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Obama, Bush Agree To Press Congress For $350 Billion Bailout Funds; Israel-Gaza Cease-Fire Still Just Talk; Madoff Gets Continued House Arrest; Burris Continues To Erode Barriers To Senate Seat; Rottweiler mauls 4-year-old

Aired January 12, 2009 - 14:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Next hour of CNN NEWSROOM starts right now. And hello everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM. We're going to cover the three B's today: bailout, Burris and Bernard, as in Madoff. And here in a second, but first the radar has a few more blips, including a story about a Rottweiler killing a four- year-old boy. This really got our team talking this morning.
Some of us said, hey, it's a bad breed and bad news. Others swear by their Rotties and claim the owners need to be trained.

And, behold something you might never see again for the rest of your days. It's what happens when you let Wolf Blitzer out of "THE SITUATION ROOM."

(LAUGHTER)

He's got the moves.

Well, the president in waiting isn't waiting to tap the TARP. Barack Obama and his economic aides today told the White House and Congress that they have plans for the $350 billion remaining in the Troubled Asset Relief Program, better known as "The Bailout". The Obama team is promising new accountability and conditions combined with, quote, "smart aggressive policies to curb foreclosures."

As you may know, the bailout to date has had few strings attached and limited results. As you may have seen live right here on CNN, "The Bailout Part Two" came up as President Bush's last formal news conference before he heads back to Texas. Of course, our CNN's Suzanne Malveaux was there.

Hopefully minus all the leaf blowers in the background this time around for your live shot. Suzanne, I can hear you. Very good.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: There's a lot going on here, Kyra. You know, getting ready for the inauguration and everything, obviously.

PHILLIPS: That's right.

MALVEAUX: They're building sets behind us, if you can believe it. But yes, it was the president's final press conference and it was curious because he was asked immediately about the bailout situation, the money, whether or not he was going to ask Congress for an additional $350 billion. He said well, Barack Obama hasn't asked me to go for it and do that. Well, it was about 15 minutes after the press conference that Barack Obama picked up the phone, called him and said yes, let's go for this. Let's go through with this, because he doesn't have the authority to ask Congress to approve that money. So what has happened is that President Bush says he is on board with this.

And essentially, they will issue a report to members of Congress and it's up to them if they want to reject this. If they reject it, then it sets up for a real kind of potentially contentious situation between the president and Congress. President Bush says he will go ahead, possibly veto to get that money. That's what he wants. Barack Obama could also be in the same situation if Congress decides that they're going to try to block this in some way. Both of these men are hoping that doesn't happen. They're both working very closely together.

You'll see in the days to come a lot of behind the scenes discussions that are taking place. I ran into Secretary Henry Paulson, here at the White House, the Treasury secretary, who had met with the president, President Bush. They're trying to get all of this together to reassure lawmakers that look, hey, we're going to be held accountable for where this money goes. We will be keeping up with it. It is not going to go to waste. There will be money that will be allowed to help people stay in their homes. Those kind of things that members of Congress have been expressing a lot of concern about, Kyra.

PHILLIPS: Well, also a lot of concern about Mexico. I know the president has his hands full, the president-elect will have his hands full with the economy and the wars in Iraq and Afghanistan. But we can't forget Mexico. Obama meeting with President Felipe Calderon. We're just getting this video in right now, Suzanne, of them getting together.

You're talking about human trafficking, drug trafficking, immigration issues, corrupt police, corrupt military, corrupt immigration. It's been ignored for a long period of time.

MALVEAUX: There's some really big issues and big problems that the United States has to deal with Mexico. Obviously, these two leaders sitting together today is really kind of described as a courtesy call, if you will, not necessarily going to get a lot done but certainly going to put these issues on the table here.

We're talking about legal and illegal immigration. That was a big issue, as you know, in the campaign. A lot of Hispanics who promoted and supported Barack Obama looking to see if he's got some sort of real plan to reform immigration. That was something that President Bush had tried.

Also looking at NAFTA, that free trade agreement with Mexico and Canada. We heard Barack Obama during the campaign saying he was going to look at renegotiating that a bit. Lot of folks from the union side, labor, believe that some of those jobs, American jobs, have been lost because of that free trade agreement. Calderon believes that that is not the case, but those are two serious issues they've got to deal with and it's going to be on the table, including what you mentioned before, which is obviously the drug war.

PHILLIPS: All right. You mentioned it, so I don't want to put you on the spot. Is there any way we can see what is happening behind you? Why are they building sets? What exactly is going to happen right there on the grounds in front of the White House for the big inauguration? Can you give me anything?

MALVEAUX: OK, inauguration day. Let's see here. We have a viewing stage. I don't know if you can pan over and see or not but --

PHILLIPS: Can we do that? Can we take a look?

MALVEAUX: You have the procession that is going to come here. The president will walk down Pennsylvania Avenue here, right at the White House. I'm getting a little shaking, no, with my photographer. I can't get over.

PHILLIPS: You can't off the stick?

MALVEAUX: But if you can imagine, it really is quite amazing what's happening. A lot of building that is going on here. They have been taking weeks of constructing this. They had a parade rehearsal over the weekend, got a chance to see some of that as well. Kyra, I don't know if you will be down here. It will be crazy. And they're already starting to construct these massive things in front of the White House, the stands where everybody's going to be sitting, the procession, the VIPs, the place where the press risers are. There's a lot of construction going on. There's a lot happening right now.

PHILLIPS: All right. We can't get that photographer to get off the sticks, huh? It's planted there on the White House lawn?

MALVEAUX: You know, sometimes these things don't actually work, you know , plan it out. Maybe next hour, I can give you a little panoramic view.

PHILLIPS: There you go. We are taking a couple shots. I believe that's the capitol, where they're setting up already. I think "American Morning" is going to be going live from there starting at 5:00 a.m. Then, of course, we had a shot of the White House as well. You can see some of the bleachers that were being set up. OK, Suzanne --

MALVEAUX: They're right next to us. I will be here on the north lawn in Blair House, which is right across the way. So, I'll be giving you a little tour of all that when it happens.

PHILLIPS: Sounds great. We look forward to an amazing moment in history. Suzanne, thanks.

MALVEAUX: Sure, Kyra. PHILLIPS: Well, the incoming Obama administration is being flooded with job seekers, as you can imagine. Listen to this. More than 350,000 people have gone online to submit their resumes. Trouble is, only 3,000 to 4,000 jobs are available. But experts say these tough financial times probably have a lot to do with the flood of those job seekers.

Eight years ago when President Bush was getting ready to move into the White House, 90,000 people applied for jobs in his administration.

President Bush is admitting that he made some mistakes in his eight years in Oval Office. This morning, he gave what's expected to be the final news conference of his presidency. Among other things, he said he should have tried to overhaul immigration laws instead of pushing for Social Security reform after the 2004 election. And he had this to say when asked if president-elect Obama will feel isolated.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: One reason he won't feel isolated is because he's got a fabulous family, and he cares a lot about his family. That's evident from my discussions with him. He's a 45 second commute away from a great wife and two little girls that love him dearly.

I believe the phrase "burdens of the office" is overstated. Why me, all the burdens, you know, why did the financial collapse have to happen on my watch. Just pathetic, isn't it? Self-pity. And I don't believe President-Elect Obama will be full of self-pity.

(END VIDEO CLIP)

PHILLIPS: Well, as President Bush gets ready to exit the stage a week from tomorrow, here's what Americans think about him. In a CNN/Opinion Research Opinion poll, 27 percent approve of the way he's handling his job; 72 percent disapprove. Three quarters say they are glad he's leaving the White House, 23 percent say they'll miss him.

Bail, not jail for Bernie Madoff; you know, the New York investment guru who allegedly fleeced thousands of clients out of billions of dollars. He's been under house arrest, make that penthouse arrest, since his alleged Ponzi scheme imploded. Today, a federal judge in New York refused a demand by prosecutors to yank his bail. They claim that he's been trying to give away his assets before his alleged victims can get them.

For more on the story, let's get to Susan Lisovicz. She's at the New York Stock Exchange with the latest.

I tell you what, Susan, it just gets more and more salacious. He starts trying to get rid of, what, watches, and jewelry?

SUZAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Yes, Cartier and Tiffany watches, we're not talking Timex here. Nothing wrong about Timex, but these are high-end watches, diamond necklaces, things like that, about $1 million worth, Kyra.

That really fired up prosecutors, who said Bernie Madoff, who is accused of running what could be the world's biggest Ponzi scheme, violated the terms of his bail by mailing this stuff out. He should have known better. Madoff asserted that these items were holiday gifts and heirloom pieces of sentimental value and were sent without any intent to violate the court order.

Now, the judge said Madoff can remain under 24/7 house arrest. And I believe you mentioned penthouse arrest. Yeah. he lives in splendor on the Upper East Side of New York City. But there's some tweaking to this house arrest, Kyra. One of the things that Madoff will have to do is compile an inventory of all portable items. That is specific language there, in his Manhattan home. And that every two weeks a security company, approved by the judge, will check that inventory. Also, there will be restrictions on transfer of all property whatsoever, wherever located, that is under the control of Madoff.

Also, his outgoing mail will be checked. The bottom line is that the judge said, a U.S. judge said that Madoff does not prevent -- present a flight risk, and does not present a danger to the community. So he remains under house arrest with, I believe, an electronic ankle bracelet as one of the items of jewelry that he now sports, Kyra.

PHILLIPS: It will be interesting to follow up what other kind of jewelry he might sport as this goes forward.

Let's talk about stocks, Susan. Last week we had that brutal jobs report. We heard about it on Friday. Are investors over that yet?

LISOVICZ: No, you know what, last week it was really about job losses, as you mentioned, culminating with Friday's terrible jobs report for December, more than 500,000 jobs lost; a perfect sweep for the year. This week, the sentiment really shifts to -- or the focus, I should say, shifts to corporate earnings. Citigroup shares are down 12.75 percent right now.

We are continuing to see dramatic changes in the landscape here on Wall Street. Citi is in talks to sell the majority stake in its Smith-Barney brokerage unit to Morgan Stanley. The deal could provide near-term relief to Citi. It would help, certainly, bolster Morgan Stanley's brokerage outfit.

But, you know, what we're seeing across the board is starting the week with broad-based losses, Kyra.

PHILLIPS: All right, Susan. We'll talk again. Thanks.

LISOVICZ: You're welcome.

PHILLIPS: We expect to find out any day now, maybe any hour now, whether Roland Burris is the new junior senator from Illinois. Today that battle actually moves back to Capitol Hill. And CNN's Brianna Keilar is there. BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Kyra, Roland Burris' lawyers are due to meet with Senate officials this hour here on Capitol Hill to talk about Roland Burris's fate; if he is going to be, indeed, the junior senator from Illinois. As we hear Democratic leaders say they want to move quickly on this, we have even heard over the weekend Dick Durbin, the number two Democrat in the Senate, saying that he looks forward to serving with Roland Burris.

We're hearing from Democratic sources that a decision will come out of this meeting as to Roland Burris's fate; and that it's likely that the word will be he is going to be seated. Still at issue, according to one Democratic source familiar with these discussions, is the paperwork. You recall that Roland Burris showed up on Capitol Hill last week with a certificate of appointment signed by embattled Illinois Governor Rod Blagojevich, but he was missing a signature from the secretary of state of Illinois, Jesse White. Now he has it, only it's in a separate document.

It's basically a certificate acknowledging that this certificate is accurate, so the question now is will these two separate documents together be enough? And if the question is yes, that really is a major hurdle that Roland Burris needed to clear in order to be seated in the Senate, Kyra.

PHILLIPS: Brianna Keilar, thanks so much.

It's been more than 50 years since Little Rock Central became the center of the civil rights universe. You think the kids there now realize their school helped turn an African-American president from a dream into a reality?

And hard times, bad times. Forget about the glitz and headline- grabbing stunts of past years. We're taking a look at this year's scaled-down auto show in Detroit.

(COMMERCIAL BREAK)

PHILLIPS: Listen up, all you boomers, your days are numbered, a new bunch of kids are taking over D.C. Heading the pack, the president seen as part of a new generation.

(COMMERCIAL BREAK)

PHILLIPS: If you're a boomer, you're toast. At least that's the message from a lot of folks leading the way in this generational change. Barack Obama, as he gets ready to move into his new digs, the White House. Joining us in Washington to talk about this, Frank Sesno.

Frank, Obama is technically a baby boomer. So, why don't we think of him as one?

FRANK SESNO, CNN SPECIAL CORRESPONDENT: Well, because he doesn't look, sound, or relate like one. You're right. He was born in 1961; the era of boomers, officially 1946 to 1964, so he qualifies. By the way, it's worth pointing out that both of the two presidents who preceded him, both Bill Clinton and George W. Bush, were born the first year of the baby boom, 1946. So, they're your bookends.

But in any case, as far as Barack Obama is concerned, as I say, doesn't look, sound or relate like one. Look what Michael Barone, a columnist wrote about him. He says, "his early years were straight out of Generation X. Abandoned by his father, and for a time, his mother. Experimentation with drugs, a sense of drifting." That's the downside of it. The upside of it is he's part of a very global generation. He relates globally, as we have seen. He relates across racial lines, across ethnic lines. So the whole sort of look, feel and touch of Barack Obama is a little bit different.

Look at this, I think you'll recognize this, Kyra, the BlackBerry. This is a president-elect who has grown up with digital communications. It's very much a part of him. This isn't stuff he's having to learn and relearn like some of the older members, myself included, of the baby boom generation. This is instinctual. He defined how he ran, it may define how he governs.

PHILLIPS: He's pretty hip. I wonder who keeps him up on all the gadgets, I guess we should say?

SESNO: His kids.

PHILLIPS: Exactly. That's why I need about six kids.

SESNO: I guarantee that's right.

PHILLIPS: I'm still on the typewriter, I don't know about you.

SESNO: Oh, no. I've done better than that, I promise.

PHILLIPS: OK.

President-Elect Obama does seem to have a special appeal to younger voters, whether it's his kids that are helping him or not. Do you think it will have the same or he will have the same appeal to older baby boomers?

SESNO: Well, you know, look, the boomers were the generation of civil rights, they grew up with civil rights, they grew up with Vietnam, they grew up with a lot of change. So there's a connection there. But the exit polls sort of spoke for themselves; those younger voters, those pre-boomers voted for him, younger voters, two to one. Boomers, the 30 and over crowd, were sort of split pretty much down the middle, 30 to 50. So they're not a built-in constituency.

Something else, one of the big, big issues that Barack Obama says he wants to deal with, Social Security and Medicare, twin issues, related to retirees. Guess what the front end of the boomers are starting to cash those early Social Security checks now. So there may be a little bit of generational conflict coming down the line there because there will be some hard decisions that have to be made here.

So the boomers are not going to go quietly into the night. OK? They never have. They have been the big bulge through the snake for marketers, advertisers, programmers, and for those who are doing politics. That's not changing. But their place on the stage, their place on the stage, may be.

PHILLIPS: All right. You're saying there is baggage that comes with a generational change in leadership?

SESNO: Yes, I do think so. I think this cuts both ways. When we look at other times when the torch has been passed, John Kennedy, that kind of thing. There's great opportunity because a young, fresh, new generation can say look, we can do these things. There's a sense of the possible. There's idealism, there's hope, there's -- we're going to change the world.

But there are also, in some cases, places where there's a disconnect with the past and hubris and idealism can be overtaken by reality. John Kennedy, again, is a good case. Came in, he was president of the moon shot. We did things we never talked about before. He also got taken in by the Bay of Pigs, the Cuba invasion, probably because of some naivete and lack of experience that he and his team had.

PHILLIPS: It will be interesting to watch. Are you getting ready for the inauguration?

SESNO: What else is there to do in Washington?

PHILLIPS: Exactly.

SESNO: We're having a little practice with some gridlock already. I'm getting used to it.

PHILLIPS: I'll tell you what, the traffic and the transpo, it's going to be a nightmare. But hey, got to be part of history, right, Frank?

SESNO: Walking is good, walking is good.

PHILLIPS: There you go. See you soon.

SESNO: Thanks, Kyra.

PHILLIPS: Well, more than a half century ago, nine students became the first African-Americans to attend Little Rock Central High School. It was an early milestone in the civil rights movement and a major stepping stone that helped pave the way for the first black president. We're talking to the Little Rock Central students past and present, as part of a week-long series, "Road To The White House." Here's CNN's John Zarrella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): The building is imposing, casting a long shadow over the neatly kept grounds. This is Little Rock Central High School, on the outside it hasn't changed in half a century. It is only when the school bell rings and the students pour out, you see the change in color. Today, nothing like what it was in 1957. Carlotta Walls LaNier thumbs through her yearbook.

CARLOTTA WALLS LANIER, "LITTLE ROCK NINE" STUDENT: Then, it shows how the 101st were bivouacked on the grounds of the school.

ZARRELLA: Only after federal troops arrived were LaNier and eight other African-American students able to integrate central high. They became known as the Little Rock Nine.

LANIER: Because it's been 51 years, I think they were baby steps now, but they were big steps then.

ZARRELLA: Back then, LaNier believed once the doors of equality were opened, it wouldn't be long before an African-American became president.

LANIER: I had hoped to see something like that in probably the next 10 or 15 years when I was in high school, but that didn't happen.

ZARRELLA: Now that it has, today's students at Central see the themselves as the beneficiaries of an Obama presidency.

DEIVORY HOWARD, STUDENT: It just means OK, I can actually be what I want to be.

HELENA LIU, STUDENT: There actually is a chance for anyone to do what they want to do if they work hard enough.

HOWARD: An ordinary person can do extraordinary things.

ZARRELLA: And they believe their school's history gives them a greater appreciation for racial tolerance.

CHRIS BELL, STUDENT: I think that when you come through those doors there, it's a different environment. It's more of a one-one environment. Everyone is one and we're working together for a common goal.

AFSHAR SANATI, STUDENT: We learn a lot more about what happened here, and the importance of it. And definitely - I mean I have friends that go to private schools that are not as diverse. There's a degree of racial uniformity that they have. They don't get the same experience.

ZARRELLA: Central does not shy away from its past. Students take a class that teaches it.

HOWARD: I couldn't believe this happened here. But at the same time, it's like I'm glad it did, because you know, if it weren't for that, we probably -- the country wouldn't be where it is now.

ZARRELLA: And as you look in the reflecting pool outside Central, that is what you see, the present, not the past.

(On camera): The students say they don't dwell on the past, or even talk about it very much, unless somebody like me asks them. But behind me there is a gas station preserved in history and beyond that, a museum. The images are everywhere. You can't escape them. And perhaps you shouldn't. John Zarrella, CNN, Little Rock, Arkansas. (END VIDEOTAPE)

PHILLIPS: History is not lost on those kids, nor on some college students from San Jose State. They're talking the long way - or they're taking the long way, rather, from San Jose to D.C. We should have cued the song right there.

Visiting civil rights landmarks across the South is what they're doing, and they're doing that as they head toward the inauguration. There, they are at the Civil Rights Museum in Memphis. They're taking pictures for us and documenting their trip. They will go to Selma, Birmingham, Atlanta, all those places on their itinerary and a bunch of places in Mississippi as well. Bianca de Castro is one of the road trippers. She's on the phone with us now from Jackson, Mississippi.

Bianca, you hear me OK?

BIANCA DECASTRO, SAN JOSE STUDENT: I can hear you.

PHILLIPS: I think this is fabulous. You guys are hitting all the civil rights spots on your way to the inauguration. I know you were in Memphis yesterday. You actually went to the Lorraine Motel. Tell me what that was like for you, what you learned about the history of the motel and what stood out to you?

DECASTRO: Well, the whole trip in itself is a great experience and it's an amazing opportunity that the school has given us. Visiting the Lorraine Motel yesterday was just the beginning of what we're getting into. It was the beginning for us, yet it was the end for Dr. King, and his life, because that was where he was killed. It allowed us to see the struggles that people have gone through to get to where we are today.

PHILLIPS: Wow. I also know you had a chance to talk with Reverend Billy Kyles, a very good friend of Martin Luther King, advisor, confidante. Let's do this. I know you actually have it on videotape. Let's listen to a little of that interview, then I'll ask what you thought about the reverend.

(BEGIN VIDEO CLIP)

REV. BILLY KYLES, FRIEND OF MARTIN LUTHER KING: What one must remember is Martin's life span, work span, was maybe 12 and a half years, not a long time. In 12 and a half years, he turned this nation and in many places, the world, inside out and upside down.

(END VIDEO CLIP)

PHILLIPS: All right. Bianca, you're on your way to being a great reporter. What did you ask him? And tell me a little bit more about that interview, what it was like to sit down and talk with him.

DECASTRO: Oh, it was -- I was nervous. I was a little bit nervous but of course, you are sitting in front of a great man. As you know, he's the last living man who was with Dr. King on the balcony in room 306 at the Lorraine Motel. He told us a lot. Of course, he tells the story a million times. And for me, I had researched and read about him and not one word changed when he was telling the story, which to me signifies the truth in what he was saying. And what he witnessed, it meant so much not for just me, but for everyone in the room. The emotion was very high within the room, that the students were getting very emotional. It was such a great experience.

PHILLIPS: Well, I can't wait for you and the students to come here to Atlanta, Georgia. I know that's when we will talk to you.

DECASTRO: Oh, we can't wait, too.

PHILLIPS: Yeah, live on - and wait until you see the church where MLK preached and the house where he grew up, and hitting that whole area, not far from the CNN Center here. It's pretty remarkable. I can't wait to get your impressions of that. So, we'll see you on Thursday. Sound good?

DECASTRO: Oh, great. We look forward to it. Thank you.

PHILLIPS: All right, Bianca, thanks so much.

DECASTRO: OK, see you then.

PHILLIPS: Future journalist of CNN there, Bianca De Castro with other students from San Jose State University, taking a road trip, hitting all the civil rights spot as they head to the inauguration. What a great idea.

Well, another first for women. President-Elect Barack Obama has chosen the Reverend Sharon Watkins to give the sermon at the national prayer service, held the day after the Obama inauguration. Watkins is president and general minister of the Disciples of Christ in the U.S. and Canada, a Protestant denomination, with some 700,000 members. She's the first woman to hold that job. The January 21st event will also include prayers and readings delivered by religious leaders of a variety of faiths.

In another first, an openly gay bishop of the Episcopal Church will deliver the invocation at the opening ceremony of Barack Obama's inauguration on Sunday. The selection of Gene Robinson follows weeks of criticism from gay rights groups over the president-elect's decision to have the Reverend Rick Warren give the invocation at his inauguration.

Warren backed a recent ballot, as you know - a ballot measure, rather, banning same-sex marriage in California. Robinson says the choice of Warren was like a slap in the face, but he doesn't think Obama invited him in response of the Warren criticism.

If you look at the Barack Obama administration, he said it was going to be all about diversity. So as we go forward for the next number of years, we'll probably see a lot of different types taking on these types of engagements. We will cover them all.

Talk is desperately needed between Israel and Hamas, but the only thing being heard are deadly blasts from air strikes and rockets. Also, Somali pirates come away with a big pay day and some lose their money, and some lose their lives.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's a family's nightmare. Their beloved dog goes off and attacks a child. It happened yesterday in Chicago. A 4- year-old, mauled to death. Two Rottweilers and a poodle lived in that house.

Authorities weren't sure which was involved. All three were seized and euthanized. For some people, their pets are their kids. For others, that's a bizarre concept, and so dog attacks like these can be a real emotional issue.

Well, we just told you about this case involving Rottweilers, and of course, pit bulls have made headlines for child deaths as well. So, bad breeds or bad reps? there are passionate voices on both sides. Bottom line, you got to do your homework if you're going to have kids and dogs in the same house.

Now, we found a couple of Web sites right here on dogbreedinfo.com. They actually rank how reliable different breeds can be with kids. You can see this right here. Might surprise you that on a scale from one to five, pit bulls are listed as a one or -- yes, a one, excellent with children. That's actually on that Web site.

And you can go ahead, and you can look. It's got all the information on breeds, purebreds, hybrid dogs, and then it tells you about the various characteristics of each type of dog.

And I have to admit, I was one in the meeting sort of stereotyping, saying, why would anybody have a Rottweiler or a pit bull around their child or around their baby, because I have heard -- you know, being in this business, I hear nothing but horrible stories about that happening with kids or of course, I hear about Rottweilers and pit bulls being involved with gangs and fighting and -- so, this was a definite eye-opener to me.

Now, there's another Web site, too, that we found, akc.org, and this has also got some great resources to find a breed that will fit your lifestyle. There is also a section on being a responsible dog owner. So my eyes were opened.

A lot of people do say that it's the dog, it's the characteristics of the dogs. Others say, hey, it's the environment and the way you raise that dog. Bottom line, you've got to be careful. You've got to do your research and you've got to put your child No. 1.

A cease-fire is still just talk. Rockets and air strikes doing the talking. Israeli air strikes have hit Hamas leaders where they live, and thousands of Israeli military reservists are now moving into the Gaza Strip. Militants reportedly launched more than a dozen rockets. At least one fell as far as Ashkelon. There were no reports of injuries. Israel's prime minister says that the iron fists will keep hitting Hamas until it halts the rocket attacks.

And some important health news for pb & j fans. Details about a recall that could affect your lunch plans.

Plus, their plan went off without a hitch, and then they were sunk. Some Somali pirates' payday followed by a scurvy fate.

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PHILLIPS: A Sirius Star, a giant supertanker captured by pirates in November, was released over the weekend. And it looked like a stunning victory for the pirates, but then, karma. CNN's David McKenzie talks exclusively to one of the pirates about how their operation went dramatically wrong.

(BEGIN VIDEOTAPE)

DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): A dramatic aerial drop to free a captured supertanker. A small plane sweeps above the Sirius Star, apparently offloading a ransom by parachute to waiting Somali pirates. The pirates onboard the Saudi oil tanker reportedly collected some $3 million in exchange for freeing the captured ship. But for the pirates, things went horribly wrong.

Libaan Jaama says he was one of several pirates on board the captured supertanker. He spoke on the phone exclusively with CNN after the ship was freed.

He says a group of pirates left the tanker for shore in a small skiff like this one with their share of the ransom money. But the seas were high.

LIBAAN JAAMA, SOMALI PIRATE (speaking through translator): Other pirates on the shore wanted a tip from the pirates on Sirius Star, so they started to fire in the air as our pirates approached the land. When our pirates heard the shots, they thought they would be robbed, so they tried to return to the tanker. In that quick turn, the boat capsized.

MCKENZIE: Five pirates were lost at sea, and over half a million dollars went down with them, Jaama says.

JAAMA (speaking through translator): Those who knew how to swim, swam to shore, and those who don't know how, drowned right there. Instead of helping, the other pirates kept firing.

MCKENZIE: He says he's mourning the loss of his friends. The men were hostage-takers, though, to more than 20 crew members held on the Sirius Star. The Saudi-owned supertanker is the largest ship ever hijacked by pirates. They captured the tanker, carrying 2 million barrels of oil off the coast of Kenya in November.

The pirates are based in Somalia, a land wracked by poverty and conflict. They say hijacking is all about the money, lifestyle.

JAAMA (speaking through translator): We have the best way of life. We drive in white SUVs. We enjoy driving them, and there is absolutely no difficulty in our life.

MCKENZIE: A cavalier attitude, considering the flotilla of coalition warships in the region, ready and authorized to strike at Somali pirates. They're part of a growing international effort to combat the surge of piracy off the Horn of Africa. But to this force, the pirate issued a threat.

JAAMA (speaking through translator): Those foreign forces are making a mistake targeting pirates because we only hunt in our waters. If they come to our borders, we will think of steps to take against them.

MCKENZIE: After a harrowing ordeal, the Sirius Star sailed from dangerous waters, all of its crew safe and healthy, say the ship owners. But what of other vessels passing through these waters? The pirate I spoke with says he will continue to risk even death to get their ransoms. That means no ship is safe.

David McKenzie, CNN, Nairobi.

(END VIDEOTAPE)

PHILLIPS: And straight ahead, we're talking snow, ice, flooding and now a blast of cold air that will make you want to head to the Caribbean, maybe even get a massage. (LAUGHTER) So I come over here to check out the computers and Jack starts rubbing my shoulders. This is what happens here at CNN. We all get along so well and multitask.

(COMMERCIAL BREAK)

PHILLIPS: All right, I want you to belly up to the weather bar with me and Chad Myers here. Why don't we start with Northwest flooding?

(WEATHER REPORT)

PHILLIPS: Straight ahead, hold on to your wallet. A pretty unpleasant trend hitting motorists across the U.S. After heading south for months, gas prices are changing direction.

And are you worried about the recession but need a new ride? Well, a new pink-slip option could give you peace of mind if you're in the market for a new Hyundai. We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Think lean, mean and going green. That's the mantra at this year's North American International Auto Show in Detroit. Fewer concept cars are being shown, and there's more emphasis on hybrids and electric vehicles.

This year's theme may also be about the auto industry's survival. Detroit's Big Three automakers, Chrysler, Ford and GM all trying to prove that they're viable, but GM backtracked a little bit today. Chief Operating Officer Fritz Henderson said in a worst-case scenario, GM might need another loan.

The Treasury Department has already loaned GM, by the way, more than $13 billion.

Well, gas prices are down slightly today, ending 12 straight days of increases, but the overall trend could be up. Stephanie Elam has our "Energy Fix" from New York today. Hey, Steph.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hey, Kyra. Yes, Triple-A says the national average for a gallon of regular is $1.79 today. That's down two-tenths of a cent from yesterday, but according to the Lundberg Survey, in the past three weeks, gas has jumped nearly 12 cents, the first increase in six months. In fact, it's back above $2 in three states.

Now, analysts say gas will likely head a bit higher in the next few months, but they don't expect a return to last summer's record highs, mainly because demand remains sluggish due to the weak economy. I can't tell you exactly how much you will be paying, but I can promise you this.

Whatever the price is, it will have nine-tenths of a cent tagged on. And if you wondered why that is, we did a little research, found out. We called the Petroleum Marketers Association to see what they said. And they say a fractional pricing system started in the 1930s, when the federal government began taxing gasoline in tenths of a penny.

As time went on, the practice never changed, probably because it's pretty good marketing. After all, Kyra, you know, when you go to the station, you know, it sounds a little cheaper, you see $1.79 and then that little nine-tenths over there, then $1.80, right?

So, think about it. Retail stores do the same thing. You go to by a vase, and it's $39.99 instead of $40. So, we've all seen that.

PHILLIPS: Well, are gas stations ripping us off, then? Do they round up that nine-tenths of a cent on every gallon that we buy?

ELAM: You might think so, but actually, industry experts insist that is not the case. The National Conference on Weights and Measures says gas pumps always round to the nearest whole cent. Sometimes that's up, and in other cases that's down.

So, statistically, neither the seller nor the buyer should come out ahead. But we'll just have to take their word on that, take that one on faith. But if you need more of an "Energy Fix," you can always head to cnnmoney.com -- Kyra.

PHILLIPS: All right. Sounds good. Thanks, Stephanie.

ELAM: Sure.

PHILLIPS: Well, you might remember Wolf Blitzer from his starring role in "Saturday Night Fever" or maybe his stint as a "Solid Gold" dancer. All right, we made that all up. But the guy really can cut a rug when he he's not in "The Sit Room." Take a look at this. Wolfie, move it!

(COMMERCIAL BREAK)

PHILLIPS: Oh, my gosh. Val, you did not. Yes, yes, Valerie, my producer, yes, you did. She said drop it like it's hot.

Well, tell you what, Wolf Blitzer, he can get in the groove, and he can drop it like it's hot. He may not have those apple-bottom jeans but either way, he was definitely shaking what his mama gave him on "The Ellen Degeneres Show." The episode airs today if you want to see even more.

Here's another sneak peek.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

(END VIDEO CLIP)

PHILLIPS: (LAUGHTER) Well, we did know him as the man in "THE SITUATION ROOM," but Wolf, who knew you had been around the ballroom once or twice.

WOLF BLITZER, HOST, "THE SITUATION ROOM": Are you familiar with that song, Kyra?

PHILLIPS: No. Tell me about it, Wolf.

BLITZER: "Low Low Low." You know who does that?

PHILLIPS: Who does that?

BLITZER: Low Rida, Flo Rida. Let's listen to a couple seconds of this.

(MUSIC PLAYING)

You see me getting low, low, low?

PHILLIPS: I see you getting low, low, low.

BLITZER: It's a happening kind of show.

PHILLIPS: I really -- I got to tell you, I know you're a pretty hip dude. You've got a great sense of humor, but I had no idea that you could move like that.

BLITZER: You know I was in a rock band, you know that, don't you?

PHILLIPS: You were?

BLITZER: In high school.

PHILLIPS: What was the name of the rock band? BLITZER: The Monkeys. Buffalo, New York. It was before the real Monkees.

PHILLIPS: Oh, I see. So, you kind of created the real Monkees.

BLITZER: We sort of set -- I was keyboards.

PHILLIPS: OK, you were keyboards. Did you sing?

BLITZER: No. I was not a good singer. I was not a good keyboards guy, either.

PHILLIPS: Well, you got the moves.

BLITZER: I wasn't good in any of it. That's why I went into journalism.

PHILLIPS: Hey, hey, Otis, can you give me a little dancing machine? There we go. Give me a little head move, Wolf. Give me a little head move.

BLITZER: Let me hear the song.

PHILLIPS: Kind of feel it, Wolf. Feel it.

BLITZER: I'm trying to feel it.

PHILLIPS: Yes. There we go. OK. Keep moving. Rick Sanchez, help Wolf.

BLITZER: Don't we have anything a little hipper?

PHILLIPS: Yes, yes. Give me a little hip move in the seat. Rick, can you give --

BLITZER: Yes, Rick. Come on. He's got the moves.

RICK SANCHEZ, CNN ANCHOR: No, no. But I'll tell you what, I've got a name though for that episode of "Ellen."

PHILLIPS: What is it?

SANCHEZ: They can expand it into a movie and call it "Dances with Wolf."

BLITZER: "Dances with Wolves," wolves.

PHILLIPS: I like it. You know, I'm the leader of the wolfpack, Rick, so don't even get in on my action.

SANCHEZ: Oh, sorry.

BLITZER: I want to see Rick Sanchez move a little bit.

SANCHEZ: No, no. Listen, first of all, I'm Cuban, of course, I can move. But I can tell you this. As a dancer, you're a great broadcaster.

BLITZER: Thank you. I'm going to keep my day job. Is that what you're saying?

SANCHEZ: Well, yes.

PHILLIPS: You are -- you are too sexy, Wolf.

BLITZER: You know who is adorable, I've got to tell you, Ellen Degeneres. She is great. She makes you feel so comfortable, and she's got a great show. It was just a thrill to go out there. We had been going back and forth for about a year, when I was going to do it, when I would do it and all that. But it worked out. I'm really glad I did.

PHILLIPS: Well, she's the only person that can get me through the treadmill, Wolf.

BLITZER: Yes, no. She is great.

PHILLIPS: Yes. She is terrific. Two wonderful people found each other. We can't wait to watch the show. Thanks, Wolf.

BLITZER: All right. Thank you.

PHILLIPS: Our little dancing machine.

BLITZER: By the way, Kyra. Can I say one more thing? We're going to have a clip in "The Situation Room" today from the show that actually aired. I think you and Rick and a lot of our viewers are going to want to see it. Just want to tease it and let our viewers know that they should stand by for that clip.

PHILLIPS: All right. OK. Rick, you going to watch?

SANCHEZ: Of course.

PHILLIPS: OK. I'm on it.

SANCHEZ: I would never miss Mr. Warm and Fuzzy.

PHILLIPS: All right. We going to cue up the salsa and the meringue, and we're going to bring Rick Sanchez back in just second. We going to get Wolf to join in, too.

Out of the mouths of babes come plenty of grown-up concerns about the country that they'll inherit.

Dear Mr. President, the children are watching.

(COMMERCIAL BREAK)

PHILLIPS: A new president will face monumental challenges. How many times have we heard that. But he'll also get plenty of advice, suggestions, requests and concerns. None will be more heartfelt than these. (BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Dear President-elect Obama --

UNIDENTIFIED MALE: Dear Barack Obama --

UNIDENTIFIED FEMALE: Dear President-elect Obama --

UNIDENTIFIED MALE: I hope you will be taking up the task of stabilizing the downfall of the economy.

UNIDENTIFIED FEMALE: The last eight years people have been losing their jobs and homes.

UNIDENTIFIED FEMALE: Just recently stock markets have been going down and banks haven't been doing well. This means hundreds of thousands of people are losing their jobs and aren't making enough money.

UNIDENTIFIED FEMALE: Could you help the economy in America, like homes for homeless, poor families and children who don't have homes or food.

UNIDENTIFIED FEMALE: My dad rides his bike to work so he wouldn't waste gas sometimes. We can't afford the things that you want that's expensive, only food.

UNIDENTIFIED FEMALE: Everyone is afraid about having a depression such as the one in 1929.

UNIDENTIFIED MALE: In the past, people were able to buy a family dinner for under $20. Now, you need nearly at least $50 to pay for a family of four.

UNIDENTIFIED MALE: I think you should give away money for poor people.

UNIDENTIFIED FEMALE: Many people barely have enough money to pay for a house at the time, and raising our taxes will just make them have to share a house with friends or even sleep out on the sidewalks.

UNIDENTIFIED FEMALE: Give the homeless a home and more money so they are happy and not cold or really scared.

UNIDENTIFIED FEMALE: I have an idea to help the homeless people by building a hotel and the homeless people don't have to pay. That way, they will have a place to stay.

UNIDENTIFIED MALE: You should pass out stimulus checks to calm down the economy.

UNIDENTIFIED FEMALE: I really do trust you in making the United States of America a better place. Once again, thank you and have a wonderful day.

Sincerely, Emma Goddard (ph). Sincerely, Mia Sech (ph).

Sincerely, Matt Howpell (ph).

UNIDENTIFIED FEMALE: Please come and visit.

Sincerely yours, Evan Loke (ph).

(END VIDEO CLIP)

PHILLIPS: Oh, from the mouths of babes. That does it for us. I'll be back tomorrow afternoon. Rick Sanchez takes it from here now.