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President Obama to Talk Jobs, Economy; Tax Cuts: Let's Make a Deal; 'The Big Play'

Aired December 06, 2010 - 11:00   ET

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

DREW GRIFFIN, CNN ANCHOR: Live from studio 7 at CNN world headquarters, the news and information you need for this Monday, the 6th of December, 2010.

Same-sex couples said, "I do," but California voters said, "We don't." The legal fight over the gay marriage ban heads back to court again.

Facebook getting a facelift. The social media site rolls out a new design for your profile page. Details in our segment on what is trending out there.

And debit cards marketed to teenagers, a good alternative to credit cards or a bad financial idea? We're going to ask Christine Romans of our Money team.

Good morning, everybody. I'm Drew Griffin. Tony is off today.

Those stories and your comments right here, right now in the CNN NEWSROOM.

We begin with the big economy issues affecting your finances: jobs, taxes and gas prices. Jobs -- the Fed chairman says it could be years before unemployment gets back to normal. Taxes -- on Capitol Hill, lawmakers say they're close to a deal on extending the Bush-era tax cuts. And gas -- your tacks may not be going up, but, oh, the cost of filling your tank probably will, analysts say, $3 a gallon or more by Christmas.

If you are out of work or worried about your job, you won't find much encouragement in Fed Chairman Ben Bernanke's employment forecast. Here's what he said in an interview on CBS's "60 Minutes."

(BEGIN VIDEO CLIP)

BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: Between the peak and the end of last year, we lost 8.5 million jobs. We've only gotten about a million of them back so far, and that doesn't even count the new people coming into the labor force. At the rate we're going, it could be four or five years before we are back to a more normal unemployment rate, somewhere in the vicinity of, say, 5 or 6 percent.

(END VIDEO CLIP)

GRIFFIN: President Obama talks jobs and the economy during a speech in North Carolina. That's happening in the next hour. He is also expected to discuss the debate over extending the so-called Bush tax cuts.

Let's bring in Senior White House Correspondent Ed Henry.

And Ed, I'll be honest with you, why with so much unfinished business going on in Washington is the president on the road in North Carolina?

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Drew, he addresses the day after the election, when he faced that drubbing in the midterms and said, look, I'm going to get outside Washington more, talk to the American people, because that's where the economy really hits them the hardest.

You saw what played out over the weekend here in Washington. There was a lot of talk about a tax cut deal, all kinds of symbolic votes in the Senate, but it really went nowhere. And so I think the point here is that he wants to get outside Washington, go to this community college in Winston-Salem, and unveil what White House aides are calling sort of a Sputnik moment. They say that right now, the president sees the nation facing all kinds of challenges, mostly economic, and that he wants to sort of come up with ways to innovate and move the country forward, getting the economy going again.

You mentioned the tax cut fight. He will also mention these remarks, we're told by White House aides, that he is not going to accept any sort of a tax cut deal unless he also gets an extension of unemployment benefits, unemployment insurance.

You know the benefits are running out for millions of Americans here right before the holidays. He wants to make sure that's taken care of.

That's kind of his big sort of carrot, if you will, in these negotiations, trying to tell Democrats on the Hill, look, we're going to at least get unemployment benefits. But there are a lot of Democrats who are upset because they think in exchange for accepting some extension of unemployment benefits, they're going to accept an extension of the Bush tax rates on everyone, not just those making under $250,000 a year, but also the rich, making over $250,000.

And so this was a line in the sand for this president. At one time, saying he would never give in on that, but it looks like he will -- Drew.

GRIFFIN: Yes.

Hey, any reaction on the Bernanke comments last night on "60 Minutes?" I mean, that is a dire prediction for a president who is going to be up for re-election in two years.

HENRY: They have not directly commented, but Bill Burton is talking to reporters right now as we speak on Air Force One as they head to North Carolina. Look, they realize, though, based on Friday's numbers, when the unemployment rate unexpectedly went up to 9.8 percent, we're obviously now dangerously close to it being double digits, number one. And number two, we have now had an unprecedented string where unemployment -- consecutive months where unemployment has been hovering over 9 percent.

They realize inside the White House this is a horrible news, and they realize it's going to be extended for some time to come. And that's going to be heading into the president's reelection in 2012. It's a grim reality they have to face -- Drew.

GRIFFIN: All right.

Ed Henry at the White House.

Thanks, Ed.

We're going to be talking with an analyst about the president's leadership later on in the broadcast. But first, let's talk about how close law makers are on this deal, extending the Bush-era tax cuts, and what's likely to be included in any kind of compromise.

Congressional Correspondent Brianna Keilar following developments. She's on Capitol Hill.

Brianna, man, are they getting close to a deal, or will this thing go right up to Christmas before they sign this thing?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, we hope that doesn't happen, right, all of us who have holiday vacations coming up? But no, Drew, it seems for all indications that we were hearing this weekend from lawmakers that a deal is close, and this is expected to happen here in the next couple of days.

A temporary extension, it appears, of all tax cuts for all Americans, not just for people making $250,000 or less, or $1 million or less for a couple, those are two votes that failed in the Senate this weekend. So the question then is, well, how long is the temporary extension going to be? And we've understood that it will probably be between one and three years, but I'm now hearing from a House Democratic source, Drew, who is telling me that it's looking like it could be two years, stressing that this isn't written in ink at this point, but that it could be two years.

Now, what's interesting is I'm getting pushback from a Republican Senate source who is saying wait, wait, wait, this is not a done deal, and this could change or that may not be the way things turn out. But as you were talking with Ed about, what would a two-year extension of these tax cuts mean? It would mean that they would expire right in the middle of that presidential election, and it would be a huge political hot potato -- Drew.

GRIFFIN: Yes. Let's talk about an issue, though, Brianna, that affects so many millions of Americans right now, and this is these unemployment benefits, whether or not they will be extended. It seems the president says, OK, I'll give you the tax cuts for the wealthier citizens, but you have got to give me unemployment benefits.

KEILAR: And when you listen to Republicans this weekend, Democrats say that they need this, this is what they definitely want in this agreement. Listen to Republicans this weekend, and they seem to say OK.

Just listen to some of the Sunday sound that we heard yesterday.

(BEGIN VIDEO CLIP)

SEN. DICK DURBIN (D), MAJORITY WHIP: The notion that we would give tax cuts to those making over $1 million a year, which is the Republican position, and then turn our backs on two million Americans who will lose unemployment benefits before Christmas, 127,000 in the state of Illinois, is unconscionable.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: I think we will extend unemployment compensation. We've had some very vigorous debates in the Senate, not about whether to do it, but about whether to pay for it, as opposed to adding it to the deficit.

(END VIDEO CLIP)

KEILAR: So, it's shaping up there where you see tax cuts extended for all Americans appears to what they're talking about, and then adding these unemployment benefits that are set to expire for Americans who have been unemployed for some time now. These are the folks who have for weeks and weeks, Drew, have been struggling and haven't had jobs.

The issue is, there are a lot of Democrats who say, I don't think so. I don't know if that's going to be enough for us. And they are still fighting right now to get more tax cuts for the middle class, and they're even pushing, Drew, to maybe incorporate -- and it seems iffy if they can do this -- incorporate some of the other priorities that don't even have anything to do with tax cuts to see if maybe they can get something there.

GRIFFIN: Oh, my gosh. Meanwhile, everybody else just hanging in the balance, trying to see if their taxes are going up or their unemployment is going to stop.

Brianna, so frustrating to cover Congress. I feel for you.

KEILAR: Well, on the upside, it seems as if the tax issue -- there seems to be agreement that they're not going to go up. At least that's what we're hearing right now.

GRIFFIN: All right.

Brianna Keilar at Capitol Hill.

Thanks, Brianna. Keep us posted, will you, if you get anything? Thanks a lot.

This just in. Admiral Michael Mullen, chairman of the Joint Chiefs of Staff, is departing Washington. He's heading for South Korea. Hastily planned, but got to tell you, this visit that officials say is designed to reassure the South Korean military of U.S. support. We've got about 30,000 troops over there. Mullen's visit comes as South Korea's navy began live-fire exercises in response to North Korea's recent attack on a South Korean island.

We'll bring you more of that as it comes in.

(NEWSBREAK)

(COMMERCIAL BREAK)

GRIFFIN: All right. Big news in sports from the gridiron over the weekend. The Atlanta Falcons holding onto their lead in the NFC South after a riveting come-from-behind win against the Tampa Bay Bucs, who are also having a good year.

Jamal Anderson, you played with the Falcons. And the big, big news is most of the country didn't see that great game.

JAMAL ANDERSON, FMR. ATLANTA FALCONS RUNNING BACK: No, it's kind of a trip. You know, unfortunately, when you are a franchise, the Atlanta Falcons -- and I was part of this -- you know, not having back-to-back winning seasons up until last season, when Matt Ryan and the Falcons were able to do that -- but, you know, you have 70 percent of the country watching the Colts and Cowboys because of Peyton Manning and the Cowboys obviously being big names. And the Falcons and Bucs, 7-4 and 9-2, nobody watches it. And here is a huge play in that game.

We like to call him "Special" Weems, but Eric Weems returns a kick here. Five different Buc defenders had a chance to tackle him. It wasn't like it was one gash and he was wide open.

Then, of course, Matt Ryan, fantastic again this season. Everybody is talking about how good he is at home.

This is in fact his sixth, Drew, fourth quarter comeback this year. For a young quarterback, he did a fantastic job.

And then Brent Grimes with the interception here to seal the deal. The Falcons are clearly in first place right now. They are the top team in the conference, the best record in football, in fact, tied with the two teams that are playing tonight. A big game tonight with the Jets and Patriots.

GRIFFIN: How frustrating is it though as a pro athlete to be on a great, great team that gets so little attention? And it's all about marketing.

ANDERSON: Right. It is. It's tough. And again, you go back, and it's the consistency in the organization and the franchise.

Listen, folks, we understand the Atlanta Falcons, in 1998, we went to the Super Bowl. Very fortunate to be a part of that football team. Had a good run. But again, not putting together back-to-back winning seasons. And you have got so many other story lines, people didn't know want to expect from the Falcons.

This wasn't a football team that people were expecting coming into December to have the best record in all of football. So, yes, it's tough. Continue to win, continue to do what you've got to do, and everything will take care of itself. It's kind of nice when nobody is talking about you until the end. It happened with the Minnesota Vikings and us, and we beat them.

GRIFFIN: All right.

Jamal, thanks for joining us.

ANDERSON: My pleasure, Drew. Thank you.

GRIFFIN: Appreciate it. OK.

Hey, gas prices skyrocketing. Is it just the holidays, or is something else going on?

Can you remember what you paid last year at this time? We'll have the answer right after this.

(COMMERCIAL BREAK)

GRIFFIN: All right. Before the break we asked if you could remember what you were paying for gas this time last year.

Well, it was still high. The national average, $2.63 for regular. That's according to AAA figures.

Unfortunately, though, the outlook for gas prices is not good. Prices expected to rise just in time, of course, for holiday travels.

Carter Evans at the New York Stock Exchange with details.

Carter, how high are we talking about? We're pushing $3 now in some places.

CARTER EVANS, CNN CORRESPONDENT: Yes. Well, we're getting very close right now. We're talking about $3 a gallon and more possibly by Christmas.

The national average right now is $2.91 a gallon. So, who's paying $3 already? Well, folks in Long Island, here in New York, are already paying $3 a gallon. Chicago, San Francisco and several cities are getting close. We're talking about Miami, Baltimore and Portland.

The lowest in the nation right now, Drew, is Denver, Colorado, at $2.60 a gallon, right about where it was last year. You know, I've got to tell you, this is one of the times I am very happy to live in New York City, where my car is a very long steel tube.

GRIFFIN: Yes. But there's nothing else, Carter, that's expensive in New York.

EVANS: Oh, right. I know. It's all cheap here.

GRIFFIN: I was just there yesterday. I was like, "What? For a cup of coffee?"

What's behind the increase?

EVANS: Well, you know, basically, it's oil prices. Oil prices are at their highest level in two years right now.

We're talking about $89 a barrel today, and there are two reasons for that. One is a weaker dollar.

The Fed is pumping a lot of money into the economy right now. We talked about these latest stimulus measures from the Fed, the quantitative easing. We've been talking about that for a couple of months now.

The other is supply and demand right now. There is stronger demand in winter. People are heating their homes. And oil inventories here in the U.S. have been falling over the last couple of months.

The economy appears to be improving. Some people are feeling it right now. They're out driving more, they're planning more trips. That brings up demand, and that is another reason for the increase.

GRIFFIN: Carter, thanks a lot for the report, not the gas prices.

EVANS: Sure thing.

GRIFFIN: Thanks.

Facebook's got a new look, and the Web is buzzing. We'll tell you what some people are saying about it when we come back.

(COMMERCIAL BREAK)

GRIFFIN: If it is hot on the Web, we're watching it for you.

Sandra Endo is in Washington with what's trending.

Sandra, the hot topic today, Facebook's new look. Do people like it?

SANDRA ENDO, CNN CORRESPONDENT: Yes. Absolutely, Drew. A lot of reaction about Facebook's new look. Check it out.

The biggest change is that people's bios and personal information will be located up top on the page. And that's new with this Facebook facelift. But check out the reaction.

Looking at Twitter right now, here's one tweet that says, "Switched to the new Facebook profile layout. Visually appealing, but a bit too cluttered."

And also another tweet. This guy writes, "Trying to get used to the new Facebook profile. What the heck is this thing?"

And another tweet and reaction, "Just updated my Facebook profile layout. Looking good."

So a lot of reaction out there today, but obviously it will take some getting used to because it is a whole new look after all -- Drew.

GRIFFIN: Also trending today, news made on CNN, right here, yesterday. Fareed Zakaria, huh, with Bill Maher?

ENDO: That's right. Yes, this is huge. A lot of people are talking about it online and on the blogs. He actually called President Obama some names.

Listen to this.

(BEGIN VIDEO CLIP)

BILL MAHER, HOST, "REAL TIME WITH BILL MAHER": I'm so disappointed, and I still like him and still think there's hope, he could get it yet. But I'm so disappointed that he just seems to be another in a long line of Democrats that come across as wimpy and wussy and whatever word you want to ascribe to it of not standing up for what they believe in enough.

(END VIDEO CLIP)

ENDO: Wimpy and wussy. Well, Maher has been critical of President Obama in the past. And to be fair, he has also targeted other presidents like former president George W. Bush as well.

Now, Drew, I wanted to point out another thing trending on CNN.com today. And this is a funny piece on where people actually get work done.

Now, according to the writer Jason Fried, he says that people do work everywhere but at the office. Now, a quote from the article he writes: "The modern office has become an interruption factory. You can't get work done at work anymore."

So I'm sure, Drew, you know that when you are in your office, a lot of people come in and bother you, right?

GRIFFIN: Yes.

ENDO: So it's interesting where people actually get work done.

GRIFFIN: I am right there. I don't know who that guy is, but he is spot on. Whenever I need to write, I leave, because it's just constant knocking on that door.

ENDO: That's right.

GRIFFIN: All right. Sandra, thanks a lot for that.

ENDO: You got it. GRIFFIN: Well, same-sex couples said, "I do," but California voters said, no, we don't. The legal fight over the gay marriage ban heads back to court today.

(COMMERCIAL BREAK)

GRIFFIN: And it's happening along Lake Erie, frigid start for the weekend there in Cleveland, Ohio -- a lot of us. Reynolds Wolf's going to be along in a few minutes to tell us how cold we all feel.

In Dallas, the NFL getting ready to set up shop for Super Bowl XLV. Legal officials and contractors are there this week. Enough, tho9ugh (ph). The big game isn't until February 6th.

And remember California's Proposition 8? It outlaws same-sex marriage. Voters passed it two years ago, but it's still being challenged, a federal appeals court hearing going on today in San Francisco. CNN's Dan Simon outside the courthouse. Boy, Dan, this just goes on and on and on. What are we expecting today?

DAN SIMON, CNN CORRESPONDENT: Well, today it's front of the 9th circuit court of appeals, where the case is going to be heard by a three-judge panel. You know, Drew, it was just back in August, when federal district judge Vaughn Walker (ph) tossed Prop 8 aside. It was a historic ruling. But everything was put on hold while this case continues to make its way through the court system.

I want to talk to a little bit about what Prop 8 is. You touched on it. Proposition 8 was a voter-led initiative, passed by a narrow majority of California voters, a 52 percent majority, in November 2008. It defined marriage between a man and a woman. The name of this case, the name of this suit is called Perry versus Schwarzenegger, which is something I want to touch on.

The state of California has decided not to defend this lawsuit, which has left an outside party, a group called Protectmarriage.com, to defend it. While part of this hearing today is going to be devoted to determine whether or not outside parties like Protect Marriage can even be a party to this suit. Do they have legal standing? In any event, it seems that this case is ultimately headed to the United States Supreme Court.

I talked briefly with both of the gay couples who filed suit. I want you to listen now to Paul Katami, whose name is attached to the papers. Take a look.

(BEGIN VIDEOTAPE)

PAUL KATAMI, PLAINTIFF: It's an incredibly emotional processes because it's a waiting game and it's been a waiting game for LGBT rights for a long time. But we're excited today because we're going into this with a record based on the truth that asserts that our fundamental right is to have the right to marry. So we're here today just to uphold that decision. And today is a great day also because so many millions of Americans can actually see what's happening in the courtroom, and that truth will be out there for all of us to see. (END VIDEOTAPE)

SIMON: That's right, this hearing will be shown live, C-Span providing live coverage. One thing that bears repeating, Drew, is that this case really has national implications because if it's determined that the United States Constitution does protect same-sex marriage, then no state, no state at all, would be allowed to limit marriage between heterosexual couples.

But again, this hearing getting under way a bit later this morning, the 9th circuit. That's where it's headed today. But of course, in a matter of weeks and months ahead, this case will ultimately reach the U.S. Supreme Court -- Drew.

GRIFFIN: Yes, Dan, I understand that. Let me just make sure I understand what you said because I didn't catch the nuance that was going on there. The voters passed this. An appeals court judge overturned it, basically said, Voters, you've got it wrong. You don't have the power to do this. And then the state of California politicians kind of abandoned the voters, would you say? There's nobody in court representing the California voter?

SIMON: It's interesting. Really from the outset -- again, the name of this suit is called Perry versus Schwarzenegger. Governor Schwarzenegger and the state of California opted not to intervene in this case. So that left a group called Protectmarriage.com. They were the ones who sponsored the initiative to begin with. They've been defending it in court all along.

Well, the other side has been saying, Well, your name's not on this suit, so why are you defending it? You don't even have legal standing. Well, that's what's going to be determined by the 9th circuit, to determine whether or not a group like Protectmarriage.com can even be a party to this suit. So that's one part of the argument.

The second part of the argument is just the constitutionality, whether same-sex marriage can occur here in California and elsewhere in the United States -- Drew.

GRIFFIN: Dan, thanks a lot. We'll look forward to your report later today. Thanks, Dan.

Well, just ahead, spreading holiday joy in the middle of the subway station? One of the best videos. You've got to see this.

(COMMERCIAL BREAK)

GRIFFIN: Seems no matter where you are, you are colder than you're supposed to be. Am I making that up?

REYNOLDS WOLF, CNN METEOROLOGIST: No. You're right on the money. Drew, you're right now. And you know, it's not just in parts of the Southeast, which is a bit unusual for this time of year. It's also parts of the Great Lakes, where there are certain times of the year where snow will fall not in inches but possibly in feet. Today is one of those times. Let me show you some of the places most affected. We've seen Buffalo. They've had plenty of snowfall in just the last couple of weeks. But one place that's been hammered or may get hammered especially hard will be parts of the coast, right here, at least the lake shore near Cleveland.

Cleveland is -- we've got a live tower cam, I believe, for you that's going to pop up any moment. Actually, we don't. Such is the magic of live television. It does happen occasionally.

But we have the prevailing wind that's going to continue to come in from the northwest. And as you have warm water in the lakes, water temperatures around 44 degrees or so, that breeze is going to actually cause a lot of that water vapor to condense, and we're going to see some snow showers. Some places could get fairly heavy.

In fact, if you take a look at this computer model, well, you're going to be having snowfall totals in a few spots, especially near Cleveland and back over towards Erie, that could be in excess of one or two feet over the next couple of days. The wind is not only the big thing that gets (ph) going to give us some of that lake effect snowfall, but is also something that could provide some chilly conditions in parts of the Southeast.

I can tell you right now, in parts of Atlanta, we're going to be chilly today, with a high around 39 degrees. Breezy for you in parts of the Northeast. That's going to cause some delays. And then back out to the West, it's going to be warm for parts of the Four Corners, but when you get into Salt Lake City and back into the high Rockies, it's all snow business. Back in the San Joaquin Valley, looks like it's going to be a rainy day for you. That's going to continue through a good pat of the day.

In terms of your delays, we got those for you, too. Unfortunately, LaGuardia, ground delays of about 35 minutes. And Newark, looks like we've got about a 35-minute wait for you.

Hey, we're talking about Cleveland. We finally have that tower cam up, and there you see it. Oh, the roads look OK, but the buildings, if you can see them, they look fine too. They're going to be obscured by more snowfall as the day continues, and that trend might continue for the next couple of days. Drew, there you go. Back to you.

GRIFFIN: Reynolds, I was surprised -- I guess that now, that lake effect snow falls in chunks because some people don't have snow, and then you can go a few miles, and they have tons of it.

WOLF: It is very sporadic. There are parts of Buffalo, especially last week on Thursday and Friday, where you got north of the city, they didn't get much at all, maybe a light dusting. However, in south Buffalo, some places as much as three, four feet. Then you had drifts in some locations that got in excess of six feet.

GRIFFIN: Wow!

WOLF: So troubling times. Tough people, tough people. GRIFFIN: Reynolds, stick around. Take a look at this. Some of our favorite videos. Imagine this. You head out for a coffee, run into a herd of Santas, hundreds of them, most of them numbered. These pictures come to us from one of iReporters Down Under. On his way for coffee, Danielle Boudjuan (ph) ran into this charity fun run in Freemantle, Australia. The event helps raise money for sick and disadvantaged kids.

Now, a bit of a surprise for anybody taking the subway in Montreal Sunday. This is a spontaneous ballet class for hundreds of kids. Children were treated to a special dance workshop for the holiday classic "The Nutcracker" in Montreal's subway. The workshop was put on by some ballet heavyweights, Montreal's La Grande Ballet Canadien (ph). The kids were given a few tips on how to perform some of the ballet's favorite characters.

(COMMERCIAL BREAK)

GRIFFIN: Military chaplains conflicted about whether to support or repeal the military's "Don't ask, don't tell" policy. CNN's Kate Bolduan takes a look at why.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT (voice-over): Some of the most intense and divergent views on gays serving openly in the military, according to the Pentagon's "Don't ask, don't tell" report, exist among military chaplains.

GEN. CARTER HAM, COMMANDING GENERAL, U.S. ARMY, EUROPE: There is very clearly a concern out there by chaplains that they would somehow be treated adversely if they held or espoused religious views that were contrary to the government's view if the law is repealed.

BOLDUAN: That is just one concern expressed by some of the military's spiritual advisers.

CHAPLAIN DOUGLAS LEE, U.S. ARMY (RET.): The reason we were against the repeal is simply because of moral issues.

BOLDUAN: Retired Army chaplain Douglas Lee is one of dozens of retired chaplains who wrote to president Obama and Defense Secretary Robert Gates opposing the repeal. They write, quote, "We believe that normalizing homosexual conduct in the armed forces will pose a significant threat to chaplains' and service members religious liberty."

LEE: I fear, and many others fear, that down the road, knowing the other agenda items that are on the plate of those who are promoting a homosexual lifestyle, down the road, would be a concern that chaplains would be restricted from proclaiming their faith tenets.

BOLDUAN: But other military chaplains say it's just the opposite. Retired Air Force chaplain Jerry Rhyne supports repealing the policy and says the bigger issue is discrimination. CHAPLAIN JERRY RHYNE, U.S. AIR FORCE (RET.): The Scriptures and the Gospels tell us that we need to love our neighbors as ourselves. And so if you provide ministry on that basis, you cannot reject somebody based on their sexual orientation or their lifestyle, but you have to love them as a human being.

BOLDUAN: Chaplain Rhyne agrees with Defense Secretary Gates that safeguards are in place for service members and the chaplain corps to ensure that one person's religious views don't interfere with another's.

ROBERT GATES, SECRETARY OF DEFENSE: There is an obligation to care for all, but it is also clear that the chaplains are not going to be asked to teach something they don't believe in.

BOLDUAN (on camera): Despite the divergent opinions, a change in policy would have little impact on the chaplain corps, according to the report. Only 3 out of about 145 chaplains who participated suggested they would quit or leave if the law was changed. Kate Bolduan, CNN, Washington.

(END VIDEOTAPE)

GRIFFIN: Debit cards are being marketed to teens. Is it a good alternative to credit cards or a bad financial idea? We're going to ask MONEY's co-host Christine Romans.

(COMMERCIAL BREAK)

GRIFFIN: Here's our top stories. Fed chairman Ben Bernanke delivered a grim prediction about U.S. jobs. He did it in an interview with "60 Minutes" last night. Bernanke said it could be four or five years before unemployment rates get back to a normal level, which would be about 4 or 5 percent. He also said he was worried about the high percentage of people unemployed now for more than six months.

(BEGIN VIDEO CLIP)

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: And people who are unemployed for such a long time, their skills erode, their attachment to the labor force diminishes. And it may be a very, very long time before they find themselves back in a normal working position.

(END VIDEO CLIP)

GRIFFIN: President Obama has told the Chinese president North Korea has to, quote, "halt its provocative behavior," this as Secretary of State Hillary Clinton is meeting with top diplomats from South Korea and Japan today about that tense situation between the North and South Koreas.

The brother of murdered publicist Ronni Chasen -- well, he believes his sister was the victim of road rage. Larry Cohen (ph) is telling "The New York Times" he doesn't think his sister was killed as a result of some business deal gone bad. Chasen died last month when shots were fired into her car as she left a movie premiere in Beverly Hills.

(COMMERCIAL BREAK)

GRIFFIN: There's a new development in the battle for leadership of the Republican Party. Ed Henry, part of "The Best Political Team on Television," is live at the White House. Ed, what's crossing?

ED HENRY, CNN CHIEF WHITE HOUSE CORRESPONDENT: Good to see you again, Drew. A little scoop from our own Mark Preston saying that the chair of the Wisconsin Republican Party has decided to step down there, and he is now mulling his own bid for chairman of the Republican National Committee. All across country, a major blow to Chairman Michael Steele because this man had been kind of a key adviser to him. And so now, if he turns on him, it's going to just add to the fact there are already several people in this race for RNC chairman. They're going to decide it next month, the 168 members of the RNC.

And what's interesting is Michael Steele's had plenty of controversies before, and some Republicans looked the other way. Now heading into a presidential election in 2012, maybe some of those Republicans won't do that. Maybe they'll look for new blood.

Secondly, you just mentioned President Obama last night called President Hu of China. We've got some new details on what President Hu said in his side of the call. The state-run news agency in China is saying President Hu called for a, quote, "calm and rational response from all sides to prevent the deterioration of the fragile security situation there on the Korean peninsula."

We were not shocked, of course, that this phone call took place because China is sort of pivotal to calming the situation down there in Korea because of its economic and trade ties to North Korea. But what is a surprise is it took so long for this call to move forward. It was a couple weeks ago, around even before Thanksgiving, that White House aides said the two presidents of China and the United States would talk. Bill Burton, the White House spokesman, said a short time ago to reporters, Look, they're just two busy guys. It was hard to get them together.

And finally, superfluous is a hard word to say even when you've got two healthy lips. President Obama, who's got one lip that's a little damaged from that basketball game, had a little trouble with it last night. Take a listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: To many people, he wrote in his dissent, the superful -- let me start that over. To many people, the superfull -- superfluous -- it's this lip that's...

(LAUGHTER)

OBAMA: It's hard to say, super -- you try it when you've had 12 stitches!

(LAUGHTER) (END VIDEO CLIP)

HENRY: So the president having a little fun there. This was in connection with the Kennedy Center honors. Among people honored last night, Merle Haggard, ex-Beatle Paul McCartney and Oprah Winfrey, Drew.

GRIFFIN: Very interesting. I stay away from those big words, Ed. I don't care if I can say them or not. I just stay away from them.

HENRY: I agree with you.

GRIFFIN: All right. Thanks, Ed. Appreciate all that. Your next political update in an hour. And for the latest political news, you know where to go -- come on, now -- CNNPolitics.com. That's got all the breaking political news.

Some of the stories we're working on for the next hour, Congress may be close to a deal on what to do about those Bush-era tax cuts. Will they let them expire or extend them for the middle class and the wealthy? We'll break down how much it's going to cost you either way.

And the beaches off a resort area in Egypt closed after a shark attack. We're going to tell you what happened there.

(COMMERCIAL BREAK)

GRIFFIN: Hey, let's bring in Christine Romans right now. I want to talk about teens finding it harder to get a credit card these days, Christine with our Money team up in New York. Christine, I've got to ask you, number one -- teens finding it harder to get credit cards these days -- good, right? But what are we seeing, that they're getting debit cards now? Is that the alternative?

CHRISTINE ROMANS, CO-HOST, "YOUR $$$$$": These pre-paid cards, you're right. Pre-paid debit cards, dozens of them are being marketed to teens right now, Drew. They feature cartoon characters. They are endorsed by celebrities. Remember the Kardashian Kard? They're meant to entice kids and teens who can't get a credit card into using this kind of plastic instead. Many of these cards carry pretty hefty fees, so you got to be careful about this.

Our good friend, Ryan Mack (ph), of Optimum Capital Management, tells us don't fall for any celebrity hype. He believes all of the fees on these pre-paid debit cards are simply too high. Not all of them are endorsed by celebrities, by the way. Some of them look pretty plain vanilla. Mack says the big red flag is if there's someone sitting in front of you saying, Hey, I'd like to charge you so you can spend your own money. You shouldn't spend money to use your own money, Drew. Always remember that.

GRIFFIN: Christine, I just don't get it. Number one, I'm sure there are some kids who have a legitimate use for a credit card. But in general, why do these teenagers need these credit cards? And can they possibly get them without their parents' consent or co-signing? ROMANS: Well, look, a credit card is much harder to get now because of card reform, quite frankly. These pre-paid cards are a way to put money on the credit card so that your kid isn't walking around with a wallet full of cash. But then there are debit cards, too, just regular, plain vanilla debit cards attached to Mom and Dad's credit -- bank account or a kid's credit -- bank account. And debit card use has actually surpassed credit card use in the past year.

GRIFFIN: Wow.

ROMANS: Think of that. Americans made $28.4 billion debit purchases and just $21 billion credit card purchases.

Lots of folks are using these cards interchangeably, but John Ulzheimer, who's a credit guru and a credit counselor for Mint.com -- he says, You got to be careful. First off, you won't get the same protections with a debit card that come with a credit card. Second, with the debit card, you're using your own money. The risk isn't coming from the bank using its money. It's your own money. So something to remember there, the difference between a credit card and a debit card.

GRIFFIN: All right, so what, if you really need a credit card, sometimes from Christine on what to do before you sign up for one 70 seconds away, Christine.

(COMMERCIAL BREAK)

GRIFFIN: Back with us, Christine Romans, author of "Smart Is the New Rich." We just covered debit versus credit cards. Now, if I am looking for a credit card, Christine, is there somewhere I can go easy to compare different cards?

ROMANS: Yes. There's a lot of different places, and you can find dozens of low-interest credit cards. You can read about their rewards. I mean, the rewards are really key. Bankrate.com is a place I like to use. Creditcards.com is another one. These sites also allow you to apply for cards right from the site. But don't go out there, Drew, signing up for a bunch of low-interest credit cards, or you're going to ding your credit, right?

GRIFFIN: Right.

ROMANS: Also keep in mind that the interest rate you're getting when you sign up is an introductory rate. Your credit card issuer can raise this rate if you're late on any payments. Remember, credit card reform doesn't help you if you're late. They can jack up interest rates. If your rates increase, call your credit card company, try to negotiate a lower rate or transfer your balance to a lower interest card.

Billshrink.com. Got that one? Billshrink.com. That allows you see how much you could save over time if you switch to a card with a lower interest rate. But remember, if you've had trouble racking up debt, Drew, you shouldn't be out there shopping around for low-interest credit cards. You're making a mess. If you can't pay for it in three months, you shouldn't put it on a credit card in the first place.

GRIFFIN: Right. Just stop. Make cookies and give them away as gifts, right, Christine? Let's settle down, people.

ROMANS: Stop the insanity!

(LAUGHTER)

GRIFFIN: Exactly. Hey, thanks a lot. We got your partner here, too. He's going to be talking to us in just a bit. Thanks, Christine Romans.

ROMANS: All right. Can't wait.