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Live From...

Interview With Ernie Lopez

Aired March 08, 2004 - 14:00   ET

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

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


KYRA PHILLIPS, CNN ANCHOR: Welcome back. From the CNN Center in Atlanta, this is LIVE FROM... I'm Kyra Phillips. Here's what's all new this half hour.
Outsourcing. It's the buzz word of business and politics. It's costing you your job. We'll take a closer look at how it works.

And a boxer who had 23 career knockouts. He got knocked down a little bit by life. But he's back. He wasn't down for the count. We're going to talk to a man who has gone from a homeless shelter to the Hall of Fame in just a minute. But first, the top stories we're following for you.

A difficult day for a Domestic Diva. Martha Stewart met a probation officer today involving her conviction on obstruction of justice charges. Also media company Viacom announced it's canceling Stewart's TV show. Sources say the board of Stewart's company, OmniMedia, will also meet this afternoon to discuss her fate.

A historic moment in Iraq's past democracy. Iraq's Governing Council signed the interim constitution today after last week's delay. However, the Shi'ite Grand Ayatollah criticized the document calling it an obstacle toward a permanent constitution. The document defines the new Iraq as federal, democratic and pluralist.

U.S. Marines respond to a deadly incident in Haiti. Spokesperson says the gunman opened fire on protesters and Marines yesterday at an anti-Aristide rally. He was killed by U.S. Marines. In all, violence left at least seven people dead.

The schedule is set for the final public hearings for the 9/11 Commission. The independent panel released a timetable today. There will be four sets of open hearings in Washington and New York City between March and June. The panel completes its work in July.

Now the story of a sports comeback made for the movies. During the 1960s and '70s, boxer Ernie Lopez was known for his knuckles of steel. They called him "Indian Red" because of his Native American ancestry and fiery red hair.

Lopez's dream was to win the world welterweight title. But it never became a reality. Lopez lost two title bouts and then lost his way. He became a bit of a vagabond and later homeless. He was down but not out.

He's reunited with his family now and this weekend was inducted into California's Boxing Hall of Fame.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: A man who has resurfaced and back among his loved ones and friends and fans after a much too long absence, Ernie Lopez. Let's bring him up here.

UNIDENTIFIED MALE: On behalf of the California Boxing Hall of Fame, and the city of Los Angeles, we want to say that you're our champ. Your family means the world to you, and they are even more excited and appreciative of not only you as a fighter, but you as the father and family man. Congratulations.

MARCIA IANNONE, LOPEZ'S EX-WIFE: He was a great fighter. And I just always loved to watch his fights, or the courage that he had and the person that he's always been.

He doesn't realize what a champion he is, that he has always been that champion, but he didn't see it. I want you to know that you're a great man and we're glad to have you back.

CINDY LOPEZ COMSTOCK, LOPEZ'S DAUGHTER: A lot of time's circumstances and time seems to separate the what-ifs from the once was. But our dad has always been our dad. And that will never change. And we just want him to know how much we love him and our love has never faltered. Regardless of the Boxing Hall of Fame, we wanted him here with us.

ERNIE "INDIAN RED" LOPEZ, LONG-LOST CHAMP: Hope that they are really all doing well because I'm all right. So -- even though I get lost every once in a while for a couple of years, maybe five, ten. It happens.

(END VIDEOTAPE)

PHILLIPS: It happens. Well talk about the comeback kid. With us live from Los Angeles, former world class welterweight and California Boxing Hall of Fame inductee, Ernie Lopez. Ernie, great to see you.

LOPEZ: Good to see you.

PHILLIPS: Hey, take us back. Would you? How did you get into boxing in the first place? Who inspired you?

LOPEZ: My father actually. He used to be a boxer. And he taught the boxing club in (UNINTELLIGIBLE), Utah. I went and kind of got into it too at that time. But I was real young though. I was only like 13, 14 years old.

PHILLIPS: Did you know you had talent?

LOPEZ: Not yet. Not at that time. You know? I was just too young.

PHILLIPS: So what kept you going? What was it that you loved about it that made you want to keep fighting and keep looking farther ahead into a career?

LOPEZ: Well, I just kept -- tried to keep myself in shape, you know, so I'd run every morning and work out every evening. So I'd be able to fight at sometime.

PHILLIPS: You were pretty disciplined.

All right, so we were checking out your record, Ernie. We did a little research here.

LOPEZ: Hey, that wasn't the RCA thing, was it? Or the 45?

Just kidding you.

(LAUGHTER)

PHILLIPS: Yes, that record too. What was that song you sing, "The Wanderer"? Right? Didn't you tell me you coined that thing?

LOPEZ: Yes. The wanderer. Wander around, around, around. Yes.

PHILLIPS: Ernie, 1964 to 1974, you had 47 wins, 23 knockouts. That's pretty amazing. I mean when you look at that record, ten years, that's a long time for a boxer. What kept you motivated, what kept you going for that decade?

LOPEZ: I was just -- I don't know really. I just hoping I would be able to at some time fight for the title which I did. Then I didn't do any good at that.

PHILLIPS: But you did do well.

LOPEZ: Well, I lost. But it was a good fight though.

PHILLIPS: Absolutely. You can even see by the video. Talk about being a good fighter, let's talk about when were you in the ring with Jose Montequia Napolis (ph). Take me back to that fight.

LOPEZ: That was a tough one. He's really a slick fighter and a good fighter. I didn't do as good as I thought I was going to do. At least I got to fight him two times. So -- you know?

PHILLIPS: According to his quotes, he says you put up a hell of a fight. Is that where sometime started to take a different turn for you, Ernie, after that fight?

LOPEZ: Yes, kind of.

PHILLIPS: What was going through your mind after you lost that fight?

LOPEZ: Well, I lost to him two times. After the first time, it wasn't too bad. Then I lost him again. So then I didn't -- I still fought in a few places after that, but nobody really knew it.

PHILLIPS: Well, I got to ask you this, Ernie. Because we've been seeing so many stories about you and reading articles about you and you're with us now. But there was a decade you had a decade of a great career, then there was this decade where no one could find you. Where you lost touch with your family. And you're living in a homeless shelter.

Tell me what happened. What happened at that point in '74 that changed things for you?

LOPEZ: Well, I'm not really sure. Maybe my -- I just didn't want to keep doing things, I guess. And I don't know. I'm still wondering myself about that.

PHILLIPS: Well, are you looking at what happened over this past weekend, the fact that you've now been inducted in the Hall of Fame...

LOPEZ: Oh, yes, that's nice. I'm glad they did that.

PHILLIPS: Do you feel you finally achieved something that you worked so hard for when you were a young kid?

LOPEZ: Yes, I do. I think that's great. That's nice that they inducted me into the Hall of Fame. I'm thankful for all those fellas that did induct me into the Hall of Fame.

PHILLIPS: Hedgemon Lewis (ph) who fought you three times, lost twice, he says you pretty much kicked his butt. He called you a ferocious fighter and that you were a crowd pleaser because you were such a fighter, period. You fought.

LOPEZ: Yes. I didn't get in there to run.

(LAUGHTER)

PHILLIPS: You weren't there to get beat. Were you?

LOPEZ: No.

PHILLIPS: Well, Ernie, you've got 23 grandkids. What did a lot of your kids, even your grandkids, say to you when you finally connected with them last week?

LOPEZ: They were all looked happy to see me, I guess. And goodness, I couldn't believe all the stuff that everybody was doing over my family.

PHILLIPS: Sure.

LOPEZ: But it was great. It was nice to get together with all of them again.

PHILLIPS: Well, you say that your life turned back there in 1974 when you lost that fight to Jose. But now, all these years later, are you realizing that what you did was you definitely did make a mark and that you are pretty important and pretty special to a lot of people?

LOPEZ: Oh, yes. I'm happy that they -- that I did what I did do. And you can't change anything and go back and change anything after you do it like that. So I'm happy that I did get to fight for the title at least.

PHILLIPS: There you go. You're in the Hall of Fame. You got 23 grandkids. Are you ready to be a role model to them? You're not allowed to wander anymore. All right, Ernie?

LOPEZ: Not unless I get a car.

(LAUGHTER)

PHILLIPS: And you know what? we're going to make sure there is a GPS on that car, Indian Red.

(LAUGHTER)

PHILLIPS: All right. Hey, thanks for spending time with us. We salute you. I'm going to be following up on you in a year. You understand?

LOPEZ: OK.

PHILLIPS: All right.

LOPEZ: Thank you very much.

PHILLIPS: Thank you.

LOPEZ: Take it easy.

PHILLIPS: You keep fighting, my friend.

LOPEZ: OK. I'll do what I can.

(LAUGHTER)

PHILLIPS: All right.

LOPEZ: OK.

PHILLIPS: Ernie Lopez. Well, does he have you feeling a little motivated? And ready to go work out maybe? Dr. Sanjay Gupta shows you thou build your own home gym quickly and cheaply. Bet you Ernie could coach you.

And how is your financial health? Why more and more Americans are only paying the minimum on those credit cards these days.

(COMMERCIAL BREAK)

PHILLIPS: Buried alive in Utah. Some Boy Scouts got more than they bargained for during a emergency survival outing. Thirty-nine Scouts trapped under six feet of snow after high winds caused their snow caves to collapse. Scout leaders sleeping outside the caves called in rescue crews who successfully dug out the scouts.

(BEGIN VIDEO CLIP)

BOB THOMAS, SCOUTMASTER: Our whole idea was to go out and be prepared for certain circumstances where you might be trapped in the outdoors in such conditions. But we IN no way anticipated actually but thing our training to use that night.

(END VIDEO CLIP)

PHILLIPS: Some of the boys were still sleeping when they were found.

The first real stage of the Iditarod Sled Dog Race went off without a hitch. Wish I could say it without a hitch. A record 87 teams, more than 1,300 dogs make being the trek through Alaska. Last year's winner took just more than nine days to complete the 1,100 mile course.

Have you already abandoned that new year's resolution to get fit? Haven't we all? There is still time to shape up before the warm weather months. Dr. Sanjay Gupta shows you how to work it out for cheap in your own home.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): It only takes a few simple items -- a stability ball, rubber tubing, a few mats -- and you've got yourself a home gym.

SABRENA NEWTON, PERSONAL TRAINER: You can put together a home gym for less than $100.

GUPTA: Personal trainer Sabrena Newton says resist the urge to buy expensive machines. After a few months they'll probably be collecting dust anyway.

NEWTON: Go about it the most inexpensive way first.

GUPTA: Start off purchasing a stability ball for crunches and lower body work.

NEWTON: Basically for resistance.

GUPTA: Rubber tubing also provides resistance and is good for squats.

NEWTON: It doesn't look like it weighs much, but it does.

GUPTA: Medicine balls work out the upper body.

NEWTON: Stepping basically up and off.

GUPTA: While a step bench works the legs, and a few small hand weights round out your home gym.

NEWTON: Even though these are very small, you can still definitely get a good resistance workout with them. GUPTA: The price tag for this gym? Around $100. And if your budget is tight, use what you already have. Newton says chairs in the home are great for resistance. Cans of food can replace hand weights, and running up and down the steps can bolster your cardio. Of course, prior to starting any exercise regiment, pay a visit to your physician.

NEWTON: If you can access a quick workout just by grabbing something out of the closet, then of course you're going to be more likely to do it and stick with it.

GUPTA: A home gym may be key to keeping those New Year's resolutions.

Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: So does your credit card debt feel out of this world to you? Coming up in biz news, while only paying the minimum will prolong your pain.

And the backlash against outsourcing. Some say America's own ingenuity is to blame.

(COMMERCIAL BREAK)

PHILLIPS: The nation's unemployment rate is now at 5.6 percent. The Bush administration is under election year pressure to create more jobs. It's not that American businesses don't have jobs to fill. CNN financial correspondent Bill Tucker reports a lot of them find workers are a better bargain overseas.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNNfn CORRESPONDENT (voice-over): The list of companies which outsource and offshore work is a long one and filled with some impressive names. And the type of work being offshored has gone way beyond call centers.

TOM RODENHAUSER, CONSULTING INFO. SERVICE: Once a company decides to outsource, they're predicating their decision based on price. So the natural inclination is to go with the lowest cost provider. That segues right into or shoring.

TUCKER: All made possible by the Internet, developed by Americans. U.S. businesses spend $16 billion on offshoring work last year, according to Gartner. And India gets the lion's share of that work. Some of the biggest names in the field are Emphasis, Tata Industries, Whippro.

Consultants often play a role as the middleman connecting companies with offshore providers, holding conferences to help companies outsource and offshore work. It's large and fast growing business. Conferences are heavily attended and often protested by workers displaced by outsourcing. One consultant makes a simple point. If we don't like the offshoring trend, we have no one to blame but ourselves.

MICHAEL CORBETT, MICHAEL CORBETT & ASSOC.: As customers we demand the lowest possible price and highest quality on our products and services. As shareholders, every time we open up our 401(k) statement, we're looking at the returns from our investments. So the pressure on businesses to constantly improve their operations is relentless.

TUCKER: Not every company that outsources offshores. Case in point, Healthcare Management Resources, which handles billing and patient account services for 90 hospitals around country.

DENNIS SWARTZ, HEALTHCARE MGMT. RESOURCES: Outsourcing domestic has a tremendous advantage. The best situation is to have local people that understand the culture, understand customs and can effectively deal with the problems that arise.

TUCKER: HMR currently operates two call centers in Tennessee and employs 425 people.

(on camera): One industry observers at Gartner, a research and consulting groups warns the jobs lost to offshore are not likely to ever be coming back.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

(MARKET UPDATE)

PHILLIPS: Straight ahead, punishment has already started for Martha Stewart. CBS is pulling her show. What should her court sentence be? We'll talk about that with a criminal defense attorney who specializes in white collar crimes.

Jean-Bertrand Aristide gives his first news conference since leaving Haiti. He's sticking to his story about being abducted.

And a trip back in time with one of the last old-fashioned elevator operators in the South.

(COMMERCIAL BREAK)

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Aired March 8, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Welcome back. From the CNN Center in Atlanta, this is LIVE FROM... I'm Kyra Phillips. Here's what's all new this half hour.
Outsourcing. It's the buzz word of business and politics. It's costing you your job. We'll take a closer look at how it works.

And a boxer who had 23 career knockouts. He got knocked down a little bit by life. But he's back. He wasn't down for the count. We're going to talk to a man who has gone from a homeless shelter to the Hall of Fame in just a minute. But first, the top stories we're following for you.

A difficult day for a Domestic Diva. Martha Stewart met a probation officer today involving her conviction on obstruction of justice charges. Also media company Viacom announced it's canceling Stewart's TV show. Sources say the board of Stewart's company, OmniMedia, will also meet this afternoon to discuss her fate.

A historic moment in Iraq's past democracy. Iraq's Governing Council signed the interim constitution today after last week's delay. However, the Shi'ite Grand Ayatollah criticized the document calling it an obstacle toward a permanent constitution. The document defines the new Iraq as federal, democratic and pluralist.

U.S. Marines respond to a deadly incident in Haiti. Spokesperson says the gunman opened fire on protesters and Marines yesterday at an anti-Aristide rally. He was killed by U.S. Marines. In all, violence left at least seven people dead.

The schedule is set for the final public hearings for the 9/11 Commission. The independent panel released a timetable today. There will be four sets of open hearings in Washington and New York City between March and June. The panel completes its work in July.

Now the story of a sports comeback made for the movies. During the 1960s and '70s, boxer Ernie Lopez was known for his knuckles of steel. They called him "Indian Red" because of his Native American ancestry and fiery red hair.

Lopez's dream was to win the world welterweight title. But it never became a reality. Lopez lost two title bouts and then lost his way. He became a bit of a vagabond and later homeless. He was down but not out.

He's reunited with his family now and this weekend was inducted into California's Boxing Hall of Fame.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: A man who has resurfaced and back among his loved ones and friends and fans after a much too long absence, Ernie Lopez. Let's bring him up here.

UNIDENTIFIED MALE: On behalf of the California Boxing Hall of Fame, and the city of Los Angeles, we want to say that you're our champ. Your family means the world to you, and they are even more excited and appreciative of not only you as a fighter, but you as the father and family man. Congratulations.

MARCIA IANNONE, LOPEZ'S EX-WIFE: He was a great fighter. And I just always loved to watch his fights, or the courage that he had and the person that he's always been.

He doesn't realize what a champion he is, that he has always been that champion, but he didn't see it. I want you to know that you're a great man and we're glad to have you back.

CINDY LOPEZ COMSTOCK, LOPEZ'S DAUGHTER: A lot of time's circumstances and time seems to separate the what-ifs from the once was. But our dad has always been our dad. And that will never change. And we just want him to know how much we love him and our love has never faltered. Regardless of the Boxing Hall of Fame, we wanted him here with us.

ERNIE "INDIAN RED" LOPEZ, LONG-LOST CHAMP: Hope that they are really all doing well because I'm all right. So -- even though I get lost every once in a while for a couple of years, maybe five, ten. It happens.

(END VIDEOTAPE)

PHILLIPS: It happens. Well talk about the comeback kid. With us live from Los Angeles, former world class welterweight and California Boxing Hall of Fame inductee, Ernie Lopez. Ernie, great to see you.

LOPEZ: Good to see you.

PHILLIPS: Hey, take us back. Would you? How did you get into boxing in the first place? Who inspired you?

LOPEZ: My father actually. He used to be a boxer. And he taught the boxing club in (UNINTELLIGIBLE), Utah. I went and kind of got into it too at that time. But I was real young though. I was only like 13, 14 years old.

PHILLIPS: Did you know you had talent?

LOPEZ: Not yet. Not at that time. You know? I was just too young.

PHILLIPS: So what kept you going? What was it that you loved about it that made you want to keep fighting and keep looking farther ahead into a career?

LOPEZ: Well, I just kept -- tried to keep myself in shape, you know, so I'd run every morning and work out every evening. So I'd be able to fight at sometime.

PHILLIPS: You were pretty disciplined.

All right, so we were checking out your record, Ernie. We did a little research here.

LOPEZ: Hey, that wasn't the RCA thing, was it? Or the 45?

Just kidding you.

(LAUGHTER)

PHILLIPS: Yes, that record too. What was that song you sing, "The Wanderer"? Right? Didn't you tell me you coined that thing?

LOPEZ: Yes. The wanderer. Wander around, around, around. Yes.

PHILLIPS: Ernie, 1964 to 1974, you had 47 wins, 23 knockouts. That's pretty amazing. I mean when you look at that record, ten years, that's a long time for a boxer. What kept you motivated, what kept you going for that decade?

LOPEZ: I was just -- I don't know really. I just hoping I would be able to at some time fight for the title which I did. Then I didn't do any good at that.

PHILLIPS: But you did do well.

LOPEZ: Well, I lost. But it was a good fight though.

PHILLIPS: Absolutely. You can even see by the video. Talk about being a good fighter, let's talk about when were you in the ring with Jose Montequia Napolis (ph). Take me back to that fight.

LOPEZ: That was a tough one. He's really a slick fighter and a good fighter. I didn't do as good as I thought I was going to do. At least I got to fight him two times. So -- you know?

PHILLIPS: According to his quotes, he says you put up a hell of a fight. Is that where sometime started to take a different turn for you, Ernie, after that fight?

LOPEZ: Yes, kind of.

PHILLIPS: What was going through your mind after you lost that fight?

LOPEZ: Well, I lost to him two times. After the first time, it wasn't too bad. Then I lost him again. So then I didn't -- I still fought in a few places after that, but nobody really knew it.

PHILLIPS: Well, I got to ask you this, Ernie. Because we've been seeing so many stories about you and reading articles about you and you're with us now. But there was a decade you had a decade of a great career, then there was this decade where no one could find you. Where you lost touch with your family. And you're living in a homeless shelter.

Tell me what happened. What happened at that point in '74 that changed things for you?

LOPEZ: Well, I'm not really sure. Maybe my -- I just didn't want to keep doing things, I guess. And I don't know. I'm still wondering myself about that.

PHILLIPS: Well, are you looking at what happened over this past weekend, the fact that you've now been inducted in the Hall of Fame...

LOPEZ: Oh, yes, that's nice. I'm glad they did that.

PHILLIPS: Do you feel you finally achieved something that you worked so hard for when you were a young kid?

LOPEZ: Yes, I do. I think that's great. That's nice that they inducted me into the Hall of Fame. I'm thankful for all those fellas that did induct me into the Hall of Fame.

PHILLIPS: Hedgemon Lewis (ph) who fought you three times, lost twice, he says you pretty much kicked his butt. He called you a ferocious fighter and that you were a crowd pleaser because you were such a fighter, period. You fought.

LOPEZ: Yes. I didn't get in there to run.

(LAUGHTER)

PHILLIPS: You weren't there to get beat. Were you?

LOPEZ: No.

PHILLIPS: Well, Ernie, you've got 23 grandkids. What did a lot of your kids, even your grandkids, say to you when you finally connected with them last week?

LOPEZ: They were all looked happy to see me, I guess. And goodness, I couldn't believe all the stuff that everybody was doing over my family.

PHILLIPS: Sure.

LOPEZ: But it was great. It was nice to get together with all of them again.

PHILLIPS: Well, you say that your life turned back there in 1974 when you lost that fight to Jose. But now, all these years later, are you realizing that what you did was you definitely did make a mark and that you are pretty important and pretty special to a lot of people?

LOPEZ: Oh, yes. I'm happy that they -- that I did what I did do. And you can't change anything and go back and change anything after you do it like that. So I'm happy that I did get to fight for the title at least.

PHILLIPS: There you go. You're in the Hall of Fame. You got 23 grandkids. Are you ready to be a role model to them? You're not allowed to wander anymore. All right, Ernie?

LOPEZ: Not unless I get a car.

(LAUGHTER)

PHILLIPS: And you know what? we're going to make sure there is a GPS on that car, Indian Red.

(LAUGHTER)

PHILLIPS: All right. Hey, thanks for spending time with us. We salute you. I'm going to be following up on you in a year. You understand?

LOPEZ: OK.

PHILLIPS: All right.

LOPEZ: Thank you very much.

PHILLIPS: Thank you.

LOPEZ: Take it easy.

PHILLIPS: You keep fighting, my friend.

LOPEZ: OK. I'll do what I can.

(LAUGHTER)

PHILLIPS: All right.

LOPEZ: OK.

PHILLIPS: Ernie Lopez. Well, does he have you feeling a little motivated? And ready to go work out maybe? Dr. Sanjay Gupta shows you thou build your own home gym quickly and cheaply. Bet you Ernie could coach you.

And how is your financial health? Why more and more Americans are only paying the minimum on those credit cards these days.

(COMMERCIAL BREAK)

PHILLIPS: Buried alive in Utah. Some Boy Scouts got more than they bargained for during a emergency survival outing. Thirty-nine Scouts trapped under six feet of snow after high winds caused their snow caves to collapse. Scout leaders sleeping outside the caves called in rescue crews who successfully dug out the scouts.

(BEGIN VIDEO CLIP)

BOB THOMAS, SCOUTMASTER: Our whole idea was to go out and be prepared for certain circumstances where you might be trapped in the outdoors in such conditions. But we IN no way anticipated actually but thing our training to use that night.

(END VIDEO CLIP)

PHILLIPS: Some of the boys were still sleeping when they were found.

The first real stage of the Iditarod Sled Dog Race went off without a hitch. Wish I could say it without a hitch. A record 87 teams, more than 1,300 dogs make being the trek through Alaska. Last year's winner took just more than nine days to complete the 1,100 mile course.

Have you already abandoned that new year's resolution to get fit? Haven't we all? There is still time to shape up before the warm weather months. Dr. Sanjay Gupta shows you how to work it out for cheap in your own home.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): It only takes a few simple items -- a stability ball, rubber tubing, a few mats -- and you've got yourself a home gym.

SABRENA NEWTON, PERSONAL TRAINER: You can put together a home gym for less than $100.

GUPTA: Personal trainer Sabrena Newton says resist the urge to buy expensive machines. After a few months they'll probably be collecting dust anyway.

NEWTON: Go about it the most inexpensive way first.

GUPTA: Start off purchasing a stability ball for crunches and lower body work.

NEWTON: Basically for resistance.

GUPTA: Rubber tubing also provides resistance and is good for squats.

NEWTON: It doesn't look like it weighs much, but it does.

GUPTA: Medicine balls work out the upper body.

NEWTON: Stepping basically up and off.

GUPTA: While a step bench works the legs, and a few small hand weights round out your home gym.

NEWTON: Even though these are very small, you can still definitely get a good resistance workout with them. GUPTA: The price tag for this gym? Around $100. And if your budget is tight, use what you already have. Newton says chairs in the home are great for resistance. Cans of food can replace hand weights, and running up and down the steps can bolster your cardio. Of course, prior to starting any exercise regiment, pay a visit to your physician.

NEWTON: If you can access a quick workout just by grabbing something out of the closet, then of course you're going to be more likely to do it and stick with it.

GUPTA: A home gym may be key to keeping those New Year's resolutions.

Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: So does your credit card debt feel out of this world to you? Coming up in biz news, while only paying the minimum will prolong your pain.

And the backlash against outsourcing. Some say America's own ingenuity is to blame.

(COMMERCIAL BREAK)

PHILLIPS: The nation's unemployment rate is now at 5.6 percent. The Bush administration is under election year pressure to create more jobs. It's not that American businesses don't have jobs to fill. CNN financial correspondent Bill Tucker reports a lot of them find workers are a better bargain overseas.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNNfn CORRESPONDENT (voice-over): The list of companies which outsource and offshore work is a long one and filled with some impressive names. And the type of work being offshored has gone way beyond call centers.

TOM RODENHAUSER, CONSULTING INFO. SERVICE: Once a company decides to outsource, they're predicating their decision based on price. So the natural inclination is to go with the lowest cost provider. That segues right into or shoring.

TUCKER: All made possible by the Internet, developed by Americans. U.S. businesses spend $16 billion on offshoring work last year, according to Gartner. And India gets the lion's share of that work. Some of the biggest names in the field are Emphasis, Tata Industries, Whippro.

Consultants often play a role as the middleman connecting companies with offshore providers, holding conferences to help companies outsource and offshore work. It's large and fast growing business. Conferences are heavily attended and often protested by workers displaced by outsourcing. One consultant makes a simple point. If we don't like the offshoring trend, we have no one to blame but ourselves.

MICHAEL CORBETT, MICHAEL CORBETT & ASSOC.: As customers we demand the lowest possible price and highest quality on our products and services. As shareholders, every time we open up our 401(k) statement, we're looking at the returns from our investments. So the pressure on businesses to constantly improve their operations is relentless.

TUCKER: Not every company that outsources offshores. Case in point, Healthcare Management Resources, which handles billing and patient account services for 90 hospitals around country.

DENNIS SWARTZ, HEALTHCARE MGMT. RESOURCES: Outsourcing domestic has a tremendous advantage. The best situation is to have local people that understand the culture, understand customs and can effectively deal with the problems that arise.

TUCKER: HMR currently operates two call centers in Tennessee and employs 425 people.

(on camera): One industry observers at Gartner, a research and consulting groups warns the jobs lost to offshore are not likely to ever be coming back.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

(MARKET UPDATE)

PHILLIPS: Straight ahead, punishment has already started for Martha Stewart. CBS is pulling her show. What should her court sentence be? We'll talk about that with a criminal defense attorney who specializes in white collar crimes.

Jean-Bertrand Aristide gives his first news conference since leaving Haiti. He's sticking to his story about being abducted.

And a trip back in time with one of the last old-fashioned elevator operators in the South.

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