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Is Ground Offensive in Gaza Foregone Conclusion?; Humanitarian Concerns; Obamas Coming to Washington; Unemployment could reach 10 percent
Aired January 02, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Israel's top guns pounding Gaza. Hamas rockets slamming Israel. A seventh day of deadly attacks under way this hour.
Israel's onslaught significantly reducing the number of targets to hit from the air. Ground forces appear ready to roll in.
Let's get right to our Ben Wedeman on the Israel/Gaza border.
And Ben, is a ground offensive a forgone conclusion? Will it happen?
BEN WEDEMAN, CNN JERUSALEM CORRESPONDENT: It's very difficult to say because you have to keep in mind that in 2006, Israel was burned in the Lebanon war. They were barely able to make any inroads inside the country because of the intense resistance by Hezbollah. And they are worried that the same sort of thing could happen in Gaza.
It's well known that Hamas has been preparing for months for this kind of eventuality, that they've set booby traps, they have underground tunnels. They have prepared for exactly this. And they've learned many of the lessons that Hezbollah got during the Lebanon war.
Now, as far as the situation on the ground goes, in Gaza the Israeli air force continues its strikes. In one case, in the town of Khan Yunis, which is in the southern part of the Gaza Strip, they fired on a target. But in an adjacent field were some boys who were playing. Three of them were killed in that incident, just underscoring the dangers of military operations in such a crowded area as the Gaza Strip.
In another Israeli airstrike, a fuel depot was hit in Beit Leyiha (ph), which is at the northern end of the Gaza Strip. At this point, according to Palestinian medical sources, more than 420 people have been killed.
As far as rockets going out of Gaza into Israel, the number has dropped so far, and I stress "so far" today. We have a tally of 32 rockets being fired into Israel. The latest two, in fact, right here, about 40 minutes ago, here in the Israeli time of Sderot.
But as we said, talking about the ground incursion, Israeli tanks, Israeli army and Israeli infantrymen have amassed around the Gaza Strip, but there's no indication at this point when or even if they will go in -- Tony.
HARRIS: All right.
CNN's Ben Wedeman for us.
Ben, appreciate it. Thank you.
Secretary of State Condoleezza Rice says the U.S. is working with international partners toward a cease-fire in Gaza. She stressed the Bush administration's position that any cease-fire hinges on Hamas.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: 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. Hamas has used Gaza as a lunching pad for rockets against Israeli cities and has contributed deeply to a very bad daily life for the Palestinian people in Gaza and to a humanitarian situation that we have all been trying to address. But frankly, Hamas has made it very difficult for the people of Gaza to have a reasonable life.
(END VIDEO CLIP)
HARRIS: With more than 420 people killed in Gaza and upwards of 2,200 wounded, food, medicine, power in short supply. The international community is increasingly concerned about a humanitarian crisis.
Live now to CNN Senior United Nations Correspondent Richard Roth.
And Richard, concern is one thing, but the ability to do something is quite another. What more can the U.N. do to bring about a humanitarian cease-fire?
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: It's going to be very difficult. If it hasn't happened by now, I don't think we're going to be able to see it.
As we've seen in other incidents and crises like this, take Georgia versus Russia last summer, Russia did what it wanted to do despite condemnation and worldwide pressure until a certain point. The same here going for Israel on Gaza.
The United States at the U.N. is going to block any significant diplomatic action singling out or targeting Israel. The U.S. ambassador to the U.N. on New Year's Eve already said that a proposed Arab resolution is one-sided and not balanced.
The U.N.'s humanitarian officials saying that a quarter of the 400 people killed, Palestinians killed so far, a quarter of them are civilians. That is a dire food and fuel situation. The World Food Program today saying they are rushing more bread in. I don't think we're going to see any easing of this crisis imminently.
HARRIS: Yes. All right. Richard Roth at the U.N. for us.
Richard, appreciate it. Thank you.
More protests to tell you about against the Israeli bombardment of Gaza. This massive demonstration drawing 5,000 people in Indonesia.
Members of a conservative Islam-based party marching to the U.S. Embassy in Jakarta. The influential party leader questioning how the president, President Bush, could support the Israeli attacks and calling on President-elect Barack Obama not to follow the Bush policies. The protesters also raised money for victims in Gaza.
Thousands of people also taking to the streets outside a mosque in the Afghan capital today. They waved the Palestinian and Hamas flags and chanted anti-American slogans. Protests have been taking place around the world and in several U.S. cities since the start of this latest violence between Israel and Hamas.
Look, you can also have your say about the Israeli offensive in Gaza. Yami Batt sent this iReport from Clearwater, Florida. He is originally from India, which is still grappling with the violence in Mumbai.
(BEGIN VIDEO CLIP)
YAMI BATT, IREPORTER: My appeal to Palestinians, Gandhi's manner of nonviolence, peace, communication, dialogue, and appeal of decency, appeal of greater morality is what's going to give Palestinians their ultimate goal.
(END VIDEO CLIP)
HARRIS: CNN.com's Tyson Wheatley will have more of your iReports later this hour. His topic today, your New Year's resolutions.
As the U.S. deals with the Israel/Gaza situation and takes on terrorism in Iraq and Afghanistan, young people in classrooms around the country are thinking a lot about war, peace and U.S. security. I headed back to class to hear their arguments.
(BEGIN VIDEO CLIP)
MICHAEL BARLOW, 10TH GRADE: When I think of Afghanistan, the war in Afghanistan, I think of bold people that had the audacity to steal our airplanes, threaten lives of Americans, run them into American assets, and cause chaos across the American country. And once you do that, you deserve what's coming to you.
UNIDENTIFIED MALE: No! No!
STEPHANIE STYLES, 11TH GRADE: You're trying to say that it's necessary to go bomb another country just because they "messed with us"? That, to me, that doesn't just give you automatic justification to do whatever you want to another country. Violence, pointblank, is wrong.
(END VIDEO CLIP)
HARRIS: And coming up in the noon hour, hear the rest of my conversation with these very bright young people. That's at noon Eastern, right here in the CNN NEWSROOM.
Giving the nation an economic kick in the pants, that's president-elect Barack Obama's key concern. Congressional sources say he plans to meet with key Capitol Hill leaders on Monday to discuss the plan.
Last night, CNN's Anderson Cooper asked two political observers, what does the incoming president need to do to get the package on track?
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR: Democrats had wanted a stimulus basically passed by Inauguration Day. That's looking less and less likely.
BEN SMITH, POLITICO.COM: Yes, the Republican leader in the Senate who's really the one Republican with any power to slow this thing down has started making noise that he wants to know the details. The details aren't out yet. Even Democrats on the Hill are starting to say, you know, where are the details of this plan? We're not going to be able to turn it around instantly if we can't start soon.
COOPER: So do you think that's what it's going to take, Obama going on a tour, basically selling this to the country?
ERROL LOUIS, "NEW YORK DAILY NEWS" COLUMNIST: Yes. I think he's going to have to sell it, and particular through the governors, because it's those so-called shovel-ready infrastructure plans that I think have already been vetted at some level by state legislatures, by state governors, including Republicans. I think that's where he's going to get the clout to really move this thing past the recalcitrant members of Congress, whether they're Democrats or Republicans.
COOPER: There is concern though about those shovel-ready projects. I mean, if the money they gave -- you know, there wasn't much oversight for the money that's been given so far to the bailout, there's got to be some real questions about how much oversight there's been so far.
LOUIS: Well, presumably, the people of Indiana or Virginia or New York, have given some thought to whether or not a few billion dollars for a new airport or a new sewer system or a new set of schools makes any sense. And you know, you can't move fast and also in a detailed way account for a trillion dollars in advance. I mean, you've got to, I think, sort of trust the judgment of the local government.
(END VIDEO CLIP) HARRIS: The Obamas are coming to Washington this weekend. The present-elect will see his girls off to school on Monday. He is expected to meet leaders in Congress and lunch with four presidents who preceded him.
Here is CNN's Jim Acosta.
(BEGIN VIDEOTAPE)
JIM ACOSTA, CNN CORRESPONDENT (voice-over): Their vacation may be over, but the Obama family has its sights set on the trip of a lifetime. America's next first family lands in Washington this weekend. Their first digs, the city's historic Hay-Adams Hotel. No stranger to presidents, this 80- year-old landmark according to local legend, also happens to be haunted by a ghost from the 19th-century.
The traditional residence of presidents in waiting, the Blair House won't be available until the 15th. No worries, the Hay-Adams is just steps from the White House.
MAYOR ADRIAN FENTY (D), DISTRICT OF COLUMBIA: It is exciting.
ACOSTA: D.C. Mayor Adrian Fenty says the Obamas return to Washington will usher in a new era on the nation's capital.
FENTY: He's shown a concern for Washington, D.C. I think it goes above the average federal politician that you may see just drives through the streets but ignores city issues. He's going to care. ACOSTA: The Obamas are moving in early because daughters Sasha and Malia start school next week at the elite private institution, Sidwell Friends. A ride to class this town hasn't seen since the Clintons.
REP. ELEANOR HOLMES NORTON (D), DISTRICT OF COLUMBIA: But when he comes this weekend, we're going to say he is here. We're going to say he's here.
ACOSTA: D.C. congressional delegate, Eleanor Holmes Norton, says Mr. Obama could make history in the district by signing into law a bill he co-sponsored in the Senate, a measure giving D.C.'s delegate full voting rights in the House, something city leaders have long sought.
NORTON: We think the stars are aligned now for the D.C. voting rights act.
ACOSTA: And for years we have known the District of Columbia has the place with a license plate that says taxation without representation. Does this mean you'll get rid of the license plate?
NORTON: Yes. He may even you use that license plate as he goes down Pennsylvania Avenue. We don't know for sure.
ACOSTA: Perhaps they can make a pit stop at D.C.'s gastronomic hotspot, Ben's Chili Bowl, which has the welcome mat out saying the Obamas can eat for free.
(END VIDEOTAPE)
HARRIS: And CNN will bring you live coverage of the president- elect in Washington all next week, right here in the CNN NEWSROOM.
Just where is the safest place to sit on an airplane? One family says this question got them kicked off the plane.
(COMMERCIAL BREAK)
HARRIS: We are keeping a close eye on the situation along the Israeli/Gaza border.
Let's get you to Errol Barnett now at our international desk.
And Errol, if you would, talk us through the resources available to us, where these amazing pictures are coming from, as we keep people up to date with the latest information on the story.
ERROL BARNETT, CNN CORRESPONDENT: We're using every resource we have, Tony.
HARRIS: Yes.
BARNETT: Let me show you right now -- just a few moments ago we published an article on CNN.com. This references one of Israel's airstrikes that they say hit one of the homes of one of the rocket makers in Hamas.
Now, we're also following international networks from around the world on the Israeli and Arab network side. Let me show you some of those.
Hamas has their own network. We're keeping track of that and translating it as it comes into us. What we've seen today are some of their ministers visiting a hospital to meet with some of the injured civilians.
We're also speaking with a director of one of the rehabilitation centers there, Rafah Hospital. Right now that man is conducting an interview with CNN International -- that's our sister network -- airing around the world. So we're keeping track of Hamas television as they broadcast images of civilians in hospitals. We're also keeping track of the Israeli side as they publish reports of their airstrikes.
Online, we're following blogs, many blogs inside Israel, concerned with the casualty level of civilians. So we're using all resources. And as soon as we get a development here at the international desk, Tony, I will bring that to you.
HARRIS: And providing the proper context to all of these images that we're getting, in particular the images that we're getting from Hamas television.
BARNETT: Each side what's to paint themselves in a good light.
HARRIS: Absolutely.
BARNETT: We're going to keep it as balanced as possible.
HARRIS: We understand that this is a propaganda battle in many ways.
All right, Errol. Appreciate it. Thank you.
A Muslim family is kicked off a plane all because they had been discussing the safest place to sit on a plane. Even the FBI couldn't help them.
Rebecca Cooper of affiliate WJLA in Washington has more.
(BEGIN VIDEOTAPE)
REBECCA COOPER, REPORTER, WJLA (voice-over): Alexandria lawyer Atif Irfan and his brother, a Virginia anesthesiologist, were seated on an AirTran flight to Orlando with their wives, children, family and a friend.
UNIDENTIFIED MALE: I want to go to Gatorland and I want to go swimming. And I want to go on an airboat.
R. COOPER: But then all the planes's 104 passengers were ordered off after passengers reported to air marshals hearing the Irfans discuss flight safety.
ATIF IRFAN, ALEXANDRIA, VIRGINIA, RESIDENT: We generally like to sit in the middle of the plane because I've 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.
R. COOPER: But an AirTran official says they were discussing what would happen if the plane blew up.
After two hours, once all the flight's luggage passed reinspection, the flight and its passengers took off, but the Irfans were not allowed back on. These Indian-American brothers born in Detroit and now raising their families here in Virginia, say they feel this wouldn't have happened if it weren't for their Muslim appearance.
IRFAN: Absolutely not. I mean, we're not going to stand there in an airplane and say, oh, you know, "Bomb this, terrorist that, threat this." I mean, we're smarter than that. We don't do those kinds of things. We know better than that. So I think that, to a certain extent, you know, people listen to whatever words we have and unfortunately hear what they want to hear.
R. COOPER: The families point out the basic tenet of the Muslim faith is to leave in peace. But these Americans who road in their high school homecoming parades, study at the University of Maryland, work at the Library of Congress, and helped deliver New Year's babies at Adventist Hospital, say it's been harder since 9/11, with sometimes subtle and sometimes not so subtle signs of racism against Muslims. Instead of giving up their faith, they say they embrace it all the more.
(END VIDEOTAPE)
HARRIS: OK. The family did fly to Florida, but on US Airways.
AirTran released this statement. It says in part, "The nine passengers involved were all offered full refunds and may fly with AirTran Airways again after being released from questioning from the TSA."
We will hear more from the family, AirTran and the FBI in the next hour of CNN NEWSROOM.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: My hero is Pastor Karen Dudley, who is the pastor of the Dallas International Street Church. For the past 10 years she's been ministering to the homeless. I'm one of the success stories of the Dallas International Street Church.
I once was homeless. I now have my own apartment. I'm employed now. And I thank God so much for Pastor Karen Dudley, who is my hero.
(END VIDEO CLIP)
HARRIS: How about that, huh?
The 2009 nominations for CNN heroes are open. Go online right now to tell us about an extraordinary person having an extraordinary impact.
Familiar faces are already doing just that. Grammy-winning singer John Legend tells us about a woman in Tanzania and how she is turning poverty into profit.
(BEGIN VIDEOTAPE)
JOHN LEGEND, MUSICIAN: Last year, in October, I visited Mbola, Tanzania. Folks in Mbola are starting with supreme disadvantage. Most of them are living on less than $1 a day. It's difficult for them to even survive. And that's where I met Mama.
MWADAWA RUZIGA, COMMUNITY CRUSADER: My name is Mwadawa Ruziga. I am the leader of a group that uses local fruit to make jam, wine and juice.
Before I joined the group, my life was at an all-time low. But slowly my life changed for the better. We sell our products at different trade shows. Now the members are more educated, and the money they make helps them to take care of their basic needs.
LEGEND: I was really inspired by a willingness to not just kind of wait for a handout, but really take an active role in helping to uplift her community. RUZIGA: The group has really lifted my life, and give me hope.
LEGEND: Mama Ruziga, she is a leader. She's inspirational and she's one of my heroes.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
A. COOPER: You said that business is a lot like sex, that both are better when the participants have confidence. It's frankly tough for anyone to have confidence in anything, particularly the alleged expertise of our leaders and businessmen. And I was interested to read that you were asked to invest with Bernie Madoff and you didn't.
Why?
BEN STEIN, ECONOMIST: Well, these nice people from a big investment bank came to my house. They had gone to a school that we had a connection with. And they said, "Oh, this guy gets solid returns in good years and bad years." And I said, "How could he possibly do that?" And they told me his strategy.
I said, "That's an impossible strategy. It can't work."
I checked with one of the smartest guys I know, Ray Lucia, a super-smart investment guy, Bill Demue (ph), super-smart investment guy. They said, no, it can't be done. So I said no thanks.
Now, mind you, I have managed to lose a great, great deal of my life's savings in the last year anyway. But I did not fall for that one. I fell for plenty, but not that one.
But you know, this idea of spending, it really is an awfully good idea. Dwight Eisenhower during the recession of '58 was asked what people should do. And he said, "Go out and buy something," and it was a very good piece of advice.
(END VIDEO CLIP)
HARRIS: Economist and comedian Ben Stein commenting on "ANDERSON COOPER 360," commenting on Bernard Madoff's alleged $50 billion Ponzi scheme. We're going to hear more from Ben Stein in just a couple of minutes here.
Madoff has provided the Securities and Exchange Commission with a list of his assets.
CNN's Christine Romans is following the story.
Christine, good to see you.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good to see you.
HARRIS: And here's the question. Will the SEC release this list? I'd like to know.
ROMANS: Not yet. They're not releasing it yet, and we don't know what's on that list.
We assume that the properties on that list. For example, Tony, there's the Palm Beach mansion, there's a Montauk home that I think he's had since the early 1980s, a beautiful spread in Montauk. There's the apartment that he's walking to here on 64th and Park Avenue in New York, where he's under house arrest, $10 million bail, paid for, secured by those multimillion-dollar properties that he and his wife Ruth own.
We don't know what's on that list. And now a couple of published reports that investigators are probing, offshore havens and how that might have played -- was there money stashed there, were charities allowed to have donors move things there, were they able to avoid some taxes in the U.S. by using offshore havens?
His attorney saying they're not commenting on any of the investigations that are under way. His attorney, who has previously said that this whole thing, Tony, is simply a tragedy.
I mean, a lot of people who have invested with this guy say it's definitely a tragedy. An eclectic and growing list of people who have invested with him.
I talked to a woman earlier today who invested. You know, not a woman who is a multimillionaire.
HARRIS: Right.
ROMANS: She's a small investor, gathered together with a bunch of other small investors, invested into a feeder fund. She grew suspicious last year, she said, when her returns were literally a typewritten piece of paper that said, this is how much money you gave us, this is how much you took out, this is your 10 percent return, no header, no -- it didn't look very sophisticated.
She pulled her money out. And boy is she glad today. But a lot of other people didn't and this thing just keeps going.
HARRIS: It does. But, Christine, back to this idea of this list now that the SEC has. If you're someone like the woman you had a conversation with who's been swindled by this character, you want to know what's on this list. And something tells me that, that woman's attorney is pushing back really hard on this idea and wants to know what might be available of these assets to attach.
ROMANS: And we're at the very beginning here. So, the very first thing that they have to do -- the very first thing they had to do was a trustee was appointed for this company. And they took 28 -- a federal bankruptcy judge said you can have $28.5 million to pay the bills you know, so this whole thing doesn't collapse.
Well, we try to figure out where the money is, how much money there is and where we go from here. Now, here's the thing, Tony, that's really hard to figure out. How much of the gains people got on that piece of paper, how much of those gains were fake and for how long?
So, you can say, I lost $5 million. But did you lose $5 million or did you just lose what you put in? And where did that money go? Was it sued -- this is what they just don't know. And they're going to have to start untangling this. And again, investors are not saying publicly what they're doing, where this investigation is going right now.
I have no doubt that they're looking at offshore tax havens because that's one of the first things they do in a case like this. But, I mean you're talking $30 to $50 billion is what the allegation is of the fraud. I mean, how you unravel that and how long it will take, it's going to be just -- it's going to be amazing.
HARRIS: Yes. You would have to assume that you made nothing on those investments and your money was used to pay other investors in the Ponzi scheme which makes the idea of getting to those assets even more critical.
ROMANS: And one of the things that the attorneys have been saying is that they are sure that people who pulled money out, especially pulled a lot of money out over the past year will really be scrutinized. Because that money that they were paid out may very well have been ill-gotten gains.
Do you have to turn around and pay it back to the government while they try to figure out who owns what?
HARRIS: That's a great point, yes.
ROMANS: I don't think anybody's going to get all their money back. I think that's a safe, safe bet here. Because we don't know how much money it is, we don't know how big the gains were.
And a lot has been made about Kyra Sedgwick and Kevin Bacon, and these high-profile charities and a lot of bold-faced names and heiresses who lost their money. But, we've been talking to people who are not heiresses, Tony, who lost their money. People are who literally, financially ruined after this and still just trying to figure out who this guy was, what made him tick, how did this happen, how did the whole fraud come undone and where was the SEC in the first place.
It's a story with a lot of legs.
HARRIS: OK. Christine, come back next hour. We're going to talk about the Obama stimulus package.
ROMANS: OK, great.
HARRIS: All right. Thanks, Christine.
Now, back to economist Ben Stein. He says he has the solution to the recession. The solution. It is spend, spend, spend in his opinion. More from his conversation with our Anderson Cooper.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR: Ben, your advice this holiday season for those who have the money is to spend and spend madly. Because you say we're facing something called the paradox of thrift.
What is that?
BEN STEIN, ECONOMIST: Right. If everybody saves, then everybody will become poorer. Well-to-do people, or even middle-class people who are solidly set with a job and a house and pension and no crushing debt, should be out there buying. If there's something they need, they should buy it today and not wait a week. And they certainly shouldn't layoff any household help or cut back on their children's allowances. The quickest way of stimulating the economy would be if people who need a car, go out and buy it right now. People who need a refrigerator, go out and buy it right now.
COPPER: But, I mean, individuals making those kind of choices. Can that really make more of a difference than a stimulus plan?
STEIN: You know, it's a very -- it can make a huge difference. A very, very large percent of total consumer spending is done by the top 20 percent in terms of income. An enormously disproportionate amount, I think more than half. So, if those people -- or, at least close to it.
So, if those people would go out and spend as much as they can without endangering their financial future, it would make a big difference. Public works take forever to get started. Government spending plans take forever to get started and are often very wasteful. The ordinary, middle-class, upper/middle-class well-to-do person going out and buying would make a difference right now. We should not be telling people to be scared about spending if they can afford to do it. Now is the time for them to spend.
(COMMERCIAL BREAK)
HARRIS: OK. More business news. As the recession wears on, many consumers have abandoned the shop-til-you-drop mentality. And that does not bode well for many shopping malls.
Stephanie Elam is at a shopping mall? No, no, no, no. The New York Stock Exchange with more of the grim prediction experts are giving.
After Stephanie -- what, the truth is, it was a pretty disastrous holiday shopping season.
STEPHANIE ELAM, CNN BUSINESS NEWS CORRESPONDENT: Yes, that's true, Tony. And you know, you heard him saying that -- Ben Stein saying that that you need to go out and spend. But, for a lot of people they don't see themselves as the average guys. They're holding on. And that's really affecting what's going on in the malls, the retail sector. So, imagine walking through your local mall and seeing dozens of stores with their metal gates down, all of them closed for business. Experts say that may not be too far off. The terrible 2008 holiday shopping season is expected to haunt retailers for much of the new year, with an anticipated domino effect of store closures and bankruptcies.
Many strip malls have vacancies in some of their biggest spaces. After several large stores including Linens 'N Things, KB Toys and Shoe Pavilion filed for bankruptcy. Macy's is already getting the new year started on a negative note.
The store is warning that some shoppers who made purchases on Saturday, December 20th, particularly those in the southeast and Midwest, they should definitely take a second look at their bank statements. A technical error caused some people paying with debit cards to be double charged between the hours and 1:00 and 2:45 p.m. That possibly led to some overdrafts for these people. Affected customers should fax their bank statements to Macy's with Attention Third Party Credit written on the bill.
But, don't panic. A Macy's rep says less than one percent of sales that day were affected. But, nevertheless, Tony, when dollars are tight and you've got your money going out and you've got to wait for it to come back and you're charged like, $35 for having insufficient funds in your account, that all adds up and it hurts even more.
HARRIS: Those fees are ridiculous. Yes.
Well, Stephanie, if we do see more stores go under, I mean, the reality is, it's really going to be -- it'll count for a dramatic change when we go to these malls or go shopping in general.
ELAM: It's so true. And I was driving around yesterday and I saw several big spaces in strip malls closed down. You're already starting to see the effects of it.
So, the International Council of Shopping Centers is estimating that chain store closures could exceed 3,000, just in the first six months of the year alone. That means not just the obvious smaller number of stores to choose from, but less brand variety as every part of the chain is affected.
So, we'll be keeping our eyes on this. But, we're off to another rough part here in '09. But, retail sales right now -- shares I should say are mostly higher. As we take a look at the broader index --
HARRIS: Nice, look at this.
ELAM: -- looking kind of good there. I've got the Dow up 154, 8,930. And Nasdaq up 28, at 1,605. So, we've got the major averages up more than 1.5 percent right now -- Tony.
HARRIS: Love it! All right, Stephanie. Thank you. ELAM: Thanks!
HARRIS: So, here's how one expert describes the job market in 2009. The first six months will be painful, the second six, just painful. 2010, uncomfortable. Economists now predict the unemployment rate will shoot past eight percent, maybe hit 10.
Here's CNN's Susan Candiotti.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): It's hard to be happy when you're starting off the new year without a job.
JEN KWOK, UNEMPLOYED: It's scary not knowing like, when your next paycheck is coming.
CANDIOTTI: Jen Kwok was let go last fall as a web site writer and despite accounting skills, still can't find a job.
KWOK: I think it might be another year or so. I mean, I'm not really -- I'm not that optimistic that it's going to happen very soon.
CANDIOTTI: Kwok is among a staggering two million Americans who lost their jobs in 2008. That's far more than the 1.6 million jobs lost in the last recession in 2001. And the worse the job outlook gets, the harder it is to break out of a vicious cycle. No factories, no jobs, no spending.
UNIDENTIFIED MALE: It certainly got much worse, much quicker in 2008.
CANDIOTTI: Bleak is putting it mildly.
ED YARDENI, YARDENI RESEARCH, INC.: The problem is companies are having a very difficult time getting credit and they can't roll over their credits, they're desperate for cash. There's a dash for cash, and the fastest way to do that is to cut back on payroll employment.
CANDIOTTI: Economist Ed Yardeni, says a key to stabilizing the job market is reviving the housing industry by lowering interest rates.
Until then what can job hunters like Jen Kwok do right now?
JOHN CHALLENGER, CEO, CHALLENGER, GRAY AND CHRISTMAS: Be open to changing industries, but stay in your field. So, if you've been an accountant or a human resources professional, or an administrative worker, you can take the skills and move them say, out of automotive or banking if things are too tight there and go into health care, or energy or some of the other areas of the economy.
CANDIOTTI: Tips that job-seeker Jen Kwok takes to heart.
KWOK: I think I'll find something. However, I don't think that I'm going to get the job that I want. CANDIOTTI (on camera): And job experts say expect the job hunt to be even more competitive in 2009.
Susan Candiotti, CNN, New York.
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HARRIS: And log-on to CNNMoney.com for advice and answers. Check out our special report, America's Money Crisis. Again, that's at CNNMoney.com.
Some political notes for you. Congressman Rahm Emanuel is resigning his House seat, today. He moves on to the White House, where he will serve as Chief of Staff for Barack Obama. A special election will be held to fill that Illinois seat.
And a deadline today in Minnesota's tangled Senate race. Democrat Al Franken has a slim lead, about 50 votes over Republican incumbent Norm Coleman. Today the state's 87 counties must identify improperly rejected absentee ballots and turn them in to the secretary of state's office to be counted.
Are you rested, rested from New Year's Eve? As you look ahead to this year, here are some resolutions from our CNN iReporters.
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HARRIS: Our intrepid iReporters taking a break from covering the world to share their new year's resolutions with you. Let us take a trip to CNN.com's iReport desk.
Let us check in with one of the guys helping us run things down there at our iReport operation. There he is, Tyson Wheatley.
Tyson, you're looking good, young man. You're looking good.
TYSON WHEATLEY, iReport Producer: Thank you, Tony. You look great, too. Happy 2009.
HARRIS: And to you as well. What do you have from our iReporters?
WHEATLEY: Well, you know, as you mentioned, a lot of people this time of year are thinking about the new year, thinking about some healthy changes they can make. And iReport.com is no exception. We got a lot of great response. We put some of the ones we've been looking at together in this nice video. Let's go ahead and take a look.
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JANICE K., IREPORTER: Here it is 2009. [ inaudible ] got to lose the freaking weight, Janice. Got to lose the weight. 25 years of being totally overweight is just ridiculous. So, we got us a Wii, my husband and I, we like to do the boxing. We like to do bowling, and we're going to do it.
JOEL VETSCH, IREPORTER: In 2009, let's each of us take a look at what we do have, what we have achieved, what we have obtained, the blessings that we each hold, the family, the love. Let's take a look at all of that and realize what we have.
JASON DINANT, IREPORTER: Since I tell the naked truth and I'm naked boy, I figured I should have a six-pack. So, I'm going to try my hardest to get a six-pack by summer. Do you guys think I can do? Let me know. Leave me a comment and let me know what tips you think I should -- you know, what tips you guys have and what I should do to get that perfect six pack by summertime.
GERALD DIMMITT, IREPORTER: I think this year I'm going to take painting the house, the inside off the list. I bought that paint in 1986. I don't really think I'm going to be painting the inside of the house. But the one thing I'm going the really try to do in the year 2009 is value the friends that I have more than I have in the past.
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HARRIS: I love that. I love it.
WHEATLEY: So I mean, there you have it, right? I know you're close to perfect, Tony, but anything you want to change in '09?
HARRIS: You know, I guess I resolve to see more of the world in '09. I've got to get out. I got to get from behind this thing. I going to -- yes -- more trips and get out and meet more people from different parts of the world. That's the resolution. I'm going to become my own sort of personal United Nations, meet more people from around the world. That's it.
WHEATLEY: Yes. That's good one.
HARRIS: What about you? Have you got one?
WHEATLEY: I want to take up photography and do I guess like a personal web project that's not work-related. Those are my two.
HARRIS: You know, I would think that you would maybe pick up Jason's point about a six-pack. But what people don't know is that you already have one.
WHEATLEY: You're not going to ask me to prove it, are you?
HARRIS: No, no, no, no. No previews. But I see the calendar, I see the 2010 calendar coming.
Tyson, give us a look ahead to tomorrow's assignment?
WHEATLEY: Well, it's not too late to get your resolutions in. That's what we want to know today. It just seems like a good time to reflect on it. Things are kind of quiet right now.
Go to ireport.com/desk and tell us what it is that you want to do in '09 to change your lifestyle, particularly healthy. We're going to be following people throughout the year. It's really a great place to do it because the community is there to also offer tips and suggests and encouragement.
HARRIS: And Jason who wants a six-pack, will you have him send us i-Reports from time to time may be once a quarter to update his progress there.
WHEATLEY: I think you just guaranteed it, right there.
HARRIS: OK. Tyson, see you tomorrow, man. Appreciate it.
WHEATLEY: Take care.
HARRIS: Why don't we get a check on weather right now. Reynolds Wolf is in the Severe Weather Center.
Reynolds, is the situation improving at all in Oregon? I know that's a state having difficult times right now with mudslides.
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HARRIS: OK, Reynolds, appreciate it. Thank you, sir.
Corporations shelling out big bucks for sports stadiums and bold sponsorships. Is it the right thing to do when many people can't even afford a ticket to the game?
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HARRIS: Ah, weekend of college football bowl games leading up to next week's BCS championship. The big winners are the sponsors, of course. They're paying anywhere from $5 million to $20 million for a three-year contract. And universities getting $17 million per team -- wow! -- for the five BCS bowls.
Corporations have placarded their names all over the bowl games. May sound typical, but we're talking about companies getting millions in taxpayer money to bail them out of the financial crisis. Our Bill Tucker sets his eyes on Citi.
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BILL TUCKER, CNN CORRESPONDENT: Since Citi won the naming rights to the new home of the New York Mets back in 2006 and agreed to pay $400 million, times have changed. Citi stock has tumbled nearly 87 percent, and the company has received $45 billion from taxpayers to bail out the bank and keep it from bankruptcy. The stadium naming deal appears to be backfiring.
UNIDENTIFIED FEMALE: I mean, there's all these people losing jobs, such as Citibank, and then they're giving all this money to stadiums and stuff, when people are unemployed and can't find work, then it's not the best thing to put out there in the public.
UNIDENTIFIED MALE: Well, I think it's a bit of a waste. They should keep the money and put it back into their own business.
TUCKER: Citi is hardly the first to pay big bucks for a tie-in to sports. It's also not Citi's only sports sponsorship deal.
ANNOUNCER: The Rose Bowl game presented by Citi on ABC.
TUCKER: Nor is Citi the only company bailed out by taxpayers to be dropping hundreds of millions of dollars on a sports team. AIG paid $125 million to the English Premiere League soccer club Manchester United to have its name plastered across players' chests.
MARK HUGHES, BUZZMARKETING: You, me and every American own AIG, so shouldn't we have a shot at having our face on the Manchester United shirt?
TUCKER: Mark Hughes is the marketing man who cooked up the deal to rename the town Halfway, Oregon, half dotcom after its own Web site. that was a successful deal, a rare deal, Hughes says.
HUGHES: It's a complete ego stroke. I mean, you either see the revenue or you don't. It's plain and simple. And I've done those deals, and I've looked at numbers, and they don't produce revenue.
TUCKER: Some call it an edifice complex.
STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: These are politically tone-deaf maneuvers that really offend the public and offend the taxpayers who are putting billions of dollars into their companies.
TUCKER: And not every corporate sponsorship has a happy ending, like the 30-year, $100 million deal Enron signed with the Houston Astros.
Bill Tucker, CNN, New York.
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HARRIS: Will Roland Burris be the next U.S. senator from Illinois or will Capitol police stop him from entering the Senate chambers? We talk about what could happen next week in the next hour of CNN NEWSROOM.
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