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What's at Stake in Iowa Caucuses; Thousands Attend Kim Jong- il's Funeral; Mubarak Trial Resumes in Egypt; Gingrich Goes After Paul; Economist More Optimistic on Economy; Texas Family Shot in Mexico; Rick Perry Changes Position on Abortion; Christmas Fire in Connecticut Kills 5
Aired December 28, 2011 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
NATALIE ALLEN, CNN ANCHOR: Yes, live from Studio 7, I'm Natalie Allen. Hello, everyone.
Let's get you up to speed for this Wednesday, December 28th.
If you're a Republican running for president, Iowa is the place to be today. The Iowa caucuses just six days away. The candidates are out in force as you can imagine.
On the trail this hour, Michele Bachmann and Newt Gingrich. Bachmann's 99 county bus tour is in Creston, Iowa. She's competing with Rick Perry and Rick Santorum for the social conservative vote. Newt Gingrich rallies his supporters in Mason City later this hour.
A recent poll shows Gingrich, Ron Paul and Mitt Romney in a virtual tie for the lead.
Well, what happened to Newt Gingrich, nice guy? He vowed not to go negative in response to the other candidates' attack ads, but that didn't stop Gingrich from blasting Ron Paul.
In an interview with CNN's Wolf Blitzer, he said he wouldn't vote for Paul. Gingrich pointed to incendiary newsletters distributed under Paul's name in the '80s and '90s.
(BEGIN VIDEO CLIP)
NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: You look at his newsletters and then you look at his ads, his ads are about as accurate as his newsletters.
WOLF BLITZER, HOST, CNN'S THE SITUATION ROOM: Now, if he were to get the Republican nomination --
GINGRICH: He won't.
BLITZER: Let's say he were. Could you vote for him?
GINGRICH: No.
(END VIDEO CLIP)
ALLEN: Amateur video out of Syria is said to show defectors trying to ambush security forces in Daraa. CNN cannot independently confirm this claim. Observers from the Arab League are now in the country for a second day to determine if the government has kept its promise to stop the bloody crackdown on its citizens.
A league official tells CNN they have postponed trips to three cities today due to logistical reasons.
Tens of thousands of North Koreans wailing and beating their chests fill the streets of Pyongyang for the funeral of Kim Jong-il. A Lincoln carried his coffin on the roof. Another carried a giant portrait of him.
Analysts say the perfectly choreographed funeral signals a new era under his son, Kim Jong-un.
The trial of former Egyptian President Hosni Mubarak continued today after several months of delay. The ailing 83-year-old entered the courtroom on a gurney. He is charged with corruption and murder for allegedly ordering the killing of protesters calling for an end to his 30-year-regime.
Court adjourned after only a few hours. It is set to resume on Monday.
Two women have been arrested for allegedly faking injuries from a deadly stage collapse at the Indiana state fair.
(VIDEO CLIP PLAYS)
ALLEN: Seven people were killed, dozens more injured when scaffolding fell out on the crowd in August. Authorities say Stephanie Murry and Sandra Hurn falsified hospital records to make it look like they were injured. Both face felony charges of forgery, perjury and attempted theft.
A California man is accused of shooting and paralyzing an Afghanistan war veteran during the soldier's homecoming party. Nineteen-year-old Ruben Ray Jurado is charged with attempted murder. Twenty-two-year-old Christopher Sullivan was shot in the neck on Friday. Authorities say they had been arguing about football.
Sullivan received a Purple Heart after surviving a suicide bombing attack in Afghanistan last year.
And if you see a mother nursing her baby in your local Target, leave her alone. She's protesting. Mothers are holding more than 100 so-called "nurse-ins" today in 35 states. The nurse-ins were organized in support of a woman who says she was harassed by employees at a Houston Target store for breastfeeding.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I had this big blanket, this big one, over me. They all came and started like walking by and shaking their head like, you know, rolling their eyes, shaking their head, no, no, like I'm doing something so horrible. I'm feeding my baby here.
(END VIDEO CLIP)
ALLEN: Target released a statement saying, "Guests who choose to breastfeed in public areas of the store are welcome to do so without being made to feel uncomfortable."
(MUSIC)
ALLEN: The clock is ticking and the stakes are high for the Republican candidates in the Iowa caucuses. Some of the GOP hopefuls are lowering their expectations and talking about what happens if they don't do well.
Let's bring in CNN political director Mark Preston in Des Moines.
Mark, the caucuses just six days away. Could this be a make-or- break contest for some of the candidates?
MARK PRESTON, CNN POLITICAL DIRECTOR: Well, Natalie, it very well could be the end of the line for some of the candidates now. Seven Republicans running for the GOP nomination, six of them campaigning here in Iowa. If they don't -- well, for many of them, if they don't come in the top four, it could be the end of the line.
Specifically though for Newt Gingrich, who's been the front- runner for most of the month of December, has been slipping in the polls right now. The odds for him or at least the expectations are that he probably needs to come in the top three, and the reason being is that Newt Gingrich has come under a lot of criticism from all sides. That's why we've seen his poll numbers erode over the past week or so.
Also, he needs to show that he can appeal to social conservative voters who are not only very important here in Iowa but they'll also be very important in South Carolina which will hold the primary in late January, Natalie.
ALLEN: Speaking of the social vote, Rick Santorum, Michele Bachmann, Rick Perry, all going after the social conservative vote. Santorum says he will if pack up and go home if he comes in last. How likely is that? And what about Bachmann and Perry -- can they survive if they don't do well in Iowa?
PRESTON: Well, for Rick Santorum who we've seen him come on -- I don't want to use the word surge -- but we've seen his numbers tick up. The excitement for Rick Santorum's campaign a little bit more in the past couple weeks than we've seen all year. If he does come in last, if Michele Bachmann comes in last, if Rick Perry comes in last, then pretty much their campaign is over.
But for these three, they need to place in the top four. Unlike Gingrich who needs to be in the top three, they need to place in the top four because nobody expects them to come in first, second or third. So, if they were to come in somewhere in that order, first, second, third, it would be a major, major win for one of those candidates. If they come in the top four it means they live another day, and that other day would be New Hampshire on January 10th, Natalie.
ALLEN: And let's talk about Ron Paul, virtually tied for the lead. Can he actually win? And what does it mean if he does?
PRESTON: He very well can win, and the reason being is Ron Paul has a very strong organization here in Iowa, but it's an organization that is really built on enthusiasm from his supporters, Natalie. These are folks who are very much think that Ron Paul has the answers when it comes to foreign policy. They don't -- they agree with Ron Paul and they don't think that America should be involved in the wars in Afghanistan and Iraq. They also like his fiscal policy. They think that he is a straight shooter.
So, Ron Paul could very well win the Iowa caucuses. If he does that, though, it would become a major thorn in the side for the establishment Republicans who find Ron Paul's brand of politics very, very frustrating -- Natalie.
ALLEN: And let's go back to Gingrich for a moment. He had a pledge to stay positive. Many make that pledge at certain times. He did really go after Mitt Romney during his interview with Wolf Blitzer.
PRESTON: He did, you know? And this just happened yesterday. Newt Gingrich, who has made a point of trying to stay above the fray, we've seen that all year. Certainly in all of the nationally televised debates, he would actually chastise the moderators if he thought that they were trying to get candidates to fight one another.
However, just in this interview yesterday with our own Wolf Blitzer, he went right after Mitt Romney. In fact, let's listen to what he had to say, Natalie.
(BEGIN VIDEO CLIP)
NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: All I'd say, Mitt, is, if you want to run a negative campaign and you want to attack people, at least be man enough to own it. That's your staff and that's your organization. Those are your millionaire friends paying for it.
And let's be clear: I'm willing to fight for real job creation with a real Reagan/Kemp-style job creation program.
You are a moderate Massachusetts Republican who, in fact, is very timid about job creation. Let's get it on together and let's compare our two plans.
(END VIDEO CLIP)
PRESTON: And there you have Newt Gingrich just yesterday here in Iowa. The bottom line is six days until the Iowa caucuses and the real question on the table is, can you stay positive? There's so much on the line.
Apparently, Newt Gingrich is not going to stay positive -- Natalie.
ALLEN: It will be an interesting six days down to the wire.
Mark Preston for us live from Iowa -- thanks, Mark.
This reminder for you, tune in next week for the country's first vote in the presidential race. America's Choice 2012 -- live coverage of the Iowa caucuses begins Tuesday night, January 3rd at 7:00 Eastern right here.
Wolf Blitzer is on the campaign trail in Iowa. And next hour, he'll be on the bus with Mitt Romney. You can see Wolf's interview with Romney today on "THE SITUATION ROOM," beginning at 4:00 p.m. Eastern.
Well, here's a rundown of some of the stories we are covering.
First, the end of 2011 may mean the end to some of your favorite brands. Say it ain't so. Corn Pops going away. More about that.
And a couple boating off the Florida Keys gets a big surprise. They witness a small plane crash into the ocean, but this story has a good ending.
Then a very so soggy and windy holiday week for most of the country means big travel delays.
Also ahead, tragedy for a Dallas family. A mother and two children shot dead while on a bus to visit relatives in Mexico.
And investigators say they now know what sparked a Christmas day fire which killed a family in Connecticut.
(COMMERCIAL BREAK)
ALLEN: They were once hot commodities, but not all product brands can stand the test of time apparently.
Alison Kosik has a look at some brands that could be going away next year.
Alison, hello.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Natalie.
This may seem nostalgic when you hear about things like this. But I've got three brands that look like they're not going to be winning in the New Year for sure.
For one, MySpace. Remember MySpace? It used to be the number one social network. It's hard to believe, because then came Facebook and, of course, Facebook eclipsed everything else.
And today, Facebook has over 800 million users. MySpace, it has less than 25 million. It doesn't look like my space is going to make a comeback any time soon. It was sold to News Corp for $580 million. News Corp sold it of this year for just $35 million. Yes. I would say, say goodbye to MySpace.
All right. Number two, American Apparel. It's really the one to watch next year. It could go the way of Borders or Filene's Basement, meaning retailers that went belly up this year. The company itself posted seven straight quarterly losses. It lost over $28 million so far this year.
Gosh, even the CEO is in trouble. He faces sexual harassment charges.
Now, online sales for this company may be its salvation. Sales online were up 32 percent in November.
And one that you mentioned, Natalie, Kellogg's Corn Pops. Yes, one of my favorites. The people who put together these ideas at 24/7 Wall Street, they've had Corn Pops in their crosshairs this year.
And you know what, weak sales and higher corn prices, those are the reasons that we may say bye-bye to these Kellogg's Corn Pops. Sales are down more than 12 percent in 2007. You know, and who could forget the fact that, you know, it maybe is not the healthiest of all cereals.
ALLEN: No.
KOSIK: They did tell us, Natalie, again, Kellogg's told us that Corn Pops are here to stay. This will be one to watch next year.
I'd like to see them stay. I still enjoy them, even if they get all mushy in the milk. They're still good.
ALLEN: You got to go fast once you pour the milk, as long as they don't mess with my frosted flakes. I'm all right. Also, play it safe.
KOSIK: Yes. I don't think they'll mess with those.
ALLEN: Alison Kosik -- thank you, Alison. See you soon.
KOSIK: So, well, the predicted disappearance of Corn Pops. That got us all nostalgic for the things we loved. But now, you just can't get anymore.
Remember browsing the shelves at Borders. Boy, that's a sad one. Nowadays, electronic readers have made the bookstore chain obsolete and it closed its doors this year. At its height, the 40- year-old book chain had more than 1,200 book stores and sales in the billions. How things changed.
Speaking of change, that used to be everywhere, when we used to make it a blockbuster night. Remember heading to the video store on Friday, checking out the new releases section and finding some movies to rent for the week end and grabbing a big box of Goobers to go. Not too long ago those movies were on VHS tapes.
So we were thinking, what are you nostalgic for? What products or stores are gone forever that you miss? We want to hear from you. Think about it.
You can post your thoughts on Suzanne Malveaux's Facebook page. That's Facebook.com/SuzanneCNN. And we will have some of your comments later this hour.
Checking some of the stories our affiliates are covering across the country.
Flooding at a cemetery in St. Francisville, Louisiana, caused several coffins to watch up out of the ground. One was found in a nearby pond. Another floated away into a stand of trees. Inmates from the local jail put the caskets back in their original spots.
A family dog saved a family from this mobile home fire in Oklahoma City. The owners say he woke them up when the home started filling with smoke. The father rescued all five of his children but is hospitalized with severe burns this morning and on a respirator.
And boaters rescued three people off Marathon, Florida, after their small plane nose dived into the ocean. Amazingly, no one was hurt.
A fisherman pulled the plane to shore. No word on what caused the crash. All fortunate there.
There could be a rainy and windy trip for holiday travelers hitting the roads in the North.
Reynolds Wolf has a look at our forecast for us -- Reynolds.
REYNOLDS WOLF, AMS METEOROLOGIST: Well, Natalie, we got two issues that we're following right now in terms of travel. One would be parts in the Northeast due to snow. And in the Pacific Northwest, the issue is going to be a combination of rain, sleet and snow.
But in terms of flight delays, we have one big one popping up and that happens to be in Newark. We got ground delays about an hour and half or so. We may see these add up in other places in the Northeast. Other places in New York, we're talking JFK and LaGuardia. We might see them added to the list in the afternoon.
Let's begin first and foremost with what is happening in parts of the Northeast. Well, in the Northeast, you have this big area of low pressure, couple front -- all this pushing off to the east. What we're seeing is some wind that's spinning right over parts of Lake Erie, when that predominant wind that's coming across. And you know water is in a constant state of evaporation. It's actually scooping up that moisture. We're seeing snow popping up near Buffalo and back towards Burlington.
Thirty seconds, we're going to show you what else we have, what's happening out towards the Pacific Northwest. I mentioned rain. We got it for you.
Take a look right along the coast, and also along the I-5 corridor, from Portland, southward to Salem, even Corvallis, northward into Longview, the situation's all rain. However, when it goes up slope into the Cascades, we're seeing something altogether different.
What we're seeing is a little bit of snow beginning to pop up in a couple of spots. That's going to add up I'd say over the next couple of days or so. So, just keep in mind great news for the skiers, for the drivers not so much.
Wrapping it up, we can expect plenty of sunshine for much of the central and southern planes. High temperatures in spots like Dallas, going all the way up to 65 degrees, 51 in Billings, 64 in San Francisco, Atlanta with 51 and New York into the 40s. That is the latest on your forecast.
Natalie, let's send it back to you.
ALLEN: I have a question for you.
WOLF: Bring it on.
ALLEN: Are you old enough to remember the chimpanzee from the Tarzan movies from the 1930s?
WOLF: What was his name?
ALLEN: Cheetah
WOLF: I remember Cheetos, but I don't remember Cheetah.
ALLEN: Oh, gosh. So, you're not mourning like the rest of us?
WOLF: Well, not so much.
ALLEN: Well, it's a sad day for the rest of us, Reynolds. Cheetah has died at the ripe old age of 80. Check out that blast from the past. He outlived his human costars including Tarzan himself, Johnny Weissmuller. Cheetah played the comic relief, of course, in the Tarzan films. He spent the rest of his years at a Florida animal sanctuary.
His caretakers say he loved finger painting and liked to make people laugh. Kissing.
WOLF: Oh my gosh. This is a family show. This is a family show.
ALLEN: Cheetah -- stop it.
Cheetah died of kidney failure the day before Christmas. What a life.
WOLF: Yes. It's amazing that he lived as long as he did because when you saw the shots of he and Tarzan, Johnny Weissmuller, it's amazing. It looked like Johnny almost dropped him a few times.
So, you know, swinging on a vine in a studio somewhere in Hollywood. And somehow he lived through that and now --
ALLEN: He had a good life.
WOLF: Yes. He looks like he had a heck of a time wearing the paper hat and getting a kiss from some trainer.
ALLEN: Who wouldn't have wanted to have starred in the Tarzan movies?
WOLF: How much time do you have to answer that question?
ALLEN: We're out of time.
WOLF: OK. We're going to wrap it up. I'm getting out of here. Bye, guys.
ALLEN: All right. Thanks so much.
The streets of Pyongyang filled with crying mourners today for the funeral of Kim Jong-il. We'll show you some amazing pictures right after this.
(COMMERCIAL BREAK)
ALLEN: Tens of thousands of North Koreans stood out in the freezing cold today for the funeral of Kim Jong-il.
Kim's coffin was carried on the top of a Lincoln hearse.
Paula Hancocks reports the well-choreographed ceremony is a sign to the world about North Korea's future.
(BEGIN VIDEOTAPE)
PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): Walking alongside his father's coffin, the message could not be more clear. Kim Jong-un, the supreme leader, leading the funeral procession for his father, Kim Jong-il, the dear leader.
Key military and political leaders surround him, showing publicly at least Kim Jong-il's wish for a smooth succession has been granted.
The coffin preceded by a giant portrait of a smiling Kim Jong-il was then driven through the snow-laden streets of Pyongyang.
Tens, possibly hundreds of thousands of mourners lined the streets. Soldiers bowed their heads, their caps in hand. Men and women alike wailed and beat their chests as the coffin passed them by, at one point rushing forward to get closer to the procession.
Well choreographed event filled with pomp and ceremony, adverse weather only adding to the occasion. The country's state-run news agency saying it reminds the North Korean people of the snowy day, the leader was born.
A thunderous military salute to send off their leader who ruled his people with an iron fist for 17 years, a man who developed a regime based on a cult of personality and terror.
As Kim Jong-un watched the final military parades of the day, the question being asked around the world is how closely will he follow in his father's footsteps.
UNIDENTIFIED MALE: He has to basically make sure that all of the key places, all of the key forces will be loyal to him. Number two, he's got to provide basic economic means to his citizens. And, number three, he's got to reach out to the Chinese and to the Americans so that they have much more of a stable relationship with the outside world. Those are very huge challenges for a young and still yet inexperienced leader.
HANCOCKS: The assumption is that little will change in North Korea in the short term while Kim Jong-un works to consolidate power.
But looking longer term, anything is possible depending on which expert you speak to, from a power struggle within the elite, to a provocative act to prove the new leader's strength to further negotiations with the outside world.
Paula Hancocks, CNN, Seoul.
(END VIDEOTAPE)
ALLEN: After several months of delay, the trial of former Egyptian President Hosni Mubarak resumed today under heavy security. But by mid-afternoon, court had already adjourned.
Mohammed Jamjoom was in Cairo with the latest for us.
Mubarak arrived in court on a gurney, Mohammed. What was that about?
MOHAMMED JAMJOOM, CNN INTERNATIONAL CORRESPONDENT (via telephone): Well, Natalie, in each hearing that's taken place in this case, there haven't been all that many, the case started in the summer, Mubarak has been wheeled into court on a gurney. This goes to the contention by the Mubarak legal team that Mubarak is not in good (AUDIO BREAK).
Before the trial even commenced, there were claims that he possibly suffered a stroke or a heart attack. It was always very hard to try to confirm this. A lot of rumors here about his health.
But what's interesting is that even though we've seen pictures of him repeatedly either being wheeled into the court or inside the court on that gurney, a lot of the people you speak with in Egypt simply don't believe the claim that he's too sick to be tried, and especially when it comes to the activists here and the revolutionary crowd. They believe that this is just a distraction on the part of the Mubarak legal team, that they're trying to gain sympathy.
But they are not giving any sympathy. And they do believe that the former president should be tried -- Natalie.
ALLEN: So a distraction, perhaps. So, why did the trial end so early? When will it resume?
JAMJOOM: Well, today the judge ruled that even though it was adjourned, that it would resume on Monday, but more important than that is that the judge, according to a lawyer who was in the court, said that (AUDIO BREAK) having daily sessions.
And that's one of the key things. There's been so much concern that because there have been so many delays in this trial and because usually in the courtroom, it is so chaotic, so many different claimants trying to attach different issues to this case, that how is it possibly going to proceed and get done in a timely fashion?
We were told by a trial, by an attorney who was in the court today that, in fact, the judge said it will start having daily sessions. And then we were told that Mubarak's attorney had said that he believes a verdict will be issued sooner than expected -- Natalie.
ALLEN: CNN's Mohammed Jamjoom for us from Cairo -- thank you, Mohammed.
Well, it was the best of years and the worst of years. We'll take a look at the biggest news stories of 2011 -- from the Japanese tsunami disaster to the Occupy movement.
The folks at 247Wall Street.com have come up with their list of the worst product flops of 2011. What do you think made the list?
Well, in September, Netflix announced it was separating its online streaming service and its DVDs by mail. The DVD service was going to be called Qwikster. The move cost Netflix, oh, about 800,000 subscribers. And Netflix killed Qwikster before it launched.
Also this year, Fiat introduced its new 500 car. The 12-foot- long car was expected to give BMW's Mini a run for its money. But Fiat has so far fizzled with disappointing sales.
And clothing company Abercrombie & Fitch got a lot of flak for its Ashley push-up triangle. It was basically a padded pushup bikini top for kids. Critics said the bikini went too far by sexualizing young girls. The company no longer offers the bikini top on its Web site.
(COMMERCIAL BREAK)
ALLEN: Happening now, we are keeping a close eye, of course, on Iowa. You're seeing Michele Bachmann right now addressing voters in Creston, Iowa. She is on a 99-county campaign swing through the state with just six days to go and counting. As you know, the caucuses there began. And right now, the race is pretty much anyone's guess. We continue to follow the candidates as they go throughout the state there in Iowa. We'll let you know what she says a bit later on.
Here's a rundown of some of the stories that we are working on elsewhere.
Next, something we haven't heard much in 2011, optimism about the economy. Then the search for answers after a Texas family is gunned down during a holiday visit to Mexico. And at 11:45 eastern, presidential candidate, Rick Perry, makes an about face on a controversial conservative topic.
Well, the economic outlook for the country may be a bit brighter, or at least not as gloomy. In a survey by "CNN Money," economists are a bit more optimistic than they were a few months ago.
Alison Kosik is at the New York Stock Exchange with more.
Alison, what are the economists saying about the risk of another recession?
ALISON KOSIK, CNN CORRESPONDENT; Natalie, in this survey that you're talking about of 20 top economists, they're dialing back their concerns about a new recession. In fact, they're putting their chances of another recession at 20 percent. Believe it or not, that's better than what they were predicting two months ago when they gave it a 30 percent chance. Things looking a little brighter -- Natalie?
ALLEN: A little bit is better than the alternative. What are they saying about their expectations for economic growth in the New Year?
KOSIK: OK. So their consensus is actually for 3.3 percent economic growth in this current quarter that we're in. It's pretty optimistic considering, if you look at what third-quarter growth was like, it was a paltry 1.8 percent. They also predict about a 3.2 percent growth for all of next year. That's closer to a healthy rate of growth that we've seen in quite a while. Keep in mind that what's considered healthy or normal is anywhere from 3 to 3.5 percent. But you see what a tough go it's been. The first quarter of this year was a meager .4 percent. So, yes, we've improved since then. Hopefully, we'll see more improvement in the New Year -- Natalie?
ALLEN: What still are the areas of concern?
KOSIK: That's really a good question because you look at the big weights that are really dragging on this economy, it's jobs and it's housing. On jobs, expect the situation to continue getting better as it is, but also expect the pace of improvement to be really just painfully slow. Our economists are predicting that 1.6 million jobs are going to be added next year. That's about 103,000 jobs added a month. That's still below what's needed to keep up with population growth. As for housing, don't expect that to get any better until at least 2013. Of course, you see how jobs and housing are tied together. If people don't have a secure job, they won't buy homes. With home prices continuing to sink, many people can't buy a home to accept a job in another town. So you see why jobs and housing are really so important to bring this economy back to strength again, back to good health -- Natalie?
ALLEN: Right. Any time you see a "sold" sign on a for sale sign in front of someone's home, you did a little cheer. Yes, something is happening.
(LAUGHTER)
KOSIK: And you hope someone's going to buy it.
ALLEN: Yes.
Alison Kosik for us at the New York Stock Exchange. Thanks, Alison.
A tragic day for a Texas family. Two children saw their mother and sisters shot to death before their very eyes while riding a bus in Veracruz, Mexico. We'll look at where traveling is safe and not safe throughout the country.
(COMMERCIAL BREAK)
ALLEN: Three members of a Texas family visiting relatives in Mexico for Christmas were shot and killed on a bus. Two children, who saw it happen, survived.
We get the story from CNN's Rafael Romo.
(BEGIN VIDEOTAPE)
RAFAEL ROMO, CNN CORRESPONDENT (voice-over): It was supposed to be a joyful holiday trip, a Texas family traveling by bus in Mexico to spend Christmas with relatives. Margaret Schneider says her daughter- in-law, 39-year-old Maria Heartsell, and her granddaughters, 19-year- old Carla and 13-year-old Christine Heartsell, were traveling in the Mexico state of Veracruz when their bus was attacked by a group of armed gunmen. All three women shot and killed.
10-year-old Mike Heartsell, who witnessed the horrific scene, told his grandmother what he saw.
MARGARET SCHNEIDER, VICTIM'S MOTHER-IN-LAW: I turn around and then I come back and they shot her in the head with the gun. And they shot Carla. He said he knew that his mom and Carla was dead.
UNIDENTIFIED MEXICAN ARMY SPOKESMAN: (SPEAKING FOREIGN LANGUAGE)
ROMO: A Mexican Army spokesman said the assailants killed a total of seven people on three different buses on the same day, including the Texas family. SCHNEIDER: I told her not to go to Mexico. I told her not to go to Mexico. I just kept repeating it. I just -- senseless. It was just senseless.
ROMO: Violence in the state of Veracruz where the fatal attack happened has increased sharply as a result of a turf war being fought by two extremely violent Mexican drug cartels.
UNIDENTIFIED MEXICAN ARMY SPOKESMAN: (SPEAKING FOREIGN LANGUAGE).
ROMO: Military authorities said the same assailants killed a total of 11 people last Thursday. 10 were shot and another died in a grenade attack. Five of the hit-men later died in a shootout with Mexican armed forces the military spokesman said.
Mexican authorities are also investigating the violent death of another American citizen. 18-year-old Alexis Marrone, from suburban Chicago, was one of three men whose charred bodies were found in the trunk of a car in the Mexican southern state of Metacan (ph).
(END VIDEOTAPE)
ALLEN: What a terrible story. So many violent stories coming out of Mexico, Rafael. We know there are areas that are safe. Which areas are those?
ROMO: It's very important to keep things in perspective when you look at a story like this. You get the idea that violence is widespread and everywhere. It's mainly concentrated in five states in Mexico, mostly along the border. Let me show you this map. You see states like this, the state of Chihuahua, just south of Texas. States like Tamaulipas and Veracruz along the gulf coast, and also states like Guerrero. Americans know the state of Guerrero because it's the state where Acapulco is located. But places like the state of Quintana Roo, where Cancun is located, perfectly state. States like Jalisco (ph) where Puerto Vallarta is located are mainly safe. So it's very important to make a distinction.
ALLEN: I'm sure a lot of people are in Cancun this week. Popular destination. Where is the progress as far as the U.S./Mexico cooperating and trying to beat down these drug cartels that are out of control?
ROMO: It depends what measure you use. Two years ago, the Mexican government said our goal is to capture 37 of the most powerful drug lords in Mexico. They have captured more than 20. If you look at the numbers of people who have died since 2006, when the current president took office, you're looking at a number of higher than 40,000. By that measure, things don't look very good. It's going to really depend on the long-term on what happens from here on, whether the situation gets stabilized or not.
Another important piece of information that I have for you, Natalie, is Americans are still going to Mexico. Tourism, as a matter of fact -- the number of Americans traveling to Mexico increased by 3 percent last year. It's a little over 20 million. So people are not really getting scared in spite of the situation.
ALLEN: It is a dire situation. What a tragic story for that family there and those children.
Rafael Romo.
Thank you, Rafael.
ROMO: Thank you.
ALLEN: Presidential candidate, Rick Perry, changes his stand on a crucial issue for social conservatives -- abortion. We'll tell you Perry's latest position on abortion ahead in our "Political Ticker" update. Stay right there.
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ALLEN: When we heard predictions by Wall Street that Kellogg's Corn Pops will disappear from America's breakfast table next year -- say it ain't so -- we wanted to run to the cafeteria to grab a box or two. No more Corn Pops?
For our "Talk Back" question we asked, what products that are no longer around are you nostalgic for.
Mary writes, "I miss Betty Crocker date-nut bars. I've almost duplicated the recipe, but not quite. Still working on it."
Mike says, "Record stores. I worked at three. It was a great place to work and meet people from different walks of life."
If you're young, we'll explain later what a record store is.
Dylan misses arcades. He writes, "Pin ball machines. Console games don't even come close to the thrill of real pinball."
We concur.
James says, "I miss TGIF sitcoms on TV on Friday night. When I hear the theme song to "Full House," "Family Matters," et cetera, it brings a tear to my eye. My mother and I used to sit down every Friday night and watch all of our favorite shows while we ate dinner together.
Hopefully, a TV dinner.
Some of you mentioned S&H Green Stamps and eight-track tapes as things you missed.
Keep the conversation going at Facebook.com/suzanneCNN. We'll have more of your responses next hour.
For the record, I saved my Earth, Wind and Fire eight track just for nostalgic reasons.
What else might be going away after Iowa? Well, news from the campaign trail today. Rick Perry has some harsh words for President Obama over troops returning from Iraq.
Paul Steinhauser is live from Des Moines with just six days to go until the Iowa caucuses.
Paul, what is Perry's criticism of the president?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Perry is going after the president this morning, Natalie. Just a couple miles from here, at the Machine Shed, a restaurant in suburban Des Moines, listen, the Texas governor trying to jump start his campaign. Used to be the front-runner, then he faded. Trying to get back in the game, talking tough against the president when it comes to supporting the troops. Remember, Perry, an Air Force vet. Take a listen to what he said not too long ago.
(BEGIN VIDEO CLIP)
RICK PERRY, (R), GOVERNOR OF TEXAS & PRESIDENTIAL CANDIDATE: As a veteran, as the commander in chief of our forces in Texas, some 20,000 young men and women who have been deployed multiple times, who I have had the opportunity and the great privilege to go visit in their theaters, welcomed them home, have sent them off with ceremonies. It really disturbs me that nearly after nine years of war in Iraq, the president wouldn't welcome home our many heroes with a central parade in their honor. Maybe it's because this war is unpopular with the Democrats. I don't know.
But, Mr. President, our soldiers come first. And it comes before party politics. We need to welcome our soldiers home. Give them that parade. Give them that pat on the back.
(END VIDEO CLIP)
STEINHAUSER: Perry also, Natalie, talking about abortion last night campaigning here in Iowa. He says now he opposes abortion in all cases, including incest and rape. Abortion, not a huge topic with all-Americans, but here in Iowa, with the social conservative voters who are very predominant in the Iowa Republican caucuses, it is a big topic -- Natalie?
ALLEN: And Rick Santorum trying to rev up his support among social conservatives. What is his latest move?
STEINHAUSER: He's out with a brand new radio spot that the campaign says is going to play on Iowa air waves. Again, Rick Perry, Rick Santorum, the former Senator from Pennsylvania, and Michele Bachmann, the congresswoman from neighboring Minnesota, really going after the social conservative voters. Santorum's new radio spot touts the endorsements he's gotten from some top social conservative leaders in Iowa. He also says Sarah Palin, the former Alaska governor, has said some nice things about him, as has Rush Limbaugh. Both pretty influential as well among conservatives. So Santorum up with that ad. We'll see if it generates any buzz here.
Six days to go. The candidates putting -- doing everything they can to get those undecided voters to come their way -- Natalie? ALLEN: And they're expecting record turnout for the caucuses.
Paul Steinhauser there for us.
We have this just in to the CNN NEWSROOM. Newt Gingrich has arrived at his latest stop there in Iowa. This is Mason City. You can see he is there with his wife. We will hear from him a little bit later.
Wolf Blitzer on the campaign trail in Iowa. In a few minutes, he will be on the bus with Mitt Romney. You can see Wolf's interview with Romney today on "The Situation Room" beginning at 4:00 p.m. eastern.
We're following them all. We're trying to keep up as it gets into high gear.
Well, they were the biggest news stories of 2011. From the Occupy movement to the deadly tornadoes in the south, we'll show them to you.
(BEGIN VIDEO CLIP)
(SHOUTING)
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ALLEN: From the Japan tsunami disaster to the birth of the Occupy movement, 2011 was, in many ways, an unusual year. We take a look back now at the best and the worst.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): Worst surprise anywhere, the terrible earthquake that pounded Japan and the devastating tsunami that followed.
ANDERSON COOPER, CNN CORRESPONDENT: You couldn't even tell where the ground was. Things were just piled up because the water had been carried and everything was bunched up in strange areas.
FOREMAN: as if that were not bad enough, the nuclear plant crisis that emerged in the disaster's wake kept the world holding its breath, fearing a complete meltdown.
(MUSIC)
UNIDENTIFIED MALE: It was absolutely horrific what happened to the people of Japan. What was encouraging was seeing how the world responded to it.
UNIDENTIFIED MALE: One of the things I'm really impressed with is, I'm still hearing people talk about the Japanese earthquake. I'm still seeing people doing fund-raisers for the Japanese earthquake. UNIDENTIFIED FEMALE: And it is unbelievably inspiring. And I think it's a huge testament to what people can do when they work together.
UNIDENTIFIED MALE: This was a violent tornado.
FOREMAN: The resilience of people was tested a lot closer to home, too. Worst weather.
UNIDENTIFIED MALE: Oh, man, there went the tree.
FOREMAN: The huge tornadoes that hit Mississippi and Alabama.
ERIN BURNETT, CNN CORRESPONDENT: Those were monster storms. They were -- it was amazing to see that happen in the United States. But it was also amazing to se how the communities pulled together.
FOREMAN: And speaking of pulling together, "Time" got it right. Worldwide, this was the year of the protester.
(MUSIC)
FOREMAN: And whether you like it or not, in the U.S., the movement of the year has to go to the Occupy crowd.
(SHOUTING)
FOREMAN: Sure the name is not the best, and we're not still certain what they want, but we give them credit sticking it out through thick and thin, filling up parks, street corners, you name it.
UNIDENTIFIED MALE: A lot of Occupy parks you wouldn't normally occupy and I'm like, great use of space. No one was hanging out there. Now, it's a party. And I'm thinking, this is a great opportunity for businesses to spring up but that would kind of be very anti-Occupy.
(SHOUTING)
UNIDENTIFIED MALE: Move back!
(SHOUTING)
UNIDENTIFIED MALE: I think that it's really important for people to take very extreme measures to get people to wake up.
(SHOUTING)
(END VIDEOTAPE)
ALLEN: And that is a preview of "All the Best, All the Worst of 2011," airing Saturday, New Year's Eve at 8:00 and 10:00 p.m. eastern.
The mayor of Stamford, Connecticut, says this fire represented a terrible, terrible day for his city. When you hear what happened and how it happened, including the 911 calls, you'll know why.
(COMMERCIAL BREAK)
ALLEN: We are now hearing the 911 calls as fire raced through a home in Connecticut Christmas morning. That fire killed five people, three children -- three girls, and their grandparents, and all while a frantic mother tried to save them.
Here's Deborah Feyerick.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): As fire raced through the Victorian home just before dawn Christmas morning, neighbors frantically called 911.
DISPATCHER: Stamford, 911, what's the address?
CALLER: There's a huge fire right next to us. The whole house is on fire.
(CROSSTALK)
DISPATCHER: What is the address ma'am?
CALLER: We're at 2241 Shippan Avenue. It's the house next door. A major fire and there's three kids and a woman.
FEYERICK: Trapped inside the Stamford, Connecticut, home, grandparents, Lomer and Paula Johnson, and their three granddaughters, 10-year-old Lily and 7-year-old twins, Grace and Sarah.
CALLER: I was calling about a major, major fire with people in the house.
DISPATCHER: We have the fire department on the way, ma'am.
CALLER: Please, come quickly.
FEYERICK: The house was under renovation. It appears fireplace embers placed in an outdoor trash enclosure near the home ignited the blaze.
Mom, Madonna Badger, managed to climb out onto scaffolding, frantically directing firefighters to the third floor, where she said her children were sleeping.
ANTONIO CONTE, ACTING CHIEF, STAMFORD FIRE DEPARTMENT: The crew pushed through two rooms unable to find the children. They were pushed back by the intense heat and flames.
FEYERICK: Grabbing two of the frightened girls, family friend Michael Borcena, seen here on his Facebook page, reached the second floor.
CONTE: The heat drove him to get separated and it looked like one went back upstairs and another one was found with the grandmother.
FEYERICK: Grandfather, Lomar Johnson, had spent Christmas Eve playing Santa at Manhattan's Saks Fifth Avenue. He managed to lead one of his granddaughters to the back of the house and climb onto the roof, then died before he could pull her to safety.
CONTE: Just inside of the window he came out of, we found one of the young children. I guess there were a pile of books. Looks like she was placed on the books.
FEYERICK: The mother, a successful marketing executive, is said to be in shock. She was taken from the scene sobbing, "My whole life is in that house."
CONTE: When you don't make that rescue, then you failed. I don't think anybody wants to fail.
FEYERICK (on camera): Investigators continue to search for answers but it appears that the home did not have smoke detectors or a fire alarm system.
Deborah Feyerick, CNN, New York.
(END VIDEOTAPE)
