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The Case To Pull Back On Stimulus: Stronger Economy, Lower Unemployment Numbers; Two Winning Tickets Hit Mega Millions Jackpot; New Attempt To Jail "Affluenza" Teen; Fourteen Homes Destroyed In Late Season Wildfire; Gay Athletes Join U.S. Olympic Delegation; Dennis Rodman Leaves For Thursday For North Korea; Senate Could Approve Budget Today

Aired December 18, 2013 - 10:00   ET

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

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Jobs have still got a ways to go, but we're seeing a lot of recovery there. GDP is doing better than expectations. The housing market is really continuing its rebound. Auto sales are running hot as well.

You add to what is going on with the markets. You are seeing the markets up so high for the year. The Dow is up 21 percent. The Nasdaq is up 33 percent. The S&P 500 is up 25 percent. Carol, you know what, we haven't seen numbers like this in a long, long time -- Carol.

CAROL COSTELLO, CNN ANCHOR: Let's hope the arrows keep pointing up. Alison Kosik reporting live from New York this morning. Of course, CNN complete coverage on the fed meeting starting at 2:00 p.m. Eastern and CNN Money going to take a look at market reaction and what it all means for the economy.

The holidays are going to be much, much richer this year. Richer, that is, if you're holding one of the two Mega Million winning tickets. They will split $636 million. The winning numbers are 8, 14, 17, 20, 39, and mega ball was 7. Ticket sales leading up to last night's drawing were brisk. Tickets were selling at a rate of 8,000 per minute. But with astronomical odds, only two of those tickets were winners, one in San Jose, California, the other in Atlanta where the store clerk found out by watching CNN.

(BEGIN VIDEO CLIP)

MARTIN SAVIDGE, CNN CORRESPONDENT: Now, you know by selling the winning ticket there's also prize money for you.

YOUNG SOO LEE, SOLD WINNING TICKET: I know that there is. I don't know how much -- $25,000.

SAVIDGE: It's 25,000? Let me just tell you, it's a lot more than 25,000.

LEE: It is?

SAVIDGE: It's about $1 million that you get.

LEE: It is? My gosh! My gosh. I never have that much money.

(END VIDEO CLIP)

COSTELLO: That was the cutest reaction ever. CNN's Dan Simon is in San Jose looking for the big, big winners. Good morning.

DAN SIMON, CNN CORRESPONDENT: Good morning, Carol. Well, the winning lottery ticket here was sold at Jenny's Gift Shop. I can tell you that the owner is also a millionaire this morning, 37-year-old guy. He's got three kids and he's talking as well. Take a look.

(BEGIN VIDEO CLIP)

THUY NGUYEN, SOLD WINNING TICKET: The lottery called me and let me know so I come and take a look, you know, but everybody here. Wow! It's going to be a good one tonight.

(END VIDEO CLIP)

SIMON: Well, Jenny's Gift Shop is at a strip mall here in San Jose, California. So perhaps the winning buyer was coming to buy a Christmas present and maybe they walked away with two Christmas presents, including the winning lottery ticket. Carol, the question is, will this person reveal himself today? That's what everybody, of course, wants to know. We'll send it back to you.

COSTELLO: I know. It's a mystery here in Atlanta, too, but we'll be waiting. Dan Simon reporting live from San Jose this morning.

A Texas teenager could still face jail time after getting what many are calling an exceptionally light sentence after arguing that he was the victim of something called "affluenza." Prosecutors want Ethan Couch to be punished for the injuries his two friends suffered in his pickup truck. Those friends were riding with Couch the night he crashed and killed four people while driving drunk.

One of those friends is paralyzed, the other, severely injured. The district attorney gave this statement, quote, "During his recent trial, the 16-year-old admitted his guilt in four cases of intoxication manslaughter and two cases of intoxication assault. Every case deserves a verdict. The District Attorney's Office is asking the court to incarcerate the teen on the two intoxication assault cases."

Police say Couch had three times the legal limit of alcohol in his system when he crashed. The judge sentenced him to ten-year probation and rehab. Joining me now to talk about this is CNN legal analyst, Paul Callan. Hi, Paul.

PAUL CALLAN, CNN LEGAL ANALYST: Good morning, Carol.

COSTELLO: OK, so this is an interesting twist. So in essence, the district attorney is going to go after charges that Mr. Couch inflicted upon his friends. Will it work?

CALLAN: Well, it's just another bizarre development in a bizarre case. I mean, obviously the political pressure, the public pressure has been tremendous because people are furious that this kid got probation after causing the death of four other people and the prosecutor now has come up with a technicality.

He's found that the judge didn't sentence on these two outstanding counts. So he's going to go in and say to the judge, well, he should go to jail on these counts. The problem I have with the whole approach is, even if you believe that he should have been put in jail, and I happen to think that he should have, this is not the way to go about it.

Because frankly, how can the judge now say I'm going to give him probation for his involvement in killing four human beings, but I'm going to send him to jail for the assault charges, which are lesser charges. It would be totally illogical. If the judge decided rehabilitation was the way to go because he is a juvenile.

She's going to be hard-pressed for justifying throwing him in prison because there's been a lot of bad newspaper articles and commentators going after them. The judge may -- if she's a tough judge, she will hold her ground.

COSTELLO: It's just so strange. So if this does work -- let's live in that world right now -- what's the most jail time this kid could face?

CALLAN: Well, he's facing only about three years of potential incarceration under the assault charges. And bear in mind, this really has to do with kids who are riding in his truck on the night of the accident. Two of them were seriously injured. One was actually paralyzed. So I don't mean to minimize the seriousness of those counts, but usually the defense attorney, when he enters a plea on behalf of a client make sure that all of the counts are covered.

This is very unusual to have two outstanding counts floating around in the air. So I'd be worried as a defense attorney if I were going to be charged with not having handled that plea correctly. If the judge goes along with the prosecutor's request. Very unusual if the judge does, by the way. And I think you'll see an appeal, then, on the whole thing.

COSTELLO: OK. So I'm really going to come to you from left field. Many people feel that his parents should face a charge. He was living in this mansion and throwing wild parties and wasn't being parented, it seems.

CALLAN: Well, I know a lot of people that way and with great legitimacy, but throughout the country it's very hard to sue parents for criminal activity by their kids. And let's face it, even the best parents in the world can have a kid who goes down the wrong path. So should you blame the parents for that? The law basically says that the parents have to actively be involved in the negligence which causes the situation.

So in this case, if they supplied the liquor or opportunity for non- supervision for a big party to happen on the night of the crime, maybe you could tie them into a civil lawsuit for money damages or a criminal case. But you'd have to know the specific facts. It's very, very hard, in general, to nail a parent when a kid commits a crime.

COSTELLO: All right, Paul Callan, thanks for your insight this morning. I appreciate it.

CALLAN: Thank you, Carol.

COSTELLO: You're welcome. On to some other stories we're following for you this morning, hundreds of firefighters are battling an unusual late season wildfire in Big Sur, California. Authorities say 22 buildings have been destroyed, including 14 homes, and the blaze is only 20 percent contained. Wildfire season normally peaks in the summer, but the area has gotten only a fraction of its normal rainfall this year.

In less than two months, thousands will gather in Sochi, Russia, for the start of the Winter Olympics, missing from that group, President Obama and other top U.S. officials. Instead, the U.S. delegation will include openly gay athletes, including tennis legend, Billie Jean King, who Obama honored with a presidential Medal of Freedom in 2009.

Senior White House correspondent, Jim Acosta, is live at the White House. Foreign Affairs correspondent, Jill Dougherty is in Moscow with reaction there. But Jim, let's start with you, this is an obviously a slap in the face to Russia.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, I don't know if I would use the word slap in the face, but a message is being sent. The White House is not sending that message explicitly, but they are doing everything but sending that message explicitly.

As you mentioned, Carol, the president is sending a U.S. delegation that includes some prominently gay athletes, Billie Jean King, the tennis legend, Caitlin Cahow who is an openly gay, a silver medalist female hockey player.

And so yes, they are sending a message to Vladimir Putin over that country's anti-gay policies and the statement that was issued by the White House yesterday by the NSC spokeswoman, Caitlin Hayden, essentially says it out loud, doesn't explicitly say it, but it says that these athletes were chosen in part for their civic activism, that they wanted the delegation to represent and reflect U.S. diversity and so certainly this does that.

But on another front, Carol, I think there is also a message being sent with respect to Edward Snowden, the former NSA contractor who has been given temporary political asylum in Russia. The White House is not explicitly saying that, but remember back a few months ago, White House Secretary Jay Carney was asked repeatedly, is the United States going to boycott these Olympics?

The White House came back and said no, no, that would be going to do that. But the president canceled a bilateral meeting in Moscow with Vladimir Putin in part because of the NSA disclosures by Edward Snowden and the actions that Russia took and so this is really an extension of that -- Carol.

COSTELLO: Interesting. So Jill, now to you, has there been any reaction from officials in Russia?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: No, we haven't seen any yet. Let's go back to what President Putin has said, which is, gay athletes will not be discriminated against at the games. But, you know, this presents a very interesting move by the White House because one of the debates among a lot in the gay activist community was, should you do something? Should you boycott the Olympics? Should you have a big flag, gay liberation flag? Should you wear pins or whatever?

And by putting these people -- the openly gay people, especially Billie Jean King and Caitlin Cahow on the official delegation, they don't have to do anything but be themselves and it sends a message because obviously people are reporting on that. So I think the White House is getting its message across.

One would very much doubt that Billie Jean King would be arrested. This law is really meant for what they say gay propaganda directed toward children. But it's a very broad and very undefined law. So nobody really, even here, knows exactly how it might play out when the games take place.

COSTELLO: We'll see. Jim Acosta, Jill Dougherty, thanks so much for the insight this morning.

Still to come in the NEWSROOM, Dennis Rodman at it again, the worm heading back to North Korea and the big question, will he finally fight the release of that imprisoned American, Kenneth Bay? I'll talk with Kenneth Bay's sister, next.

(COMMERCIAL BREAK)

COSTELLO: Amid turmoil and controversy, NBA star, Dennis Rodman, is heading back to North Korea. He makes his third trip to the rogue nation tomorrow. This time, it's to train the men's national team for an exhibition match against some former NBA players. Many want Rodman to push for the release of captured American, Kenneth Bae, but a few months ago Rodman brushed aside that suggestion that he engage in some sort of diplomacy. Listen.

(BEGI VIDEO CLIP)

DENNIS RODMAN, FORMER NBA PLAYER: I would try to squeeze it in through all of the conversations?

MARC LAMONT HILL, "HUFFPOSTLIVE": Come on. Basketball and girls and -- you can remember there's a guy tied up in a room.

RODMAN: Well, I know. But -- like I say, if Obama can't do it, what makes you think I can do it?

(END VIDEO CLIP)

COSTELLO: CNN's Anna Coren has more from Seoul.

ANNA COREN, CNN CORRESPONDENT: Carol, despite the political upheaval in North Korea, former NBA star, Dennis Rodman, is undeterred and is going ahead with his trip to the hermit kingdom in the wake of the execution of the uncle of North Korea's leader, Kim Jong-Un. Rodman is currently in Beijing, he flies to Pyongyang on Thursday where the world will be watching.

(BEGIN VIDEOTAPE)

COREN (voice-over): With his piercings and tattoos and outlandish behavior, there's no denying former NBA star, Dennis Rodman loves attracting attention and the world going to be watching as the 52- year-old makes his third visit into a country ruled by one of the world's most repressive regimes.

RODMAN: I want to bridge a gap with North Korea. That's all I want.

COREN: It comes at a time of dramatic political upheaval in North Korea. Just last week, the country's young leader, Kim Jong-Un had his uncle executed. The first among many to believe purged. It would seem that the supreme leader could use a good friend.

RODMAN: I'll call him my friend. He's my friend. If you hate my guts, hate my guts, but he is my friend.

COREN: Rodman is traveling with a documentary crew that will film him training at the North Korean basketball. They are preparing for an exhibition match in January against a group of former pro-basketball players to celebrate the birthday of Kim Jong-un, a die-hard basketball fan.

Many are wondering whether Rodman will raise the issue of 45-year-old American missionary, Kenneth Bae, who was sentenced to 15 years prison in Pyongyang for what authorities say was an attempt to overthrow the regime. But Rodman says this trip isn't political. Although on previous visits he has made himself available for basketball diplomacy, offering to be a mediator between his close friend, Kim and U.S. President Barack Obama.

RODMAN: This guy just wants to do one thing, let's have a conversation with you. That's it. So why Obama, are you afraid to talk to Dennis Rodman?

(END VIDEOTAPE)

COREN: Well, some people are wishing that Rodman would make this trip political. A North Korean defective published an open letter in the "Washington Post" asking Rodman to raise the issue of human rights with Kim Jong-Un and to make him hear the cries of his people -Carol.

COSTELLO: Thank you, Anna Coren. Now there are many Americans angry that Rodman won't fight for Kenneth Bae's release. Back in September, Bae's college friend, Bobby Lee, wrote an op-ed piece to the "Seattle Times." He says, Rodman used Bae's misfortune to elevate his eroding Hollywood brand. He took advantage of Bae's setback to stage his own comeback. All the free press he received around the world would make Justin Bieber blush and he's the only one laughing all the way to the bank while Bae's family and friends and the American people are left heartbroken.

Kenneth Bae's sister, Terri Chung, joins me now from Seattle. Good morning, Terry.

TERRI CHUNG, KENNETH BAE'S SISTER: Good morning.

COSTELLO: First of all, how are you doing?

CHUNG: We're hanging in there. It's difficult, definitely, around the holidays.

COSTELLO: I know. Christmas is coming fast. Do you think Rodman is using your brother's misfortune to elevate his image?

CHUNG: It's hard to know. We certainly would hope that Dennis Rodman would use his friendship with the leader of the DPRK for good to raise the profile of Kenneth Bae to help his case because he's the only American who's met with the leader Kim Jong-Un. So I would certainly hope that he would do something.

COSTELLO: Has Dennis Rodman ever reached out to your family?

CHUNG: No.

COSTELLO: Why do you think that is?

CHUNG: It's difficult to know. He has said -- at first he said he would help. There was an infamous tweet but then after that it seemed like he's back-pedaled and said he's not a diplomat and it's not his job. I understand that.

It is disappointing. I would certainly hope and plead with Mr. Rodman to reconsider and say while you're there, you know, make the case. And, you know, let this American citizen who's been detained for 13 months, longest of any other American in recent history, to come home to his wife and his three children.

COSTELLO: If Dennis Rodman goes to North Korea and doesn't bring up the issue of your brother with Kim Jong-Un and does some sort of basketball exhibition, you know, the media going to cover it, but what going to you think as you're reading the paper about just another wasted trip by Dennis Rodman to North Korea?

CHUNG: We'll certainly be disappointed and heartbroken. You know, this has been a devastating experience for the past 13 months and Kenneth Bae really needs to come home and we need all the help to get that to happen.

COSTELLO: I know Dennis Rodman watches television. I know he watches CNN. Would you like to say anything directly to Mr. Rodman?

CHUNG: Mr. Rodman, if you're watching, please do think about this American citizen, a father, a husband, a son and a brother who has been imprisoned for 13 months in the DPRK. And while you're there, could you think about him and his family waiting for him to come home for Christmas and do everything you can to bring him home.

COSTELLO: Terri Chung, thanks so much for being with us this morning. We'll be praying too.

CHUNG: Thank you for having me.

COSTELLO: Thank you so much. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The Senate will vote today to pass a budget. It could mean no government shutdown, no stumbling from crisis to crisis. What's in the bill is that lawmakers actually reached a bill. I know. You're cynical. But Senator Patty Murray, who co-sponsored this bill with Republican Congressman Paul Ryan, says this is an important first step in rebuilding a broken Congress. Here's what Murray said earlier on NEW DAY.

(BEGIN VIDEO CLIP)

SENATOR PATTY MURRAY (D), WASHINGTON: We had to look at how we could find compromises. There are things in this I like. There are things in this I don't like. But at the end of the day, if we couldn't find a compromise on how we move forward, then we would be facing a $20 billion hit to our defense industry, meaning layoffs and uncertainty and a lot of furloughs harming a lot of families across the country.

(END VIDEO CLIP)

COSTELLO: Wolf Blitzer is here to talk about the deal. So is this is an important first step in repairing a broken Congress?

WOLF BLITZER, HOST, CNN'S "THE SITUATION ROOM": Yes, it's an important first step and certainly underscores that there is an opportunity, Carol, for some cooperation, some compromise, some bipartisanship words we don't often hear these days in Washington. But it's still just a baby step.

There are a whole lot of other things that they could be doing that probably should be doing. There are going to be other crises down the road when they come together. Both sides made compromises. Neither get 100 percent of what they want but they get a nice chunk of what they want and they can move forward.

COSTELLO: Liberals are angry because the bill doesn't extend long- term unemployment benefits. Conservatives are upset because of cuts to military benefits. A part of me says that maybe lawmakers going to deal with those two issues later, right? They won't put that in the budget deal but deal with them later. Will they?

BLITZER: They are going to try. The cuts in the cost of living increase; the 1 percent cost in military benefits doesn't take effect until 2015. They'll have an opportunity to reinstate those benefits if there's bipartisan cooperation, president going to go along with that. As far as the 1.3 million are going to lose their long-term unemployment benefits starting January 1st, there will be some opportunities to try to bring that back although that's not going to be easy by any means.

Neither of these are going to be easy because there is still a drive out there to go ahead and make painful cuts and these are just the beginning of some painful cuts down the road, but if you try to deal with that budget deficit, with the long-term national debt, you're going to have to cut where the money is and these are programs that have some money so there are going to be painful cuts down the road.

COSTELLO: Let's talk about the debt ceiling for just a second because the Republican Paul Ryan has already suggested, intimated, that there may be a fight over that next year in 2014. That's a much more serious thing for Congress to be fighting over. Will that happen?

BLITZER: Well, at issue is America's credit worthiness. The debt ceiling is supposed to expire in February. Maybe they can do some finagling and keep it going until March. We're only a few weeks away from what could be another crisis. Paul Ryan, the chairman of the House Budget Committee has made it clear. He says the Republicans will want some concessions from the president of the United States and the Democrats in order to go ahead and raise that debt ceiling once again.

The president's position is these are debts that have already been accumulated by the United States, appropriated by Congress, signed into law by the president. The U.S. simply can't go ahead unilaterally decide they are not going to repay some of these debts. So there is going to be a fight. There's going to be a fight in the next few weeks over raising the debt ceiling and despite the goodwill we've seen in the budget agreement, there could be another battle over the next few weeks.

COSTELLO: All right, Wolf Blitzer, many thanks to you for your insight. Appreciate it.

BLITZER: Thank you.

COSTELLO: Still to come, the barricades came down and the diplomatic barriers went up. How one arrest is straining the long-time bond between the United States and India?

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