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CNN Live Today
Bush Names Homeland Security Nominee; Simultaneous Attacks in Baghdad Kills 29; Jobs Growth Falls Far Short of Expectation
Aired December 03, 2004 - 10:00 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.
DARYN KAGAN, CNN CO-ANCHOR: We are going to continue and pick up the story right from there. And so the slots are beginning to fill up for the second term.
RICK SANCHEZ, CNN CO-ANCHOR: Yes. And they're filling up fast. Let's go over to Jeanne Meserve. She's been following this story.
It seems, Jeanne that Bernie Kerik comes not just as a typical politician, but as a man with one fascinating story behind it.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: He has got a fascinating story. And He has one particular thing on his resume that really stands out, and is argued, makes him the person most qualified for that job. And that is that he was commissioner of the New York City Police Department on 9/11, when the Twin Towers were hit. The president spoke about that just a few minutes ago.
(BEGIN VIDEO CLIP)
RUDY GIULIANI (R), FMR. MAYOR, NEW YORK CITY: The rescue effort's been going on for a couple of hours, yes.
UNIDENTIFIED MALE: Mayor, do you know anything about the report...
(END VIDEO CLIP)
MESERVE: Sorry, that is obviously not the president but Rudy Giuliani talking at about the time of 9/11 about what had happened. You see Bernie Kerik right by his side there. He was, of course, he and the response efforts in New York City on that particular day. Kerik in his remarks just a few minutes ago at the White House, talked about how there was a permanent reminder to him of what needed to be done in this country, vis-a-vis Homeland Security. And the president talked about it, too.
si Talking again for just a minute about that biography that you mentioned. He was raised in New Jersey and Ohio, tough neighborhoods there. He was abandoned by his mother and later came to find out that his mother had been a prostitute. He then went in to the Army, served in Korea, and worked as a street cop eventually, and undercover narcotics detective in New York City.
He became very close to Rudy Giuliani, who was at that time New York's mayor. Became eventually commissioner of the New York Corrections Department, and then commissioner of the New York Police Department. He worked on training the police force in Iraq just a few months ago. And he is a senior vice president of Giuliani Partners.
Now we want to go back to that sound of the president talking about how that 9/11 experience makes Kerik the man for this job.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Good morning. I'm proud to announce my nomination of Commissioner Bernard Kerik as the secretary of Homeland Security.
(END VIDEO CLIP)
MESERVE: There you have the president speaking briefly there. A lot of challenges ahead for Bernard Kerik. Prominent amongst them trying to bring this Homeland Security bureaucracy into shape. It is huge just an immense department, 22 agencies were brought together. It's been a two-year effort. Many people will tell you there is a long way to go.
Some people feel that Bernie Kerik is just the man to do the job. He can come in and talk to people straight, and perhaps stop the infighting. But then there are other people who say maybe he lacks some of the political skills and the management experience that will make the department a more effective one.
Back to you.
SANCHEZ: You know what's interesting about this, Jeanne? I heard all this talk from all these people who were experts, who I suppose you could say speculating, that it would be Rudy Giuliani who would have a post in the next Bush administration. And it turns out not to be Rudy Giuliani, who went out and bought a securities company, but Rudy Giuliani's right-hand man.
What does that say about, if not Giuliani himself, his influence in this administration?
MESERVE: Well, Giuliani, his name was raised. But most people to whom I talked felt this was not a job Rudy Giuliani would be interested in. However, Giuliani is very close to Kerik, as have been mentioned. And I've been told by an administration official that on at least two occasions, Giuliani went to the White House and said hey listen. I've done a lot for you. I haven't asked for very much. This is something I would like. I would like to see Bernie Kerik as head of the Department of Homeland Security. That was delivered.
SANCHEZ: Interesting. Jeanne Meserve, thanks so much for bringing us up to date on that.
And as she indicated, Kerik has to overcome an awful lot in his days to become successful in his law enforcement career. Let's go over some of those details once again for you. Because I think they're certainly important.
He grew up in Paterson, New Jersey, not knowing his birth mother, incidentally. He cut classes from Eastside High School, troubled school depicted in the movie 1989 movie "Lean On Me," as a matter of fact. And you've heard so much about Paterson, an area that has been often talked about, as well. Kerik wound up dropping out of school to join the Army, but later he got a GED. He has three daughters, one son. He was reunited with one daughter who he fathered in South Korea, after 9/11 made him a national figure. Quite a story.
KAGAN: Well, while the president is filling one slot at Homeland Security, another is being vacated. Sources close to Asa Hutchinson, a Homeland Security undersecretary say that he is now leaving. He had been mentioned as a possible successor to Tom Ridge. That of course, is the job that President Bush now wants Bernard Kerik to handle.
So, still a lot of work to do in the personnel shuffle in the Bush cabinet. Our Elaine Quijano is at the White House with more possible comings and goings
Good morning.
ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Daryn. That's right. As President Bush looks to reshape his cabinet, still more changes are expected. We just heard a moment ago the official announcement by President Bush that his nominee to replace the outgoing Homeland Security Secretary Tom Ridge. The president's nominee is, in fact, Bernard Kerik.
Now, there are 15 cabinet positions, seven resignations that we know of so far. Taking a look at the bigger picture now. And six known nominees. So still vacant, unknown at this time, the question of who will replace the outgoing Energy Secretary Spence Abraham. Now also, there has been speculation about the Health and Human Services Secretary Tommy Thompson. Some saying that he may step down.
And the speculation game, the name at the top of the list that continues to emerge about who may replace Tommy Thompson is Mark McClellan. Now, McClellan is an administrator of the Federal Centers for Medicare and Medicaid Services. That would not be a surprise. This talk really began about two weeks ago. Speculation that Tommy Thompson might step down and Mark McClellan's name being at the top of that list for quite some time.
Also, more changes we learned of yesterday. John Danforth, who is the U.S. ambassador to the United Nations, will apparently be leaving his post come January. That taking place after less than seven months on the job. Now, in his letter of resignation to President Bush, he outlined personal reasons, citing the fact that he would like to spend more time with his wife.
And in fact, this morning White House spokesman Scott McClellan saying that Danforth resignation really did not come as a surprise. That Danforth apparently notified the White House of his intentions shortly after the elections. But Daryn, look for more changes ahead in the days to come -- Daryn.
KAGAN: All right. Keeping you busy there at the White House. Elaine, thank you. SANCHEZ: Well, it's been another bloody day in Baghdad; 29 people killed so far in simultaneous attacks. And let's take you now live to the Iraqi capital. That's where CNN's Karl Penhaul is filling us in on what's been going on there. Not only in Baghdad, but apparently there have been problems up north as well, around Mosul.
Karl, set the scene for us.
KARL PENHAUL, CNN CORRESPONDENT: Hi there, Rick. Well, certainly the major problems today have been in Baghdad. As far as we understand, three near simultaneous attacks here in the city shortly after dawn. Two of the attacks took place in the northern part of Baghdad. Suicide bombers drove a mini bus laden with explosives into a Shiite mosque. When that exploded, 14 prayer goers were killed, 19 others were wounded. There was also the casualty toll amongst the drivers, four suicide car bombers in that mini bus.
Insurgents then also unleashed a volley of rockets against a nearby police station. There were no casualties from that attack. But in the southwest of the city around the same time, a gang of insurgents overran a police station. There was a three-hour firefight there. Eleven policemen were killed, we're told. Nine other people, a mixture of police and civilians were wounded. And 20 prisoners who were being held in police cells there escaped. They're now on the run.
Now, government officials say that they believe that this was a coordinated attack by different rebel factions. This is what one of the Interior Ministry officials have to say.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It is the people who were part of the Saddam groups, the criminal elements, together with the Islamic desperados, who want chaos not only in Iraq but throughout the Middle East; in the mistaken belief that if you like, there will be an Islamic -- their style of Islamic state. And therefore I think this unholy alliance is coordinating this activities.
(END VIDEO CLIP)
PENHAUL: As you hear from him, what he believes is an unholy alliance, including Islamic desperados, he says the main aim of this alliance is to derail the elections plan for January 30 -- Rick.
SANCHEZ: Karl Penhaul, following that story for us.
And we're going to be getting back to Iraq in the next hour, as well. We're going to hook up with CNN's Nic Robertson. He's going to join us from Mosul, where U.S. and Iraqi forces have been battling insurgents today again. All this is a backdrop to the upcoming elections, of course.
KAGAN: There's also big news out of Southern California, the largest settlement of its kind in the church sex abuse scandal. Still to come, details of the late night settlement and how both sides plan to move ahead.
SANCHEZ: Also, what's in a cream? Barry Bonds choice of treatment for arthritis has questions about steroids all over it.
KAGAN: But first, are you looking for work this morning? We'll go live to the White House to find out your chances.
(COMMERCIAL BREAK)
SANCHEZ: All those people who watch these numbers have been waiting for one very important number to come out. And just moments ago, about 90 minutes ago as a matter of fact, the government released it's highly anticipated jobs report. And the director of the National Economic Council Steven Friedman is joining us now from the White House to talk about this.
We're going to try and break this down a little bit so our viewers at home can kind of understand it. Because oftentimes when we talk about these huge numbers, well, people have a tendency to get loss. Well, I've got a little telestrator here and I'm going to try and help set this up.
We've got the numbers as they were set up. We can say as an average between June and September, this was the jobs number, 130,000. Obviously it was a little different each month, but that's an average. Then all of a sudden, look what we happened. In October, it went all the way up to 303,000. Actually at first it was thought to be even a little bit higher, but now it's been adjusted.
So now we wait for the number to come out now, and this is the number that we have just been told has been released, 112,000.
Your reaction, Mr. Friedman
STEPHEN FRIEDMAN, ASST. TO THE PRES. FOR ECONOMIC POLICY: Well, Rick, you know, we tend to look at these job numbers over the longer- term. Jobs is obviously a crucial, a crucial thing for the American public and so the job statistics are vitally important. But they are extremely difficult for economists to predict month to month. The margin of error is very large. And over the long-term it's a solid performance.
So far this year, in 2004, the economy has created over 2 million jobs. And so the president's economic policies are working.
SANCHEZ: But here's a problem. Everything I read this morning, and I am no expert on this. But everything I read, and I've tried to get my hands on as much stuff as possible and all the experts who are making all these predictions. I didn't hear or read a lot of people saying that the number was going to be this low. It seems to me, correct me if I'm wrong, that the expectation was that it was going to be somewhere around the 200,000 mark. Correct? And if that's not the case, what's your reaction to it?
FRIEDMAN: Now, Rick, you are correct in what the expectation was. But the basic fact is, if you look back over past months, the -- there is a very substantial margin of error. And so, I can fully understand why for traders it's very, very important to focus on the monthly number. But for those of us who are concerned in policy -- about policy, we focus much more on the longer-term trend. And that is very solid.
SANCHEZ: Hmm. Let me ask you this, because I think it's interesting. Let's put that figure back up that we had just a little while ago. Because there's just much have been said about that October figure. Let's go ahead and go back to it again.
And we had this figure here between June and September, 130,000. Then all of a sudden, we see what something people call either a blip or aberration. But many thought that that was going to continue. That 303 is now being said to be caused by the hurricanes down south. And the fact that so much money was poured into the south for rebuilding that that's what caused the sudden job growth in that area.
If that's true then wasn't it just government money being poured in? In other words it wasn't self-produced. Is that a problem?
FRIEDMAN: No. Because you've had at other times, you've had job losses as a result of the hurricanes. So these things tend to equal some kind of balance over time. But as I said, Rick, I think putting too much stress on any single month and certainly putting too much stress on economists projections for the month, given that those are notoriously hard to predict is a mistake. So you have something...
SANCHEZ: You see an upturn here. You think things are going to pick up next month? And we're down to about 30 seconds here.
FRIEDMAN: No. I'm not going to make predictions about any particular month. I'm saying we're on a robust and a solid track. The president's policies have stimulated the economy. Business confidence is much higher than it was a year plus ago, prior to the passage of the jobs and growth package. Industrial shipments are strong. This morning we saw an Institute of Supply Management figures for the non-manufacturing sector, which actually were higher than expectations.
And so, we have an economy that's grown about 4 percent over the last four quarters. And the projections we're seeing are well above trend growth over the foreseeable future.
SANCHEZ: Accentuating the positives. Job well done, sir. Mr. Friedman, thanks so much for joining us.
FRIEDMAN: Thank you for having me.
SANCHEZ: Certainly appreciate it.
KAGAN: We're going to be talking knockoffs just ahead. Not the kind in the fashion industry, like those purses you see in the street in New York City. We're talking about medicine and fake shots. Still to come, what was in that dose that some folks in Washington State received?
SANCHEZ: Also no medicine needed to deliver these up.
KAGAN: Oh.
SANCHEZ: Just skill. Their amazing story coming up.
KAGAN: Look at the puppies.
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: And we'll show you how to navigate the advertising come-ons and get a free, yes, credit report when CNN LIVE TODAY continues.
(COMMERCIAL BREAK)
KAGAN: Credit reporting bureaus say that tens of thousands of people have taken advantage of a new law that allows consumers free credit reports. So far, though, the law applies only to 13 Western States. It will though expand to the rest of the states over the next 10 months.
Joining us to discuss the Fair and Accurate Credit Transactions Act, which basically means you're supposed to get a free credit report, is CNN/FN personal finance editor Gerri Willis.
Gerri, good morning.
WILLIS: Good morning, Daryn. Good to see you. Tip No. 1 today is that you really have to be patient. As Daryn just said, the benefits of this new law roll out only slowly. Thirteen Western States, people who live in those states will be eligible for the benefit right away that includes California, Colorado. But hey, if you live somewhere else, you're going to have to wait.
March 1 for people in the Midwest, that's March 1, 2005; the South, June. And if you live on the East Coast, you'll have to wait until September 1.
Now, if you want to know more details about how all of this works go to ftc.gov. That's the Federal Trade Commission's website.
KAGAN: All right. After that I'm in. I want my free credit report.
(LAUGHTER)
KAGAN: Where do I go?
WILLIS: Well, this is really tricky, Daryn. Now, most people would say well, I'll just go to the credit bureau's website. There are three of them. And that seems the logical thing to do. But consider this. Say you go to Experian and you try to sign up for the free credit report. You agree to be part of their credit manager program. That means you're supposed to get it free, if you forget to cancel it after 30 days though, they're going to charge you 9.95.
Much better solution to this, go to the FTC's website, that's annualcreditreport.com. There you can get all the information you need, as well as your free credit report when your state is eligible. And you can see the contact information right there.
KAGAN: All right. Now, once you get it you have it in hand. You have the free credit report, what do you do with it?
WILLIS: Check for mistakes.
KAGAN: Mm.
WILLIS: You know a lot of these reports, Daryn, have mistakes in them. You need to look at over very carefully. Because let's face it, what's in that report will determine exactly how much you're paying if you take out a loan to buy a house, or a car, or anything else.
Look for mistakes. If you find one, you've got to protest, send a letter. Make sure you give any evidence you have to show that the debt was not yours. Send a letter certified mail and they have 30 days to get back to you.
Now, if you're worried about identity theft, if you see debt on there, you don't know who it's from, you're really worried somebody has taken your identity and run up credit in your name. Go to idtheftcenter.org. Or go to the credit bureau's websites because they're really interested in policing this issue: experian.com, equifax.com, transunion.com.
KAGAN: But looking just once is not enough, is it?
WILLIS: Absolutely not. You need to check it over time, maybe even multiple times a year, particularly if you've had some kind of problem. And you know the bottom line here Daryn, of course? Pay your bills on time.
KAGAN: Mm. Well, there's that.
WILLIS: Especially the credit cards because that's the critical thing that these reports are really based on.
KAGAN: Are there going to be people out there trying to take advantage of those trying to take advantage of the free credit report.
WILLIS: Yes, unfortunately so. The FTC is saying if you get an e-mail from people claiming to be annualcreditreport.com, which is their website, forget about it. It's a scam artist. Because they are not sending out e-mails, they're not putting up pop-up ads. Nothing like that. You have to contact them directly if you want information or help. So make sure you stay away from the scammers. They're always out there.
KAGAN: All right. Gerri Willis, thank you for the tips, appreciate it.
WILLIS: Thank you. Happy Friday.
KAGAN: You too. SANCHEZ: Did you know that while many of us were sleeping last night there was a major settlement on the West Coast? Still to come, after years of pain, now hugs. That's the bishop of Orange County. And the details of that Catholic sex abuse settlement that he approved in California is coming up.
KAGAN: Plus we're talking steroids. Was it a cream or something illegal? We're going to tell you what Barry Bonds had to say to a grand jury.
RUSTY DORNIN, CNN CORRESPONDENT: Good morning. In Redwood City, California, the defense continues to try to evoke sympathy from the jury to save Scott Peterson's life. More coming up.
(COMMERCIAL BREAK)
KAGAN: We are very close to the bottom of the hour. I'm Daryn Kagan.
SANCHEZ: And I'm Rick Sanchez. And here's what's happening right now in the news.
Bernie Kerik, President Bush's new choice to be the Homeland Security director. Kerik came to national attention as the New York City police chief during 9/11. He helped train Iraqi police last year as well. And campaigned for President Bush before the election, as you may recall. The Senate of course, must still confirm Mr. Kerik's nomination.
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Aired December 3, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN CO-ANCHOR: We are going to continue and pick up the story right from there. And so the slots are beginning to fill up for the second term.
RICK SANCHEZ, CNN CO-ANCHOR: Yes. And they're filling up fast. Let's go over to Jeanne Meserve. She's been following this story.
It seems, Jeanne that Bernie Kerik comes not just as a typical politician, but as a man with one fascinating story behind it.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: He has got a fascinating story. And He has one particular thing on his resume that really stands out, and is argued, makes him the person most qualified for that job. And that is that he was commissioner of the New York City Police Department on 9/11, when the Twin Towers were hit. The president spoke about that just a few minutes ago.
(BEGIN VIDEO CLIP)
RUDY GIULIANI (R), FMR. MAYOR, NEW YORK CITY: The rescue effort's been going on for a couple of hours, yes.
UNIDENTIFIED MALE: Mayor, do you know anything about the report...
(END VIDEO CLIP)
MESERVE: Sorry, that is obviously not the president but Rudy Giuliani talking at about the time of 9/11 about what had happened. You see Bernie Kerik right by his side there. He was, of course, he and the response efforts in New York City on that particular day. Kerik in his remarks just a few minutes ago at the White House, talked about how there was a permanent reminder to him of what needed to be done in this country, vis-a-vis Homeland Security. And the president talked about it, too.
si Talking again for just a minute about that biography that you mentioned. He was raised in New Jersey and Ohio, tough neighborhoods there. He was abandoned by his mother and later came to find out that his mother had been a prostitute. He then went in to the Army, served in Korea, and worked as a street cop eventually, and undercover narcotics detective in New York City.
He became very close to Rudy Giuliani, who was at that time New York's mayor. Became eventually commissioner of the New York Corrections Department, and then commissioner of the New York Police Department. He worked on training the police force in Iraq just a few months ago. And he is a senior vice president of Giuliani Partners.
Now we want to go back to that sound of the president talking about how that 9/11 experience makes Kerik the man for this job.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Good morning. I'm proud to announce my nomination of Commissioner Bernard Kerik as the secretary of Homeland Security.
(END VIDEO CLIP)
MESERVE: There you have the president speaking briefly there. A lot of challenges ahead for Bernard Kerik. Prominent amongst them trying to bring this Homeland Security bureaucracy into shape. It is huge just an immense department, 22 agencies were brought together. It's been a two-year effort. Many people will tell you there is a long way to go.
Some people feel that Bernie Kerik is just the man to do the job. He can come in and talk to people straight, and perhaps stop the infighting. But then there are other people who say maybe he lacks some of the political skills and the management experience that will make the department a more effective one.
Back to you.
SANCHEZ: You know what's interesting about this, Jeanne? I heard all this talk from all these people who were experts, who I suppose you could say speculating, that it would be Rudy Giuliani who would have a post in the next Bush administration. And it turns out not to be Rudy Giuliani, who went out and bought a securities company, but Rudy Giuliani's right-hand man.
What does that say about, if not Giuliani himself, his influence in this administration?
MESERVE: Well, Giuliani, his name was raised. But most people to whom I talked felt this was not a job Rudy Giuliani would be interested in. However, Giuliani is very close to Kerik, as have been mentioned. And I've been told by an administration official that on at least two occasions, Giuliani went to the White House and said hey listen. I've done a lot for you. I haven't asked for very much. This is something I would like. I would like to see Bernie Kerik as head of the Department of Homeland Security. That was delivered.
SANCHEZ: Interesting. Jeanne Meserve, thanks so much for bringing us up to date on that.
And as she indicated, Kerik has to overcome an awful lot in his days to become successful in his law enforcement career. Let's go over some of those details once again for you. Because I think they're certainly important.
He grew up in Paterson, New Jersey, not knowing his birth mother, incidentally. He cut classes from Eastside High School, troubled school depicted in the movie 1989 movie "Lean On Me," as a matter of fact. And you've heard so much about Paterson, an area that has been often talked about, as well. Kerik wound up dropping out of school to join the Army, but later he got a GED. He has three daughters, one son. He was reunited with one daughter who he fathered in South Korea, after 9/11 made him a national figure. Quite a story.
KAGAN: Well, while the president is filling one slot at Homeland Security, another is being vacated. Sources close to Asa Hutchinson, a Homeland Security undersecretary say that he is now leaving. He had been mentioned as a possible successor to Tom Ridge. That of course, is the job that President Bush now wants Bernard Kerik to handle.
So, still a lot of work to do in the personnel shuffle in the Bush cabinet. Our Elaine Quijano is at the White House with more possible comings and goings
Good morning.
ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Daryn. That's right. As President Bush looks to reshape his cabinet, still more changes are expected. We just heard a moment ago the official announcement by President Bush that his nominee to replace the outgoing Homeland Security Secretary Tom Ridge. The president's nominee is, in fact, Bernard Kerik.
Now, there are 15 cabinet positions, seven resignations that we know of so far. Taking a look at the bigger picture now. And six known nominees. So still vacant, unknown at this time, the question of who will replace the outgoing Energy Secretary Spence Abraham. Now also, there has been speculation about the Health and Human Services Secretary Tommy Thompson. Some saying that he may step down.
And the speculation game, the name at the top of the list that continues to emerge about who may replace Tommy Thompson is Mark McClellan. Now, McClellan is an administrator of the Federal Centers for Medicare and Medicaid Services. That would not be a surprise. This talk really began about two weeks ago. Speculation that Tommy Thompson might step down and Mark McClellan's name being at the top of that list for quite some time.
Also, more changes we learned of yesterday. John Danforth, who is the U.S. ambassador to the United Nations, will apparently be leaving his post come January. That taking place after less than seven months on the job. Now, in his letter of resignation to President Bush, he outlined personal reasons, citing the fact that he would like to spend more time with his wife.
And in fact, this morning White House spokesman Scott McClellan saying that Danforth resignation really did not come as a surprise. That Danforth apparently notified the White House of his intentions shortly after the elections. But Daryn, look for more changes ahead in the days to come -- Daryn.
KAGAN: All right. Keeping you busy there at the White House. Elaine, thank you. SANCHEZ: Well, it's been another bloody day in Baghdad; 29 people killed so far in simultaneous attacks. And let's take you now live to the Iraqi capital. That's where CNN's Karl Penhaul is filling us in on what's been going on there. Not only in Baghdad, but apparently there have been problems up north as well, around Mosul.
Karl, set the scene for us.
KARL PENHAUL, CNN CORRESPONDENT: Hi there, Rick. Well, certainly the major problems today have been in Baghdad. As far as we understand, three near simultaneous attacks here in the city shortly after dawn. Two of the attacks took place in the northern part of Baghdad. Suicide bombers drove a mini bus laden with explosives into a Shiite mosque. When that exploded, 14 prayer goers were killed, 19 others were wounded. There was also the casualty toll amongst the drivers, four suicide car bombers in that mini bus.
Insurgents then also unleashed a volley of rockets against a nearby police station. There were no casualties from that attack. But in the southwest of the city around the same time, a gang of insurgents overran a police station. There was a three-hour firefight there. Eleven policemen were killed, we're told. Nine other people, a mixture of police and civilians were wounded. And 20 prisoners who were being held in police cells there escaped. They're now on the run.
Now, government officials say that they believe that this was a coordinated attack by different rebel factions. This is what one of the Interior Ministry officials have to say.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It is the people who were part of the Saddam groups, the criminal elements, together with the Islamic desperados, who want chaos not only in Iraq but throughout the Middle East; in the mistaken belief that if you like, there will be an Islamic -- their style of Islamic state. And therefore I think this unholy alliance is coordinating this activities.
(END VIDEO CLIP)
PENHAUL: As you hear from him, what he believes is an unholy alliance, including Islamic desperados, he says the main aim of this alliance is to derail the elections plan for January 30 -- Rick.
SANCHEZ: Karl Penhaul, following that story for us.
And we're going to be getting back to Iraq in the next hour, as well. We're going to hook up with CNN's Nic Robertson. He's going to join us from Mosul, where U.S. and Iraqi forces have been battling insurgents today again. All this is a backdrop to the upcoming elections, of course.
KAGAN: There's also big news out of Southern California, the largest settlement of its kind in the church sex abuse scandal. Still to come, details of the late night settlement and how both sides plan to move ahead.
SANCHEZ: Also, what's in a cream? Barry Bonds choice of treatment for arthritis has questions about steroids all over it.
KAGAN: But first, are you looking for work this morning? We'll go live to the White House to find out your chances.
(COMMERCIAL BREAK)
SANCHEZ: All those people who watch these numbers have been waiting for one very important number to come out. And just moments ago, about 90 minutes ago as a matter of fact, the government released it's highly anticipated jobs report. And the director of the National Economic Council Steven Friedman is joining us now from the White House to talk about this.
We're going to try and break this down a little bit so our viewers at home can kind of understand it. Because oftentimes when we talk about these huge numbers, well, people have a tendency to get loss. Well, I've got a little telestrator here and I'm going to try and help set this up.
We've got the numbers as they were set up. We can say as an average between June and September, this was the jobs number, 130,000. Obviously it was a little different each month, but that's an average. Then all of a sudden, look what we happened. In October, it went all the way up to 303,000. Actually at first it was thought to be even a little bit higher, but now it's been adjusted.
So now we wait for the number to come out now, and this is the number that we have just been told has been released, 112,000.
Your reaction, Mr. Friedman
STEPHEN FRIEDMAN, ASST. TO THE PRES. FOR ECONOMIC POLICY: Well, Rick, you know, we tend to look at these job numbers over the longer- term. Jobs is obviously a crucial, a crucial thing for the American public and so the job statistics are vitally important. But they are extremely difficult for economists to predict month to month. The margin of error is very large. And over the long-term it's a solid performance.
So far this year, in 2004, the economy has created over 2 million jobs. And so the president's economic policies are working.
SANCHEZ: But here's a problem. Everything I read this morning, and I am no expert on this. But everything I read, and I've tried to get my hands on as much stuff as possible and all the experts who are making all these predictions. I didn't hear or read a lot of people saying that the number was going to be this low. It seems to me, correct me if I'm wrong, that the expectation was that it was going to be somewhere around the 200,000 mark. Correct? And if that's not the case, what's your reaction to it?
FRIEDMAN: Now, Rick, you are correct in what the expectation was. But the basic fact is, if you look back over past months, the -- there is a very substantial margin of error. And so, I can fully understand why for traders it's very, very important to focus on the monthly number. But for those of us who are concerned in policy -- about policy, we focus much more on the longer-term trend. And that is very solid.
SANCHEZ: Hmm. Let me ask you this, because I think it's interesting. Let's put that figure back up that we had just a little while ago. Because there's just much have been said about that October figure. Let's go ahead and go back to it again.
And we had this figure here between June and September, 130,000. Then all of a sudden, we see what something people call either a blip or aberration. But many thought that that was going to continue. That 303 is now being said to be caused by the hurricanes down south. And the fact that so much money was poured into the south for rebuilding that that's what caused the sudden job growth in that area.
If that's true then wasn't it just government money being poured in? In other words it wasn't self-produced. Is that a problem?
FRIEDMAN: No. Because you've had at other times, you've had job losses as a result of the hurricanes. So these things tend to equal some kind of balance over time. But as I said, Rick, I think putting too much stress on any single month and certainly putting too much stress on economists projections for the month, given that those are notoriously hard to predict is a mistake. So you have something...
SANCHEZ: You see an upturn here. You think things are going to pick up next month? And we're down to about 30 seconds here.
FRIEDMAN: No. I'm not going to make predictions about any particular month. I'm saying we're on a robust and a solid track. The president's policies have stimulated the economy. Business confidence is much higher than it was a year plus ago, prior to the passage of the jobs and growth package. Industrial shipments are strong. This morning we saw an Institute of Supply Management figures for the non-manufacturing sector, which actually were higher than expectations.
And so, we have an economy that's grown about 4 percent over the last four quarters. And the projections we're seeing are well above trend growth over the foreseeable future.
SANCHEZ: Accentuating the positives. Job well done, sir. Mr. Friedman, thanks so much for joining us.
FRIEDMAN: Thank you for having me.
SANCHEZ: Certainly appreciate it.
KAGAN: We're going to be talking knockoffs just ahead. Not the kind in the fashion industry, like those purses you see in the street in New York City. We're talking about medicine and fake shots. Still to come, what was in that dose that some folks in Washington State received?
SANCHEZ: Also no medicine needed to deliver these up.
KAGAN: Oh.
SANCHEZ: Just skill. Their amazing story coming up.
KAGAN: Look at the puppies.
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: And we'll show you how to navigate the advertising come-ons and get a free, yes, credit report when CNN LIVE TODAY continues.
(COMMERCIAL BREAK)
KAGAN: Credit reporting bureaus say that tens of thousands of people have taken advantage of a new law that allows consumers free credit reports. So far, though, the law applies only to 13 Western States. It will though expand to the rest of the states over the next 10 months.
Joining us to discuss the Fair and Accurate Credit Transactions Act, which basically means you're supposed to get a free credit report, is CNN/FN personal finance editor Gerri Willis.
Gerri, good morning.
WILLIS: Good morning, Daryn. Good to see you. Tip No. 1 today is that you really have to be patient. As Daryn just said, the benefits of this new law roll out only slowly. Thirteen Western States, people who live in those states will be eligible for the benefit right away that includes California, Colorado. But hey, if you live somewhere else, you're going to have to wait.
March 1 for people in the Midwest, that's March 1, 2005; the South, June. And if you live on the East Coast, you'll have to wait until September 1.
Now, if you want to know more details about how all of this works go to ftc.gov. That's the Federal Trade Commission's website.
KAGAN: All right. After that I'm in. I want my free credit report.
(LAUGHTER)
KAGAN: Where do I go?
WILLIS: Well, this is really tricky, Daryn. Now, most people would say well, I'll just go to the credit bureau's website. There are three of them. And that seems the logical thing to do. But consider this. Say you go to Experian and you try to sign up for the free credit report. You agree to be part of their credit manager program. That means you're supposed to get it free, if you forget to cancel it after 30 days though, they're going to charge you 9.95.
Much better solution to this, go to the FTC's website, that's annualcreditreport.com. There you can get all the information you need, as well as your free credit report when your state is eligible. And you can see the contact information right there.
KAGAN: All right. Now, once you get it you have it in hand. You have the free credit report, what do you do with it?
WILLIS: Check for mistakes.
KAGAN: Mm.
WILLIS: You know a lot of these reports, Daryn, have mistakes in them. You need to look at over very carefully. Because let's face it, what's in that report will determine exactly how much you're paying if you take out a loan to buy a house, or a car, or anything else.
Look for mistakes. If you find one, you've got to protest, send a letter. Make sure you give any evidence you have to show that the debt was not yours. Send a letter certified mail and they have 30 days to get back to you.
Now, if you're worried about identity theft, if you see debt on there, you don't know who it's from, you're really worried somebody has taken your identity and run up credit in your name. Go to idtheftcenter.org. Or go to the credit bureau's websites because they're really interested in policing this issue: experian.com, equifax.com, transunion.com.
KAGAN: But looking just once is not enough, is it?
WILLIS: Absolutely not. You need to check it over time, maybe even multiple times a year, particularly if you've had some kind of problem. And you know the bottom line here Daryn, of course? Pay your bills on time.
KAGAN: Mm. Well, there's that.
WILLIS: Especially the credit cards because that's the critical thing that these reports are really based on.
KAGAN: Are there going to be people out there trying to take advantage of those trying to take advantage of the free credit report.
WILLIS: Yes, unfortunately so. The FTC is saying if you get an e-mail from people claiming to be annualcreditreport.com, which is their website, forget about it. It's a scam artist. Because they are not sending out e-mails, they're not putting up pop-up ads. Nothing like that. You have to contact them directly if you want information or help. So make sure you stay away from the scammers. They're always out there.
KAGAN: All right. Gerri Willis, thank you for the tips, appreciate it.
WILLIS: Thank you. Happy Friday.
KAGAN: You too. SANCHEZ: Did you know that while many of us were sleeping last night there was a major settlement on the West Coast? Still to come, after years of pain, now hugs. That's the bishop of Orange County. And the details of that Catholic sex abuse settlement that he approved in California is coming up.
KAGAN: Plus we're talking steroids. Was it a cream or something illegal? We're going to tell you what Barry Bonds had to say to a grand jury.
RUSTY DORNIN, CNN CORRESPONDENT: Good morning. In Redwood City, California, the defense continues to try to evoke sympathy from the jury to save Scott Peterson's life. More coming up.
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KAGAN: We are very close to the bottom of the hour. I'm Daryn Kagan.
SANCHEZ: And I'm Rick Sanchez. And here's what's happening right now in the news.
Bernie Kerik, President Bush's new choice to be the Homeland Security director. Kerik came to national attention as the New York City police chief during 9/11. He helped train Iraqi police last year as well. And campaigned for President Bush before the election, as you may recall. The Senate of course, must still confirm Mr. Kerik's nomination.
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