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Campbell Brown

Israel Prepared For Ground Battle in Gaza; Muslim Family Kicked Off Airliner; Pawnshop Business Booming in Recession

Aired January 02, 2009 - 20:00   ET

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


RANDI KAYE, CNN ANCHOR: Hi, everyone. I'm Randi Kaye. Campbell is off tonight.
Breaking news tonight: Israeli tanks are ready to roll into Gaza at any time.

Bullet point number one: Israel says a week of nonstop airstrikes are only the beginning and that ground troops are prepared to move in -- this as the exiled Hamas leader warns Israel -- quote -- "Doom will await you. Our people will fight from one street to the next."

Bullet point number two: First Israel and now tonight Hamas is leaning on president-elect Barack Obama to weigh in on the conflict with just over two weeks to go until he becomes commander in chief. Hamas claims Obama was far more worried about victims of the Mumbai massacre than the 400-plus Palestinians killed so far this week.

Bullet point number three: our NO BIAS, NO BULL look at a Muslim- American family booted from a flight. Was it their conversation on board or their religion and their appearance that made the difference?

And bullet point number four: Even with a big stock rally to open 2009, some Americans just can't wait to balance their bank account. So, they have got to give up something to do it. Find out where even the rich are starting to show up.

Right now, the latest breaking news from Gaza -- it is the middle of the night there, but that doesn't mean it's quiet, not after seven days of Israeli air attacks and the growing threat of a ground war.

Senior international correspondent Nic Robertson already had to duck for cover once today.

Take a look.

(BEGIN VIDEO CLIP)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: The siren's just gone off. Everyone's getting out of their cars, getting down in the road, waiting to see what happens. That was the explosion. We just heard one explosion going off.

I think it came from that direction over there. Well, that's another siren going off. That's another siren just going off. We're getting down behind the car again. All the cars are stopping at the moment. I did hear a boom. It came from that direction over there.

(END VIDEO CLIP)

KAYE: Luckily, Nic's OK, but new trouble may be starting tonight.

He joins us from just north of Gaza along the Israeli coast, where rockets from Hamas have left their mark.

Nic, Israel seems poised for an all-out ground attack with tanks lining up on the border. Hamas' leaders said today they are expecting one. What are you hearing? What's the scene there?

ROBERTSON: Well, just a few minutes ago, we heard a helicopter fly overhead, and about an hour ago, a jet flew overhead. And I think if there were a ground operation about to happen, we would probably hear more air activity.

But the Israeli Defense Forces say they are absolutely ready for a ground offensive if they get the order. We have also heard rumors from people close to the border who say they believe that the ground offensive could come soon as well.

The indications are that the government is very willing to send the troops into Gaza, that they have said that they will do that if that's what they need to do to defeat Hamas and stop Hamas firing their missiles. One of those missiles that Hamas fired hit the house right behind me. The family was only safe because when the siren -- the warning siren went off, they went into the shelter of the house. It was one of Hamas' Grad rockets that hit the house. It destroyed the roof, destroyed much of the upper floor of the house. They had a very, very narrow escape -- Randi.

KAYE: And, Nic, the number of rockets from Gaza to Israel has actually dropped by more than half, from 70 to 30 or so. Should we be reading anything into that or does this actually have something to do with the weather there?

ROBERTSON: I think it's very, very hard to tell, because obviously the Israelis, defense forces, are not letting us get close to their troops. We certainly can't get into Gaza because they won't let us into Gaza either to see what's going on there.

It certainly is difficult for the Israeli air force to target their bombs with precision, as they do inside Gaza, when there is cloud cover, and there has been cloud cover over the past few days. We have seen situation when the cloud clears. That's when the missiles are dropped on some of those targets in Gaza.

So, that may be a factor as well. But it's very clear that there's a lot of psychological pressure being put on the Hamas leaders right now. We have seen them -- we have seen the Israeli Defense Forces call these Hamas leaders, tell them that they're going to bomb their house. You don't get much more psychological pressure on someone than that -- Randi.

KAYE: All right, Nic Robertson, thank you so much.

A short time ago, we heard directly from President Bush. In his pre-recorded weekly radio address, Mr. Bush said Israel did not start the fighting.

(BEGIN AUDIO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This recent outburst of violence was instigated by Hamas, a Palestinian terrorist group supported by Iran and Syria that calls for Israel's destruction. Eighteen months ago, Hamas took over the Gaza Strip in a coup, and since then has imported thousands of guns and rockets and mortars.

(END VIDEO CLIP)

KAYE: Tonight, we need to get an idea of what could be in store for Gaza and the U.S. if Israel invades with ground forces.

Aaron David Miller is a former U.S. Middle East negotiator, now a public policy fellow at the Woodrow Wilson International Center For Scholars. He is the author of "The Much Too Promised Land: America's Elusive Search for Arab-Israeli Peace." Also with me, Bobby Ghosh, world editor for "TIME" magazine and "TIME"'s former Baghdad bureau chief.

Welcome to both of you.

Aaron, let's start with you.

We just heard from Nic Robertson that both sides are preparing for a ground attack. Is it inevitable at this point right now?

AARON DAVID MILLER, AUTHOR, "THE MUCH TOO PROMISED LAND": I don't see how you're going to avoid it.

I mean, the situation literally is going to get worse before it gets worse. Wars end under only one of two circumstances, when one side can impose its will on the other, which is unlikely to happen here, or alternatively both sides conclude that the objectives they sought have either been achieved or they can't fulfill them.

Neither side, it seems to me, is even close to achieving what they wanted to achieve initially. So, I think, yes, unless there's some dramatic outside rescue effort, and it doesn't look to me like the cavalry's on the way diplomatically, there's going to be a ground incursion.

KAYE: And, Bobby, today, the leader of Hamas actually lashed out at president-elect Barack Obama, saying -- and I'm quoting here -- "Mr. Obama, your beginning is not good. You got involved, and you had a statement regarding the issue of Mumbai, but you did not get involved and say anything about the enemy's crime against Gaza. Enough of your double standards."

Now, is Obama in a box here? Does he need to do something at this point? BOBBY GHOSH, WORLD EDITOR, "TIME": Well, I think he -- he does need to do something, especially since it doesn't look like the White House is doing very much.

It's not enough to say there can only be one president at a time, when that president is asleep at the wheel a little bit.

KAYE: So he needs to get involved?

GHOSH: He needs to get involved. There are various ways of getting involved. He doesn't have to directly get involved. There are back channels. There are any number of intermediaries and proxies he can use.

And -- and, to some degree, as hard as it is to -- to agree with Hamas, they're right. He has spoken out on a number of other issues, domestic issues to do with the economy. He spoke out about Mumbai. I don't see what's stopping him from speaking out right now.

KAYE: Aaron, how -- how effective really can the president-elect be at this point?

MILLER: Not very. So, that's why I'm not sure on this one Bobby's got the right answer.

Obama neither has the incentive nor the power to do anything right now. When it comes to foreign policy and foreign policy crises, regardless of how this administration, the current administration, is comporting itself, it is only one president at a time. There's nothing that Barack Obama can do or say right now that's going to make this situation better.

And it's a fair bet that whatever he says publicly, including any sort of private, discrete back-channel contact, is going to make the situation worse. In less than three weeks, he is going to -- he will inherit a crisis. There's no question. He ought to keep his powder dry, because he's going to need it.

KAYE: So, Bobby, can the U.S. really have a meaningful impact, in your opinion, or is the country essentially sidelined here while we wait for the change in the administration?

GHOSH: Well, if the White House is not more activist than it has been, then, yes. The impression I get and the sense that folks looking at the situation from the Middle East have is the White House has essentially given up, and that they're passing on this problem to President Obama, which is why it's essential for him to be seen or heard or at least to begin to deal with the problem.

It's one thing to hit the ground running. This problem is far more serious than that. You have to start moving even before you arrive at the scene, to some degree.

KAYE: And with the tanks now lined up on the border, Aaron, what would a ground invasion mean? What would it look like? Israel has made clear already it's not very interested in occupying Gaza long term. So, what is the goal here?

MILLER: Well, I think the goal for the Israelis is to restore some measure of deterrence and end the high-trajectory fire, the rocket fire coming out of Gaza.

And, frankly, I'm not at all certain that a ground incursion of limited or even of moderate duration is going to be able to do that. The truth is that it is important how wars are fought, but what's even more important is how they end and what the perception is at the end.

And it seems to me that the Israelis are in somewhat of a box. If this ends the way the summer 2006 war ended, with Hezbollah able to fire on the last day before the U.N. Security Council resolution came into effect more rockets than in any of the previous 34 days, if that's the way this ends, then it seems to me Hamas will have won politically. And that's extremely important in this part of the world.

KAYE: All right.

Aaron David Miller, Bobby Ghosh, we will have to leave it there. Thank you, both of you.

You can't bank a whole year on it, but, today, believe it or not, Wall Street started 2009 in the black. Will it last? I will ask Ali Velshi about that and about Barack Obama's plans to jump-start the economy starting first thing Monday morning.

And, later, the showdown in Congress just days away over the man embattled Illinois Governor Rod Blagojevich has picked to replace Barack Obama in the Senate.

And a NO BIAS, NO BULL debate over the Muslim American family kicked off an airplane -- what they did and did not say on board and why the airline finally apologized a full day later.

(COMMERCIAL BREAK)

KAYE: Like a bad road trip, investors couldn't wait to put 2008 in our rear-view mirror. Well, 2009 is off and running on Wall Street. The Dow industrials gained 258 points today, going back above 9000.

So, are we finally seeing some economic daylight and what can president-elect Obama do to help?

Let's take a look ahead with chief business correspondent Ali Velshi.

Ali, no small task here. What are the hurdles that Obama faces to turn around our economy?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Well, Randi, typically, the president actually has limited control over the environment, but because so much of this crisis is about confidence, he may actually have a bigger role to play. Number-one hurdle on doing anything, including an economic stimulus package, is opposition from the Republicans. Despite the fact that everybody thinks things need to be done by government, there are some people who think -- they are very unhappy with the way that that first $700 billion bailout plan went and they want more oversight. So, they may not be able to rush that through. Remember, some people had said that Obama would have something on his desk by Inauguration Day. That may not happen.

Number two, another major issue is the skittish market that we're in right now. There are a lot of people who just don't know how the economy is going to do. This is a consumer-driven economy. And if consumers aren't spending, stocks are not going to go up. There are a whole other bunch of people who think, you know what? Stocks are really on sale, so things could go well, like today. And I will tell you about that in another minute.

The other situation that we have to contend with is this housing market. That's where this recession got its start. And right now, home prices continue to drop. The silver lining there is that some people who couldn't afford homes in the last few years might be finding them more affordable. And if you can get a loan, meaning if you have good credit, rates are still low.

So, we might see a turnaround in housing later this year. And, finally, this is the big one, even though it didn't start with this, the jobs issue. Unless we can stop the bleeding on the jobs front, we're not going to be able to recover.

Now, the jobs situation is important to remember, because, a week from today, we're going to get the new jobless numbers, and they are expected to be very bad. The other thing we need to look at -- you talked about that market. The Dow soared today, the first day of the year. Remember, though, that that -- one day doesn't mean anything.

Take a look at what happened today. This was a massive, massive gain, and we're above 9000, which is a psychological figure. That 8500 to 9000 line is what some people thought was the bottom of the market. So, we're above 9000, and that is a good sign. But, again, it's just the beginning of the year -- Randi.

KAYE: Plenty of time left. All right. Thanks, Ali.

President-elect Obama will be in Washington on Monday holding formal meetings with Democratic and Republican leaders on Capitol Hill, the goal, to push a new stimulus package through Congress to get the economy going. It's just one of many challenges facing the new administration.

Let's ask our political panel about Barack Obama's first year in office, CNN political contributor and Republican strategist Leslie Sanchez, CNN political analyst Roland Martin, and Michael Crowley, a senior editor for "The New Republic" magazine.

Michael, let's start with you. Obama certainly has his work cut out for him come Monday morning. What is the very first thing that he needs to do to get this economy rolling again?

MICHAEL CROWLEY, SENIOR EDITOR, "THE NEW REPUBLIC": Absolutely, the economists seem to agree, get the stimulus plan passed quickly and do it big.

This is not an ideological debate. You know, we heard some talk about how Republicans are going to play this. But there is a broad consensus among economists right now. We need a stimulus fast, and we need it big.

And Obama has already done the right thing by signaling that he's going to do that, to raise confidence, to let the U.S. economy and the global economy know that America's going to inject money into the system, but they have got to get rolling and do this as fast as they responsibly can.

KAYE: Could be, though, easier said than done.

Leslie, Republicans are signaling they're not just going to roll over and play dead here. But people are desperate right now for an economic turnaround, Republicans in a tricky position. They can't be seen as standing in the way. So, what should the strategy be?

LESLIE SANCHEZ, CNN POLITICAL CONTRIBUTOR: You're absolutely right in the sense that America wants a responsive government, but they also want a responsible government.

You're going to see a series I think of a lot of different industries getting in line for a series of bailouts. And to the extent that Republicans are trying to say we need tremendous oversight, we need to make sure that we're not out overreaching in terms of this money -- right now, you saw the Democratic governors asking for $1 trillion in additional spending. Where are we talking about responsible cuts?

We want to make sure this is not a free ride for everybody, but something that everybody can feel that this is the right type of action for the right balance.

KAYE: Roland, let's talk about another challenge, Gaza. As we have been reporting, it looks like the Israelis are preparing for a ground attack. Can Obama continue to stay quiet on this for the next three weeks?

ROLAND MARTIN, CNN CONTRIBUTOR: Yes, because, frankly, there's nothing that he can actually do. He could come out and make all kinds of statements. He can release all kinds of press releases. But what does it actually mean?

This is where diplomacy comes in. We have seen various reports where he has indeed been communicating with his secretary of state- designate, Hillary Clinton. But, look, she isn't secretary of state. Condoleezza Rice is. He's been communicating with her. The reality is, this current administration, they are still getting paid by the American taxpayers to go to work. And so they should be involved in this. You can't look to the incoming president until January 20 at 12:01.

(LAUGHTER)

KAYE: Leslie, you want to chime in there?

SANCHEZ: One thing that's strange about this is, how many calls did we hear on Capitol Hill trying to amend the Constitution to try to move Barack Obama into the presidency earlier? And now that...

(CROSSTALK)

MARTIN: And they were stupid as well.

SANCHEZ: ... people are going to have to deal with, I think -- I think it's good in the sense that it's measured. It's a measured approach. That's what I think the hypocrisy is -- is quite evident.

MARTIN: Leslie, what are you talking about? The reality is you have a current president. That is his job. He is getting paid to do his job. Condoleezza Rice has a job. You let them do their job. It's ridiculous to sit here and say...

(CROSSTALK)

SANCHEZ: You know, the Democrats were calling to push him in there. I think the magnitude...

MARTIN: And that was dumb as well.

(CROSSTALK)

KAYE: Let Michael weigh in here.

(CROSSTALK)

CROWLEY: Well, I think the problem is that Obama knows that there's just no real political win for him to get in right now. And he really can't do that much substantively. I think the best thing he can do is behind the scenes figure out his approach.

(CROSSTALK)

KAYE: But he campaigned on the promise to repair U.S. relations with Muslims. So, is his silence being seen as support for Israel?

CROWLEY: It is.

There's reporting out of some of the Arab capitals that indicates that there is a feeling that his silence is a tacit approval of what's been happening. The really -- the clearest statement he had was from his trip over to the Middle East in the summer where he said that if rockets were being fired into his home if he were living in the Israeli areas that were suffering these rocket attacks, he would hit back hard, he would defend his daughters, he wouldn't stand for that.

And, in fact, that quote was cited in the Israeli Knesset by another Barack, Ehud Barack, the defense minister, saying even Barack Obama has said that he would respond very aggressively. And I think in Arab capitals, the fact that Obama has not updated that statement is being taken as a tacit support of what's happening.

But, look, when he's there in three weeks, we will reboot. It's better that he has an organized plan and he's not responding on the fly. Let him figure out his game plan and start talking when he's in office and he's ready to do it in a coordinated way.

KAYE: Leslie, quickly yes or no on this one. During the campaign we, had that famous 3:00 a.m. phone call. Well, now Obama's phone is ringing off the hook, at least, Gaza, Iran, India, Afghanistan. Yes or no, is he passing the test so far?

SANCHEZ: We're not going to know yet. Senator Biden said he was going to be tested in the first six months. I think, no, he's going to be tested in the first six minutes. It's going to be how well his team can respond.

MARTIN: Randi, call George W. Bush. He's still the president.

(LAUGHTER)

KAYE: All right.

SANCHEZ: Wow.

KAYE: Oh, boy.

CROWLEY: He might not answer.

MARTIN: Leslie, did you somehow forget he's still the president?

SANCHEZ: I love the endorsement of the president now. I just think that's great.

MARTIN: Just call George W. He's still the president.

KAYE: Well, as Michael says, he might not answer.

(CROSSTALK)

CROWLEY: ... voice-mail.

(LAUGHTER)

KAYE: Thank you all. Hang on, though, because coming up, the first showdown for the new Congress is pitting Democrats against Democrats, Democrats with thumbs up and Democrats with thumbs down on whether to seat Illinois Governor Rod Blagojevich's pick to replace Barack Obama in the Senate. The stage is set for a surreal rumble on Capitol Hill. And in the "Political Daily Briefing," Sarah Palin speaks out on her new grandson and her daughter Bristol. Bristol may be a new mom, but she's not, the governor of Alaska says, a high school dropout.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROLAND BURRIS, FORMER ILLINOIS ATTORNEY GENERAL: We're certainly going to make contacts with the leadership of the Senate to let them know that the governor of Illinois has made a legal appointment and that I am currently the junior senator for the state of Illinois.

(END VIDEO CLIP)

KAYE: Well, it's not exactly as simple as Roland Burris would have you believe. Burris, of course, is the man embattled Illinois Governor Rod Blagojevich picked to succeed Barack Obama.

In fact, it's shaping up to be quite a showdown on the Senate floor this Tuesday. Picture this. Burris shows up for his swearing- in, and top Democrats won't let him in. Could that actually happen?

Let's go back to Leslie Sanchez, Roland Martin, and Michael Crowley.

Michael, this really is shaping up to be a real nightmare scenario. We're talking about the Capitol Police possibly keeping Burris out of the Senate, off the Senate floor. How do the Democrats prevent this from turning into a circus?

CROWLEY: Well, I don't know how they prevent that. I mean, they're dealing with a guy in Blagojevich who you're starting to feel like is not maybe playing with a full deck or certainly doesn't care if he's just offending people in the party and in Washington.

And the nightmare scenario about it is that the way this is unfolding, the way Blagojevich seems to have orchestrated it, is that he's playing this kind of cheap race-baiting game, where he's daring Democrats to block this appointment.

And the press conference in which Burris was rolled out was filled with this sort of disgusting talk of lynchings and these racial phrases that seem to have no bearing on the reality of the situation. The problem is, however, in that context, to the extent that anyone's buying that, to have armed guards sort of blocking the guy at the door, you can imagine the next press conference is going to be talking about Bull Connor and integration of the schools in the South.

And that is really a nightmare for Democrats, and I think the best they can do is plead with Burris and Blagojevich, just say, for the good of the party, please, you know, give it up.

MARTIN: Michael, for the good of the party, they could have taken the power out of his hands. They failed. After he was arrested, the General Assembly in Illinois could have gone in, approved a special election. But the Democrats, they were greedy. They chose not to do it because they were scared they were going to lose that Senate seat.

They created -- look, Blagojevich obviously at the center of this, but they could have stopped this. And so the -- and bottom line is they're now creating a constitutional crisis. If I'm Roland Burris, I show up on Monday. If they bar me, I file an immediate lawsuit and I want the Supreme Court to rule immediately, because what they're doing makes no sense.

Here's what's also crazy, Randi. Blagojevich, because he's a sitting governor, he could show up, and he gets to be allowed in on the floor of the U.S. Senate.

(CROSSTALK)

KAYE: Right. He may actually be allowed in. Exactly.

Leslie, let's let you weigh in here. The "Chicago Sun-Times" editorial board has come out in support of the Illinois governor's right to select the new senator.

Here's what the paper wrote: "Burris was appointed to the Senate by the sitting governor of Illinois, Rod Blagojevich, a man who is in deep legal trouble, but who has been convicted of no crime to date and has yet to be impeached. It was Blagojevich's job to appoint a replacement, and that's what he has done."

Now, Leslie, they do make a good point, but are Democrats going to have a tough time making their case that Roland Burris shouldn't be seated and may even be kept out of the Senate?

SANCHEZ: Absolutely. But, you know, Roland's right. This is a problem that the Democrats have created.

I think you saw originally Senator Durbin was leading the charge. He was joined by several different Republicans asking for that special election. I think Roland did an excellent job of laying out what the threats were. They thought they could potentially lose this Senate seat. They didn't take that action.

And now you're seeing basically what's going to transpire. This is a made-for-TV movie. People are going to be watching. And a lot of legal experts are debating whether or not you can actually deny him, meaning Burris, the opportunity to step in and take that role. There's yet to be a case made that he -- that Senator Reid could actually do that.

And do you really want to see that transpire? I think this is something -- again, I will say, even tonight, the Republicans in Illinois are calling for that special election. It's yet to see how these two timelines are going to line up.

MARTIN: Here's what's a joke here. What's a joke is, the Senate is sitting here picking and choosing what rules they want to abide by.

So, Blagojevich, because he's a sitting governor, he has the right to go on the floor. So, OK, we can't stop him from that. But, although he's a sitting governor and has the right to appoint a U.S. senator, we want to stop that.

You can't sit here and play a buffet game with Blagojevich.

CROWLEY: I hear what Roland and Leslie are saying, but I think that the real bad guys here are not Senate Democrats who were trying to get a little bit of political gain and hold on to a Senate seat.

The bad guy is Rod Blagojevich, who we have heard on tape saying all kinds of unbelievably sleazy things. And the fact is the Blagojevich is saying that this appointment is not corrupt, he didn't sell the seat.

Well, I think it's morally corrupt. I think it's really disgusting the way Burris was unveiled. Burris may be a great guy, but the way this press conference was presented, the way there was this talk of lynching, which has nothing to do with the point...

(CROSSTALK)

CROWLEY: ... was morally corrupt.

(CROSSTALK)

MARTIN: He has not been indicted.

(CROSSTALK)

KAYE: Quickly, guys, last word here.

SANCHEZ: Look, the moral doesn't break any laws. And it seems as if you're penalizing the wrong person.

MARTIN: Democrats failed, and they are paying the price for it. So, deal with it.

CROWLEY: Burris should have stayed away from Blagojevich. That would be my response.

KAYE: All right, we will have to leave it there.

And, Leslie, Roland, Michael, thank you, as always. It's always fun.

Roland Burris isn't the only would-be senator facing a rough welcome. Next, in our "Political Daily Briefing," how one top Republican plans to keep Al Franken out of the Senate.

And, later, the Muslim American family kicked off a flight after other passengers raised suspicions. The FBI cleared them. Why wouldn't the airline let them fly? The story in their own words.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ALISHA GURNANI, EIGHTH-GRADER: Hi. I'm Alisha Gurnani.

And this is:

SONIA GURNANI, SECOND-GRADER: Sonia Gurnani. And we are both are from New Jersey.

A. GURNANI: Congratulations on winning the presidential election. I believe you will do an outstanding job while you're in office. I hope that your policies and directions will put an end to the job losses that we have had in the recent months and put us back on track to prosperity, so, by the time I graduate college, I will be able to have a reasonable job.

S. GURNANI: Congratulations again. We wish you all the best. And have a...

S. GURNANI & A. GURNANI: ... happy new year.

(END VIDEO CLIP)

RANDI KAYE, CNN ANCHOR: It's always great to see sisters sharing. Tonight's "dear Mr. President" letter comes from 13-year-old Alisha Gurnani and 7-year-old Sonia Gurnani of Dayton, New Jersey. Not only are they sisters, they are both i-Reporters.

To send us your letters to President-elect Obama, go to CNN.com/Campbell and click on the i-Report link.

Well, this is a great moment. The first "Political Daily Briefing" of the new year. Our good friend, Dana Milbank, can't wait to get us all started.

Dana, the "PDB" begins tonight with a bit of a dispute over the Senate seating chart, isn't that right?

DANA MILBANK, CNN CONTRIBUTOR: Yes, that's true, Randi. Senate Republicans say they for one won't be laughing if Democrats try to seat comedian Al Franken before he's officially certified as the winner of the Minnesota Senate race.

The canvassing board is preparing to make its final ruling there, but Franken is ahead by about 50 votes and some Democrats want him to be allowed to serve while the lawsuits are being resolved. That plan does not sound good to big John Cornyn, a Texas Republican who, if you saw his campaign ad last year, is one bad dude.

(BEGIN VIDEO CLIP)

NARRATOR: You see, I'm from Texas, where we do things quick. And the way this place is run is about to make me sick. Big John.

MUSIC: Big John. Big John. NARRATOR: Big bad John.

(END VIDEO CLIP)

MILBANK: Well, that's big bad John. But the Senate Republican leaders they say they don't think big John will have to drive his six- shooter just yet. They say Democrats would have a PR problem if they tried to seat Franken while rejecting that guy Roland Burris of Illinois who, unlike Franken, actually is supported by his state's governor. You may have heard of him, something like Blagojevich?

KAYE: Yes. I guess they just call him big John.

So I guess, Dana, this is how they do things in Alaska. We're hearing that Grandma Palin and daughter Bristol Palin have put out a statement today together. What's this all about?

MILBANK: Well, for those who were wondering where Sarah Palin has been lately, we have this bulletin just in from Anchorage. She is, in fact, over the moon.

Unclear if she's found any Russians up there. But that's how the Alaska governor had described herself in an official statement posted on her Web site about becoming a grandma.

Palin said she originally felt fear and a bit of despair but said God had turned her teenage daughter Bristol's pregnancy into an amazing joyful blessing. In the same statement, Bristol said, "Teenagers need to prevent pregnancy to begin with. This isn't ideal."

The baby's mother will finish up high school this year, and the father will do his high school work online while working as an electrical apprentice.

KAYE: All right. And finally, Dana, an NBA superstar with his sights set for politics could be finding that his wish may be more like a dream. What's going on?

MILBANK: Well, it does seem increasingly unlikely that Sir Charles will trade in that title for Governor Charles. NBA Hall of Famer Charles Barkley was arrested for drunk driving on Wednesday after running a stop sign in Arizona. Unfortunately, he told police he was hurrying because he was on his way to a sexual encounter. Now, this probably won't help his plans to become governor of Alabama detailed on this very show in October.

(BEGIN VIDEO CLIP)

CAMPBELL BROWN, CNN ANCHOR: So you're going to run for governor?

CHARLES BARKLEY, NBA HALL OF FAMER: I'm planning on it 2014.

BROWN: You are?

BARKLEY: I am. I can't screw up Alabama. BROWN: There's no place to go but up in your view.

BARKLEY: Well, we're number 48 in everything. And Arkansas and Mississippi aren't going anywhere.

(END VIDEO CLIP)

MILBANK: Now it would appear, Randi, that Barkley himself isn't going anywhere, either.

KAYE: Yes, well, we know he was trying to go somewhere.

All right. Dana Milbank, thank you.

MILBANK: Thanks.

KAYE: Thousands may be packing up this month and fleeing Washington. No, not because of the weather. Because of the inauguration. And they all have something else in common. That's in tonight's "Welcome to the White House."

Also, the recession's hurting a lot of us. But it's good for pawnshops. We'll look at their new customers. Some of them may be your neighbors.

But up next, John Travolta's son dies suddenly in the Bahamas. We'll have the latest. Stay with us.

(COMMERCIAL BREAK)

KAYE: Lots of news around the world. Gary Tuchman right here with "The Briefing."

Hi there, Gary.

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hi, Randi. Some heartbreaking news tonight for actor John Travolta and his family.

16-year-old Jett Travolta died this morning in the Bahamas. Police say he had a seizure and hit his head. An attorney for Travolta tells CNN it came "completely out of the blue." Jett is the only son of Travolta and his wife, actress Kelly Preston. They also have an 8-year-old daughter.

Here in New York, a special needs student was left inside a school bus all night on a freezing new year's eve. The matron, who was supposed to care for him, is charged with reckless endangerment and the bus company fired her today. Authorities say she knew 22- year-old Edwin Rivera was asleep on the bus, but she was in a hurry to leave.

A woman's alleged murder for hire plot is caught on tape. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: This is a plot nobody expects out of me. This is Beth Goodie two shoes who does nothing wrong usually.

(END VIDEO CLIP)

TUCHMAN: Police in Auburn, Washington say 29-year-old Elizabeth Biemer (ph) thought she was talking to a hitman, not a cop, about killing her ex-husband, his parents, and his new wife over a child custody dispute.

In Oregon, flooding, mud slides, and evacuations thanks to heavy rain and melting snow. Three inches of rain fell in Portland, where streets were closed off and sandbags are being handed out. One mudslide trapped a family in their home until they escaped through a window.

Maine has become the latest state to open its adoption records. People came from across the country today to take advantage of a new law allowing adoptees 18 or older to see their original birth certificates. Critics say it could force unwanted contact on biological parents who gave up their babies.

And an incredible story after someone in Memphis shot a gun into the air on New Year's eve. One of the bullets landed in the diaper of a 7-month-old baby girl sitting on her mother's lap at a late-night church service. The mother did not realize it until she took the baby to the bathroom and found the bullet. The baby is fine. And, Randi, talk about a surprise in the diaper.

KAYE: No kidding. Not the surprise you want to find although there really isn't ever a surprise you want to find there.

All right, Gary, hang on.

Our "Bull's-Eye"'s tonight goes to the bandits who stole from, of all people, Bernard Madoff, the disgraced Wall Street guru charged with running a $50 billion Ponzi scheme. With Madoff under house arrest in New York, burglars broke into his Palm Beach, Florida estate, swiping an expensive statue.

Now, mysteriously, the statue has been returned, along with a note. It said, "Bernie the swindler, lesson -- return stolen property to rightful owners. Signed by the educators." Madoff's alleged victims hope he's learned that lesson already.

When we come back, it's a place for great bargains, and sometimes a lender of last resort. But guess who's showing up now at America's pawnshops. Gary Tuchman will have the surprising answer for us.

And later, these kids have some great voices enough to earn their school hundreds of thousands of dollars. Thanks to one very big name. We'll show you who.

(COMMERCIAL BREAK)

KAYE: Have you ever been to a pawnshop? A lot of people would say no until recently. These days more and more people need some quick cash. And since they can't get it from the bank, they're venturing into places where the deals get more appealing every day.

Our Gary Tuchman is back to tell us how desperate times are bringing some desperate measures.

TUCHMAN: That's right, Randi. When you go to a pawnshop, the idea is you are getting a loan and you're giving the pawnshop something valuable for collateral. Generally, you get up to 50 percent of the value of your item and you can get your jewelry or your car or your gun back for an interest rate that ranges around four percent monthly.

Some of the items do get sold to others, but the original owner is given a grace period and most of them get their valuables back. Basically, pawnshop customers get easy loans and that's why it's currently a growth industry.

(BEGIN VIDEOTAPE)

TUCHMAN (voice-over): Linda comes in with her fur coat but leaves without some of her jewelry.

UNIDENTIFIED MALE: What are these stuffs?

UNIDENTIFIED MALE: Those are baguettes.

UNIDENTIFIED MALE: Diamond baguettes.

TUCHMAN: Bob comes in with some diamonds and also hopes to leave with cash.

MARTA, BARTENDER: It has white gold inside. It's an antique one from the 1920s.

TUCHMAN: And Marta, who used to have a very comfortable income as a bartender, now hopes to sell her old watch because she needs the extra money.

MARTA: People are not tipping as much as they used to.

TUCHMAN: Across the U.S. as the recession deepens and businesses flounder, pawnshops and stores that buy jewelry are experiencing boom times. Some claiming up to a 40 percent jump in the number of people pawning their worldly possessions.

Eric Modell is a pawnbroker as well as the executive director of the National Pawn Brokers Association.

ERIC MODELL, NATIONAL PAWNBROKERS ASSOC.: The availability of credit is non-existent practically today except in a pawnshop. We don't ask any questions. Everything is confidential and it's quick.

UNIDENTIFIED MALE: We buy gold, diamonds, jewelry, watches.

TUCHMAN: New York City's diamond district, a pawnbroking business is particularly hot. In the window, the world's most expensive watches, some worth tens of thousands of dollars, pawned off by wealthy owners, not your typical pawnshop clients, who find they now need a few extra bucks.

DAN PASTERNAK, GEM PAWNBROKERS: We have seen a lot more expensive items, high-end Rolexes, Cartier, Chopard, watches, you know, with diamonds with a higher value.

TUCHMAN: Back in 2005 when gas prices started making a dramatic climb, we saw the same phenomenon. This Jaguar owner drove into a Georgia pawnshop.

UNIDENTIFIED MALE: I'm selling this Bulova watch which is made in the early 1900s.

TUCHMAN: And pawned his watch to pay for Jaguar gas money.

How much are you selling it for?

UNIDENTIFIED MALE: $200.

TUCHMAN: So pawnbrokers are not surprised by what they're seeing now.

(on camera): If I come in with my $1,000 watch, let's say, even though my watch only cost $35, but if I come in with a $1,000 watch, how much can I get back?

PASTERNAK: It would not be usually a problem to get $500 as a loan on it.

TUCHMAN (voice-over): And now back to Linda. She hopes to get her diamonds back someday.

MODELL: So the total due is 398.04.

TUCHMAN: But for now she pays interest to keep them from being sold. As far as Bob with the diamond baguettes, he wanted $250 for them.

How much would you have given him for that?

UNIDENTIFIED MALE: 150.

TUCHMAN: So no sale. The same thing with Marta.

UNIDENTIFIED MALE: How much?

MARTA: Whatever. 200 (ph).

UNIDENTIFIED MALE: No, I don't buy silver.

TUCHMAN: Marta and Bob will keep trying with other brokers.

UNIDENTIFIED MALE: We buy gold, watches.

TUCHMAN: These economic times leave them little choice.

(END VIDEOTAPE) TUCHMAN: The National Pawnbrokers Association says pawnshop customers typically have a household income of roughly $30,000 a year, but all those in the industry agree those numbers are being jacked up quite a bit now.

Randi, I know a lot about the industry after my day with the pawnbrokers. You have a beautiful bracelet. That could get you a pretty penny.

KAYE: I'll keep those right here. Thanks, Gary.

Still to come, an innocent conversation gets an entire family kicked off a plane in the name of security. For some, it's a clear- cut case of racial profiling.

Ahead tonight, a "NO BIAS, NO BULL" debate. Has prudence turned into intolerance?

And later, our "Welcome to the White House." The Obamas are finally moving to Washington this weekend, but not into the executive mansion just yet. We'll tell you about their new temporary digs as a long-awaited era finally begins.

(COMMERCIAL BREAK)

KAYE: Here in New York, there's an anti-terror ad campaign with the tag line "If you see something, say something." Is that the kind of thinking that got a Muslim American family booted off a flight from Washington to Orlando, Florida yesterday?

Nine members of the Irfan family, including three young children, were removed from an AirTran flight after other passengers reported what they thought was a suspicious remark. The family was eventually cleared by FBI agents. Earlier I talked to Kashif Irfan and his wife, Inayet Sahin. They explained what happened.

(BEGIN VIDEO CLIP)

INAYET SAHIN, KICKED OFF AIRTRAN FLIGHT: We were walking to our seats and, you know, waiting for people in front of us to put their baggage overhead, and we were just commenting -- someone commented that oh, why are we in the back by the bathrooms. And I mentioned, oh, those are the safest seats. And that led to a whole conversation of where the safest part of the airplane is, whether it's over the wing or next to the engines or the engine's the most dangerous part.

KASHIF IRFAN, KICKED OFF AIRTRAN FLIGHT: And the words bomb, explosion, terror plot, assassination or I don't know what else you can think of, none of those words were ever said by any of us.

(END VIDEO CLIP)

KAYE: Now, AirTran issued a statement this afternoon saying, "We regret that the issue escalated to the heightened security level it did on new year's day, but we trust everyone understands that the security and the safety of our passengers is paramount and cannot be compromised. We apologize to all of the passengers, to the nine who had to undergo extensive interviews from the authorities, and to the 95 who ultimately made the flight."

There is a lot to talk about here, and we want to hear from all sides. So let's bring in Edina Lekovic, communications director of the Muslim Public Affairs Council, a policy advocacy organization, and Cliff May, president of the Foundation for Defense of Democracies, an anti-terrorism think tank. Welcome to both of you.

CLIFF MAY, FOUNDATION FOR DEFENSE OF DEMOCRACIES: Thank you.

KAYE: Cliff, we have a family here innocently discussing airplane security, as concerned as any of us are when we travel, and all of a sudden that becomes a security threat to the entire flight. Does that seem right to you?

MAY: No, it's not right. And I think that's why it's good that the airline has apologized to them. They were inconvenienced and they were delayed. But you have to expect this kind of thing will happen.

As I understand the story, and it's a misunderstanding that can happen, they were talking about where it's safest to sit on the plane in case something should happen. Now somebody heard all of that or part of that, and I think you don't want to discourage people from raising concerns. Better to be inconvenienced, better to be delayed, than to have one's life threatened.

That family doesn't want its life threatened and neither do any other passengers. So this is unfortunate. An apology was in order. An apology's been delivered. I think it should be left right there.

KAYE: But, Cliff, do you admit that this family was profiled because they're Muslim. They were wearing their traditional Muslim clothing?

MAY: It sounds like what sparked the concern was something that they said about security and where it may be safer to sit on an airline that is under attack --

KAYE: But you think it would have sparked the same concern for anyone?

MAY: Is it possible? Look, the fact that they are Muslims, that should not be a reason for them to get special scrutiny. But when you couple that with remarks about airline safety, it's going to set off alarms for some people.

There are two things -- let me say this very candidly. The overwhelming majority of Muslims are not terrorists, do not support terrorism, and do not approve of terrorism. That is true. It is equally true that most of the terrorism taking place in the world is being carried out by Muslims who say they act in the name of their religion. That also is a truth, and it's an uncomfortable one, but we have to acknowledge it.

KAYE: Let's give Edina a chance to weigh in here. What do you think about what Cliff has just said?

EDINA LEKOVIC, MUSLIM PUBLIC AFFAIRS COUNCIL: Well, look, we have a situation here where these passengers are jittery and everybody flying these days is jittery, and they followed their instincts. They followed the rules of if you see something say something. And in this case they got it wrong.

I don't blame the passengers and I don't think the passengers should be held accountable, but I think the airline needs to be held accountable for a quick and just sort of solution to this sort of mistake that takes place.

The airline apologized just today after all this media attention quite understandably. It would have been much better, though, had they quickly rebooked these passengers so that they could just, you know, continue to go about their daily lives.

And as to the last assertion that Mr. May just made, you know, I think the reality is that profiling doesn't work. The director of the FBI has said so. The attorney general has said so. And I think that they certainly have better credentials than we do on this case.

Smart policing involves following suspicious behavior, and nobody would be against that. People like Jose Padilla and John Walker Lindh would have slipped through the cracks if they had been, you know, subjected to just racial profiling.

So I think we've got smarter means that we need to be using here. And again, I think that the bottom line here is we've got to hold the airline accountable so that there can be quick resolutions here.

KAYE: Cliff, jump in.

MAY: Yes, I was going to say, I don't think I made a case for racial or ethnic or religious profiling. I wouldn't do so. It would be stupid to do that because I think Edina's exactly right. The terrorists will try to use somebody who does not fit that profile. They have done that in the past. They will do that in the future.

On 9/11, the 19 hijackers took pains to look -- try to look like anybody else as best they could. Now, on 9/11, we didn't do enough for airline security. Sometimes, like in this case, we may do too much. It is not easy to strike a balance.

KAYE: All right, Cliff, Edina, we're going to have to leave it there. Thank you both very much.

Coming up, got an extra 50 grand lying around? That's how much some Hollywood bigwigs are handing over to help pay for the Obama inauguration. We'll tell you who's opening their checkbooks in tonight's "Welcome to the White House."

(COMMERCIAL BREAK)

KAYE: In just a few minutes, "LARRY KING LIVE" has a busy lineup including breaking news on the shocking death of a Hollywood superstar's teenage son.

Larry, tell us more.

LARRY KING, HOST, "LARRY KING LIVE": We're going to have the latest here on the tragedy in John Travolta's family today. The actor's 16-year-old son died this morning, not at all expected.

And we're also going to be on top of the breaking news from the Middle East. Is Israel ready and waiting to attack Hamas on the ground in Gaza? It's all on "LARRY KING LIVE," next.

KAYE: All right. Thanks, Larry.

Up next, an inaugural nightmare. How do you avoid showing up in the same gown as someone else? Now you can check what the competition will be wearing. We'll explain in our "Welcome to the White House."

And you remember these kids singing about Barack Obama? Now they have 365,000 more reasons to break out in song. We'll tell you why.

(COMMERCIAL BREAK)

KAYE: With less than three weeks to go until inauguration day, Washington is on pins and needles waiting for the new first family.

Erica Hill is our expert on all things Obama, as she giggles. She's here with tonight's edition of "Welcome to the White House." What is the latest?

ERICA HILL, CNN CORRESPONDENT: An expert.

KAYE: Yes.

HILL: You know, it depends on the day today.

So we're talking so much about the Obamas. We've been focused, of course, on Hawaii. But the big day is almost here, that being moving day. After that 13-day Hawaiian vacation, the future first family is now on the way to Washington.

A brief stopover this weekend at home in Chicago, but Sunday it is on to their new hometown, where the Obama family will actually be moving into temporary digs at the exclusive Hay-Adams Hotel. It's just steps from the White House.

They have to get there early, of course, because Monday is the first day of school for Malia and Sasha at Sidwell Friends, which is Chelsea Clinton's alma mater. Dad, meantime, is going to jump right into meetings with congressional leaders on his economic stimulus plan.

And with just 18 days until the swearing in, some Hollywood heavy hitters are opening up their checkbooks to help pay for the festivities. Tom Hanks has donated the max of $50,000. Same for Steven Spielberg and Halle Berry. Magic Johnson ponied up 25 grand. Sharon Stone, though, in for another 50. If that's a little too rich for your blood but you still want to be a part of the action, you could volunteer to work the inauguration. Although I have to warn you your offer may not guarantee you a spot on the team. Sixty thousand people have already applied for about 18,000 volunteer positions. Of course, not everyone in Washington does have Obama fever.

"Politico" reporting some prominent Republicans not surprisingly here are getting out of town. One former Mitt Romney campaigner is actually throwing a bash in Vegas. He's calling it the inaugural in exile. Another Republican says he'll be knee deep in conversation with his friend Jack Daniels.

But for those who will be celebrating in Washington at the inaugural ball, the focus right now likely on the dress. And lucky for them there's a new Web site arriving just in time to prevent the ultimate faux pas, a dress double.

KAYE: I know.

HILL: Dress registry -- the horror. I hate it when Randi comes to work wearing the same outfit as me.

Dressregistry.com lets you register your dress to let other attendees know who and what you'll be wearing and hopefully keep them from wearing the same thing.

One of the most exclusive events, by the way, of the inaugural won't cost attendees a dime. This is the Commander-in-Chief's Ball, which honors military personnel, their spouses, and those wounded in Iraq and Afghanistan. The formal event will be held at the National Building Museum, which hosted its first ball in 1885.

KAYE: Can we get back to that dress registry?

HILL: Its registry?

KAYE: It's hysterical. If only they had that, you know, I guess during the prom time maybe.

(CROSSTALK)

HILL: I could see it becoming huge for the prom this year.

KAYE: Yes, you'll never know.

HILL: We'll have to keep an eye on it.

KAYE: Maybe we should start one here. What are you wearing tomorrow?

HILL: We'll talk later.

KAYE: Monday.

HILL: We'll talk later. KAYE: We'll start registering. Thanks, Erica.

Now, do you remember these great kids?

(BEGIN VIDEO CLIP)

RON CLARK ACADEMY STUDENTS: Obama on the left, McCain on the right. We can talk politics all night and you can vote however you like. I said you can vote however you like. Yes.

(END VIDEO CLIP)

KAYE: You must remember them. They are from the Ron Clark Academy. Their song reminding everyone to get out and vote became a national sensation. And they picked up one very important fan along the way. That is Oprah Winfrey.

Well, just before Christmas, she sent a letter to this private school in one of Atlanta's poorest neighborhoods. Along with the letter, there was a check for $365,000. The money is expected to go toward scholarships.

How nice is that? Apparently, I guess, the gentleman who got the letter opened up the envelope and started to read the letter and was so excited about the letter from Oprah Winfrey that then he suddenly noticed the check dropped out from under the letter.

HILL: Oh, wait, there's also a check. She's actually supported him I think a number of times. Ron Clark.

KAYE: Yes.

HILL: Really, really nice to see it continue.

KAYE: That's it for us tonight.

Campbell back on Monday.

"LARRY KING LIVE" right now.