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Reconsidering "Don't Ask, Don't Tell"; Save Big on Foreclosure; LeBron James Returns to Cleveland; The Search for An E.T.; The Fed's $9 Trillion Loans; Season Hiring Picks Up
Aired December 02, 2010 - 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: All right. All right. Let's go here. We are keeping our eyes on several developing stories right now.
On Capitol Hill, the Senate Armed Services Committee is hearing testimony on gays in the military and repealing "Don't Ask, Don't Tell."
Also on the Hill, the House is expected to vote today on whether to censure Congressman Charlie Rangel. He was convicted of ethics violations.
And the soccer fans, packed your bags for Russia. And Cutter, the soccer federation, announces host countries for the 2018 and 2022 World Cup games.
Reconsidering the policy on gays serving openly in the military. Pentagon brass testifying before a Senate panel right now about their findings but not all senators are on board.
Senior congressional correspondent Dana Bash following the hearing on Capitol Hill for us -- Dana.
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Right, Tony.
This is really a critical, critical hearing because it is the first time since the military's report on their lengthy very, very review on what kind of effect the "Don't Ask, Don't Tell" repeal would have on the military.
This is the first time that they're coming before the senators who actually decide the fate. Of course it is the United States Congress that has to actually change the law. And they are certainly getting some tough questions from some of the likely suspects, I think it's fair to say.
John McCain, for example, is making very clear he didn't like the methodology of the study. He was very concerned about the fact that some of those who are really on the front lines in the most major combat -- the Marines, the Army -- that they have the most concerns about the cohesion impact, the readiness impact of the military if this policy would be repealed.
But one of the most, I think, powerful statements came from the chairman of the Joint Chiefs Admiral Mike Mullen about the fact that he says that it's not just his personal view now that the military's policy on gay should be repealed. It is now his professional view.
Listen to what he said.
(BEGIN VIDEO CLIP)
ADM. MICHAEL G. MULLEN, JOINT CHIEFS CHAIRMAN: Should repeal occur, some soldiers and Marines may want separate shower facilities. Some may ask for different berthing. Some may even quit the service. We'll deal with that.
But I believe and history tells us that most of them will put aside personal proclivities for something larger than themselves and for each other.
(END OF VIDEO CLIP)
BASH: Now one of the -- you know we're trying to read the tea leaves here, Tony. One of the other interesting moments that I heard is -- was from Senator Scott Brown of Massachusetts. He is one of those people who could be persuaded to vote for a repeal. He was waiting for this report.
He talked to Secretary Gates, asked him if he was going wait to certify this until he assured that everything could be implemented smoothly and Secretary Gates assured him that it would.
Those are the kinds of questions that make it -- and answers that make this hearing so important to whether or not this repeal could actually go through the Senate.
HARRIS: OK. So, Dana, here's the question. Are we likely to get a Senate vote on repealing "Don't Ask, Don't Tell"?
BASH: That is a complicated question. The Democratic leader has made clear he's going to try. But you remember we were reporting yesterday that Republicans have also said that they're going to try to stop and they have vowed to stop any legislation going forward before they deal with tax cuts.
So that is definitely a factor. Everything is related here. If that gets done, it is -- listening to -- let me put it this way. If these senators are taking to heart what they're hearing from the defense secretary --
HARRIS: Yes.
BASH: -- and the chairman of the Joint Chiefs, pleading with them to do this quickly, because they're worried about the courts -- that's another factor -- then it's possible, maybe some of these Republicans could be persuaded and Democrats could ultimately get the 60 votes, but time is not on their side right now.
HARRIS: And the idea is when the secretary says quickly he's really referring to in this lame duck session, isn't he?
BASH: That's right. HARRIS: OK.
BASH: That's right. He was asked whether or not it should be done in this lame duck and he effectively said that he hopes it will be. And the fact of the matter is that everybody testifying from the military has made it clear that they want Congress to do it because they are concerned that the courts are going to act, and they're going to force the military to do things that they're not ready to do. And if Congress doesn't the military will have a lot more leeway.
HARRIS: OK. Our senior congressional correspondent Dana Bash for us. Dana, appreciate it. Thank you.
They said they heard you, the voters. They promised to work together on issues important to you like taxes. But Republicans and Democrats already appear gridlocked over whether to extend all of the Bus-era tax cuts.
House Democrats are pushing ahead with a vote today on permanently extending the tax cuts for those making $250,000 a year or less. Republicans want them extended for everyone. GOP senators vow to block legislation on any issues -- you just heard this from Dana -- until the tax debate is resolved.
So let's talk about what happens to your finances if the Bush tax cuts end at the end of this month. You'll pay more taxes starting in January, but how much more? Let's say you're married with two kids and you make $70,000 a year. Right now you pay $2300 in taxes. If the cuts expire, that goes up to $4900, an increase of $2600 a year or about $7 a day. Bottom line for you.
Big stories we're following for you right now. The House is getting ready to punish New York Democrat Charlie Rangel for financial missteps. The Ethics Committee is recommending censure for the veteran congressman. If the full House goes along here's the next step.
(BEGIN VIDEO CLIP)
DANA MILBANK, WRITER, WASHINGTON POST: He does get the censure. He'll have to stand there in the well and the speaker of the House will say, Congressman Rangel, you've been a very naughty boy, and then he'll apologize and go on about his business. Now he's not going to go to prison.
He did lose the big prize, and that was the chairmanship of the Ways and Means Committee. So if they're not going to expel the guy, and they're clearly not going to do that, the rest is just about levels of embarrassment.
(END OF VIDEO CLIP)
HARRIS: OK. Flooding in the Pittsburgh area. The National Weather Service says most major rivers in western Pennsylvania are receding today. Crests were significant, but not as high as it predicted. More than three inches of rain topped off with a snowfall prompted the floods.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We were checking every two hours in the back where the creek is and it kept coming up, so at 2:30, 3:00, my dad said we got to get out of here.
UNIDENTIFIED REPORTER: 3:00 in the morning?
UNIDENTIFIED FEMALE: Yes. Then at 10 to 4:00, he said we're getting out now. He took the cars out.
UNIDENTIFIED MALE: The Connoquenessing backs up just three ponds here. We're on the middle pond. And right now we're all connected.
(END OF VIDEO CLIP)
HARRIS: NASA, they're teasing up with another, quote-unquote, big announcement. All the agency will say is the news will impact the search for alien life. Well, that was enough to set off hysterical speculation on blogs that NASA has found an E.T.
We won't know for sure until the announcement in about three hours. I will ask a former astronaut about this a little later.
The 2018 World Cup goes to --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: So the 2018 FIFA World Cup, 2018 FIFA World Cup, ladies and gentlemen, will be organized in Russia.
(END OF VIDEO CLIP)
HARRIS: Russia will host the 2018 World Cup tournament. You just heard that. The announcement made about a half hour ago. The World Cup selection committee then revealed the host for 2022. Qatar wins. It's a big surprise and a disappointment for the United States.
Hot stories trending online right now. Eminem's 10 Grammy nominations. The nominees were announced during a star-filled concert on CBS.
Hey, the kids really like that song. That's Katy Perry doing "California Girl." She is up for Album of the Year. Other nominees are Arcade Fire, Eminem, Lady Antebellum and Lady Gaga. OK.
For Best New Artist, let's see here, Bieber Fever, Drake -- he's pretty good. Florence -- I bet young people -- Florence, pretty good? OK. Florence and the Machine, OK. Mumford -- Mumford & Sons? And Esperanza Spalding.
OK. More trending later this hour.
(COMMERCIAL BREAK) HARRIS: Here we go. First-time unemployment claims ticking up again last week. The Labor Department reports new claims grew by 26,000.
Here's the overall number to 436,000 since last year. The initial claims figure has bounced around the 400,000s. Economists say it needs to go below that to dent the unemployment rate.
Looking for a hot deal on a house? One word for you. Foreclosure. A new report shows that foreclosures are selling at big discounts.
Alison Kosik is on the floor of the New York Stock Exchange with the details.
And Alison, what kind of -- first of all, good morning. What kind of discounts are we talking about here?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning. Tony, the average foreclosed home right now is selling for 32 percent off. You know we haven't seen this kind of price cuts in years. You want an even bigger bargain? Go to Ohio where you can get one of these foreclosed properties for 45 percent off.
In dollars and cents, that means if you buy a $200,000 home, if that's what the tag is, you can get it for $110,000.
You can find more bargains in Kentucky, Tennessee, Illinois and New Jersey. Not a bad -- not a bad way to buy a house.
HARRIS: Yes. Not bad at all. But there is a pretty big caveat attached to this, Alison. And it's that the house you get might not be in good condition.
KOSIK: Exactly. I mean it's a tradeoff. Look, if you're going pay a bargain basement price for these homes.
HARRIS: Right.
KOSIK: So a lot of these homes clearly aren't going to be in the best of shape, but look, there are some bargains there on the market. Some of these multi-million dollar homes, these are foreclosed properties as well, and banks really want to get rid of them.
They're stuck paying the maintenance fees, the property taxes. They want to get rid of these homes so they really don't mind. I'm talking about the banks. These banks don't mind being low balled. So you may as well throw out an offer and give it a try if you're looking for a house.
HARRIS: Yes. Sounds good.
Alison, give us a quick market check if you would, please?
KOSIK: You got it. The Dow right now up 85. The NASDAQ higher by 19. What happen here today, we got a positive report on pending home sales. These are homes that are under contract. We found out that these home sales surged 10 percent in October.
This could bode well for good news of future home sales and on this news of course we've got shares of home builders rising and as you can see major averages rising. We're building on that great rally that we had yesterday -- Tony.
HARRIS: Alison, appreciate it. See you next hour. Thank you.
We are going cross-country now.
KOSIK: You got it.
HARRIS: For stories our affiliates are covering.
At a time when a lot of folks are dropping home telephone service, you know, the landlines, Iowa Hill, California, population of about 250, is just now getting its first landline phone. Some say finally. Others aren't so thrilled.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: This is California. I mean not to have phones is amazing.
UNIDENTIFIED MALE: I think most people here just like it to stay the way it is. I mean we don't want it to change much.
(END OF VIDEO CLIP)
HARRIS: Yes, next up, Minnesota where Greyhound is offering $1 fares -- that's right, a buck a seat on express service from Minneapolis to Chicago. You must book, however, three months in advance. Greyhounds' new Midwest fleet offers Wi-Fi and cell phone outlets.
Sounded like a commercial, didn't it?
And a baby in Evansville, Indiana could not wait for her mom to get to the hospital. So dad pulled into a McDonald's parking lot and baby made her debut in mom's pants leg. They're both fine. Dad's a little shaky. I am, too.
He is enemy number one for Cleveland Cavalier fans. Tonight LeBron James faces his former team for the first time in a Miami Heat uniform. Talk about passion. Things could get ugly.
Our big play with NBA analyst Kevin McHale. Kevin McHale in the NEWSROOM?
KEVIN MCHALE, NBA ANALYST: Hey, Tony, how you doing?
HARRIS: Big man, I know you got 50 moves in the post, but I got 55. Good to see you. Let's talk about that in a minute. We're back in just a second here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Boy, talk about a homecoming. Tonight's homecoming for LeBron James. And it won't be yellow ribbons and pennants waving for the former Cavaliers star.
Would you agree with that, Kevin?
MCHALE: I agree.
HARRIS: Things could get a little testy tonight. I cannot believe I am sitting here with Kevin McHale. Man, you take me back so deep into the '80s. Do you know how many expletives I shouted at you over the years when you were beating my beloved Lakers?
It is just great to have you here.
MCHALE: Thank you.
HARRIS: It's a sign that I've grown up a bit.
MCHALE: Yes, you have -- you haven't cursed me out yet which I really appreciate.
(LAUGHTER)
HARRIS: Boy, you're doing terrific work for our sister network TNT as a basketball analyst on "NBA TV."
As you look at tonight's game, the homecoming, LeBron going back to Cleveland, grew up in Akron, so celebrated, a hero in that town. First of all, what did you think of the decision -- first of all, the decision to leave.
MCHALE: Right.
HARRIS: And then the way it was handled by LeBron.
MCHALE: The decision -- I really felt that he was going to go back to Cleveland. I don't know why. I just felt that. Again, he was raised there.
HARRIS: Right.
MCHALE: Had kind of taken them from a city that really struggled in basketball to really one of the elite places to play.
HARRIS: Yes. Yes.
MCHALE: The Q Arena they're going to play tonight is on fire all the time when he was there. So I thought he'd stay there. But when he left, I was a little bit surprised how he did it really surprised me. Again, he did nothing wrong. He became a free agent. He looked at all his options and he chose Miami.
I wish he had done differently. I thought the hour-long special got really long.
HARRIS: Right.
MCHALE: And like, really -- I thought that was bad.
HARRIS: Here's the thing. You were a former general manager in that league, so you understand -- you understand his decision from a business perspective, having had to deal with free agents in your position as GM for the Timberwolves. Correct?
MCHALE: Yes, correct.
HARRIS: OK. So you understood that. Now when we move forward here to tonight's game, talk about the emotions that the fans will have and their right to express that, all right?
MCHALE: Yes.
HARRIS: And then what it's going to be like for the players. Because let's be -- let's be frank about it. LeBron played with a lot of these players last year. And there are relationships there.
MCHALE: He's very close with a lot of these players.
HARRIS: Yes.
MCHALE: I mean you don't -- playing basketball in the NBA is a very intimate deal.
HARRIS: Yes.
MCHALE: You're with these guys more than you're with family.
HARRIS: Right.
MCHALE: So he's really a part of that family still even though he plays in Miami. They still look at him as a friend and everything. They'll look at differently. They're going to go out that they want to beat him because it's that friendly rivalry --
HARRIS: Right.
MCHALE: It's like you're playing your brother. You're like, hey, man, I'm going to beat you. You love him, but you love to beat him.
HARRIS: Right. Right.
MCHALE: They're really going to want to beat him. Cleveland will play -- Cleveland will play very, very well tonight, I think.
The fans, on the other hand, this is their chance to express how they feel. The players have all called him up, text him, how are you doing, hey, good luck, whatever. They've stayed in contact.
This is the one chance for the fans to yell and scream and to boo, and to get all that off their chest. And so I expect them to be very emotional and really let it out there. And it's going to be -- every time he touches the ball, booing and screaming. And this is a game really for the fans and the city of Cleveland to express their disappointment.
HARRIS: You know, I'm going to take you back to '84. A championship year. All right?
MCHALE: Yes.
HARRIS: '84. I don't remember -- who -- was that the Lakers year or was it the Celtics year? You guys won in '84.
MCHALE: We won in '84. Correct.
HARRIS: OK. So '84, I remember there was -- I can't remember which game, I can't remember which game in particular, but there was a particularly -- there was a play when you remember you took down -- you and I can't remember your teammate -- took down Kurt Rambis.
MCHALE: Yes.
HARRIS: And it was a hard hit.
MCHALE: Yes.
HARRIS: He fell and the crowd -- the Forum (ph) crowd lost its mind.
MCHALE: Yes.
HARRIS: From that moment on, you were hated when you walked into the arena, the Celtics were, but from that moment on, every time you touched the ball, what was the reaction?
MCHALE: Booing, screaming, you know?
HARRIS: OK.
MCHALE: You stink, all that stuff.
HARRIS: Which is what LeBron will hear tonight.
MCHALE: Correct.
HARRIS: Do you hear that as a player when you're on the floor?
MCHALE: No. You don't hear it when you're playing. When you do -- when you come over to eh bench and you sit down, and some guy gets (INAUDIBLE) ball in your ear yelling you stink, or worse. And you go like, whoa, dude, ease back a little bit.
HARRIS: Ease back a little.
MCHALE: You know? And so -- you'll hear it much more when you're coming. And when you really hear it is when you're going out to warm up. The next game --
HARRIS: Yikes.
MCHALE: That was game four. And we went back to Boston in game five. In game six, we want back out there. I'm trying to warm up before the game and then people were like rushing up to the court screaming at me and stuff like that, and I was like, whoa.
HARRIS: How -- did that impact you at all? I'm wondering if LeBron will be impacted at all tonight in his play by what he hears from the stands in a city where he's gone from being beloved to the anti-Christ.
MCHALE: Yes, I hear that. I think it'll affect him a little bit to start off the game. Just because -- I think he's going to want to play so well. The thing you got to fight is trying to do too much. Like, OK, I'll show you because -- you bristle off --
HARRIS: Right.
MCHALE: All right, then, you know?
HARRIS: Right.
MCHALE: But you still got to play the game. You got to go out there and play. So I think it'll affect him early. I expect him to have a really good game. I expect him to this to really motivate him and him to play well.
And this might be the catalyst for Miami to come together because the Heat has not come together yet. At 11-8, their record is very disappointing. This might be a hostile environment, everybody is after one of your guys, you look at him and say, hey, I'm with you, man.
HARRIS: Yes.
MCHALE: Don't worry. And this might be something that helps them.
HARRIS: What a huge night for TNT. Charles and the group, E.J. and Kenny the Jet are in Cleveland for the game, right?
MCHALE: Yes. Yes.
HARRIS: You're going to be handling in-studio chores, right?
MCHALE: Yes.
HARRIS: Terrific. Have a great broadcast. You're going to have about 10, 15 million people watching tonight. This is going to be huge for you guys.
MCHALE: A lot of people will be watching.
HARRIS: Yes. MCHALE: It's going to be fun. I can't wait.
HARRIS: On our sister network -- on our sister network. On our sister network, TNT.
Kevin, great to see you.
MCHALE: All right. Good seeing you.
HARRIS: Come on back and let's do this more.
MCHALE: You got it.
HARRIS: The great Kevin McHale. We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: You had the great NIT battle with Virginia and Ralph Sampson, right?
MCHALE: Correct.
HARRIS: And now Ralph's son is playing for Minnesota. Right?
MCHALE: Yes. Ralph III. Yes. Ralph actually comes to some games and stuff.
(CROSSTALK)
MCHALE: He shows up there and stuff.
HARRIS: So that's how small this world is, right?
MCHALE: Yes.
(COMMERCIAL BREAK)
HARRIS: We're going to get to Reynolds Wolf here in just a minute.
I can remember, Reynolds, living in Cleveland when that lake eerie snow machine would fire up. And you would get that lake-effect snow from Cleveland, Ashtabula, Wycliffe, into Buffalo and, hello?
Absolutely.
HARRIS: Here we go.
(WEATHER REPORT)
WOLF. We'll have more coming up and, Tony, let's send it back over to you.
HARRIS: So we have challenged, Reynolds, our iReporters and that large iReport community to help us create a mash-up of items mentioned in the "12 days of Christmas." The popular --
WOLF: Twelve days, right.
HARRIS: Sure lucky to be -- so, "on the third day of Christmas, my true love gave to me three French hens." So here we have, from Sri Lanka, this iReporter's version of three French hens. They may or may not be French. We're not sure.
CNN iReporters getting very creative out there. Take a look at this. The wine, the loaf of bread, the Artsy berets, the Eiffel tower. No doubt about it, three French hens.
OK. So if you want to take part in the "12 days of Christmas" challenge, just go to iReport.CNN.com. You know what's next. Four calling birds.
We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: The defense may rest in the Elizabeth Smart kidnapping case a day after Smart abruptly left the courtroom.
Sonny Hostin from "IN SESSION" on our sister network, truTV is here with "Sonny's Law."
Good to see you.
Do we know why Elizabeth Smarts sort of the left the courtroom? I think anybody can understand why she might, but do we understand why she did?
SUNNY HOSTIN, CNN LEGAL CONTRIBUTOR: We do. Dr. Paul Whitehead was testifying for the defense and he started talking about the fact that Brian Mitchell wanted to have children with her and that she picked out names for those children. And either she was just so infuriated that he was suggesting, this doctor, that she wanted to have children with Brian Mitchell or perhaps it was untruthful, she stormed out. Her mother stormed out after her, her father went out, as well, but she is going to be back in the courtroom today.
HARRIS: Do we understand why she has made the decision -- I don't know if she's spoken about it, but do we understand why she's made a decision to sit in the courtroom and to listen to this?
HOSTIN: I mean, it's been reported that she's, of course, been in therapy because of this and she's moved on. And she wants the jury to know that she is a real person. She was victimized and she wants to see justice done.
And that's what a lot of victims do. They choose to sit there and listen so that the jury puts a face to the victimization.
HARRIS: Steven Hayes, this horrendous case in Connecticut. You've got all kinds of news on this. Let's get to the fact that we have a sentence now. HOSTIN: We do.
HARRIS: We know more about this from the judge. Why don't you break that news for us.
HOSTIN: Sure. It was a very difficult day in the courtroom today. Apparently, Dr. William Petit gave his victim impact statement, and I think this was the time that everyone wanted to hear from him.
And we heard that he has considered suicide, Tony. We heard -- and he's a doctor, he's considered suicide. He said he had no home, no children, no wife, really nothing to live for. He says he still suffers from headaches. He's lost part of his vision and it's made it very difficult to practice medicine and that he's been devastated.
He described it, and I thought this was just so touching, as a time bomb going off in your home. And apparently, reporters, Tony, reporters in the courtroom crying, spectators crying.
But we also heard from Steven Hayes today.
HARRIS: Yes, that's where I was leading you next. Give us a bit of what Steven Hayes said in court.
HOSTIN: Unbelievable. This is the first time we've heard from him. Apparently, he showed remorse. He said I'm remorseful, I'm sorry for having done this, but he also said, this is not who I am. This was not Steven Hayes.
He said he wanted to die. He killed a family, but he wanted to die. And he says he welcomes death. And he did apologize to the Petit family.
HARRIS: And then the judge says what?
HOSTIN: He said --
HARRIS: And you've got it right there.
HOSTIN: And I've got it, he said, it is my sad duty to pronounce sentence on a capital felony count and in a very strong voice, he sentenced Hayes to death on each of the six felonies.
He said, it's a terrible sentence, and I quote, "But in truth, it is a sentence you wrote for yourself in flames on July 23rd, 2007. May God have mercy on your soul."
And that is what happened in that courtroom today.
HARRIS: A sentence you wrote in flames. That is strong.
HOSTIN: It was unbelievable.
HARRIS: What a day? All right, Sunny, it's great to see you.
HOSTIN: It's great to see. I'm so happy to be in Atlanta.
HARRIS: Yes, especially here in Atlanta. Let's do this more often.
HOSTIN: Would love to.
HARRIS: We'll see you next hour, as a matter of fact.
We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: To tip or not to tip? How much do you put into that holiday envelope? Of course, that all depends on whether you have a job. If you do, we have got you covered.
Personal finance columnist Kimberly Palmer says, tip your newspaper delivery person between $10 and $20. It not only helps them out, but it keeps them from throwing your paper in the pond.
Garbage collectors, consider giving them 20 bucks. Palmer says they are under appreciated.
And getting a holiday haircut? We'll tell you what's expected when we come back.
(COMMERCIAL BREAK)
HARRIS: Etiquette experts say don't be a holiday Scrooge, tip the folks who do right by you all year long.
Personal finance columnist Kimberly Palmer from "U.S. News and World Report" says, when it comes to your hairstylist, says give them the usually 20 percent tip, without the additional holiday boost. OK.
But if you go more than once a month to get a smooth shave, a fresh baldie, a tighten up, give your barber the entire cost of the cut as a tip. Sounds fair.
When people think of alien life forms, many conjure up images of Steven Spielberg's loveable E.T. or maybe the angry alien that terrorized poor Sigourney Weaver, but scientists usually think, if life is out there, at least in our cosmic neighborhood, it is probably microscopic.
NASA plans to reveal something new about alien life today, it won't say what, but the announcement, that announcement that is coming has set off furious speculation on the Internet. Let's talk about it with a former astronaut Leroy Chiao in Houston.
And bring the space bloggers back to Earth for us, if you would, sir. What do you expect from NASA today?
LEROY CHIAO, FORMER NASA ASTRONAUT: Well, I've heard about the coming press announcement and press conference, and actually, I've done a little bit of digging about. And from my understanding, it's not going to be any kind of discovery of alien life or anything like that, but rather, the discovery of a new kind of astrobiology or biology that can -- that was discovered here on Mono Lake on Earth that is based on arsenic.
Now that's quite unusual, but what it does is it opens up the possible range that these other planets out there that have different chemistries than Earth could, they could harbor life. So it opens up the possible range of planets that could harbor different kinds of life.
HARRIS: So, well, that's not life and it's probably not what a lot of folks were hoping for today. So how does this move the ball forward in the search for life in outer space? I hope that is an appropriate question.
CHIAO: It is. And my understanding is that what these scientists have done is that they've discovered arsenic-based life in Mono Lake, which is quite exciting -- and it's at the cellular level, I understand, it's, you know, it's not any kind of animal. But what it does is it opens up the possibility that these other planets out there that we've discovered that have different conditions and that could not support life as we know it in the conventional sense on Earth might harbor life of a different kind.
And so, it's kind of exciting, if you're a biologist or astrobiologist, to say, wow, this former world out there that I thought could not harbor any life, well it could be there just in a different form than we're used to here on Earth.
HARRIS: Well, Leroy, do we know exactly -- I understand that there's a lot of buzz about this, I'm a little skeptical, because there was another big announcement from NASA a few weeks ago that was -- nugh.
So how do scientists know that this microbe that can live at the bottom of a lake in Yosemite National Park can live in outer space? Do they know that? I just need you to help me get from point A to point B and maybe to Z.
CHIAO: Well, sure. I mean, the actual discovery was here on Earth and what it does, it opens up -- it merely opens up the possibility that if there were these conditions on another planet, you could have the same kind of life. And then it opens up the question, well, if we discovered arsenic-based life, are there other chemical- based life that we don't currently don't really know about that could exist either elsewhere on Earth and/or elsewhere in the universe.
So like you said, unfortunately, it's not a big dramatic announcement, I don't think, that's coming today. But it is exciting for the field of science where that studies different kinds of life.
HARRIS: Thank you, sir. Thank you for that assessment today. That helps me a lot.
Leroy, good to see you as always. Thanks for your time.
CHIAO: Great to be with you, thanks.
HARRIS: The holiday rush for retailers, many companies are training new seasonal employees. We follow one recently unemployed woman as she learns her way around her new job.
(COMMERCIAL BREAK)
HARRIS: Checking "Top Stories" now.
California Governor Arnold Schwarzenegger declares a state of emergency in San Diego County, the largest cache of homemade explosives ever found in one spot was discovered in a house there. The declaration frees up state money to help get rid of it safely.
Police say a person of interest in the shooting death of Hollywood publicist Ronni Chasen fatally shot himself last night. It happened as officers were serving a search warrant. Chasen died two weeks ago when a gunman opened fire on her car.
And minor accidents between cars and SUVs can be extremely expensive, right? A new report from the Insurance Institute for Highway Safety says it's because their bumpers don't match up.
All right, you want to talk about gender politics? We're going to do that with Brianna Keilar as we get our Political Update.
Brianna, good to see you. What's crossing right now?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: You know, Tony, there is a story on the Ticker today, it's my personal favorite, I think it's a story that any woman can appreciate.
Did you know that off the House floor, the only people who have restrooms are men. Well, that is about to change because as it stands right now, women have to hightail it pretty far from the House floor to go and use the restroom. And there are 71 women in the new Congress, so the Republican transition team says they will change this and they will have a restroom for women built off the House floor. So hear, hear to that.
And then also on the Ticker, a story about Mitt Romney. He is not running for president, yet. He was on Jay Leno last night. He said that if he does take a gig with Fox News, then that is going to be an indication that, yes, he is running for president. Obviously, taking -- having a little fun at the expense of Sarah Palin.
He did praise her, but he also had criticism saying that he couldn't -- he's the former governor of Massachusetts. He said he couldn't imagine a circumstance where he would have stepped down from the governorship, though he said Sarah Palin did have her reasons.
Also, you know, Congress is dealing with a whole lot, but on the Ticker we have a story about how they're one step closer just to keeping the lights on. The House passing a resolution that would continue a resolution just really to fund the federal government at its current level. This would allow 15 more days of funding. This is because Congress failed to pass a federal budget at the beginning of the fiscal year. The Senate has to take this up, Tony. They have to do this by Friday, because that's when the current one expires, or else you would see furloughed federal workers. The expectation is they're going to do that, though.
That's all on the Ticker.
HARRIS: All right, Brianna, appreciate it. See you next hour, thank you.
Your next political update in an hour. And for the latest political news, you know where to go, CNNPolitics.com
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HARRIS: OK, some of the stories we're working on for the next hour of CNN NEWSROOM.
Snowbound for 12 hours. Looks, it's bad enough if you're stuck at home, in the next hour we'll talk to someone who had to wait it out in his car.
And Soccer's world governing body picks Russia and Qatar for 2018 and 2022, both hosting the game's biggest tournament for the first time. We will check in with the fans.
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HARRIS: So now the Fed tells us -- this makes the Wall Street bailout look like chump change. The Fed says it loaned $9 trillion to keep banks and other institutions afloat during the financial crisis, enough dollar bills to reach to the moon and back and then some.
So the big question for CNN's Christine Romans, maybe there are two here, Christine, where did all this money go, and will the Treasury get it back? CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, they will get it back. It's not the Treasury, it's the Fed. The Fed basically created this money and pumped it into the system, giving these emergency loans, very, very low-interest loans to the big American banks, but also -- this was a big surprise -- to a couple of European banks who actually topped the list of recipients, and that has all been paid back at very low interest. It has been paid back. The whole idea here was to get the juice going in the system.
The surprise here, Tony, is the extent of the loans. I mean, $9 trillion is a breathtaking amount of money. How do we know this? Because the Fed has released documents -- and you're seeing some companies there -- the Fed has release d documents that show there were American companies that benefited from emergency loans as well during the crisis, the months leading up to the crisis and after to keep the engine of the American economy running.
So we have 21,000 transactions that we can now scrutinize. The Fed, by law, was required to release to the public and now we're all going over it trying to see just what was happening behind closed doors at the Fed during those dark days a couple years ago.
HARRIS: That is because it -- and we talked about this a lot at the time, the commercial paper sector had essentially seized up.
ROMANS: Yes.
HARRIS: Maybe quickly explain what that is, which explains why companies like McDonald's would need this money.
ROMANS: There's all this borrowing that goes on between companies and banks. And when that borrowing seized up in the height of the crisis, there were companies, big companies that weren't going to be able to make their payroll. That means a line cook at McDonald's wasn't going to get a paycheck because of what was happening in the financial system.
This is the financial crisis brought home to everyone, and is what worried the Fed and the Treasury and Congress and the president and economists and journalists and all of us who were watching what was happening with great horror at that time.
And what you can see from these documents is just the extent, the massive extent the Fed became the central bank to corporate America, Wall Street and the world, keeping things going at the time.
Now, it's not without its criticism, of course, and its critics. Bernie Sanders, he's very upset about this and he says that this amounted to a big bailout of the richest people in the world and the richest people in the economy. Very concerned about the powers of the Fed, others are. On the other side of the political spectrum the Fed was too powerful, we shouldn't be bailing out foreign banks.
But the bottom line here, it was much bigger than we knew and this is a rare insight into what the Fed does. It's the most, as Eliot Spitzer just told me in the hallway, it's the most important institution you know nothing about, the Federal Reserve, and these numbers show that.
HARRIS: I think it's amazing because, I think, during the crisis, we learned when commercial paper seized up, we learned the extent to which companies borrow to get from week to week, from day to day. I think that was the revelation for me when this whole thing started to unfold, and now we know the extent to which the Fed propped up those companies.
Christine, see you in just a couple of minutes. Thank you.
ROMANS: Sure, bye.
HARRIS: Many unemployed people are finding seasonal positions this time of year. Maggie Lake reports on the bump of temporary workers.
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PATRICK MUSACCHIA, DESIGUAL MANAGER: You want to make sure that every time the customer walks in the door it's always with excitement, enthusiasm. You want to make sure that every customer counts.
MAGGIE LAKE, CNN CORRESPONDENT (voice-over): Thea Jemas is learning the ropes during her first day on the job at clothing store Desigual. Jemas was laid off from a full-time retail job in August and was worried about finding new work.
THEA JEMAS, DESIGUAL EMPLOYEE: I thought, for myself, it probably wasn't going to be until after the holidays. I was assuming a lot of stores were going it be staffed. I was thinking more toward 2011.
LAKE: But then the offers of seasonal work started flowing in.
JEMAS: There was a few positions that I was offered. There's a lot more variety. I was a little bit surprised, because in the previous year it was pretty tough.
LAKE: What a difference a year makes in U.S. retail. Estimates say stores nationwide will add some 600,000 temporary workers this holiday, up 20 percent from 2009.
One of the stores leading the charge, Toys 'R' Us. It's hired 45,000 seasonal workers across the country. Macy's plans on hires some 65,000 workers and hopes many of these jobs will turn into full- time positions.
And to help handle the rise in holiday shipping, UPS is adding 50,000 workers. Allyson Goodman, who heads up New York recruiting agency Pyramid Consulting says the change in tone this year is striking.
ALLYSON GOODMAN, CEO, PYRAMID CONSULTING: Last year, we were seeing a lot of wait-and-see approach, people waiting until the last minute to staff. This year, a lot of our clients got a head start on staffing, at least three to four weeks at a minimum earlier. And the amount of people that they're taking on has been double, if not triple.
LAKE (on camera): How would you compare it to quote/unquote "normal times"? Are we back to your -- what you would expect for a holiday season, or are we still lower, just not, you know, not as bad as it was?
GOODMAN: For the clients that we're working with, we're seeing a lot. It's just under normal, but it's looking a lot better than last year. It's a whole different world this year.
LAKE (voice-over): One downside, with unemployment still high, competition remains fierce. At UPS, applications are up more than 40 percent compared to last year. But for people with experience in retail, like Desigual store manager Patrick Musacchia, these are encouraging times.
MUSACCHIA,: I'm still receiving calls from recruiters now, based on my resume still being posted. Now, I'm not looking, I'm very happy where I'm at, but the thing is is that with the job market the where it is, you can tell that people are starting to make calls and are starting to be active about hiring.
LAKE: We'll know soon whether the bets to add extra staff pays off at the checkout counter.
Maggie Lake, CNN, New York.
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