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Israel Prepares for Ground Assault on Gaza; President-Elect Barack Obama and His Family Prepare to Move to Washington This Weekend; Obama Comments on Illinois Senate Pick; Oil Drops to $42 a Barrel; Ovarian Transplants Now Possible

Aired January 02, 2009 - 10:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Tanks on the border. Israeli armor lined up near the Gaza line. Could an air assault expand to the ground?
And a gift of $1,000 for each day of the year. Oprah Winfrey wrote the check. We talked to the man who will cash it. It's Friday, January 2nd, 2009. I'm Heidi Collins, and you're in the CNN NEWSROOM.

Quickly I want to get directly to some of these live pictures that we have been able to bring in to you regarding the Mideast fighting. You see three plumes of black smoke there. This air assault just taking place seconds ago in Gaza. Just a few moments ago we were looking at Gaza city, someone can tell me exactly what we're seeing right now, I can bring that to the viewers.

But once again, this is the seventh day of the assault. And you can see for yourself -- once again, it is Gaza City I'm being told. So once again, this is exactly what happens when planes fly overhead. You see the black plumes of smoke from the pay loads that they have dropped off there. We continue to follow the story very, very closely. The big questions, the Israeli tanks and troops that are amassed on the border. Could an invasion of Gaza be on the horizon?

The fighting as we've been saying is intensifying on this seventh day of the offensive. This is video of an Israeli air strike on a mosque. Israel says it was a Hamas stronghold where weapons are being stored. War planes also hit about 20 homes linked to members of Hamas and other militant groups. Also today, a funeral for the Hamas leader killed in yesterday's air strike. He is among the growing death toll. Palestinian medical sources say more than 420 people have been killed in Gaza, Israel says four people have been killed by Palestinian rocket fire.

COLLINS: We are awaiting the start of White House's daily briefing. We're going to keep our eye on that for you once it gets underway. If any news is being made, of course regarding this situation in the middle east, we are going to bring it to you just as soon as it happens.

And in just a few minutes ago, the Secretary of State walked out of a briefing with the president and weighed in on the conflict. Condoleezza Rice says the White House is working toward a ceasefire that would alleviate the suffering in Gaza.

(BEGIN VIDEO CLIP)

CONDOLEEZA RICE, U.S. SECRETARY OF STATE: To address it, I want to begin by noting that Hamas has held the people of Gaza hostage ever since their illegal coup against the forces of President Mahmoud Abbas, the legitimate president of the Palestinian people. The Hamas has used Gaza as a launching pad for rockets against Israeli cities and has contributed deeply to a very bad daily life for the Palestinian people in Gaza and to humanitarian situations --

(END VIDEO CLIP)

COLLINS: Rice says President Bush has been in touch with Arab and Israeli leaders. She also says at this time she has no plans to travel to the region.

The Israeli offensive, it shows no signs of letting up, but will it escalate to a ground invasion? That is certainly the question. I want to get the very latest developments now. CNN's Paula Hancocks is along the Israel-Gaza border.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Heidi. Well, certainly the international community is getting worried about this. Because the death toll keeps rising, at least 420 killed now in Gaza, according to Palestinian medical sources. Well over 2,000 have been injured.

Now obviously, many of these that have been killed are Hamas operatives. Israel has made it very clear that is after the Hamas leaders. And certainly yesterday we saw one of the top leaders, one of the founders of Hamas being killed along with his four wives and nine of his children.

So the ground operation is still an option. We're still seeing the tanks on the horizon all facing in the direction of Gaza. But of course, it is a very difficult decision for Israel if it does go in a ground operation it is more than likely to take heavy casualties. Of course, that could well be more Palestinian civilian casualties as well.

Now one other thing that did happen this morning. About 280 foreign nationals were allowed out of Gaza. Israel opened the border crossing at the northern tip of Gaza to allow those foreign nationals out. Unfortunately they did not allow foreign journalists the other way which is why we're still on this side of the border. Israel still not allowing us to report from Gaza itself -- Heidi.

COLLINS: All right. Our Paula Hancocks keeping an eye on this situation. We also are keeping a very close eye on these live images that we are able to bring you continually here of Gaza, coming in all the time in the CNN NEWSROOM. You can still see the remainder of those black smoke clouds there from the latest air assaults and air strikes. Gaza City. Our cameras and crews are in place across the region. We are getting these nonstop feeds from other news organizations. We'll continue to put them on the air for you.

The vacation is over. President-elect Barack Obama arrived back in Chicago early this morning ready to get back to work. But he is dealing with a bit of a distraction. CNN's Brianna Keilar has more.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): An economic crisis in full swing, a year when almost $7 trillion were lost in the stock market finally over. As President-elect Obama returns from vacation in Hawaii, he wants to focus on the economy. Instead --

STU ROTHENBERG, EDITOR, ROTHENBERG POLITICAL REPORT: The Burris controversy or the Blagojevich controversy is a significant distraction. It's not what the Obama administration wants to be talking about. It's not what democrats want to be talking about.

KEILAR: Roland Burris, embattled Governor Rod Blagojevich's choice to fill Obama's seat in the Senate is a fixture in the news cycle. A source familiar with the governor's thinking says Blagojevich was not against creating chaos with his pick and he has certainly stirred the pot. As Senate democrats threaten to block Burris's appointment, race has become an issue.

ROLAND BURRIS: Is it a fact that there are no African-Americans in the United States Senate? That's a fact. Is it racism taking place? That's the question that someone else may raise.

KEILAR: Even on vacation, the president-elect was forced to take a stand, issuing a state saying Senate democrats can't accept an appointment made by a governor who is accused of selling this very Senate seat. Political analysts say this type of distraction is part of being president.

ROTHENBERG: This is a good reminder to the Obama administration and its political advisers and staffers that almost anything can come out of the blue and create a controversy that a president and senior advisers have to deal with, even if they would prefer to ignore things completely. You can't.

(END VIDEOTAPE)

COLLINS: Brianna Keilar joining us now live from Chicago. So Brianna, is this distraction going to affect the president-elect's work on the stimulus plan?

KEILAR: Well, no doubt, Heidi, Roland Burris is stealing some headlines and some attention when the Obama team really wants to be focusing on the economy. But the thought, according to analysts is that this Burris appointment is going to be a short-term distraction. That as details of this new economic stimulus plan take shape as we get closer to Obama's inauguration, those things are really going to be stealing some of the spotlight.

Now that said, in the short-term, there is going to be some focus on this. Senate democratic leaders, according to an aide I spoke with, are expecting Burris to show up on Capitol Hill on Tuesday for the opening of Congress. They've even designed or devised really a plan, a contingency plan for what to do if they have to turn him away from the door to the Senate floor. So you can see there's going to be some attention here, a potential showdown. Burris says he's not going to make a scene. Senate democratic leaders not leaving anything to chance, Heidi.

COLLINS: Yes, I guess not. And Obama's chief of staff stepping down from his other job today. Doesn't Blagojevich have a say in this as well?

KEILAR: He does. This is a little different. So Rahm Emanuel, as he steps down, what happens is the Illinois governor, Rod Blagojevich, has to schedule a special election within 115 days. So he does have some input. There's going to be some focus on that, but it's not nearly as much input as he has on Obama's vacated Senate seat because he's not making an appointment.

At the same time the several politicians in Chicago saying that you know they would be interested in the job. So we're going to wait and see who it ends up being and exactly how long it's going to take for that special election, Heidi.

COLLINS: All right. CNN's Brianna Keilar following all of the news coming out of Chicago. Thanks so much, Brianna.

A deadline today in the on-going Minnesota Senate rate. That still hasn't been figured out. Democratic challenger Al Franken leads incumbent Norm Coleman by 49 votes. As you know, that's Al Franken on the left contested absentee ballots are due back in St. Paul by midnight. Counties across Minnesota were reviewing those ballots this week. They will be counted on Saturday.

People in the northwest may have forgotten what a sunny day looks like. Flood warnings are out in Oregon as yet another storm moves in. Mudslides also a big concern. Portions of several state highways have been closed as a precaution. It is snowing next door in Washington. As much as 18 more inches could fall on the Cascades. Two main mountain passes are still closed just in case of avalanches.

Residents and business owners along the coast are most worried about the fierce winds. Yesterday ahead of the storm they saw 60- mile-per-hour winds. And what a nasty combination that is, the cold with the wind and the snow and the rain.

REYNOLDS WOLF, CNN METEOROLOGIST: Yes. It's one of those days, Heidi, where you're not going to go anyplace without a snow shovel or an umbrella or maybe even both. You know, it's one of those days. Take a look at some of the rainfall totals we got since yesterday. In parts of Oregon, heavy precipitation to say the least. The record set yesterday was in Portland, 2.49, nearly 2 1/2 inches of rainfall.

That should begin to ease out today. But as the storm system pushes into the higher elevations of the Cascades and eventually into the Rockies, it's not going to be rain. It's going to be snow. And snow could specially be deep in many spots. Several feet possible as we make our way into the high elevations back into, say, Idaho. Great for skiers. Certainly good news for people out near parts of Idaho Falls and back into Wyoming. Jackson Hole could see anywhere from two to three feet of snow. And then when you bring in the strong winds, some places possibly 30, 40, 50-mile-per-hour gusts. It's going to be a big mess for a lot of people, especially those who have to drive.

Now if you happen to be in Texas today, a very mild temperatures for you. Temperatures in Dallas, southward into Houston, mainly into the 70s with high humidity. So it's kind of a muggy day. Temperatures well above normal. In fact, in many locations there were 10, 15, maybe even 20 degrees above normal for this time of year.

That storm system, the area of low pressure is going to pull its way from the west to the east as it does. So it's going to interact with that muggy air. We could see a round of storms tomorrow, some possibly severe especially for Texas, Louisiana, Arkansas, maybe even Mississippi and Alabama into the late afternoons. That is certainly something that we're going to watch for you very carefully. And as you wrap things up. you have to watch parts of the Midwest where we could see a wintry mix. We're talking rain, sleet, snow, maybe even ice. Back to you, Heidi.

COLLINS: Yes. It's all in the blender, that's for sure. Quite a wintry mix. All right. Reynolds, thank you.

Quickly, I want to go back to these pictures that we've been able to bring you here on CNN. Live pictures, once again, coming out of Gaza City there. We have been watching those plumes of smoke. You see yet another one, the aftermath of this air assault that's been going on now for seven days in the same area. We continue to follow these. We have several correspondents in the area.

And just to give you an idea, according to Palestinian medical sources, they say more than 420 people have been killed in the fighting. And Israel says four people have been killed by Palestinian rocket fire. It continues again in day seven. We'll keep our eye on it for you very closely.

Oil's wild ride. The price of crude spiked high in 2007 and then plummeted in 2008. So what can 2009 bring? We're going to take a look.

(COMMERCIAL BREAK)

COLLINS: An exclusive address for the president-elect while he waits for the current residents to move out of 1600 Pennsylvania Avenue. CNN's Samantha Hayes has more.

(BEGIN VIDEOTAPE)

SAMANTHA HAYES, CNN CORRESPONDENT (voice-over): He won the most exclusive address in the country. But first President-elect Barack Obama will be staying across the street in a hotel that claims to be the most prestigious.

GARRETT GRAFF, EDITOR-AT-LARGE, "WASHINGTONIAN": Hay Adams's motto is actually, the only thing overlooked here is the White House. HAYES: And it's where other presidents have looked for top-notch accommodations. President Bill Clinton stayed at the Hay Adams, which also happens to be conveniently located to one of his favorite restaurants. The hotel also has its storied past. It was named for John Hays, assistant to President Lincoln and later secretary of state, and Henry Adams, an acclaimed author and descendant of presidents John Adams and John Quincy Adams.

The hotel is thought to be haunted by Henry Adams' wife, Clover.

GRAFF: And it's said that Henry Adams's wife, Clover, who committed suicide in 1885 still haunts the hotel grounds today, especially and I don't know why this is in the month of December.

HAYES: The Obamas' first choice was the official White House guest quarters called the Blair House, but President Bush says it's booked until the 15th.

GRAFF: There certainly was a lot of whispers when that came out, that it was a little bit rude to tell the president-elect that he couldn't move into Blair House early, but on the other hand there are legitimate needs for the space for the outgoing administration.

HAYES: So for now, the new president will enjoy the spectacular views of the White House from the Hay Adams as he prepares to see things from a different angle on the inside.

HAYES (on-camera): If the Obamas stay in one of the suites at the Hay Adams, the price could range from $2,900 to $5,000 a night. And who is staying at the Blair House? No one's saying for sure, but the house is booked for receptions and parties by outgoing administration officials and VIPs. Samantha Hayes, Washington.

(END VIDEOTAPE)

COLLINS: A groundbreaking transplant that's changing lives. The final part of our series, "Baby Quest."

(COMMERCIAL BREAK)

COLLINS: Groundbreaking surgery and success for a lot of mothers who thought they could never have kids. CNN senior medical correspondent Elizabeth Cohen has the story.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Three years ago the Yarber family never would have imagined they'd have a scene like this.

STEPHANIE YARBER, MOTHER; When I think about my girls and how they got here and everything that led up to them getting here, of course, how can you not be awed and amazed?

COHEN: Stephanie Yarber suffered premature ovarian failure in her teens and was left infertile. But in 2004, a ground-breaking surgery changed her life.

In a first of it's kind procedure, surgeons took a sliver of her twin sister's ovary and gave it to Yarber. About six months later, Stephanie Yarber was pregnant.

YARBER: It blows my mind and realized wow, you know, the magnitude of this is like a ripple effect.

COHEN: Other women have since followed. In 2007, Suzanne Butcher (ph) became the first to receive an entire ovary, also from her identical twin, and give birth. Her daughter, Maja (ph), was born in November.

Some nine women have had some form of an ovarian transplant, all from their identical twin sisters. Right now, this type of transplant is only available to women with a healthy twin, but Silber, who engineered the technique, says it could one day work for any woman with reproductive challenges who has a family with a reasonable match or even more for perfectly healthy women.

DR. SHERMAN SILBER, INFERTILITY CENTER OF ST. LOUIS: We could use this for women who are not ready to have children at an early age and need to put it off until they're 40 or 45.

COHEN: In this case, the woman would freeze her own ovarian tissue while young and use it later.

SILBER: They can just relax for the next 20 years and not worry about their biologic clock ticking away.

COHEN: As for Yarber, she's grateful for this new technology. She's already had a second child and hopes to use more for frozen tissue to one day have a third.

YARBER: It's changed our lives. It's a miracle. It can work.

COHEN: Elizabeth Cohen, CNN, reporting.

(END VIDEOTAPE)

COLLINS: We've seen a week of air assaults between Israel and Hamas. Could a second week include a ground offensive now into Gaza? We'll have a live report in just a moment.

(COMMERCIAL BREAK)

COLLINS: Oil prices fell below $42 a barrel today. But one year ago on this same day, they soared to $100 a barrel for the first time. What a difference a year makes. CNN's Christine Romans joining us now with more on that historic rise. Can't believe it.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's almost crazy, Heidi.

COLLINS: Yes. ROMANS: If you think about $100 last year today and then $147 in the summer, and then $42 today. I mean, it has been an incredible ride reflected by an incredible change in fundamentals in the economy. Think of it, last year at this time the economies around the world were still growing. China and India had huge demand for energy. There was growing demand from emerging markets for energy.

And in 2007, oil prices were up 57 percent. Concerns about Nigerian supply disruption, every time there was a little supply disruption anywhere in the world, oil prices would go up. And suddenly you're at $100 a barrel. And then all through the first part of last year oil prices continued to rally. We felt it in our gas prices, companies got hurt. Airline tickets got more expensive because of the fuel surcharges. And then suddenly after hitting $147 a barrel in July, went straight down.

For the year oil prices were down 61 percent. What occurred, those high oil prices of course was a global recession. And some economists have been pointing out that was the only thing that could bring oil prices down, would be some kind of global calamity that would hurt demand. And that's exactly what happened. So that's all you know history. So what happens from here?

COLLINS: Yes.

ROMANS: A lot of people I talk to say they expect to see gas prices continue to be cooler this year than they were last year, and they're hoping that -- some even say you're going to see it closer to $1.00 a gallon, certainly the $3.00 a gallon. Although Peter Butell (ph) from Cameron Hanover, kind of an analyst who has really nailed it...

COLLINS: Yes, he did.

ROMANS: ... right over the past year. So, he says you can see gas prices increase in just says Memorial Day but then start to decrease again as we go forward closer to 2010. So here we are. You know, another wild ride.

I mean, remember last year at this time the concern was about speculators, what role were speculators playing? There were hearings in Congress about speculators driving up unfairly the price of oil and then so quickly it turned around and fell again. I think an important thing for people to remember and viewers to remember is these things can change on a dime. And as we see, they have. So it's important to remember that gas prices might be cheaper now, but it doesn't necessarily mean they're going to be that way forever.

COLLINS: Exactly. We certainly saw that here in the Southeast when there wasn't any gas for a while.

ROMANS: I know but you know something, Heidi. It's interesting, in December, edmonds.com, an automotive Web site, said that in December, they think that trucks and SUVs will outsell cars. So how quickly people kind of forget? You know, gas got cheaper and that made trucks and SUVs look attractive again. COLLINS: Absolutely. All right. Christine, we're watching it all.

ROMANS: All right.

COLLINS: As confusing as it is. Appreciate that. Thanks.

ROMANS: Sure.

COLLINS: We got news of that lower gas prices, in fact. But get ready because we may see some of those savings slip away. A federal commission wants to pump up the national gas tax we pay, the commission which oversees funding for transportation projects suggesting another dime a gallon for gas and as much as 15 cents for diesel. The reason, Americans are driving less and buying less gasoline. So that's making it tougher to pay for road, bridge and mass transit projects.

Quickly, we want to check the big board now on this first full day of trading for 2009. We're to the positive, double digits 50 points or so up for the Dow Jones industrial averages. We're going to talk with Stephanie Elam, coming up a little later in the hour.

(COMMERCIAL BREAK)

COLLINS: More than 10,000 Muslims marched through Indonesia's capital in Jakarta today, protesting Israel's on going bombing raids in Gaza. They marched to the U.S. embassy holding banners that read save Palestine from Israel, the terrorists.

The longer the air strikes continued to louden the calls from the international community to end the conflict. Now Israel has tanks positioned along its border near Gaza. CNN's Ben Wedeman is in a Israeli town targeted by Hamas rockets. So what has the mood been like from where you are, Ben?

BEN WEDEMAN, CNN CORRESPONDENT: Yes, we're in a town of Sderot which has been targeted by rockets for a very long time, going back more than a year. And it's actually only about two miles, 2 1/2 miles from the border with Gaza. In fact, just about six minutes ago, Heidi, we heard what's called the divadom (ph). That's like the red alert for incoming rockets. And you only have about 20 seconds, 30 seconds to get inside a shelter. We ran inside and we heard two explosions.

We don't have any word about any damage, any casualties from those rocket attacks. But it certainly does give you an idea that most people at the moment here are staying inside if they haven't already left the town itself because obviously this is the closest Israeli community to Gaza. It's been hit by hundreds of rockets over the last few years.

Now, as far as the situation in Gaza goes, as the sun went down, it was fire and smoke over the entire Gaza strip as Israel continues its intense air bombardment of that area. As far as rockets being fired from Gaza into Israel, the numbers somewhat down. Until today it was averaging about 70 rockets a day. Today so far, and I say so far, is only 30.

Heidi --

COLLINS: OK.

Ben, well, if you would, tell us a little bit about what that's like, going into one of these shelters and having really absolutely no idea where one of these rockets could fall.

Because we've talked many times about the accuracy and sort of the capability of the type of rockets that the Palestinians are launching over into Israel. It's very, very different than what we see going in the opposite direction.

WEDEMAN: Yes. What you see going in the opposite direction fired by the Israeli military is state-of-the-art, largely American- supplied weaponry that is on the one hand accurate, but on the other extremely destructive.

Coming the other way out of Gaza are by and large these locally made rockets which don't have guidance systems. Their payload, the weaponry inside of them, the explosives is relatively small. And they aren't very precise because these rocket squads that are launching the rockets, they know they have just a few minutes to set up the tripod and fire the rocket.

So basically they aim it in at just a general direction and obviously the rocket squads are hoping they hit something. But when you come -- I've been to Sderot many times. And I'm always amazed at how blase in a sense people are. They've become so accustomed to these things. It's kind of like a Pavlovian reaction. They hear the red alert and they run to the shelter. They hear a blast or two in the distance. They come out and go back to ordinary life. It's a surreal situation.

COLLINS: Yes. It's just remarkable.

All right, our Ben Wedeman reporting for us on the situation in its seventh day of conflict now.

Ben, thanks so much.

Unseasonably warm temperatures in some parts of the country. Want to go ahead and check in now with meteorologist Reynolds Wolf.

Yes. Warm in some parts, right?

REYNOLDS WOLF, CNN METEOROLOGIST: Yes. Exactly. You know, and I think you're thinking Texas, at least that's what I'm thinking in Austin. You know right along South Lamar and Guadalupe. You got currently 51 degrees out by the campus of Texas. Looks pretty good there.

Farther to the south in San Antonio near the Alamo, about 55 degrees in Dallas, near the trade center.

And in Fort Worth, you're going to have temperatures mainly in the 50s. This is going to be just a great day for you if you're a fan of the warmer conditions because you're headed for high temperatures in both Dallas and in Houston, into the 70s, mid to upper 70s. Austin, same story. And this is going to stay this way for at least for a good part of today and a good part of tomorrow.

Now thing is, many of you might be wondering, is this above normal? And the answer to that is absolutely. In fact, anywhere from 10 to 15 to 20 degrees above normal. And we're going to see this, just as I mentioned for the next 24 hours or so.

However, we do have some big changes. Whenever you have a big transition in your weather, sometimes the result can be really rough. That may be the situation for today. Because we're going to see all the setup, this very warm, muggy air coming in from the Gulf of Mexico. Dew points are going to be going up. It's going to be a very unstable atmosphere, as this frontal boundary in this area of low pressure pulls to the East.

So, there is a chance, not today, but for tomorrow, we could see widespread showers, storms, maybe even some tornadoes right along parts of the Gulf coast. Looks like the best areas for that type of development would be into Louisiana, parts of Texas, into Alabama, Mississippi and possibly as far north as Arkansas.

But to the top half of that system, we're going to be seeing Heidi, not thunderstorm activity, but rain, sleet and snow and of course, that cold air rushing in right behind it, it's going to cause that wind to really pick up in many parts of the Central Plains. Certainly rough times ahead for people as we ease into the weekend. The first week end of the new year.

COLLINS: Yes. No kidding. Have to stay inside and watch more football.

WOLF: Always a good plan. You bet.

COLLINS: All right, Reynolds. Thank you.

Well, it's that time of year when homeowners crank up the thermostat. But what if you could heat your entire home without even turning the furnace on?

Not only is it possible, but it is being done.

CNNmoney.com's Alison Kosik has our "Energy Fix" now.

ALISON KOSIK, CNNMONEY.COM: Who wouldn't like to get rid of their home heating bill altogether? That's what's going in Germany.

Thousands of passive homes have been built and they that don't use furnace at all. Instead the home that's heated mostly by the sun and heat given off by people and electrical appliances. And here is the key, that heat stays inside because a passive home is virtually airtight.

To keep the air from becoming stale and unhealthy, a ventilation system constantly brings in fresh air and heats it up.

And yes, on nice days you can open the windows and shut off the ventilation system -- Heidi.

COLLINS: All right, Alison, we sure do appreciate that.

Having a little trouble with what we call our ISB system, so we will check in with Alison a little bit later on.

Meanwhile, an overnight YouTube super stars. Look at this.

(BEGIN VIDEO CLIP)

(SINGING)

(END VIDEO CLIP)

COLLINS: I love them. We know them for this catchy rap and dance. But Oprah Winfrey gave their school an amazing gift for another reason. The man behind the school coming up right here in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: These students became overnight stars when a political rap they wrote first grabbed our attention on YouTube. But it was their work in the classroom that caught Oprah Winfrey's attention. She donated $365,000 to their school.

Take a look now. More from Donna Lowry of our affiliate WXIA.

(BEGIN VIDEOTAPE)

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

(APPLAUSE)

DONNA LOWRY, WXIA REPORTER (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.

UNIDENTIFIED MALE: This is such an amazing gift.

UNIDENTIFIED MALE: 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 deciding to send a check for $365,000. She said, 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. And she said I'm going to send $1,000 for every day of year.

(SINGING)

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

(SINGING)

These fifth, sixth and seventh graders understand how the gift validates the school where most of the students come from at-risk backgrounds.

CLARK: And people will see that she has faith in us, and we hope others who have faith in us as well. Because we give scholarships for all our students. We're a small school in a small factory trying to change the world. We need support. We're constantly fundraising. We depend on the community of Atlanta to have our backs.

(SINGING)

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

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

UNIDENTIFIED MALE: This news is like Christmas to me.

(END VIDEOTAPE)

COLLINS: Well, you saw him just a couple minutes ago in Donna Lowry's story. And now he is right here with us, Ron Clark, the founder of Ron Clark Academy.

You know when we saw this story yesterday, we just couldn't get over your reaction and the love that you have for these kids that you teach. Tell us a little bit though, if you would, about how this whole thing came about with Oprah.

CLARK: Yes. It was Christmas Eve. And I was sitting at the school. I was the only one there. And I saw the big box of mail, we get letters from teachers all over the country.

And I saw this letter, and it said attention Ron Clark. And I opened it up. And it said, Ron, I've been to your Web site. I've seen your video about your school. I love it. You're dynamic, you're motivated for what education can be, bravo, bravo. My good friend, Oprah Winfrey.

And my eyes got really big. And then I looked and a sheet of paper fell out. And I picked it up, and it was the check for $365,000. And I didn't even know people sent checks like that in the mail.

And I just freaked out. There was no one to tell. I was running around, no one was there, but it was outstanding.

COLLINS: Who was your first phone call?

CLARK: Kim Beardon (ph), she's the co-founder of the school. She was the National Middle School Teacher of the Year. She teaches at the school, as well. And we just cried and cried.

COLLINS: Oh, I bet you did. What kind of message does something like this though give to the students and the staff at your school?

CLARK: It's validation for us. Our teachers, we put passion and energy and creativity into all our classrooms. Not only do we work to lift up our kids, but we work to educate teachers, as well.

We have teachers visit us from all over the country to spend time in our classrooms to watch us teach and to learn from us. So, it's validation that we're doing something right. And it's an endorsement from Oprah. And its gets no better than that because hopefully if Oprah is endorsing our school, others will join board.

Who knows, maybe we can get some more surprise checks out of this. Who knows.

COLLINS: Just in case you didn't hear that, everybody. No, I'm kidding.

CLARK: Yes, wink, wink.

COLLINS: Yes because it's important to mention where your students come from and how much it costs for them to go to school every year. And I'm reading here about $2.4 million it takes to operate the school every year.

CLARK: Yes. We need to get $2.4 million a year. We get scholarships for all our students. We're a very unique type of school. And so we have to work very hard. The majority of our families, for the tuition, they pay about $40 a month. Some pay more. But most of them come from situations where they can't pay more than that. So we do need support from the community.

COLLINS: How do the kids get into your school?

CLARK: It's an interview process. We have hundreds of kids apply. And we interview all these students. And we look for all different types of kids. We have some who are gifted, some kids who to us with learning disabilities, some kids with behavioral problems. We have all different types of kids. The greatest part is that after they're with us, their test scores are through the roof, these kids are mature, they're well spoken and we really make a difference.

COLLINS: And they can do incredible rap as well. This political rap they got on YouTube and everything. I just want to ask you for an update on that. Because they were invited to the inauguration, right?

CLARK: Not yet. But Oprah says she wanted to see the video.

COLLINS: Well, we'll put the idea out there now, I guess.

CLARK: We did get invited, wink, wink. Let's make that happen. That would be nice. but our students, we use music and energy in all our classrooms. They wrote a rap song about the election, about Obama and McCain and about their different views.

And then the students said, Mr. Clark, whoever wins, we want to write a song to them. And Barack Obama on his Web site asked for students to write a letter to him. And so our students wrote it in the form of a song called Dear Obama. They're going into the recording studio this weekend to record it. Maybe you'll hear it on the radio and --

COLLINS: And you'll send it off to him and keep your fingers crossed.

CLARK: Yes, and Ms. Winfrey asked for me to send her a copy. She said, who knows, maybe I can make something happen. I said really, you can make that happen? She said, oh, Ron, that's how everything happens. And so, we'll see what comes of it.

COLLINS: Well, she may call you again, you just never know.

CLARK: May be so.

COLLINS: Ron Clark, it is a pleasure. And kudos to you for all the work you do with your education system.

CLARK: Well, thank you so much.

COLLINS: Appreciate that.

Family grounded. Some misunderstood words lead to all passengers deplaning from a jetliner with the family, the carrier, and the authorities are now saying.

(COMMERCIAL BREAK)

COLLINS: We've been watching this story for several days now. Giving you the very latest in the Mid East fighting.

This is new video into us here at CNN just a few minutes ago from a fuel depot that was hit in Beit Lahia. We of course are continuing to monitor this situation in Gaza. We'll keep our eye on it for you.

Two kidnapped children are found safe about 90 miles from their North Carolina home. An amber alert was issued after their mother's body discovered yesterday in they Taylorsville. Police suspected her ex-husband, the children's father. They found him and the children at a relative's early this morning. The 10-year-old girl and 6-year-old boy were rescued during a standoff. Police say the father shot himself. They believe he killed not only his ex-wife, but two other people.

Tense moments and hard feelings aboard a commercial airliner in Washington. AirTran says nine Muslim family members were removed from a flight after other passengers reported hearing a suspicious remark. One member of the Detroit family says it was a gross overreaction to their idle chatter as the flight awaited take-off.

(BEGIN VIDEO CLIP)

ATIF IRFAN, REMOVED FROM AIRPLANE FLIGHT: We generally like to sit in the middle of the plane because I've always been told it's the safest place to sit. And my sister-in-law had mentioned maybe that it's actually the back of the plane. So, we were discussing basically where the safest place to sit in an airplane is.

(END VIDEO CLIP)

COLLINS: The FBI was called. The family members interviewed and concerns put to rest at least from their point of view. According to the FBI statement, everyone was cooperative and the FBI assisted in rebooking the passengers on a later flight to their destination. The airline says, quote, "the nine passengers involved were all offered full refunds and may fly with AirTran Airways again after being released from questioning from the TSA. But the family says AirTran initially refused to book them, and they had to pay more money to find seats with another airline.

AirTran says it strictly followed federal rules.

A 22-year-old New Yorker with cerebral palsy spent a frigid New Year's Eve stuck on a bus. Police say the driver left the driver in its lot and the man wasn't found until the morning.

(BEGIN VIDEO CLIP)

LESLIE RIVERA, SISTER: He was cold. He was very cold. His fingertips were blue. His feet were blue. His nose was just -- he was very, very pale. He was shivering. For him to be out there all alone on this bus seatbelted. It's just -- it wasn't -- it's not a way to treat any person.

(END VIDEO CLIP)

COLLINS: The young man suffered dehydration. His sister says he's doing fine now. The bus matron who was responsible for looking after him has been charged with reckless endangerment.

(MUSIC PLAYING)

2008 is now in the books as one of the worst years in Wall Street history. And while the new year typically brings with it renewed hope, most investors remain pretty guarded.

(BUSINESS HEADLINES)

COLLINS: Well, it's really cold outside. But, that's not stopping these guys. It's the Great Polar Bear Plunge. And it happened all over the place this year.

(COMMERCIAL BREAK)

COLLINS: From Green Bay, Wisconsin, a tale of ice fishing and the ones that almost got away. The Coast Guard says they were stranded for hours after a huge chunk of ice broke off from shore and floated into Green Bay. Officials say the crack was 400 to 500 feet wide.

(BEGIN VIDEO CLIP)

GERRY HOLBACH, RESCUED FROM FLOATING ICE: Well, I didn't know it opened up until we were getting ready to quit. We were done fishing because the current's so fast underneath. And we started heading toward shore and saw the open water. I've seen that happen before but it was never me out (INAUDIBLE).

UNIDENTIFIED FEMALE: Do you feel a little silly now?

HOLBACH: I will when I see myself on television.

(LAUGHTER)

(END VIDEO CLIP)

COLLINS: Not all the stranded people were fishing. Some were joy riding on snowmobiles and others were just out taking a walk. All said, they were shocked to look up and see they were surrounded by open water.

Well, this next one will give you goosebumps. People running into lakes or oceans half naked in bone-chilling temperatures. It might not be everyone's idea of ringing in the new year. But these so-called Polar Plunges have become a tradition for many people across the country. Of course, other people call them crazy. Some of the events benefit charities.

He is accused of cheating investors out of tens of billions of dollars. Now Bernard Madoff is getting some pay back of sorts, online and at home.

Here is CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Sure you can rant at the accused swindler.

UNIDENTIFIED MALE: You'll get yours, Bernie Madoff!

MOOS: Or you can educate him. Educate him by first stealing this $10,000 statue of two lifeguards from Madoff's Florida estate. Then returning it, leaving it in some hedges near his home with this note addressed to "Bernie the Swindler." Lesson: Return stolen property to rightful owners, signed by the educators. Apparently in reference to a 2004 German film about an anti- capitalist gang that broke into rich people's houses and rearranged the furniture. They stole nothing, just left a note saying your days of plenty are numbered. Some folks sound like they wish Bernie Madoff's days were numbered.

UNIDENTIFIED MALE: I want there to be Hell so that people like this Madoff character can go to it.

UNIDENTIFIED MALE: I can't believe you're walking the earth, you piece of garbage.

MOOS: The detractors on YouTube have transformed him into the devil, depicted him struck by lightning. When he got shoved by a photographer as the press swarmed him, the video went into reruns on the Web.

Don't push me, Madoff said. But commentators weren't feeling much pity.

UNIDENTIFIED MALE: It's almost like somebody's throwing the shoe at Bush.

MOOS (on camera): But folks aren't just mad at Bernie Madoff. They're also mad at the people whose money he allegedly made off with.

UNIDENTIFIED MALE: Bernard Madoff with all the cash from every millionaire. Their grief got them all swindled, now they're crying it's not fair.

MOOS (voice-over): All's fair when it comes to late-night comedy takeoffs on Madoff.

UNIDENTIFIED MALE: That's why Bernie would like to get anyone who wants one, a personal hand-inscribed apology. Simply send check for $59.95 to Bernie Madoff Apology Request --

MOOS: Go ahead and vent.

UNIDENTIFIED MALE: Maggots like this (EXPLETTIVE DELETED).

UNIDENTIFIED MALE: You (EXPLETIVE DELETED) greedy, rat (EXPLETIVE DELETED).

MOOS: Darn tooting they're mad.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COLLINS: I'm Heidi Collins. You can join me again Monday morning, beginning at 9 a.m. Eastern.

For now, CNN NEWSROOM continues with Tony Harris.