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Christie To Iowa; Sears Reveals Stores On Chopping Block; Thirty-two Protesters Killed In Syria; Iran Warns Of Missile Test; Detained And Undocumented; Getting Ready For The Big Party; New Island In Red Sea; Standing Up For Turkeys; Painful Lessons In Tucson; City Powered By Used Cooking Oil; Countdown To Iowa
Aired December 30, 2011 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
NATALIE ALLEN, CNN ANCHOR: And hello, everyone, I'm Natalie Allen. Happy new year. It is 1:00. We have a busy hour ahead, let's get straight to the news.
New Jersey governors don't spend a lot of time in west Des Moines, Iowa or Cedar Rapids, or Dubuque, Iowa for that matter, but four days before the nation's first presidential nominating contest in Iowa, Chris Christie is trying to help Mitt Romney close the deal. Christie, as you may know, toyed with a run himself and disappointed a lot of his fellow Republicans when he decided to sit out. Romney came late to the Iowa race pinning his hopes on New Hampshire where he is stumping later today. He's still on top of the latest polls. Much more from and about the Hawkeye Caucus later this hour.
Sears Holdings is out with a partial list of the Sears and Kmart stores it plans to close. Earlier this week, Sears said it would close between 100 and 120 stores as a result of poor holiday sales. The firm has released a list of 79 that will be closed nationwide. Sears said in a statement that it could not say how many jobs will be cut or when the stores will be closed. Sears Holdings has more than 4,000 stores in the U.S. and Canada.
A massive day of protest turns deadly in Syria. Hundreds of thousands of pro-democracy demonstrators jammed the streets and homes and other cities across the country as part of what the opposition called the crawl to freedom square. Anti-government groups say at least 32 protesters have been killed. Witnesses say this video shows a man who had his legs blown off being carried by friends in a Damascus suburb. The crackdown by president Bashar al Assad's forces continues despite the presence of Arab League monitors. The monitors are in Syria to verify Assad's pledge to pull troops from the streets and end the violence.
Angry words won't be the only things flying over the Persian Gulf tomorrow. Iran says it will test fire long range missiles as part of a 10-day naval exercise that also coincides with threats to shut the vital Strait of Hormuz. Much of the world's oil passes through that narrow channel every day and Washington vows to keep it open. Earlier today, my colleague Hala Gorani spoke with the head of the National Iranian American Council who doesn't like what he sees.
(BEGIN VIDEO CLIP) TRITA PARSI, PRESIDENT, NATIONAL IRANIAN AMERICAN COUNCIL: As we are kind of sleep walking towards the military confrontation, I don't believe the Obama administration has the intent for war, nor do I think necessarily that the Iranians are looking for war. But the policies that we are pursuing, nevertheless, are increasing the risk of a military confrontation.
(END VIDEO CLIP)
ALLEN: Tehran is up in arms over new western sanctions it may face over its nuclear program.
Well, amid a growing turf war over immigration law, the feds are reaching out directly to detainees facing deportation in local jails. Immigration and customs enforcement is setting up a hotline for detainee questions or complaints and it's reminding all concerned that police can hold undocumented suspects for 48 hours at most. After that, the feds are supposed to take over or the detainees released.
(BEGIN VIDEO CLIP)
(CROWD): Three, two, one, happy new year!
(END VIDEO CLIP)
ALLEN: Don't worry, no one's jumping the gun. This was just a test of the ball drop in New York Times Square last year. Of course, the real thing will happen Saturday night. Hundreds of thousands of people expected to be on hand to say good-bye to 2011, Perhaps with a little good riddance thrown in and a big welcome to the new year. And New York's finest will be out in force, along with 35 mounted horses, explosive sniffing dogs and both uniformed and plain clothes officers. For those of you who have no plans and are looking for something to do, there is an app for that, too.
Be sure to ring in the new year with Anderson Cooper and Kathy Griffin. The duo will be live from Times Square starting at 11:00 p.m. Eastern tomorrow night right here on CNN.
Well, call it a gift from nature as 2011 winds down. An erupting underwater volcano has created this tiny island in the Red Sea off the coast of Yemen. NASA says the island began forming earlier this month. The Space Agency's Earth Observing one satellite captured this image showing the new island with a plume of white smoke rising from the ocean. Scientists say new islands emerge from volcanic eruptions every few years and not all survive beyond three years because they're usually broken up by waves.
Detectives and veterinarians are investigating a North Carolina turkey farm that appears to have been the site of horrendous cruelty. A group called Mercy For Animals says one of its members infiltrated a property owned by Butterball and shot video that I'm about to show you but not without a warning, it is very difficult to watch. Workers are seen dragging, throwing, kicking, even beating turkeys, which the animal rights group says experience pain just like dogs and cats. The local sheriff says he's first trying to confirm the farm he's searching is the one in this video. So far, no one has been arrested and no evidence seized. Butterball says it is cooperating fully and doing its own investigation.
An Arizona judge says schools that teach Mexican-American studies are breaking the law. Why? Well, he says because it's biased. And the state superintendent agrees. I will ask him why, next.
For rhinos, this year cannot end soon enough. Conservationists say more rhinos were killed this year in South Africa, home of the world's biggest rhino population, than ever before. At least 443 of the giant animals were poached. That's up from 333 last year and barely more than a dozen a decade ago. They are hunted for their horns which are mistakenly prized in Asia for medicinal qualities. The horns can fetch $65,000 a kilo more than gold, platinum, even cocaine. But enough already. On the brink of a new year, we say to rhinoceros poachers, butchers, horn sellers, your 15 minutes are up.
(COMMERCIAL BREAK)
ALLEN: Well, no one can say Mexican-American studies haven't been a learning experience in Tucson. For a year and a half now, the state of Arizona has been trying to shut the program down, claiming it advocates ethnic solidarity and promotes racial resentment. Teachers and supporters say they're merely presenting history, government, literature and art. From a Latino perspective, they call it an academic awakening.
(BEGIN VIDEO CLIP)
SEAN ARCE, DIRECTOR, TUCSON MEXICAN-AMERICAN STUDIES: We don't teach racism, we teach about racism. We teach about injustice.
(END VIDEO CLIP)
ALLEN: Well, this week, a judge turned aside an appeal by the Tucson school district upholding an order by the state superintendent of public instruction. As a state senator in 2010, John Huppenthal voted for the law that is now supposedly being violated. He joins me now live from Phoenix. Thank you for being with us.
JOHN HUPPENTHAL, SUPERINTENDANT, PUBLIC INSTRUCTION, ARIZONA: It's great to be here.
ALLEN: First of all, what's so wrong with what's being taught in Tucson?
HUPPENTHAL: The fundamental problem is that you have historical events being presented in a racial context in a one-sided way that inflames racial tensions and creates ethnic solidarity in an unhealthy way.
ALLEN: Well, even if they are teaching in a biased, political or even emotionally charged manner, as the judge wrote. So what about that? This is America. Do you support government censorship of teachers? HUPPENTHAL: Well, this isn't about a censorship or those kind of things. This is about the quality of education and what's appropriate in the classroom and what -- teaching what we're proud of in the classroom. You have this problem in their Mexican-American studies, but it's a symptom of a larger problem of a school district, second largest one in the state of Arizona, that provides a poor quality education to Hispanic-Americans -- low-income Hispanic-Americans across the board. Not just in this case but all their academics, their academic gains are decisively below average. When these kids -- in order to catch up and have the opportunities we have, they need decisively above average so this is a symptom of a broader problem. Poor quality education in the state's second largest school district.
ALLEN: But with the independent audit that you commissioned also found that students who took the ethnic studies curriculum had a better chance of graduating. Is that not a true and would that not and priority?
HUPPENTHAL: Well, we took a lot of months to very carefully investigate what was going on, the independent audit was part of that. But one thing that the independent audit revealed is they sent auditors into the classroom to take a look at what was going on and all of these behaviors that we are so troubled about disappeared when they were being observed.
So, when we compared the lesson plans with what the auditors observed, you could see what was illegal because the teachers themselves stopped doing it. But those lesson plans reveal what's been going on for many years in the school district and those are the activities and behaviors that we're very concerned about. We're concerned about toxic behavior, presenting historical events in racial terms and inflaming racial tensions. That's not appropriate in the classroom ever, not from any perspective.
ALLEN: Well, a group of Tucson teachers and students have sued in federal court claiming the law you are using against them is unconstitutional. Do you think you'll prevail?
HUPPENTHAL: Well, we are as much concerned about engaging the school district on many levels, improving the quality of basic instruction, improving the quality of how they present history. We absolutely believe that you hit -- a good history talks about historical injustice. What a good history doesn't do though is do that in a one-sided fashion to inflame racial tensions. We don't want classes -- you wouldn't tolerate it in any other context. It's very inappropriate. It's toxic for these students. It communicates a culture of victimhood. We want these students to have a high-quality basic education and a real working knowledge of history, along with that historical injustice, because we all need to make -- work for a better future in America.
ALLEN: Well, we appreciate you joining us on this topic that has a lot of people talking there in Arizona. John Huppenthal there in Tucson. Thanks very much.
HUPPENTHAL: Thank you. ALLEN: Still ahead here, a few towns across the country are going green by greasing up.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The exhaust smells like French fries.
(END VIDEO CLIP)
ALLEN: How cities are saving money using cooking oil as fuel. You don't want to miss this.
(COMMERCIAL BREAK)
ALLEN: With gas prices high and getting higher, more people are turning to biodiesel. The U.S. Department of Energy says there are more than 600 biodiesel fueling stations across the country. Most are 20 percent biodiesel, 80 percent regular diesel. Biodiesel can be made from the used cooking grease restaurants store in drums near the trash. Normally they have to pay to have it hauled away and disposed of. But the city of Smyrna, Georgia, outside of Atlanta, is now telling local restaurants they'll pick it up for free. Now some cities already run city vehicles on biodiesel, but Smyrna city administrator Eric Taylor says they want to be the first Georgia city to make its own fuel. And Eric joins me now.
Eric, thanks for being with us.
First off, how did your city decide to dive in and go with biodiesel?
ERIC TAYLOR, SMYRNA, GEORGIA, CITY ADMINISTRATOR: Well, Natalie, historically our city council's been very supportive of historically -- of environmental sustainable efforts. And two and a half to three years ago when gas prices were approaching $5 a gallon, our city council and mayor directed us to start looking into alternative fuel sources. And we identified Hoover, Alabama, was using and producing their own biodiesel. And we went over there and studied it and we discovered that it was a very feasible option for us.
ALLEN: How are you going to get all the used cooking oil? I would imagine what you learned in Alabama was that fried food can be a good thing because it does produce a lot of oil.
TAYLOR: Right. Right. Well, we're going to make it easy on our citizens and other folks who want to donate the oil. We're going to have 55-gallon drums we're going to make available to restaurants which our staff will pick it up for free. We will also give people the opportunity to take their used oil to our recycling center. We'll have drop-off points all across the city similar to propane exchanges. And if folks put their used oil out with the recycling, our staff will pick it up and take it back and process it.
ALLEN: And so how much money do you expect to save from this initiative?
TAYLOR: Well, long term, we're hoping to save about 25 percent of our fuel costs. And at our current rates, that's probably about $25,000 per year.
ALLEN: Wow. Do you have other cities interested in how this will work for you? Are people looking to see what you're going to do?
TAYLOR: Yes, we have been contacted by several cities across the southeast. And once we're up live and going next month, we expect some of those other cities will come and look to see what we're doing.
ALLEN: And we are told that people may be able to tell driving through the street -- at least they won't be smelling diesel, but they will be smelling something. The trucks do have a little bit of smell to them, right?
TAYLOR: Well, that's what we've been told. You know, personally speaking, I think the smell of french fries is a little bit better than the smell of diesel oil.
ALLEN: And perhaps a little bit better for the environment.
TAYLOR: Right.
ALLEN: Well, we wish you well. And I'm sure people are looking forward to the fact that they can do something positive with all of that oil once they're done with it. Thanks so much for joining us.
TAYLOR: Thank you.
ALLEN: We appreciate it. Eric Taylor. We wish you well in Smyrna, Georgia.
TAYLOR: Thank you.
ALLEN: Well, still ahead here, he was shot multiple times an survived.
(BEGIN VIDEO CLIP)
DISPATCHER: The guy who got shot was running towards his kids?
911 CALLER: Yes, but he's got a bullet in -- he's got two bullets in him.
(END VIDEO CLIP)
ALLEN: How this Marine's quick actions saved his life. It's all documented in the newly released 911 tapes. And we'll play them for you next.
Then, Ben Breedlove became an Internet sensation inspiring thousands with messages of hope like this one. Now it's his family and friend hoping to make a difference.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: He prayed for us. And he prayed that we wouldn't be scared and we wouldn't be sad and that we would have the same peace that he felt from God. (END VIDEO CLIP)
ALLEN: A look at Ben Breedlove and the people he inspired. That's coming right up.
(COMMERCIAL BREAK)
ALLEN: An update now on the horrific bludgeoning death of a nine-year- old Indiana girl allegedly at the hands of her babysitter. This story tops today's "Crime & Consequence." And we warn you, the details are graphic. Michael Plumadore was formally charged with murder today in the death of Aliahna Maroni (ph) Lemmon. According to court documents, Plumadore admitted striking the girl repeatedly in the head with a brick on the front steps of his mobile home last Friday, then storing her dismembered body in a freezer. The girl's grandmother says Aliahna and her two sisters were staying with Plumadore while her mother recovered from the flu.
And in Deerfield Beach, Florida, the 911 tapes have been released in the shooting of a Marine lieutenant colonel. Karl Trenker survived wars in Iraq and Afghanistan only to be shot when he chased after two men who robbed him of his fiance's necklace. A witness came to his aid and called 911.
(BEGIN VIDEO CLIP)
DISPATCHER: The guy who got shot was running towards his kids?
911 CALLER: Yes, but he's got a bullet in -- he's got two bullets in him.
(END VIDEO CLIP)
ALLEN: Trenker told reporters today he is shocked by the violence in his own hometown.
(BEGIN VIDEO CLIP)
LT. COL. KARL TRENKER, U.S. MARINE CORPS: It's a little upsetting that it's so dangerous. I mean you hear about crime and things in the news that you guys advertise. But it just doesn't seem as realistic until it happens to you, I guess.
(END VIDEO CLIP)
ALLEN: Two suspects have been arrested on charges of attempted murder.
A Tampa woman barely escapes with her life after thieves drag her through the street. Watch here as she walks across the parking lot, a car passes behind her. While the car is moving, the passenger nabs her purse, but the woman can't let go. Police say she was dragged about 40 feet. She has cuts to her face, arms and legs. The driver of that truck you see back there got the tag number, but the car was stolen and the police are still searching for the suspects.
Mitt Romney's got the lead in Iowa, but is he getting a little too confident? Apparently he's taking the weekend off. And he's not the only one. Smart strategy? Maybe. That's "Fair Game" and it's next.
But first, today's question for all you political junkies out there. Which GOP candidate won the Iowa caucuses in 2008? Mitt Romney, John McCain, or someone else? You may be surprised. Find out right after the break.
(COMMERCIAL BREAK)
ALLEN: All right, before the break I asked, which GOP candidate won the Iowa caucuses in 2008? Mike Huckabee was the big winner with 34 percent of the vote. Mitt Romney came in second with 25 percent. John McCain, the eventual GOP presidential nominee, came in fourth behind Fred Thompson with 13 percent of the vote. Ron Paul was fifth with 10 percent.
All right, 2011 and tick-tock, it is crunch time in Iowa with just four days until the caucuses. Mitt Romney and Ron Paul are basically tied for the top spot in an NBC News/Maris poll of likely Iowa voters, followed by Santorum and Gingrich. But nearly half of voters say they might change their mind or haven't settled on their final choice yet. What's it going to take? Let's bring in Democratic political consultant Ed Espinoza and CNN contributor Will Cain for today's "Fair Game."
Will, let's start with you.
You just saw in our political junkie question that in '08, McCain, the eventual GOP nominee, came in fourth in Iowa with just 13 percent of the vote. Are some candidates too focused on Iowa?
WILL CAIN, CNN CONTRIBUTOR: Absolutely. I think not only the candidates, but the media were hyperventilating about a state that, in the end, isn't all that important. Let me just put that in perspective for you real quick.
Look at this, Natalie. This -- here's a series of numbers here I want to show you. Twenty-eight. That's the number of delegates at stake in Iowa. Now, this year, for the first time, if you win Iowa, that doesn't mean you get 28 delegates. We have proportional representation. So let's say you win 50 percent of the vote. Well then you'd get 14 delegates.
Nobody right now is polling at 50 percent of the vote. You just saw the numbers you put up. It's something like 23 percent versus 21, which would mean you'd get something like seven delegates versus sixth. First place and second place would get delegates. They're fighting over a couple of delegates. It takes 1,144 delegates to get the nomination.
So what are we fighting for? We're fighting for momentum and media coverage. We're fighting about who you're going to ask me about for the next week.
ALLEN: Ed, what do you say to that? Is all the hoopla and the $8 million spent in ads alone this month there, is it worth it? ED ESPINOZA, DEMOCRATIC CONSULTANT: Look, Iowa's an important state. And it's not just about delegates, although delegates are important. We gauge momentum, just like Will said. And the problem is, if you can't demonstrate an ability to win, an ability to compete, that affects the way a candidate competes in states after that. Perfect example, look at Howard Dean's race in 2004. He came in third or fourth in Iowa. He could have done very well in California, Wisconsin. Hey, his home state of Vermont. The problem is he couldn't make it that far because he had lost the faith and confidence not only of the voters but of the donors. And that's --
(CROSSTALK)
CAIN: Let me say this --
(CROSSTALK)
ESPINOZA: -- that we measure in these early state primaries.
CAIN: Ed is talking about the way it is.
(CROSSTALK)
CAIN: I'm lamenting it because of the way it should be. 35,000 --
(LAUGHTER)
100,000 people will vote in the Iowa caucus. 35,000 will pick the winner.
ESPINOZA: Right.
CAIN: And they should not be dictating what momentum is over the next week and a half and what the mass media talks about.
ALLEN: I hope the folks of Iowa aren't watching --
(CROSSTALK)
ESPINOZA: I agree. Not only --
(CROSSTALK)
WILL: There's not that many, Natalie, don't worry.
(LAUGHTER)
ALLEN: Go ahead.
ESPINOZA: It shouldn't -- the problem is I like early states going early, small states going early. but I don't think Iowa and New Hampshire should have a monopoly on the process. They should mix it up a little bit. But it is what it is. And we play the ball as it lays. ALLEN: Ed, do you think it is a big deal that Romney and Paul are taking the weekend off from Iowa? Romney's going to New Hampshire. Ron Paul's spending New Year's with his wife. That's laudable, of course.
ESPINOZA: All I can say is I hope whoever the eventual nominee is decides that they're also going to take Halloween 2012 off.
(LAUGHTER)
Because this is crazy! Their managers have to be pulling their hair out right now. The only time you send a candidate home is when it is a lost cause or when they are a getting in the way. Neither one of those instances are the case here. They should not be going home. They should be on the campaign trail.
ALLEN: But, da, da, da, da, the New Jersey governor has shown up, Chris Christie. Will, what can that do for Romney?
CAIN: It can help. Romney -- he was in the state today, he was in New Hampshire. He was in both states today. But having Chris Christie at your side is definitely a big plus. Chris Christie's a popular figure. He gives wonderful speeches. He's charismatic, magnetic, whatever. It is good because those are a lot of the qualities Romney lacks, actually.
(LAUGHTER)
ALLEN: What do you both still make of the fact that people in Iowa say, we just might change our mind before next week?
(CROSSTALK)
ESPINOZA: I think they've been doing it all year. I don't know why they would stop now.
(LAUGHTER)
CAIN: Yes, it doesn't surprise me. We've had a really hard time, conservatives, moving towards a candidate we can all agree upon. It doesn't surprise me there is a big undecided sign hanging over the voting booth right now.
ALLEN: Will the polls even out then after Iowa, say, when we get to New Hampshire, what do you think? Ed?
ESPINOZA: Well, in this race, normally, you see polls tighten up towards the end. We haven't seen that here. But if candidates drop out after Iowa, then there becomes fewer options. There's fewer places for voters to go. It might tighten up. But like Will said, conservatives are having a problem rallying, finding a candidate that they really love. Maybe that will happen after Iowa. It all depends on how many candidates are still in the race.
ALLEN: All right. We thank you both, Ed Espinoza, Will Cain, for "Fair Game." We know you will not be taking off this weekend because we'll be calling you back.
Thanks so much, guys.
(LAUGHTER)
And remember, next Tuesday night, the country's first real votes and the candidate's first true test taking place in the Iowa caucuses. No matter what you think of Iowa, we like the folks in Iowa. Watch it all unfold live with the best political team on television, "America's Choice 2012." Coverage of the Iowa caucuses begins Tuesday night, January 3rd, 7:00 p.m. eastern right here on CNN.
Well, Japan before and after the tsunami. We have amazing images you have got to see just ahead.
But first, a boy and his dog and a cliff. 19-year-old Ivan Salis (ph) was hiking with his dog, Lola, near Los Angeles. Look at that picture. He and his dog slipped and slid 100 feet down. He couldn't get back up. A helicopter rescue would kick up too much dust so firefighters came to the rescue. They strapped ropes to themselves, climbed down the cliff, grabbed on and got both Salis (ph) and Lola to safety. And for that, those L.A. firefighters are today's "Rock Stars."
(SINGING)
(COMMERCIAL BREAK)
ALLEN: Images unlike anything you've ever seen before show the destruction that Japan suffered from an earthquake and tsunami earlier this year. It is an interactive look.
And our Josh Levs has it for you.
I guess it is just hard to describe the before and after -- Josh?
JOSH LEVS, CNN CORRESPONDENT: It is. Natalie, this is historic, this kind of documentation of the unbelievable devastation that we witnessed in Japan earlier this year. We'll see it in a brand new way right now. This is from Google and it's called "Memories for the Future." One example, I've pulled up Osuchee (ph), which is one of the areas we talked about. The devastation was just absolutely incredible. What Google has now are images of what it's looked like recently. This is as recent as October. And this is after much of the debris was picked up.
Let me show you one more picture and then I'll tell you about an interesting feature here. We're looking at Kasanewma (ph) here. This is in Miyagi Prefecture, where, as we have reported, numerous boats washed up on to land. Thanks to this feature, you can see what it looks like now.
I want to jump you over to a map. Let's do that, because I want to show you some areas I'm going to pinpoint for you. Then we're going to something interesting. We're going to see before-and-after pictures. We're starting off with Onagawa. This is where this becomes its most powerful. Let's zoom back to my screen here. This is Onagawa (ph), what it looked like before the earthquake and the tsunami. This is one busy street corner. You can see shops. You can see out of the book store in one corner here. Let me show you the same area after the earthquake. Exact same spot. Boom. This is what it looks like now. What you see are a series of before-and after- pictures. Absolutely incredible.
Let's jump back to that map. I want to zoom you a little bit west. Still inside Miyagi Prefecture. I'm highlighting some places we at CNN told you about this year. We're going over to Ishinomaki. Here's a before picture in this area. This picture is a residential area. These were homes. You can see multi-family homes, some apartment buildings. In some cases, you see cars outside. This is a before picture. Now, boom. Never been anything like this, folks. Same spot. Same area. Heartbreaking. This picture is from July. In some cases, there's been some more clean-up since then.
There is a third one I want to show you. Let's go back to that map. We're going to zoom southward a little bit. Probably, the place you heard us talk about most is in Fukushima Prefecture. We have an example for you here which is Soma, inside Fukushima. This is before picture was taken on a kind of cloudy day, but you can see there are homes here and you can see it was a residential and little bit of a business area there in Soma. Same stop now. I'm going to click on. Look, everything's gone. Everything absolutely gone.
Now what's amazing about this feature is you can see all sorts of areas of Japan with before-and-after imagery. I want you to have the opportunity to check it out for yourself. I've posted it at CNN.com/josh. It is also up at Facebook and Twitter. I'm at joshlevsCNN. Go ahead and take a look.
Obviously, to this day, our thoughts and prayers, Natalie, with all of those affected. The latest number, more than 15,000 people killed in the earthquake and tsunami.
ALLEN: I think of all the pictures from this year, the tsunami wave coming ashore was the jaw-dropping picture of the year.
LEVS: It was astounding. Fortunately, a lot of people have reached out. A lot of people have helped. Japan has had some good news during the year as well. It's gotten a lot of lauding for some steps it took to clean up but, you know, nuclear crisis for a long time. There were certainly a lot of people have suffered a great deal. So, thinking of them.
ALLEN: All right, Josh Levs. Thanks so much, Josh.
Our up-and-down economy dominated the news in 2011. Millions of Americans still out of work, a federal deadlock over spending and the Occupy Wall Street movement. Coming up, a look at the history-making moments that hit you in the wallet in 2011.
But first, another money matter that could affect your bottom line. Verizon, the nation's largest wireless company, will charge a $2 convenience fee for customers making one-time bill payments online or by phone using a debit or credit card. You can avoid paying the extra $2 by using an electronic check. Customers may also enroll in a service that will debit their bank accounts or charge their credit cards on a recurring basis without an additional charge.
(SINGING)
(COMMERCIAL BREAK)
ALLEN: With this being the last trading day of the year, many investors, big and small, are probably breathing a huge sigh of relief. 2011 seemed to offer up one crisis after another. Take your pick -- the U.S. debt crisis, wild swings on Wall Street, soaring unemployment, the Euro crisis, natural disasters. Some market watchers really aren't sure what to expect in the New Year.
(BEGIN VIDEO CLIP)
KEN POLCARI, CAP SECURITIES: You're going to continue to have this unsettled volatility, although I think if the macro data starts to come in stabilizing, then we'll see the markets stabilize.
(END VIDEO CLIP)
ALLEN: Alison Kosik now with one last look at the wild ride that was 2011.
(BEGIN VIDEOTAPE)
ALISON KOSIK, CNN CORRESPONDENT (voice-over): The recovery is slow.
BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: -- at a rate that is both uneven across sectors and frustratingly slow.
KOSIK: Congress deadlocked.
REP. JOHN BOEHNER, (R-OH), SPEAKER OF THE HOUSE: The House cannot pass a bill that raises taxes on job creators.
SEN. HARRY REID, (D-NV), MAJORITY LEADER: All 53 of us have informed the speaker that his legislation was doomed in the Senate.
KOSIK: Europe, a mess --
(SHOUTING)
KOSIK: -- and Wall Street Occupied.
(SHOUTING)
KOSIK (on camera): The U.S. economy actually grew in 2011, but barely.
TIMOTHY GEITHNER, TREASURY SECRETARY: Even as economic growth continues, we continue to face very substantial economic challenges. KOSIK (voice-over): Challenges like the housing market. Home prices dropped about 4 percent. And jobs. Over 13 million Americans are still out of work. Politicians and business leaders search for solutions.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Pass this bill.
Pass this jobs bill.
Pass this jobs bill.
JEFF IMMELT, CEO, GENERAL ELECTRIC: I think a balanced approach ultimately is what most business people, most CEOs would like to see.
UNIDENTIFIED MALE: We, too, have to do something.
KOSIK (on camera): It's been a frustrating year for the U.S. economy. But it could have been worse. It could have been Europe.
(voice-over): Debt crises threaten the economies of Greece, Italy, Spain, and others, leaving leaders scrambling to hold the Eurozone together and save the common currency. And U.S. investors holding their breath.
(on camera): 2011 started with big gains for stocks. The Dow soared past 12,000, holding its own while governments toppled in Tunisia, Egypt and Libya.
(voice-over): But then Japan -- the devastating earthquake, tsunami and nuclear disaster threatened our fragile recovery.
And over the summer, Congress' debt ceiling stalemate pulled the rug out from under the market.
BOEHNER: We have a spending problem.
OBAMA: There are a lot of crises in the world that we can't always predict or avoid. This isn't one of those crises.
KOSIK: The Dow dropped 512 points on August 4th, another 633- plus points on August 8th as S&P downgraded it's rating on the United States that left investors dizzy.
(on camera): And Americans angry. Some took to the streets. A fight for financial fairness began in September here in New York's Zuccotti Park, and spread across the country.
(voice-over): Many sought retail therapy. The biggest Black Friday and Cyber Monday on record.
(END VIDEOTAPE)
ALLEN: Alison, joins us know from the New York Stock Exchange.
We have just a few hours, Alison, before the markets close out this year. Does it look like we'll hold on to those gains for the year?
KOSIK: For a couple of the averages. So for the Dow it is looking pretty good. The Dow looks like it is going to gain 6 percent this year compared to last year. As for the S&P 500, that's literally clinging to a gain of just a few points at this point. The NASDAQ looks like it is going to go for a loss for the year. But it is the S&P 500 that's most likely the best indicator of how maybe your retirement funds or our mutual fund investments performed this year because many of those investments actually track the S&P 500 -- Natalie?
ALLEN: The million dollar question -- what is the outlook for 2012?
KOSIK: OK. So what economists are saying is that they're forecasting that growth will actually pick up to 3.2 percent. It is much closer to what's considered healthy. And it's been a while since we've seen anything healthy as far as economic growth goes in this country. The crisis in Europe, that's going to continue to be a major concern.
But we have seen some positive signs lately, on jobs, on housing. And if some of those trends continue into 2012, next year may turn out to be a little better, a little brighter financially than 2011 -- Natalie?
ALLEN: That is certainly what everyone is hoping for, for sure. Just a couple more days to go.
(LAUGHTER)
KOSIK: Yes.
ALLEN: Alison Kosik for us at the New York Stock Exchange. We'll see you next year. Thanks, Alison.
Four days out, there is still no clear frontrunner in the race for Iowa. We are on ground in the Hawkeye State next.
Also, Kelly Clarkson is singing praise for one GOP candidate but her endorsement isn't getting the standing ovation she might have expected. The heated Twitter exchange over her political stance, next.
But first, have you heard about the great debate in the Palmetto State? Recently, Republican Governor Nikki Haley mandated state employees answer the phone by saying, "It's a great day in South Carolina," but some Democratic legislators say, hold the phone, things aren't so great.
(BEGIN VIDEO CLIP)
STATE REP. WENDELL GILLIARD, (D), SOUTH CAROLINA: This cannot be a great day in South Carolina when we have homeless veterans walking the street. This cannot be a great day in South Carolina when we found out -- wake up one morning and found out that we've been sold up the river.
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ALLEN: Wendell Gilliard and fellow state representative, John Richard King, are pushing a bill to stifle the cheery phone greeting until unemployment is below 5 percent and every resident has health insurance. Have a great day!
(SINGING)
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ALLEN: This time yesterday, I told you about Ben Breedlove. We watched a video he posted on YouTube one night before he died Christmas night of a heart condition he was born with 18 years ago. Ben told us with note cards that he had cheated death three times in his young life and he said those were peaceful experiences. His words, his faith and his strength have moved hundreds of thousands of people. And yesterday afternoon, the people who knew and loved Ben most came together for his funeral.
This is Austin, Texas, and the speaker I want you to hear is Ben's sister, Ali.
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ALI BREEDLOVE, SISTER OF BEN: I know a lot of you are hurting a lot because you miss Ben. But don't let your happiness go away because Ben is gone. Take that little part of joy that Ben shared with you and share it with someone else who hasn't had the chance to experience it yet.
(END VIDEO CLIP)
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ALLEN: 2011 may go down as the safest year on record for fliers. According to the consulting firm, Ascend (ph), this year, there's been one fatality for every 7.1 million passengers worldwide. That is the best safety level on record. The previous best was in 2004. Travel experts say better technology and better crew training has helped make flying less hazardous for all of us.
Well, now let's check stories making headlines at "Street Level."
First to Allentown, Pennsylvania, where the coroner may give the go ahead to exhume as many as 60 graves. The problem -- a huge sinkhole. A water main break caused the ground to cave as much as two feet in the graveyard. Several headstones are tilting and there are some breaks in the cemetery ground. Hundreds of the graves date back to the 1800s and many belong to Civil War veterans.
In Los Angeles, arson is suspected in at least 19 vehicle fires in the Hollywood area. Fire officials say six of the blazes spread to nearby structures. And as the L.A. deputy fire chief put it, quote, "This is an arsonist at work." Investigators are looking for surveillance camera footage or witnesses to the fires. So far, no injuries reported.
Next, to Des Moines, Iowa. A multimillion-dollar story about beating the deadline barely. Someone finally claimed that $16.5 million lottery prize yesterday, less than two hours before the lucky ticket was set to expire. The ticket matched all six numbers selected in the Hot Lotto drawing on December 29th, 2010. No word yet on exactly who the winner or winners are. The ticket was presented by a Des Moines law firm on behalf of a trust.
The New Year means a brand new set of election laws on the books in at least five states. In Kansas, voters must show a driver's license or valid state I.D. to cast their ballot. Voters in Rhode Island must present a state residency I.D. In Tennessee, a state photo I.D. is required. In New Hampshire, would-be voters who have no state I.D. must mail in a -- quoting here -- "letter of identification verification" within 90 days. And in Texas, voters must show a valid state photo I.D. along with a voter registration card. Similar laws in other states have been challenged by civil rights groups.
Now to a few other unique laws that take effect Sunday. Utah, banning Happy Hour, while California and Oregon are prohibiting the sale of shark fins.
Finally, we take "Street Level" to the Twitter-verse. Pop star, Kelly Clarkson, tweeted her support of GOP candidate, Ron Paul, but some of her fans don't like it. Kelly said, "I love Ron Paul," adding in the plus-sized Tweet, "If he wins the nomination for the Republican Party in 2012, he's got my vote. Too bad he probably won't." But some fans on Twitter were quick to point out the controversy over some inflammatory newsletters that had been dogging him. Clarkson says she had not been aware of that controversy, and shot back on Twitter, "Man, my eyes have been opened to so much hate tonight." Adding, "If you all ever disagree with something I say, please don't feel the need to attack me."
The Iowa caucuses are just four days away. We want to take a closer look now at how the race is shaping up for the Republican presidential candidates.
Our political guru, Mark Preston, joins me live from Iowa to break it all down. Or should we say not shaking up.
Who knows? It's kind of big shakeup, Mark. What's the mood over there? Are things getting intense as January 3rd approaches?
MARK PRESTON, CNN POLITICAL DIRECTOR: They absolutely are, Natalie. The candidates right now, six of the seven candidates running for the presidential nomination are in Iowa, crisscrossing the state. They're showing up at any event possible where they could perhaps try to get caucus goers to support them on Tuesday night.
A new poll that has just come out in past few hours from NBC News shows we have two leading contenders. Let's take a quick look at these numbers, Natalie. At the top, Mitt Romney and Ron Paul are leading right now as we head into Tuesday night, the night of the Iowa caucuses.
What's really surprising in this poll as well, though, is Rick Santorum comes in at third place. And look at Newt Gingrich. All the way down to fifth place. Newt Gingrich, weeks ago, was considered one of the leading contenders. Right now, he's fighting for his political life.
So in these closing days, right now, the candidates are trying to get the vote out -- Natalie?
ALLEN: Can you sense the change in the air since the Christmas holiday is over and people are getting a little more focused?
PRESTON: They are getting a little more focused. What's interesting about this NBC poll, which totally tracks the numbers that the CNN/ORC/"Time" poll had days ago, is that four in 10 Iowans who are likely to go to the caucuses on Tuesday night might change their minds. So that's why we're seeing candidates out there trying to convince these voters to support them on Tuesday night. Because, look, the bottom line is, while we might get a winner out of Iowa -- and that will be a big boost to them, in many ways -- it could be the end of the campaigns for some people, particularly Michele Bachmann, who is all the way at the end.
ALLEN: So she probably won't survive, then, for New Hampshire?
PRESTON: It would be very difficult for a Michele Bachmann to come in last place in Iowa, where her brand of Republican politics plays very, very well, then go to New Hampshire, which tends to have a more economic brand of politics up there. They don't focus on the social issues. That is Michele Bachmann's biggest selling point. If she were to come in last or have a poor showing, not come in the top four, it would be very difficult for her to move on -- Natalie?
ALLEN: Let's listen to Newt Gingrich for a moment as everything heats up and hear what he had to say.
(BEGIN VIDEO CLIP)
NEWT GINGRICH, (R), FORMER HOUSE SPEAKER & PRESIDENTIAL CANDIDATE: My whole emphasis on brain science comes indirectly from dealing -- see, I'm emotional -- from dealing with the real problems of real people in my family. And so it's not a theory. It's, in fact, you know, my mother.
(END VIDEO CLIP)
ALLEN: An emotional moment there for Newt Gingrich.
PRESTON: Natalie -- it was. You know, that just happened hours ago, Natalie. It shows how much wear and tear these candidates have taken. Where that quote was about Newt Gingrich -- he was talking about his mother. He was asked about his mother and what makes him think about his mother. On that stage, he teared up and talked about it. It just shows you the exhaustion these candidates are facing right now, as they charge into Tuesday, hoping that they show well in the Iowa caucuses -- Natalie?
ALLEN: All right. Mark Preston for us in Iowa. Thanks so much, Mark.
And thank you for watching, everyone. That's it for me today. I'm Natalie Allen.
NEWSROOM continues now with Isha Sesay -- Isha?
ISHA SESAY, CNN ANCHOR: Thanks, Natalie.
