our Brian Todd reports that's the concern for many here and abroad.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): U.S. officials and Arab diplomats tell CNN American leaders are strongly encouraging the Israelis to find a way out of this. Their biggest worry, according to sources, the longer this goes on, the more likely it'll become a mirror image of Israel's war against Hezbollah two years ago, when civilian casualties backfired on the Israelis.

HISHAM MELHEM, AL ARABIYA: Hamas could survive this Israeli onslaught. You have more corpses, more bodies, more destruction, and yet Hamas could survive politically, even if it's in a weakened position. This will embolden Hamas, Hezbollah, Syria, Iran and the radicals.

TODD: It will embolden those elements, some observers say, while embarrassing Israel, the United States and America's moderate Arab allies, like Egypt and Jordan. Arab diplomats tell us they sense a shift in the U.S. position just in the few days since this conflict began.

GORDON JOHNDROE, WHITE HOUSE DEPUTY PRESS SECRETARY: The United States holds Hamas responsible for breaking the ceasefire. Now, the ceasefire should be restored immediately.

TODD: That was on Saturday, and it meant Hamas should stop its rocket attacks. Now the talk is of a so-called durable ceasefire that both sides have to agree to and honor. And given the fierce resistance Israeli forces got from Hezbollah two years ago, there's a lot less confidence in Israel's ability to score a clear victory now.

PROF. REZA ASLAN, UNIV. OF CALIF. RIVERSIDE: It's hard to imagine how the Israeli military can utterly destroy Hamas, as it has set out to do. Hamas, besides being a militant organization, is a social organization. It has a political wing. It is an embedded force not just in Gaza but in the larger Palestinian territories.

TODD (on camera): One sign of concern in Washington about Hamas's civilian support base being hit -- when he spoke with Israel's prime minister recently, President Bush got an assurance that Israeli forces are only targeting Hamas's military positions. Brian Todd, CNN, Washington.

(END VIDEOTAPE)

HARRIS: In Thailand, a New Year's celebration turns deadly as a Bangkok nightclub goes up in flames. Boy, just horrible pictures here. Police say the fire and resulting stampede left 58 people dead in the upscale nightclub. Another 100 are hurt.

This is a CNN I-report and video here from Manik Sethisuwan. Manik says he had just left another nightclub when he saw all the fire trucks and ambulances. The fire started near a stage where fireworks were being used as part of a band's performance. A witness to the fire talked to CNN.

(BEGIN VIDEOTAPE)

STEVEN HALL, WITNESSED NIGHTCLUB FIRE: I tried, first of all, getting some people, you know, moving, to get them out. And I was making my way towards the exit myself, and there was somebody lying on the floor and I was dragging him out. And the lights went out, and at that moment, my back started burning and I was breathing in hot air. So I -- I -- I didn't manage to keep ahold of him. (INAUDIBLE) managed to make the long way out, I don't know. But I managed to make my way out along a wall and got out of the exit.

(END VIDEOTAPE)

HARRIS: Well, the majority of the dead are from Thailand. Police says most of the deaths were from smoke inhalation or from being trampled in the rush to get out of the building.

The fire chief says it's simply a disastrous way to start 2009, a fire in Washington killed at least five people today. Two were children. Four other people got out of the house and are hospitalized right now. Water used to fight the fire, as you can imagine, quickly iced up. Fire crews say two families lived in the home.

Aspen, Colorado, getting back to normal today. Part of downtown Aspen was evacuated for New Year's Eve after two suspicious packages were sent to two banks. And here's the strange twist. The 71-year- old suspect wanted in the incident found dead earlier today. Both packages were wrapped to look like gifts. Police ordered everyone within a two-block area evacuated. The offices of "The Aspen Times" newspapers were among several businesses cleared. The suspect is identified at Aspen native James Blanning. Police say they IDed him through a bank surveillance camera.

Avalanches have claimed at least eight lives this week in Canada. One man who survived describes the hard decision he had to make to leave friends behind.

(COMMERCIAL BREAK)

HARRIS: A dramatic rescue in British Columbia for a young snowboarder. Twenty-one-year-old James Martin was trapped three days in the mountains north of Vancouver. Check out this rescue. You see, the chopper couldn't land in the thick forest, so Martin was airlifted out yesterday by a rescue chopper. A relative says he kept moving to stay warm. Look at this. Martin told a reporter he never gave up, not once.

(BEGIN VIDEO CLIP)

JAMES MARTIN, TRAPPED IN MOUNTAINS: Thought I was going to get out every single night that I was in there. I thought, as I'm getting closer to dark, Well, you know, it's just around the corner, just around the corner. And there it was.

(END VIDEO CLIP)

HARRIS: Martin is being treated for frostbite.

Another tragic snow adventure to tell you about. A Canadian snowmobiler survives a series of avalanches bus had to leave some friends behind to escape being killed himself. Eight people died. Kevin Rich of CTV has that story.

(BEGIN VIDEOTAPE)

KEVIN RICH, CTV (voice-over): Jeff Adams struggled through the haunting memories of Sunday afternoon. He was rescued by 28-year-old Danny Bjarnason after the first wall of snow hit. It was the second avalanche that left him in stunned disbelief.

JEFF ADAMS, AVALANCHE SURVIVOR: After about five minutes of struggle, and I got myself out, looked around, realized there wasn't anybody else. Couldn't see any sleds, no gear, nothing.

RICH: Adams then heard the voice of Jeremy Rusnak. He managed to free Rusnak after about 15 minutes of frantic digging. The two men focused on another faint voice, that of James Drake.

ADAMS: We heard a crack again and said, Sorry, James, we've got to run. As we were running away from James, he was saying, Don't leave me here. Don't leave me here. We kept saying, We're sorry.

RICH: Once the third slide came to a halt, Adams and Rusnak managed to free Drake. At that moment, the three men realized that they had to leave eight friends behind.

ADAMS: Couldn't see no hands, feet sticking up. We contemplated whether trying to get the one snowmobile that wasn't hit by the slide out. And that's when we made the decision it was unsafe to go in there, and that's when we had to make the gut-wrenching decision to leave our eight friends and start walking off the mountain.

RICH: As Adams, Rusnak and Drake started hiking out, the mountain struck again.

ADAMS: Tried to look one more time. And as I turned to look at mountain, the whole center of the mountain come down, burying everything again. So we just decided that our best bet was to keep walking.

RICH: The three men were eventually picked up by a helicopter. On Tuesday, Adams went back to help searchers look for Danny Bjarnason, the 28-year-old friend that had freed Adams from the first avalanche. Kevin Rich, CTV news, in Sparwood.

(END VIDEOTAPE)

HARRIS: Bundle up in Boston. The New Year's snowstorm -- OK, that's over, but frigid cold will hang around for a while longer. And the temperature in Boston right now is about 14 degrees. And maybe we should check that with Chad. It won't get any higher than 19. The storm dumped a half foot of snow across the city. Gusting winds prompted the fire department to call off New Year's fireworks. Snow that's blowing off the Great Lakes is absolutely piling up in places around the Midwest. Most area are clear today but remain bitterly cold.

And you know, Chad, there were some predictions yesterday that folks in the Northeast would get in some spots a foot of snow. You said that was unlikely. And again, you were on it.

CHAD MYERS, CNN METEOROLOGIST: It was on a little bit. There was a couple spots that were over 10 inches, and those were the localized areas. We just knew that there wasn't going to be a long enough duration storm to sit there long enough...

(CROSSTALK)

MYERS: ... foot of snow everywhere. D.C. had 59 mile-per-hour winds yesterday. Cambridge, Mass, the same. So that's almost a hurricane, certainly into a tropical storm force wind. We did have some places where trees were coming down. And there you go. Once a while, we could find above 10 inches, there in Kingston, Mass -- 9.9 in Buffalo was really a lake-effect snow event as the winds started to pick up off the lakes and blew it right there to the airport. Providence, Rhode Island, really, the big winner when it comes to the big cities, at 8 and Boston at 6.

The snow today is out to the west. The difference today is that this is going to be a warmer storm. The snow right now is about 1,500 feet, so everywhere through the passes seeing snow. Tonight a warm front is going to come by. Tony, that means that the snow level is going to go all the way up to 5,000 feet, which means anything below 5,000 is going to get rain.

That seems like a good thing, except you have all that snow already there that's going to be raining into that snow, could cause avalanches, certainly could cause flooding or flood watches across parts of the area today as the warm front runs in, what was snow turns to rain. Then that rain wants to wash away some of the snow. That rain wants to fill up some of those reservoirs, fill up maybe the creeks and streams, and for that matter, even the gutters in the street that are clogged with snow because they've had so much of it out there.

Other than that, the airports are doing very well. Only one airport delay so far. That's San Francisco at 25 minutes. I'm not sure this is a getaway day anyway, but for the most part, airplanes are on time.

HARRIS: Nice. All right, Chad. Good to see you. Happy new year.

MYERS: Happy new year to you.

HARRIS: Thanks. So you think things are tough heading into the new year? One man is predicting a civil war will break up the United States, and a lot of people are listening to him.

(COMMERCIAL BREAK)

HARRIS: Say good-bye, Hawaii. President-elect Barack Obama, his wife and two daughters are wrapping up their holiday vacation. They're heading back to Chicago. And later this weekend, the family will check in to the Hayes-Adams, one of those fancy Washington hotels. As you are probably aware, the family moves into 1600 Pennsylvania Avenue January 20.

The new year brings a whole bunch of new laws. Here are just a few that caught our eye. Florida has a new law to help people without health insurance. Hospitals are required to give patients a good faith estimate before treatment. Disabled veterans are getting a tax break in Oklahoma. The new law there says wounded vets don't have to pay property taxes. Sex offenders tracked a little more carefully in Georgia. A new law says they have to provide the state with Internet screen names, and more importantly, their passwords.

In Seattle, restaurant doggy bags now have to really be bags. The city has banned styrofoam food containers. California's ban on texting while driving is in effect today. The highway patrol points out you can't even text while stopped in traffic or at a stoplight. A first offense carries a $20 fine.

2008, a rough year for the United States, and one Russian professor says things are about to get a lot worse. The former KGB analyst says the U.S. will break up next year, and it's a prediction that has made him the toast of Russian media. Here's senior international correspondent Matthew Chance.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): An economy in freefall, unpopular wars in Iraq and Afghanistan and growing hardships at home as recession bites. As if things weren't bad enough, now one Russian professor is predicting the imminent break-up of the United States.

PROF. IGOR PANARIN, POLITICAL THEORIST (through translator): I got the idea that the United States could disintegrate in the summer of 1998. I should admit that I was quite surprised to have come to this conclusion. Up until I started analyzing, I no idea that the U.S. had this disintegration tendency.

CHANCE: In brief, Panarin predicts that by despite 2010, the U.S. will break into pieces, including new republics centered on states like California and Texas. The eastern states will join the European Union, he says. Canada will grab a handful in the north, while Alaska would return to Russian rule. It's all the end result of a fractious civil war triggered, says Panarin, by moral and economic degradation and immigrants. (on camera): It may be just a crackpot theory. We have no real scientific research to back it up. But what's fascinating is how it's being received here in Russia. The Kremlin has long blamed the United States for everything, from instability in the Middle East to the global financial crisis. And this apocalyptic vision of America's future is suddenly being embraced.

(voice-over): Professor Panarin, a former KGB analyst who heads Russia's diplomatic academy, regularly appears as a U.S. commentator on Russian television and in national newspapers. Analysts say his high profile reflects anti-American sentiment here.

SERGEI KARAGANOV, POLITICAL ANALYST: Of course, a lot of people in the world, including in this country, would like the United States to fall apart because it has been too mighty or -- and because it is -- it looks now that it is -- it is losing.

CHANCE: But Panarin says he's being proved right by events.

PANARIN (through translator): We're seeing indicators like the collapse of the Wall Street banks, a mortgage crisis in the USA, as well as a number of various domestic problems. Even five years ago, many of those problems didn't exist, and most people didn't believe my ideas. But today, when America has shown its vulnerability, people have started to take them more seriously.

CHANCE: And in a country like Russia, which has huge problems of its own, the demise of the United States its old enemy, is proving a powerful distraction. Matthew Chance, CNN, Moscow.

(END VIDEOTAPE)

HARRIS: As Israeli and Hamas forces fight in Gaza, a lot of those who live there are just trying to get through the day. We will share some of their stories. That's next.

(COMMERCIAL BREAK)

HARRIS: A deadly start to the new year, Israel unleashing a fresh round of air strikes across Gaza. Pictures just hours ago show dead and wounded being pulled from the rubble of a building demolished in an Israeli missile strike. Palestinian sources say a Hamas military leader and members of his family were among 10 people killed in that particular strike, the Jewish state vowing to continue its bombardment until Hamas militants stop firing rockets into southern Israel. Four Israelis have been killed in the rocket attacks. Palestinians report more than 400 people killed so far in the Israeli attacks, women and children among the dead.

Gaza is a poor and crowded plot of land to Israel's south. It is about double the size of Washington, D.C., with an unemployment rate at an astonishing 34 percent. So as senior international correspondent Nic Robertson shows us, life in Gaza has just gone from bad to worse.

(BEGIN VIDEOTAPE) NIC ROBERTSON, CNN CORRESPONDENT (voice-over): Omimar (ph) rocks her baby to sleep by candlelight. Her two-story house in Gaza has been without electricity since Israel's attacks began five days ago. They use mobile phones to light their way. And the situation is getting worse.

Israeli missiles destroyed the woods, the glass. This is the children's bedroom, she explains. The missiles hit a nearby mosque.

Her family is better off than most of Gaza's 1.5 million residents. But their plight is typical. The violence is traumatizing them.

Her husband, Narhard (ph), an accountant, explains. "You hear the ambulances and the sirens. And it's very difficult psychologically for any human, knowing there are people who are injured or killed." His sister has her fears. "We live in horror," she says. "We are scared for our children. There is no security."

Days of missile strikes that Israel says are necessary to stop Hamas rockets that are killing Israeli civilians. And in Gaza, fear is spreading. This apartment, badly damaged during the attack.

UNIDENTIFIED MALE: We were unable to -- to know exactly what was there, other than only destruction. And our only -- the only task we were just looking in is to take care of our killed.

ROBERTSON: Among Israel's most recent targets, a mosque they say was used to store rockets. In this Israeli defense force video of the attack, secondary explosions after the missile's impact they say confirm its use as a Hamas ammunitions dump. Other targets include Hamas' leaders. The prime minister's office destroyed. Hours later, he was on TV for the first time since the start of Israel's operation against his militants.

ISMAIL HANIYA, HAMAS LEADER, (through translator): The aggression must stop, the crossings must open and blockades must be lifted and then we can talk about all other issues.

ROBERTSON: He goes on to claim the war will be a tipping point. But right now, for the majority of Gaza's residents, there is own suffering.

"How can I take just one bag of bread, this man complains? There are seven in my family. This is just one meal. I have to wait until tomorrow to get more."

With bread, as with much else, the balance is still firmly tilted towards Israel. Ninety-three trucks of much-needed food and medicine allowed into Gaza. For all but the most badly wounded, there is no way out. This young Palestinian boy, injured by a Hamas rocket, being taken to a hospital in Israel.

Until now, Israeli security forces have been keeping journalists out of Gaza, even moving them on when they are close to troops camped near the border. The conflict is becoming increasingly difficult to cover. And this report was only possible with the help of trusted colleagues inside Gaza.

Nic Robertson, CNN, Jerusalem.

(END VIDEOTAPE)

TONY HARRIS, CNN ANCHOR: The United States turned over control of Baghdad's government and military center today. It is called the Green Zone. Six square miles. Heavily guarded. Home base for the Israeli leadership and U.S. military. Foreign affairs correspondent Jill Dougherty is live from Baghdad.

And, Jill, how big a deal is this for Iraqis?

JILL DOUGHERTY, CNN CORRESPONDENT: It's very important, symbolically, and also legally, Tony, because after all, we saw the ceremony today, the handover. But what really is happening, more significantly, is the new security agreement between the United States and Iraq is going into effect as of today, January 1st. And that means great changes throughout the country. Now, it's just the beginning. There will be a lot of developments as it goes along. But it is important and symbolically, fittingly, it began in the Green Zone.

(BEGIN VIDEOTAPE)

DOUGHERTY, (voice over): It's known as the Green Zone. Its official name is the International Zone. Four square miles, 10 square kilometers, carved out of the heart of Baghdad, surrounded by massive concrete blast walls and razor wire, guarded by a maze of checkpoints and armored vehicles. An American-run mini city that gives new meaning to the expression "gated community."

It's the scene of the Iraqi government and of the international coalition. Until January 1st, it was under coalition control. Now that control shifts to Iraqi hands.

Before the invasion in 2003, there was no such thing as the Green Zone. The area contained Saddam Hussein's presidential complex, a series of palaces for him, his family and his top officials. When U.S. forces captured Baghdad, Jay Garner, the first U.S. administrator for Iraqi reconstruction, set up offices in Saddam Hussein's Republican Palace. Soon, American soldiers were relaxing in Saddam Hussein's swimming pool.

But it didn't take long before the Green Zone was under attack. The al-Rasheed Hotel hit in 2003. The Iraqi parliament cafeteria bombed in 2007. Last year in the Green Zone, U.N. secretary-general Ban Ki-Moon was startled by a mortar exploding nearby.

Despite ramped up security, the Green Zone became even more of a target. It was very (INAUDIBLE). A no-go zone for most Iraqis. Even Iraqis who lived or worked there had to stand in endless security cues. For Americans and other international employees, it became a hermetically sealed bubble, cutting them off from most Iraqi citizens and the reality of life in Baghdad. Now, Americans have moved out of the Republican Palace and into the new American embassy about a mile away. For Baghdad residents, turning the Green Zone over to Iraqi control could mean fewer traffic jams with more and more roads through the Green Zone expected to open up.

(END VIDEOTAPE)

DOUGHERTY: And today, as we traveled throughout the Green Zone and in other parts of Baghdad, we saw more and more Iraqi flags, symbols of what they hope will be more increasing sovereignty for Iraq -- Tony.

HARRIS: Yes, Iraqis taking more control of their country. That can't be a bad thing. Jill Dougherty for us in Baghdad.

Jill, appreciate it. Thank you.

Hawaii in his rearview mirror. Barack Obama is heading back to Chicago. In 19 days, he takes on a mountain of problems. For the president-elect, the economy remains issue number one. Senior White House correspondent Ed Henry takes a look.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT, (voice over): While keeping one eye on the crisis in Gaza, President-elect Barack Obama is now returning to the mainland to focus on the issue that propelled him to office -- the economy. Which is why the transition team is kicking off the new year by sending Congress a recovery plan in the neighborhood of $775 billion.

SEN. JOE BIDEN, (D) VICE PRESIDENT-ELECT: Economists rarely agree. But on this score, there's overwhelming agreement that we need a robust and sustained economic recovery package. The greater threat to our economy lies in doing too little rather than not doing enough.

HENRY: Transition aides say the goal is to get the bill sign into law as quickly after the inaugural as possible. To get the new president a quick victory, while also giving the economy a shot in the arm.

The emerging plan includes billions for backlogged transportation projects to beef up construction jobs and improve the nation's infrastructure. As well as modernizing crumbling public schools, to create jobs while also investing in education.

REP. BARNEY FRANK, (D) MASSACHUSETTS: If we don't do this, it will cost us even more. This economy is now in the worst shape since the Great Depression. And if we do not respond in a very firm way, it gets worse and worse and feeds on itself.

HENRY: But Republicans are making noise about slowing the stimulus plan down, because they're wary about the price tag. Especially on top of a series of government bailouts. REP. ERIC CANTOR, (R) VIRGINIA: I think most American taxpayers now are sort of scratching their head wondering when all this bailout stuff is going to end and probably thinking, you know, when is my bailout coming?

HENRY: To overcome the opposition, aides say Mr. Obama is considering plans to travel the country, to sell the economic plan quickly after being sworn into office.

Mr. Obama needs to move quickly to sell his plan because there's no time to waste. This is the first real test of the new president's clout.

Ed Henry, CNN, Honolulu.

(END VIDEOTAPE)

HARRIS: So what does 2009 have in store for us when it comes to your job, the value of your home and your health care? The executive editor of "The Economist" magazine, Daniel Franklin, asked the experts to make some predictions. He joins us now.

Daniel, good to see you. Thanks for your time and happy new year to you.

DANIEL FRANKLIN, EXECUTIVE EDITOR, "THE ECONOMIST": Thank you. Thank you.

HARRIS: What's the jobs outlook for 2009, Daniel? What are the experts saying and, generally speaking, do they agree?

FRANKLIN: Yes, I think they agree that it's pretty grim, unfortunately. I think most companies now, with a global recession, are in serious cost-cutting mode. We're likely to see bankruptcies rising. And all that, of course, translates into job losses. So I think in the first weeks and months of 2009, that's going to be very much in the headlines.

HARRIS: And in the predictions from these experts, do they factor in that people are not fully employed maybe at this point in time, even those who are working may not be fully employed or are even making less now? If you factor in those kinds of items in, it's an even bleaker picture, isn't it?

FRANKLIN: It's even bleaker for the overall economy in the sense that there's less output happening because many companies are scaling back and, as you say, not everybody's working at full power (ph).

HARRIS: Do you expect to see small businesses, maybe more small businesses, sprout up, start up in 2009 as maybe some of the people who have been laid off and maybe have some resources think about starting their own businesses?

FRANKLIN: Yes, I think that very much does happen. I mean many of today's big companies were formed in difficult times. So you will have people who perhaps lose their job and find it hard to find a new one with a major corporation, who think, well maybe I'll follow my dream and do my own business. And some of those, of course, will succeed. Many will fail, but some will succeed.

HARRIS: Yes. And, Daniel, on the home front, mortgage rates, we understand, are certainly down along with home values. What are the thoughts of the experts for this year in the housing sector?

FRANKLIN: Well, I think if we're lucky we may see a bottoming out of the fallen home prices around about the spring or summer of this year. You know, the prices have fallen so much already that we're getting back towards more normal valuations and the ratio between people's incomes and the value of their homes. So the hope is that that might happen within this year. Perhaps in the middle of the year. And, of course, that's where all the trouble started. So people might look to that as one sign that we're beginning to see a turnaround.

HARRIS: Yes, but there also needs to be some thawing, further thawing of the credit markets. Is that in the offing, according to the experts?

FRANKLIN: Well, that's one of the very big questions. I think we hope that that will happen. The hope is that all the rescue money that's been pumped in and a lot of the toxic debt that's been removed, that that will help. But, you know, there are still many foreclosures going to be happening and probably a shock or two ahead. So it won't be a smooth ride.

HARRIS: And what are the experts saying to you about health care? The real chances for real reform in health care? And maybe, dare I say, the dividends to all of us from an improved health care system?

FRANKLIN: Yes, I think this is one of the areas where there's going to be a big shake-up in the year ahead and beyond. Obviously, it's going to be very much at the forefront of the political agenda with the new presidency. But also there are other things which are meeting that there will be a lot of upheaval in the sector. Those generic drugs coming on stream because a lot of the patents (ph) of the big blockbuster drugs are expiring. And then you have, perhaps, a big trend rise in health tourism, with people shopping around for cheaper places to have operations. You know, some parts of the world can do operations at very good facilities at a fraction of the cost.

HARRIS: And, Daniel, is health care an area where you expect to see some growth in the job area? And I keep hearing health care and education.

FRANKLIN: Yes, I think that's one area where some of these big investments that we're expecting, government stimulus, is going to come. We're going see investment in health care and in research -- medical research, university research. Generally I think that's one of the areas we can see some growth.

HARRIS: And, Daniel Franklin is the executive editor of "The Economist."

Daniel, thanks for your time and happy new year again to you.

FRANKLIN: Thank you very much.

HARRIS: Now that you know what jobs to look for, how do you go about getting one? We have one of the leading expert weighing in on that.

And meet the kids and their teacher who inspired Oprah Winfrey to pull out her checkbook for the holidays.

(COMMERCIAL BREAK)

HARRIS: Talk show queen, business mogul, philanthropist Oprah Winfrey likes to surprise people with gifts. Oprah has opened her checkbook again. This time to a private school in Atlanta. Here's reporter Donna Lowry with our affiliate WXIA.

(BEGIN VIDEOTAPE)

RON CLARK, RON CLARK ACADEMY: And I realized the sheet of paper was actually a check made out to the Ron Clark Academy for $365,000!

DONNA LOWRY, CNN CORRESPONDENT, (voice over): A shocker. Not just for the kids, but the parents, everyone. This is a dream for Ron Clark Academy. A school only in its second year and just getting started.

UNIDENTIFIED MALE: Oh, my gosh. Oh, my gosh. Oh, my gosh.

UNIDENTIFIED MALE: This is such an amazing gift.

UNIDENTIFIED MALE: And I've never felt like this before.

UNIDENTIFIED MALE: It's just a powerful moment in history.

LOWRY: Oprah met Clark after he transformed a classroom in Harlem. That was years ago. So the other surprise came after the check arrived when Oprah called him.

CLARK: I said, how did you come about to sign and (ph) send (ph) a check for $365,000? She said, well, I was sitting on my couch. She said, and I was thinking about who I wanted to give Christmas gifts to and I thought about you. She said -- and she said, I'm going to send $1,000 for every day of the year.

UNIDENTIFIED MALE: We all say, thank you.

LOWRY: She sent the money without even knowing about the song the students wrote calmed "A Letter to Obama."

KIDS, (singing): Shine the light for the world to see this great (ph) peace, hope and democracy

LOWRY: These fifth, sixth and seventh graders understand how the gift validates a school where most of the kids come from at-risk backgrounds. CLARK: I think you'll see that she has faith in us and we hope others will have faith in us as well because we get scholarships for all of our students. We're a small school in a small factory trying to change the world. We need support. We're constantly fund-raising. And we depend on the community of Atlanta to have our backs.

GLORIA NESMITH, PARENT: I'm just excited about the opportunities that the children have and the children that are yet to come because of the funds that are provided.

UNIDENTIFIED MALE: Happy new year!

LOWRY: In these tough economic time, the spirit of the season shines through.

UNIDENTIFIED MALE: This news is like Christmas (INAUDIBLE).

(END VIDEOTAPE)

HARRIS: And talk about a good get. Headmaster Ron Clark will be in the NEWSROOM tomorrow morning. He stops by during the 10:00 a.m. Eastern Hour. Again, that's tomorrow for a chat with our Heidi Collins.

All you job seekers out there, get your resolutions together to get to work in 2009. We've got some vital tips you need to hear. And that's next.

(COMMERCIAL BREAK)

HARRIS: You know with so many folks looking for work, it's really competitive out there. So earlier I asked a leading job finding expert, John Challenger, how folks can increase their chances are landing their next job. He is the CEO of the global outplacement consultancy group Challenger Gray & Christmas.

(BEGIN VIDEOTAPE)

JOHN CHALLENGER, CHALLENGER GRAY & CHRISTMAS: Good resolution to make this year, join some of these social networking sites like -- especially the business oriented ones, like Linkedin and Facebook, which is becoming more popular, and Plaxo and ExecuNet. Make sure that what you have up there is strong. Don't have it be your personal life. Go in and edit that. And then get involved.

HARRIS: Got you. You also say, speaking of getting involved, get involved with community service groups. Describe those and the benefits of getting involved with that kind of an organization.

CHALLENGER: I's so important during a time out of work. You've got a lot of time on your hands to be out there, engaged in your community. So it's a great time to pick a charity or a community organization you care about, has a lot of people saying involved, so you meet a lot of people, to go out and do something good, but also it will help your job search.

HARRIS: And the benefits of joining professional and trade groups and organizations. I think that's pretty obvious.

CHALLENGER: Yes. And this is a must for both people who are in work and out of work. Join those organizations now. In many ways you identify more today with your professional colleagues or your industry colleagues than even your particular company, because you move companies throughout your life. So get involved in these now and start going to the meetings, going to the programs. Very important.

HARRIS: Talk to us about this strategy of meeting 10 new people in your field. I like it.

CHALLENGER: Well, yes, here's a great way to say, all right, I'm going to spend the next month or two, I'm going to identify 10 interesting people that I can get to in my field, especially those who are wired and connected, and certainly if you can figure that out even better, and then go out and have coffee with then. Call them up. Ask them if you can get together. Get their advice. Most people are going to say yes.

(END VIDEOTAPE)

HARRIS: If you have a job and hope to keep it, his biggest tip, become an expert on one facet in your field, that way you become invaluable.

You ready? Three, two, one -- in any language, it's an inspiring way to start the new year.

(COMMERCIAL BREAK)

HARRIS: Hey, look, if you're like me, you were sound asleep at midnight when the rest of the country was ushering in 2009.

Fred, can't take it. I can't take it.

FREDRICKA WHITFIELD, CNN ANCHOR: I can't believe you admitted it.

HARRIS: Can't. Cue to the fireworks here. Jeanne Moos takes us on a whirlwind tour of New Year's Eve festivities.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT, (voice over): It's the one thing you can count on, on New Year's Eve -- countless countdowns. From Hong Kong to Thailand to Australia.

UNIDENTIFIED MALE: Seven, six, five . . .

UNIDENTIFIED MALE: Happy new year. Happy new year.

MOOS: And if you don't speak the language, watch the sign language.

It seemed the festivities worldwide were presided over by overexcited hosts, worked up over the fireworks. Fireworks were first rate. Australia's Sydney Harbor Bridge, and in Taiwan -- style seemed more towering inferno.

In New Zealand, the fireworks were accompanied by horns. Some literally rang in the new year. And some chose not to leave home.

GORDON JOHNDROE, WHITE HOUSE DEPUTY PRESS SECRETARY: The president will spend a quiet New Year's Eve on the ranch.

MOOS: While others were about as far away as you could get.

UNIDENTIFIED MALE: We'd like to wish everyone on beautiful planet earth a happy new year.

MOOS: Yes, it looks beautiful from out there. But in deference to the bloody situation in Gaza, countries like Egypt and Dubai canceled celebrations. Sounds and sights of fireworks don't seem to work as well when there's real smoke in the air somewhere.

Back on the streets of New York, we asked for one word description of the past year.

2008 . . .

UNIDENTIFIED MALE: Turbulence.

UNIDENTIFIED MALE: Catastrophic.

UNIDENTIFIED MALE: Dreadful.

UNIDENTIFIED MALE: Expensive.

UNIDENTIFIED FEMALE: Extremely difficult. I know that's two words.

UNIDENTIFIED FEMALE: Tons of fun.

UNIDENTIFIED MALE: Trouble.

UNIDENTIFIED FEMALE: It was good for me.

MOOS: From the Kremlin, to the acropolis, to the Ukraine . . .

most frequently heard word in every language . . .

UNIDENTIFIED MALE: Wow!

UNIDENTIFIED MALE: Whoa!

UNIDENTIFIED FEMALE: Whoa!

UNIDENTIFIED MALE: Happy new year.

UNIDENTIFIED FEMALE: Happy new year.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE) HARRIS: Fred, that's the word I'm trying to eliminate out of my -- well, not really but . . .

WHITFIELD: Wow?

HARRIS: Just not to overuse it so much. I'm the wow guy. It's like I'm fascinated . . .

WHITFIELD: I think wow is OK.

HARRIS: I'm fascinated by everything.

WHITFIELD: Wow!

HARRIS: Wow!.

CNN NEWSROOM continues right now with Fredricka Whitfield.