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CNN Saturday Morning News

Bush Administration Considering Helping Out the Auto Industry; Illinois Governor Rod Blagojevich: Removed from Office or Impeached?; Ice Storm Leaves More Than 1 Million in Northeast Without Power; Interview with First Lady Laura Bush; Latest on the Caylee Anthony Investigation

Aired December 13, 2008 - 07:00   ET

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


T.J. HOLMES, CNN ANCHOR: Hello, there. From the CNN Center, this is CNN SATURDAY MORNING, December 13th. I'm T.J. Holmes.
BETTY NGUYEN, CNN ANCHOR: Yes. Good morning, everybody. I'm Betty Nguyen. We want to thank you for joining us today.

OK. So, a normal life, a regular house...

HOLMES: (INAUDIBLE).

NGUYEN: That's what the First Lady says she's ready for. She's going to change it all up a little bit. I don't know how regular it's going to be. I mean, after all, she is the First Lady. But I did sit down with Laura Bush to talk about what she and her husband will be doing after January 20th.

HOLMES: You all are about the same height there in that video I see. She's a little lady.

Also this morning, you got dogs out there? You know, a lot of dogs don't know how to behave. Sometimes, good dogs...

NGUYEN: Sometimes, people don't know how to behave.

HOLMES: True. Well, only if this guy could help those people out like he helps out dogs.

NGUYEN: Oh. I mean, the people whisperer.

HOLMES: Yes. He's a dog whisperer. He could teach the dogs when they don't do what they're supposed to do. We promise there will be a happy ending to the story we got today.

NGUYEN: OK.

HOLMES: But, some interesting stuff there, a dog whisperer, as they like to call him.

NGUYEN: I like it.

HOLMES: Well, we are going to start, however, with the emergency roadside assistance coming from the White House. Not AAA. The Bush administration is considering tapping into some of that $700 billion bailout money to help the auto industry. Now, of course, that $700 billion was originally meant for Wall Street and for banks, but that money may be the last hope now for the auto industry after the Senate defeated a $14 billion auto bailout plan.

General Motors and Chrysler say they will run out of money in a matter of weeks. Meanwhile, Ford says they can hold on maybe until next year or so. They're hoping for a line of credit right now.

NGUYEN: Meanwhile, G.M. is planning to cut 1/3 of production and temporarily close 21 factories.

The head of the United Auto Workers calls the loan critical.

(BEGIN VIDEO CLIP)

RON GETTELFINGER, PRESIDENT, UAW: It is imperative that this emergency bridge loan money come forward so that it just rests everybody from a standpoint of knowing that this industry and these companies are going to survive.

(END VIDEO CLIP)

NGUYEN: Well, the president is facing stiff opposition in his effort to help the carmakers. CNN senior White House correspondent, Ed Henry, filed this report last night.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): Abandoned by his fellow Republicans and now under heavy pressure from Democrats to save the American auto industry on his own, the president is making a U-turn. He's thinking about tapping billions of dollars from the Treasury Department's Troubled Asset Relief Plan to help the Big Three -- a sharp reversal from just a few days ago.

DANA PERINO, WHITE HOUSE PRESS SECRETARY: We have always said that the TARP program was passed for a very different purpose, and that was to prevent the collapse of our financial institutions.

HENRY: Auto institutions now may need to be helped as well. Dana Perino explained in a written statement Friday because, quote, "A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."

The president's support in his own party has also destabilized. Intense White House lobbying efforts, including Vice President Cheney on the Hill and the president on the phone, failed to move enough Republicans to support a legislative bailout Thursday night. And top Republicans are now warning the White House not to take unilateral action without guarantees the auto companies will become more viable.

SEN. BOB CORKER, (R) TENNESSEE: If the White House puts TARP money in on top of G.M.'s $62 billion in debt -- OK -- and doesn't require all of these things that I'm talking about to happen -- OK -- all they're doing is throwing good money after bad. HENRY: Ironically, it's Democrats who are giving the president cover to tap the funds, declaring the situation is dire not just for automakers but car dealers, bankers, parts suppliers.

SEN. CHRIS DODD, (D) BANKING CHAIRMAN: There is a cascading occurring as you and I are talking, so I'm hopeful that this day, before the day ends, the White House will make that decision, send that signal the markets need to hear before even more damage is done, in the matter of hours now. We're not talking days or weeks now, we're talking hours.

HENRY (on camera): Two senior officials say the White House could tap these emergency funds as soon as this weekend or early next week, something the Big Three say they need desperately.

Ed Henry, CNN, the White House.

(END VIDEOTAPE)

NGUYEN: Well, our neighbor to the north, Canada, is coming up with $3.3 billion for its struggling auto industry. But there is a catch. Canada's industry minister says the money won't be allocated unless the U.S. has an auto bailout plan. As many as 400,000 Canadians are dependent on the auto industry.

HOLMES: Well, either jump-ship or be thrown overboard. Those are essentially the options Illinois Governor Rod Blagojevich is being given. The state attorney general is asking the state Supreme Court to remove him, that is if the legislature doesn't impeach him first.

Our Drew Griffin caught up with the governor yesterday as he came out of his attorney's office.

(BEGIN VIDEO CLIP)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Drew Griffin with CNN. Can you say anything to the people of state of Illinois, sir? Do you have anything to say?

GOV. ROD BLAGOJEVICH, (D) ILLINOIS: I will at the appropriate time, absolutely.

GRIFFIN: Are you going to resign, sir?

BLAGOJEVICH: I'll have a lot to say at the appropriate time.

GRIFFIN: Governor, are the authorities right in their petition at this criminal complaint? Did you do what they say you did? Governor? Just 30 seconds for anybody? For the state of Illinois?

(END VIDEO CLIP)

HOLMES: Well, apparently, the appropriate time was not just then. Well, here now, though, CNN's Drew Griffin, the ever persistent Drew Griffin with more about this case.

(BEGIN VIDEOTAPE)

GRIFFIN (voice-over): In perhaps a sign he has nowhere else to turn for help, pastors of local churches showed up at the governor's door, emerging to say they came to offer support.

UNIDENTIFIED MALE: Have prayer, the governor, he called me.

UNIDENTIFIED FEMALE: What was prayer? What did you say?

UNIDENTIFIED MALE: That he continues to be a great governor. Stay the course.

GRIFFIN: The governor waved to the press and waved off any questions on what he is going to do. At the downtown office building where the governor works, Illinois's attorney general announced she had filed a motion with the state Supreme Court to have the governor stripped of his power.

LISA MADIGAN, ILLINOIS ATTORNEY GENERAL: We think it is very clear that he is incapable of serving, and we are certainly hopeful that the Illinois Supreme Court will hear this matter and appoint Lieutenant Governor Quinn as the acting governor.

GRIFFIN: Behind the scenes, the legislature is gearing up to start their own removal procedures. Meeting on Monday, the House and Senate are expected to take up motions to strip the governor of his ability to name a U.S. senator to the vacant seat, prosecutors say, he was trying to sell. And Democratic House members are circulating this letter, asking colleagues to join them in impeaching the governor. But that will take time.

Politicians agree the best thing for the state is for the governor to resign. And while his accused chief of staff, John Harris, did submit his letter of resignation, the governor apparently is tell on the job working and not telling his press secretary much else.

UNIDENTIFIED MALE: People are trying to deal with the today's issues as opposed to what's been going on this whole week.

GRIFFIN (on camera): In the meantime, we still are waiting for the list of contacts between President-elect Obama's transition team and Governor Blagojevich's office. And also, Rahm Emanuel, the chief of staff for President-elect Obama, continues to remain silent on his role in talking with Governor Blagojevich.

Drew Griffin, CNN, Chicago.

(END VIDEOTAPE)

HOLMES: So, you just did you hear that Rahm Emanuel himself not saying a whole lot about the Blagojevich scandal. However, a source, who knows what's going on in this investigation, tells us that Emanuel has been informed that he is not a target of the probe.

And our Drew Griffin, well, he's our Special Investigations Unit correspondent. They're all over this government scandal there in Illinois. Drew is going to bring us more details about the case. We'll have him up live in our next hour.

NGUYEN: President-elect Barack Obama has another selection for his cabinet. In the last hour, CNN reports he has tapped New York City Housing commissioner, Shaun Donovan, as next secretary of housing and urban development.

And here's what we know about Donovan: he is a former consultant for the Millennial Housing Commission and has worked at HUD as a deputy assistant secretary. The New York City native earned his master's degree at Harvard.

Next hour, a judge in the Atlanta courthouse shooting case will officially sentence Brian Nichols. He's the man convicted of killing four people and leaving another with brain damage in a rampage that terrorized the area. It happened in 2005.

Yesterday, Nichols, who is spared the death penalty after the jury was deadlocked. In Georgia, death sentence requires a unanimous jury decision. Nichols is expected to be sentenced to life in prison today. The judge is deciding whether he'll ever be eligible for parole.

HOLMES: A bomb explodes inside an Oregon bank. One police officer is dead. Another four people injured. Two of them seriously injured. This happened in Oregon, the town of Woodburn. The bomb was actually discovered in some bushes outside of the bank but it exploded as police took it inside the bank. This morning, police are searching for the person who is responsible for this now deadly explosion.

NGUYEN: Well, helping people in need. That has been her passion. I'm talking about First Lady Laura Bush. I got the chance to speak with her this week. And we really covered a whole lot of topics, including what she plans to do after leaving the White House -- interesting.

HOLMES: We know she has a very nice house waiting for her down in Dallas.

NGUYEN: In Dallas. She's looking forward to getting back to Dallas (INAUDIBLE).

HOLMES: A very nice trip.

All right. Also, you know, these things sometimes not that newsworthy. Just interesting video sometimes and we have some interesting video.

NGUYEN: Especially when the vehicle is on fire.

HOLMES: Yes. When that happens, it makes it a little more interesting. We'll tell you what's behind this chase, if this is speed racer, what he's got in that car that has him just on fire like this. This is in California as we often see them. Stay here. We'll explain what happened here. (COMMERCIAL BREAK)

REYNOLDS WOLF, CNN METEOROLOGIST: You know (ph), parts of the eastern seaboard and the southeast of the United States had plenty of rain, sleet, and snow. Now, we're seeing a big blast of winter weather that's going to be affecting parts of Pacific Northwest, eventually moving into the Northern Plains with wind chill factors that will be 30 to 50 degrees below zero. No fooling. We'll talk about that coming up on CNN SATURDAY MORNING.

(COMMERCIAL BREAK)

NGUYEN: Well, a nasty, nasty ice storm cripples the northeast and leaves more than 1 million people, homes and businesses, without power. The storm is affecting people from Maine all of the way south to Pennsylvania, especially harsh for retailers because this is such a crucial money-making holiday season. Large blocks of ice and downed trees have made roads virtually undrivable.

HOLMES: And the work continues. Massachusetts guard members and utility crews will be back outside today trying to clean up all of this mess. Eight states, as Betty mentioned, are affecting by this scene. There they are. The state of emergency has been declared in Massachusetts and New Hampshire, where there is also a report of a storm-related death. Maine, meanwhile, is under a limited emergency.

NGUYEN: All right. So, will the states get a little relief today? Let's check in with our expert, meteorologist Reynolds Wolf, (INAUDIBLE).

HOLMES: Wow.

WOLF: Put the pressure on a man is what I'm talking about. Goodness, Betty Nguyen.

NGUYEN: You come to play, right?

WOLF: Yes, we're going to play.

NGUYEN: OK.

WOLF: We've got better news for parts of the northeast. I mean, you still have all the trees that are knocked down and there are people there without power this morning...

NGUYEN: Right.

WOLF: ... who might be listening to us just by satellite radio. So, we're just going to lay out the story for you. I can tell you, you have better weather today. But in the Pacific Northwest, things are going to start -- it's getting much worse. In parts of the Northern Plains, guys, brace yourself. You're going to have wind chill factors that could be up to 50 degrees below zero.

NGUYEN: Fifty below, are you kidding me?

WOLF: Yes.

NGUYEN: (INAUDIBLE). Oh, my gosh.

WOLF: No, I wish I was kidding you. You know, I love the Northern Plains. I think we all love, you know, the Dakotas are great, Montana is great for spring, for summer, for winter...

NGUYEN: Not at 50 below.

WOLF: What's wrong with you? I mean, seriously, this time of the year, it's awfully tough.

HOLMES: What does that feel like? I mean, how do you handle 50 below? I mean...

NGUYEN: Yes.

WOLF: The coldest I've ever been is about 13 below zero outside at Lambeau Field last year.

HOLMES: Yes.

WOLF: And that was brutal. But I cannot imagine.

NGUYEN: I mean, you definitely try not to go outside whatsoever.

WOLF: Yes. I mean, it's certainly a bad thing. I mean, skin exposed to that kind of weather is just brutal.

Let's show you what's happening now.

NGUYEN: OK.

WOLF: Take a look at the national map. You're going to see a lot of green and a lot of red popping up. That is not for Christmas. These are not your Christmas colors. These are actually watches, warnings, and advisories that are popping up across the northern part of the country. The same thing we're seeing in many locations, we're going to be seeing that snow begin to pile up in a few spots, especially in the higher elevations.

We're going to walk over here to the weather center and as we do so, you're going to get a chance to take a peek again -- well, who is going to be affected with the snowfall first. And that's going to be the Pacific Northwest and mainly up into the Cascades. And in the Cascades, highest spots, you could see up to a foot of snowfall.

And it's also going to cause people for the lower elevations; I'm talking along parts of, say, I-5. If you're going to make a drive there today, or maybe along parts of I-90 or I-84, you're going to be dealing with the wind and the snow. Visibility is going to be very poor at times. Blizzard condition is certainly a possibility.

And if you'll notice, every spot on the map where you happen to see the dark purples there to indicate an excess of a foot of snowfall. Highest peaks, that's going to be a huge issue. The valleys below might see a little bit of flash flooding. So, we're talking about tremendous mess.

We're also mentioning again, that cold air. Very quickly, you're going to see some of it in the Pacific Northwest to the Northern Plains. Betty and T.J., this one I was talking about. That front is going to come soaring on through and as it does so (ph), right behind it, the rest of the today and into tomorrow, wind chill factors anywhere from 30 to 50 degrees below zero for much of the Northern Plains, including parts of the Central Plains by late Sunday afternoon. Brutal times.

Let's send it back to you.

NGUYEN: All right.

HOLMES: Brutal times.

WOLF: Yes, absolutely.

HOLMES: All right.

WOLF: I mean, how can you get warm with things like that other than saying to yourself (INAUDIBLE).

NGUYEN: Yes.

(LAUGHTER)

WOLF: Seriously.

NGUYEN: Don't give people any ideas, Reynolds.

WOLF: I know, in good gesture (ph), I say that only in jest.

NGUYEN: Right.

HOLMES: Well, Reynolds, we'll go from there. Well, maybe, we should let you do that next story since you do with all things in the air, you know, clouds and planes and Superman, and the moon and whatever else is up there.

But this is sent to us by one of our iReporters last night. This is in Brooklyn, New York. And the moon was the closest it's been to the earth all year long. And if you looked up in the sky, the moon appeared big and bright. And scientists say it appeared 14 percent larger than we normally see it.

Reynolds, can you explain why we see this once a year? Why we saw this last night like we've seen it (ph)?

NGUYEN: And why do we see it at 5:00 Eastern Time, especially here in Atlanta? I was driving home from work and I was hearing on radio, people said, "Look out your window, you can already see the moon."

WOLF: Well, the timing is everything, too, for us in parts of the southeast. I mean, had this happened, say, a couple of days ago, it would be obscured by clouds. We won't be able to take in this beautiful sight. But it is an amazing thing. I think it's like once that maybe every 1,000 years or so that the earth and the moon get this close together. So, certainly, a great thing to see. Seriously, I do wonder what effect this will have on the tides and the currents.

NGUYEN: Oh, yes.

WOLF: And you often think about that kind of thing. I haven't heard anyone mentioned that. So, maybe a little bit of investigating is in order.

NGUYEN: All right. Get right on that.

WOLF: All right. We'll do what we can.

HOLMES: All right. Thank you, Reynolds.

NGUYEN: Thanks, Reynolds.

OK. Coming up: a really interesting interview that I had with First Lady Laura Bush this week.

HOLMES: Yes.

NGUYEN: She talked about the Universal Declaration of Human Rights and her work around the world to secure those rights for people who desperately need it. We'll delve into that.

(BEGIN VIDEO CLIP)

NGUYEN: The U.S. sent ships full of aid that were denied by the junta government. Should the U.S. have been more forceful in getting that aid to the people in need?

LAURA BUSH, U.S. FIRST LADY: Well, that was the real question at the time. We did have those navy ships right off the coast of...

(END VIDEO CLIP)

(COMMERCIAL BREAK)

NGUYEN: This week marked the 60th anniversary of the Universal Declaration of Human Rights, yet, people in lots of places all around the world are still fighting for those basic rights, and standing with them is First Lady Laura Bush. I sat down with her this week to talk about how she's going to keep that work going long after leaving the White House and she was quick to point out that she is closely watching what she calls a sad situation for the people of Myanmar also known as Burma.

(BEGIN VIDEOTAPE)

NGUYEN: You also watched it play out during Cyclone Nargis. In fact, I was just in the country back in July.

BUSH: Yes. NGUYEN: And what I wanted to do was to really see if aid was getting to those still in need some two months after the storm had hit. And what I witnessed were dead bodies still rotting along the delta. Many villages still with little to no aid. Will the people of that country lose a powerful ally once you leave the White House?

BUSH: No. I really think that the next administration will also pay attention to Burma. It's a country that the White House act, for instance, the "Stop JADE Now Act" that was just passed recently that the president signed into law, passed unanimously. So it's an issue that I think all -- every member, both parties, are very interested in. So, I expect that the next administration will also do what they can to try to have this peaceful transition to democracy for the people of Burma.

NGUYEN: There's still a lot of outrage concerning the reaction to the cyclone on the part of the junta government there. You know, looking back, where do you draw the line when it comes to human right? U.S. sent ships full of aid that were denied by the junta government. Should the U.S. have been more forceful in getting that aid to the people in need?

BUSH: Well, that was the real question at the time. We did have those navy ships right off the coast of -- the delta, right by where the cyclone had hit. Those had desalinization machine on them. They could have gotten fresh water to the people right away, medical supplies. And the military junta would never let them land.

We did at the same time, though, they did accept cargo planes and the U.S. was able to fly in at least 100 cargo plane flights of supplies for the people of Burma. But that's the question. I mean, that's always the question when you talk about human rights. When we and the rest of the world look at these countries where tyranny, you know, reigns and where the people are denied any sort of basic human rights, then that's what we have to ask ourselves is, what do we do?

And we did in Afghanistan, go into Afghanistan and liberated the people. And we are still there, obviously, working hard to make sure the people of Afghanistan can rebuild their country, which we totally decimated after 30 years of war with nothing. I mean, they're building a country from nothing now. And that still requires a big commitment on the part of the people of the U.S. and the government of the U.S.

NGUYEN: Let's talk about Afghanistan for just a moment, because you have said, if women are educated, everything across the board improves for their families. Does that hold true in Afghanistan, a place where just last month, the Taliban sprayed acid on girls trying to get an education?

BUSH: Well, that's right. And that's the big challenge and that's what women and girls in Afghanistan face. And that's the sort of violent intimidation that's so horrible. In this case, girls were just walking to school with their teachers. And people -- men, young men, drove by and threw acid on them. And some of the girls are disfigured from it. But one girl, the one who is the most injured, said, "I'm going to keep going to school."

And I think it's really important for the international community to support the people of Afghanistan, so they can stand all for themselves. They are having some success. They're building a national police force. When I was in Afghanistan the last time, I met women who are police officers. But on the other hand, their society is so strict for women that some of these women police officers had not told their families that they were studying to be police.

(END VIDEOTAPE)

NGUYEN: And Mrs. Bush is just so passionate about human rights and just restoring that in countries that she says people have been so very oppressed, depressed at the same time, because of the situation. She's also really working for education and women around the world. And she's going to continue this with the Freedom Institute in Dallas which will be at the George W. Bush Library built at her alma mater at SMU.

HOLMES: And that's just a taste there, I know you did a much longer interview. We're going to be having some more segments. What else are we going to be hearing her talk about this morning?

NGUYEN: She is going to talk about going back home to Dallas.

HOLMES: Yes.

NGUYEN: Back home to a place that she used to live. You know, she is a Texan. Looking forward to what she calls the after-life.

HOLMES: The after-life.

NGUYEN: That being life after the White House. So, she says it's going to be normal. We'll see.

HOLMES: Yes.

NGUYEN: I mean, my goodness, she is a First Lady and will be a former First Lady. I don't know how normal that's going to be but definitely seems like it is a charmed life nonetheless.

HOLMES: All right. I want to hear what she had to say about that house they have down there in Dallas.

NGUYEN: Yes. That little small house that she's been talking about.

HOLMES: Eighty-five hundred square feet.

NGUYEN: Right.

HOLMES: A little crib from the previous one they had.

NGUYEN: Everything (INAUDIBLE) in Texas, I mean, come on, right?

HOLMES: All right. Coming from a Texan, yes, of course. All right. We'll turn to a story now out of Florida where it's not confirmed but it's assumed by many authorities that the body found there, in fact, does match that of a two-year-old toddler who's been missing since June. You know the name, Caylee Anthony.

NGUYEN: Yes.

HOLMES: That story, the latest on that little girl and that investigation is coming up next.

(COMMERCIAL BREAK)

NGUYEN: Hello. And good morning, everybody, on this Saturday. I'm Betty Nguyen.

HOLMES: And hello to you all. I'm T.J. Holmes. Glad you could start your Saturday off right here with us.

NGUYEN: More bad money news for you. Some Wall Street investors talking about this today because they may lose millions in an alleged Ponzi scheme that prosecutors say former NASDAQ Chairman Bernard Madoff was running. The asset of his investment advisory company has been frozen and some people had invested in the company for years. We'll continue to follow this.

And the White House is busy this weekend working on a bailout loan for the auto industry. President Bush is going against his Republican colleagues to help out General Motors, Chrysler and Ford. The administration says no decisions have been made yet on the loan amount or restrictions to its use.

HOLMES: And, of course, G.M., Chrysler, Ford.

NGUYEN: Right.

HOLMES: Those are the Big Three as they are called and those are the ones we've been talked about in this bailout. But, hey, there are other automakers out there that would also feel an impact if just one of those companies goes into bankruptcy.

NGUYEN: CNN's Brian Todd looks under the hood to explain that.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): If those Ford or Chevy assembly lines shut down, fitters (ph) and foremen at Honda and Toyota, beware. Why? No, your companies aren't on the brink of bankruptcy but here is the problem.

RON HARBOUR, THE HARBOUR REPORT: They are so interlinked today. They have so many common suppliers.

TODD: Suppliers like Goodyear, which makes tires for overseas- based and American automakers will feel an immediate pinch, experts say, if one of the Big Three goes down. To show how that will then hurt the European and Asian car companies, we asked industry expert Ron Harbour, whose publication looks at manufacturing and performance, to take us inside the hood of a Toyota Camry sedan.

HARBOUR: This engine has a starter motor that's supplied by a company called Denso or formerly known as Nippon Denso. It's a Japanese supplier but with a huge manufacturing presence here in North America. They provided this component for Toyota but they also provide components for most of the major car manufacturers here in North America. So, if one of those companies was to leave the market, go bankrupt or whatever, that have a huge impact on Denso.

TODD: Harbour says that Denso could then lose a big chunk of its income. It may have to downsize, possibly layoff hundreds of workers at the big plants like its facility in Battle Creek, Michigan. Harbour says that could be repeated at parts manufacturers throughout the Midwest corridor, from Michigan through Southern Ohio, to hubs down south like Kentucky, where Toyota has big plants. What's Toyota thinking then?

HARBOUR: What Toyota is worried about is what impact it would have on their quality or the delivery of their parts to their plants, would it potentially shut any of their facilities down or create a quality problem that they would have to be concerned about.

TODD: Brian Todd, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: The "Associated Press" has confirmed Defense Secretary Robert Gates is in Iraq on an unannounced visit to meet with U.S. commanders. The trip comes as the United States continues plans for troop withdrawals by 2011 -- T.J.?

HOLMES: Well, Betty, authorities believe they have found the body of Caylee Anthony. She's a two-year-old girl who went missing back in June. Now, this story struck a lot of -- got a lot of national interest.

Right now, what we do know is that this body has been found not far from where her grandparents live. More and more confident, even though there's no confirmation yet, but they believe this body has similar characteristics to the two-year-old child. Also, hair was found near the body. That hair matches the same color as Caylee's. Again, DNA results are going to have to confirm all of this. But Caylee Anthony's disappearance, and again, a lot of people know this story and know it well by now.

It got a lot of interest because of her disappearance, for one thing, but a lot of details about the case just didn't sit right with a lot of folks, including the fact that her mother waited a month to report her missing. Investigators say she also, the mother, gave them misleading statements. A utility worker found the remains in the plastic bag.

Listen to the 911 call.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: Yes, it's me. This is Orange County utility emergency dispatch. We've got a human skull.

911 OPERATOR: Oh, my gosh.

UNIDENTIFIED MALE: I know. We've got -- is it a meter reader?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: I'm going to let you speak right now with the representative from our field services facilities.

Hi. Everything is recorded. Here he is.

UNIDENTIFIED MALE: How are you doing? A skull from (INAUDIBLE) that we believe is human.

911 OPERATOR: What's the location?

UNIDENTIFIED MALE: It's right off of Suburban and Chickasaw, in the Caylee Anthony area right by the...

911 OPERATOR: Oh.

(END AUDIO CLIP)

HOLMES: And did you hear that? The story there, people know it and know it well, and even said, "We found it in the Caylee Anthony area." Investigators there in Orlando are still working to get more evidence in this case. They've raided the home of Caylee Anthony's grandparents.

Reporter Jessica Sanchez from our affiliate WKMG has more on what this could now mean for the case.

(BEGIN VIDEOTAPE)

JESSICA SANCHEZ, WKMG REPORTER (voice-over): The Anthony family's entire home was fair game to crime scene investigators overnight and they appear to have been thorough in their search for evidence. Four vacuum cleaners and two pesticide tanks were among the items confiscated. The rest were hidden in four boxes and seven paper bags, though, one appeared to contain a pillow.

UNIDENTIFIED MALE: We've got a lot left to do. (INAUDIBLE).

SANCHEZ: Even at 1:00 in the morning, homicide detective John Allen (ph) was answering phone calls while also rummaging through the Anthony's home, having been thrust into the middle of one of the nation's most riveting investigations.

UNIDENTIFIED MALE: I'm pretty tired.

SANCHEZ: Sergeant Allen has had many sleepless nights while trying to solve the mystery behind the disappearance of Caylee Anthony, but this night could possibly be the most rewarding, with the big break that came only hours earlier. A utility worker discovered a child's skull Thursday in a wooded area less than half a mile from the Anthony home. It had been wrapped in duct tape and placed in a plastic bag. Detectives are hoping the evidence found there can be linked to evidence found inside the Anthony's home and hopefully put an end to the six-month-old mystery.

(END VIDEOTAPE)

HOLMES: Now, as for the mother, Casey, she's still behind bars. She was arrested and charged with first degree murder. That was month after her daughter disappeared. She could now face life in prison if convicted. There she is.

Prosecutors say they will, however, not seek the death penalty -- Betty?

NGUYEN: You know, we're following another story, too, this morning, T.J. I've got to ask you, does history have -- I don't know -- a chance of repeating itself when it comes to the Heisman? What do you think?

HOLMES: There's a slim chance.

NGUYEN: Really?

HOLMES: But, in your case, you wouldn't want history to repeat itself, Betty...

NGUYEN: Yes.

HOLMES: ... because you have a dog in the fight.

NGUYEN: We do.

HOLMES: Heisman Trophy is going to be handed out tonight and the Texas, Betty's alma mater, the Texas quarterback is in the running. But right now, everybody thinks he's a distant third anyway.

NGUYEN: Yes.

HOLMES: We'll talk about it after the break.

NGUYEN: With Rick Horrow. Stay tuned for that.

HOLMES: All right.

(COMMERCIAL BREAK)

HOLMES: Well, in hard times, one thing families have, at least, been able to count on is, at least, their kids getting a good lunch at school.

NGUYEN: Yes.

HOLMES: The free lunch program via the government has been in place for quite some time. NGUYEN: Well, listen to this. This year, more kids are qualifying for those lunches and that is putting a strain on the system.

From Los Angeles now, here's CNN's Ted Rowlands.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): From Salisbury Steak to Chicken Ala King and Sloppy Joe's, school lunch holds a special place in the hearts of American public school students. For some, like Los Angeles High School senior, Lisa Le, free school lunch is something she and her brother and sister rely on to thrive at school.

LISA LE, STUDENT: Personally, I really depend on the school lunches a lot because knowing how busy my parents are with work, and knowing that they make so little, it would just really push us financially.

ROWLANDS: The federal government pays the majority of school meal expenses, states and districts make up the difference if the money runs out. According to a School Nutrition Associated study released this week, running out of money is a real concern for many states because more students are qualifying for free or reduced price lunches due to the worsening economy.

This is the Los Angeles unified school district's food assembly line where 550,000 meals a day are prepared and served at 840 different schools. Over the last two years, California has run out of money before the end of the school year. This year, the superintendent of schools is predicting it will happen earlier, and is asking the state for a $31 million budget increase.

JACK O'CONNELL, CALIF. SUPERINTENDENT OF PUBLIC INSTRUCTION: We know that even if you have a computer on every desk, the school is made of gold. That if that student comes to school hungry, that student will not be able to learn.

ROWLANDS: At the Bravo Magnet School in Los Angeles, 80 percent of the students qualify for free or reduced price meals.

MARIA TORRES-FLORES, PRINCIPAL BRAVO MEDICAL MAGNET SCHOOL: For many of our families, many of our students, this may be the only full, healthy meal that they eat within a day.

ROWLANDS: Advocates are encouraging states, many of which are making budget cuts, to do what it takes to keep food on the table at schools.

Ted Rowlands, CNN, Los Angeles.

(END VIDEOTAPE)

HOLMES: Well, there's been a lot of talk about issue number one, and the struggling economy. There may be one guy, at least, who has no idea that the economy is in a tailspin right now. His name is C.C. Sabathia. If you don't know him, you will soon. He just -- is about to sign one of the richest contracts in the history of baseball.

Also, the Heisman Trophy being handed out this weekend. We could see a bit of history there with a back-to-back winner but not if Betty Nguyen has her way.

We'll talk about that and all things related to sports and business with our Rick Horrow, sports and business analyst. He's here with us.

Explain why you got that up?

RICK HORROW, CNN SPORTS BUSINESS ANALYST: Because my daughter is graduating UMC today.

HOLMES: You do -- you always have to get plugs in for your family and your friends. We don't bring you on for that, Rick.

HORROW: Oh, I'm sorry.

HOLMES: Yes.

HORROW: So, I won't mention the fact that I'm here in Chapel Hill because, oh, my daughter graduating UMC today, OK. I won't say it.

HOLMES: Didn't she graduate already?

HORROW: Oh, it's a perpetual graduation.

HOLMES: OK.

(LAUGHTER)

HORROW: Every time there's a payment, a tuition payment each month...

HOLMES: She gets to graduate (ph).

All right. Let's turn to C.C. here.

HORROW: Yes.

HOLMES: C.C. Sabathia, the economy is struggling; it's changing how the business of sports is done. However, the Yankees don't seem to be bothered, $160 million. Is that even responsible at this time?

HORROW: Responsibility has nothing to do with competition. The Yankees said we want to sign a pitcher. They've made offers to other big time pitchers; the top three players in baseball are all Yankees. The team is worth $1.3 billion according to "Forbes" and keeps going up.

Here's the stat. There's a Michigan businessman who says, "I want to make money in baseball." They're officially sanctioned casket and urns with Major League Baseball logos on it.

HOLMES: Yes.

HORROW: The top selling casket, a Yankee casket at $4,500. Now that Sabathia has signed, they're going to increase the price of that casket.

HOLMES: They seem immune to what's happening in the economy. Some, I guess, some teams just are. But some teams, some leagues even aren't. Now, we talk about the AFL struggling. I mean, a lot of people don't know about it, the Arena Football League and couldn't name any teams. But it's been around awhile and it has some relative success. Is it possible this entire league could go under?

HORROW: Well, they're talking about life in the next couple of years. It's possible that a lot of leagues and teams worry about the economy clearly. Championship gaming just went under. Arena League, suspect, for example. NBA lays off 80 people. NFL announces a staff cut of 150. NASCAR may lay people off. There is danger of folding, but clearly, everybody is planning for the future with this kind of consequences.

HOLMES: OK. That was going to be my question, even though we talk about struggling teams and whatnot. NBA, NFL, NHL, NASCAR, those major leagues, not in any danger, not going to happen for them to fold, anywhere close to it.

HORROW: Well, there's a $17 billion television contract over six-year period with the NFL as long as they get those lump payments. That's a pretty large lump. So, they're going to get through this. They're just going to play and (INAUDIBLE).

HOLMES: All right. Last thing here, let's hit on the Heisman Trophy going to be handed out this evening. Is there a chance to get a back-to-back winner in the Florida quarterback Tim Tebow? Does it translate always into financial success down the road? You've got a Heisman in your pocket. Surely, that's going to translate into dollars in your pocket.

HORROW: Pretty darn good start. But of the last Heisman winners, only two of them are starting in the NFL. Lot of buzz, for example. And Tebow has the chance of winning the first back-to-back Heisman since Archie Griffin did in 1974-'75. It is a good start. But just like anything else, celebrity doesn't guarantee success. You know that.

HOLMES: Yes, we do know that. What's your prediction? Who'll win it?

HORROW: Tebow, probably only because those two guys from the southwest cancel each other out.

HOLMES: Will split it.

HORROW: Not Betty because we don't think Colt McCoy deserves it. All right, did you hear me? Do you understand? We'll see what happens.

NGUYEN: Just as long as we have that on record because he played an incredible year and T.J. and I were just talking. I mean, we lost by one touchdown the last second of a game.

HORROW: So, are you complaining? What do you want to do? There's no playoff system...

NGUYEN: I just feel like we got robbed.

HORROW: All right. We're going to talk about this for the next four or five weeks. So, save that, you know, banter...

NGUYEN: OK.

HORROW: ... and crying for next week.

HOLMES: Oh, wow.

NGUYEN: You know what? You need to get over it because we are.

HOLMES: OK.

(LAUGHTER)

HOLMES: Well, enjoy this next graduation. We're getting tired of sending graduation gifts, man.

NGUYEN: Yes.

HOLMES: There's a lot of graduations for his daughter.

HORROW: Real quick. I'm going to do the T.J. Little Rock report. I'm going there this week.

HOLMES: Yes.

NGUYEN: Yes, give us some good information on T.J.

HORROW: I'm going to believe, I'm going to do it.

NGUYEN: I'd be interested in that.

HORROW: Next week, we're going to see if you're a hero or a goat in Little Rock.

NGUYEN: Oh, he's a hero.

HORROW: You say you're a hero. Well, he says so. We'll find out.

NGUYEN: I believe it. All right. Thanks.

(LAUGHTER)

HOLMES: All right. Thanks, Rick. HORROW: All right.

NGUYEN: All right. So, three suspects in custody this morning after this hot chase, if you will, in California.

HOLMES: Yes.

NGUYEN: You've got to take a look at the video. That's why we're calling it that. What happened here? We'll have all the details for you.

HOLMES: What -- oh, yes. Wait a minute, what are the details here? Yes, Josh is standing by here watching this video here with us. But, this chase, you can you see how this is developing. And again, we talk about these. We do a lot of these, Betty. And you know, no, they're not newsworthy but they're just interesting video sometimes.

This happened over some 20 miles, four different freeways. There's two men and a woman in the car. Don't think the woman was driving. There was a pedestrian apparently that was held up at gun point and these are the suspects in the case. Highway patrol laid down, you know, the spike strips.

NGUYEN: (INAUDIBLE)

HOLMES: Yes.

NGUYEN: Yes. It does work.

HOLMES: And it doesn't take long.

NGUYEN: Oh, look at him, he got out. And now, he's running on foot.

HOLMES: One guy takes off. He was apprehended a short, short time later. But, yes, this all happened because of a stand-up essentially, they held somebody up at gun point.

And, again, our Josh Levs standing by here.

JOSH LEVS, CNN CORRESPONDENT: Wow. How many miles of sparks was that?

NGUYEN: They said four hours, 20 miles.

LEVS: That is unbelievable. I've never seen anything like that. You know, I think there's got to be something there, at least, a little bit newsworthy. All right.

NGUYEN: And you know what else is unbelievable?

LEVS: What's that?

NGUYEN: Some of these situations that we've been talking about lately with politicians especially out of Illinois.

LEVS: I know.

The question this morning is, can you trust your politician?

LEVS: Yes. You know, that's what we're going to do. Coming up, we're going to broaden that out. That's the question we're giving to you this morning and you're going to have your chance to weigh in right here on the show.

(COMMERCIAL BREAK)

NGUYEN: Well, the Illinois Supreme Court, the legislator and the state attorney general, all of them are talking about ways to get Governor Rod Blagojevich out of office. Federal prosecutors say the governor tried to sell Barack Obama's open Senate seat. Now, the governor himself, he's not saying much.

But in an exclusive interview with our Special Investigations Unit, he says he will comment, quote, "at the appropriate time."

HOLMES: All right. How do you feel about your government, feeling pretty good about them? Usually, they don't get high marks anyway.

NGUYEN: Yes.

HOLMES: But after this whole scandal, does that change how you feel about your government?

NGUYEN: Yes. Do you trust the people who represent you? That's the question today. And our Josh Levs is looking into that. Boy, I can only begin to imagine what people are going to be telling us.

LEVS: Yes. I'll tell you, what we've been getting so far is that 95 percent of people saying, "No, I don't trust the people who represent me." And this is what happen, you know, when this occurred this week, I just got to thinking about how as it is, the relationship between Americans and the people we elect and pay to represent us is so frayed, something like this can make it even worse, called the fine folks at iReport.com and they made it an assignment and we've been getting a lot of stuff.

Let's, in fact, take a look at one video we got via iReport.

(BEGIN VIDEO CLIP)

SHERYL LANGDON, IREPORTER, BEFORD, INDIANA: When you're a monopoly, it just lays the ingredients out. It just gives that environment that is susceptible to corruption. It's opportunity to flourish. When you're a monopoly, corruption happens. We have got some serious housecleaning to do on every level and we need to change how we run government because the American people are getting robbed.

(END VIDEO CLIP)

LEVS: By the way, if we had a video from someone disagreeing with that, we'll show that, too. So, go ahead to iReport.com. We're also getting tons of e-mails. I'll just want to show you guys a few. Let's zoom on the board right here.

We're going to start off with this one from Michael in Oakland, California. "I have spent much of my life working for elected officials and the vast majority are honest and hardworking. The problem remains the system where we rely on private campaign contributions, causing people to behave irrationally when it comes to the pressured to fund viable campaigns."

Let's scroll down to this next one here. "I've lived all over the country, and I have yet to meet a politician I could trust. I do believe, thought, that freshman politicians sincerely believe their intentions are honorable. Entering the world of politics is like joining a cult your mindset and belief system become completely warped and disfigured by more senior members." That's Tony Stegall in Houston, Texas.

Let's quickly show everybody -- we have a graphic here showing you how you can e-mail us today. Weekends@CNN.com or go to iReport.com. Do you trust your elected leaders? We'll share some of this morning and more tomorrow. So, keep them coming. Make sure to include your name and your city. And, guys, we'd love to hear, no matter what it is you're feeling, what your view is on that, we'll share it right here.

NGUYEN: OK. Thank you, Josh.

LEVS: Thanks, guys.

HOLMES: All right. A lot of people wish maybe this dog whisperer -- there was an adult or a man whisperer.

NGUYEN: A human whisperer.

HOLMES: Could you imagine, if you take your man to this guy and your man behaves (INAUDIBLE)?

NGUYEN: Do you know how many problems that would solve in relationships all across America?

(LAUGHTER)

HOLMES: But this -- we'll stick with the dog whisperer this time around. That's what they call him. And sometimes, he's a dog's last hope between home and the pound.

NGUYEN: All right. But how did he play cupid -- this is another person -- for an artist in Atlanta?

(BEGIN VIDEO CLIP)

SUMMER VILJOEN, HOWIE'S OWNER: He came -- he came along at the right time, and I swear, he's my angel.

(END VIDEO CLIP)

(COMMERCIAL BREAK) HOLMES: That's an obvious one this morning. Yes.

NGUYEN: Yes, especially with the upcoming story. All right, here it is.

He is known as the "dog whisperer," the man with an uncanny ability with our canine companions. Well, National Geographic had show the dog whisperer, Cesar Millan, is called in to solve dog's behavioral problems. One dog's tale of abuse, though, and neglect was so compelling that it sparked national interest.

HOLMES: And here now, CNN's Brooke Baldwin to explain all that.

(BEGIN VIDEOTAPE)

NARRATOR: When good dogs go bad, there's one man who's their best friend, Cesar Millan.

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): His fans tune in every Friday to see "The Dog Whisperer" on National Geographic Channel to see if he really can rehabilitate any dog. And while many of the dogs on the show have behavior problems because well-meaning owners don't know how to deal with their canine companions, last January, fans were introduced to one dog whose problems stemmed from abuse.

DR. SHERRY WEAVER, ANIMAL HOSPITAL OF TOWNE LAKE: He was brought in with a collar imbedded -- I'm sorry, a piece of wire, it wasn't an actual collar, imbedded into his neck a good inch deep into the tissue of his neck.

BALDWIN: This Shepherd/Lab mix spent two years at the animal hospital of Towne Lake in Georgia. While physically healed, something still wasn't right.

So, in came Cesar.

CESAR MILLAN, "THE DOG WHISPERER": They didn't have the right strategy to help him, you know. And so, that's pretty much what I came out. When I met Howie, I will call him a very fearful case, you know, meaning, he wouldn't trust other humans. And so, his world became very chaotic, very unstable.

BALDWIN: After Cesar's visit, the staff continued working with Howie.

UNIDENTIFIED FEMALE: As far as Howie's future, I'm thrilled if he stays here. I would miss him terribly. But, I'd love for him to have a loving home.

SUMMER VILJOEN, HOWIE'S OWNER: And I saw him. I'm like, "Wow, that's my dog."

BALDWIN: Summer Viljoen, an artist from Atlanta saw the episode and felt an instant connection.

VILJOEN: It's kind of like an old soul. I don't know. I just knew.

BALDWIN: She went to the vet the very next day.

VILJOEN: And I sat down on the grass and he literally came over and sat -- I mean, he was touching my legs, sat down right next to me. And the lady just freaked. She was like, "I swear to God, this has never happened before."

BALDWIN: Recently, Cesar Millan returned to Atlanta to host a seminar on dog psychology and to promote his new book, "A Member of the Family." Cesar also took some time to check in on Howie and meet Summer.

MILLAN: Well, this is amazing. This is a new Howie. I was a part of it, you know, just a little part. Obviously, the ladies at the vet's office did most of it. I did just a little bit. And then you come and close the deal. I'm just happy to be part of something so beautiful, you know.

VILJOEN: Me, too.

(LAUGHTER)

VILJOEN: He's my little -- he's my little angel in furry pants. He really is. He came -- he came along at the right time, and I swear, he's my angel. He is.

MILLAN: It's all about the pack.

BALDWIN: And this pack is a true success story.

Brooke Baldwin, CNN, Atlanta.

(END VIDEOTAPE)

NGUYEN: Hello, everybody, from the CNN center in Atlanta, this is CNN SATURDAY MORNING. How you doing out there? Good morning, everybody, I'm Betty Nguyen.

HOLMES: I'm fine. Thank you.

NGUYEN: I'm glad to know that you're fine. I need you to be fine.

HOLMES: I am OK. I'm T.J. Holmes and a lot of stuff going on this morning as always on a Saturday and Sunday morning here every weekend. We're going to be talking about the newest target of hate crimes. Some new numbers out from the Federal government about exactly who's been the target of hate crimes. Latinos more and more so are being attacked and beaten. We'll get into it about that this morning.

NGUYEN: Yeah, it's quite a story, too.

And I have more on my exclusive conversation with First Lady Laura Bush. Just ahead, she talks about life after the White House and what's next.

HOLMES: We will talk about a guy who is struggling to keep a hold of his house right now, the governor's mansion there in Illinois. He's being asked to, you know, leave, either jump' ship or be thrown overboard. Those are pretty much the only options that Illinois Governor Rod Blagojevich is being given. The state attorney general is asking the state supreme court to remove him, remove him if the legislature doesn't beat them to the punch and impeach him first.

NGUYEN: Meanwhile, the governor's chief of staff has resigned and a source close to the investigation tells us that President-Elect Barack Obama's chief of staff, Rahm Emanuel, has been informed that he is not a target of the probe.

HOLMES: Our Drew Griffin on this case for us. He caught up with the governor yesterday, got some comments from him on the record. Drew is checking in with us now by phone. Drew, we listened to it. He said he wanted to speak at the appropriate time. But he didn't think the appropriate time was when you had a camera and a microphone in his face.

GRIFFIN: And all of Illinois thinks he should have spoken at the appropriate time which was two minutes after he was brought into court to explain exactly what happened. This is the sitting governor of Illinois who hasn't said a peep in the last three days -- four days now, I guess, since his arrest. We caught up with him just as he was coming out of about a three-hour session with his attorney and you can listen to just how evasive he was.

(BEGIN VIDEO CLIP)

GRIFFIN: Drew Griffin with CNN. Can you say anything to the people of the state of Illinois, sir? Do you have anything to say?

GOV. ROD BLAGOJEVICH (D), ILLINOIS: I will at the appropriate time, absolutely.

GRIFFIN: Are you going to resign?

BLAGOJEVICH: I'll have a lot to say at the appropriate time.

GRIFFIN: Governor, are the authorities right in their position that (INAUDIBLE) Governor.

(END VIDEO CLIP)

GRIFFIN: T.J., obviously didn't want to stop and chat, didn't want to tell us when or if he'll resign and is so far not saying much of anything at all. His staff somewhat in the dark about what the governor's going to do, even though he has been going to work and even signed a bill into law yesterday. So, he is still acting like the governor even though everybody -- certainly all the politicians in Illinois want him to sign that piece of paper that says he is no longer the governor.

HOLMES: Drew, what in the world is he going to do? I guess a lot of people are surprised to hear, it can't be business as usual but he's going to work, signing bills, doing his thing like he's the governor, just another day at the office. What are his options? It sounds like so much of it is out of his hands.

GRIFFIN: Yes, I think it really is out of his hands and I think -- well, I shouldn't say I think. The people I'm talking to think that Blagojevich is trying to weigh any option he might have to try to retain some sort of salary while he goes through this criminal proceeding. It's believed he knows he can't be the governor through this period, but the governor apparently has been in some serious financial straits for a while which could explain why some of this stuff may have been going on.

But more and more what we're hearing from -- especially from his own party is that he has to go, that it's gone beyond the time of deal-making, that at least as far as the governorship is concerned, this man needs to be stepping down because he's just -- he cannot be efficient as governor. He has no more moral authority to do anything here in the state of Illinois without it having this cloud over it.

HOLMES: And a stain on it. Drew Griffin for us on this story. We look forward to hearing more and hopefully he will find it -- an appropriate time the next time you come face-to-face with the governor. Drew Griffin, we appreciate you as always.

And related to this story, we talked about him, he's accused of trying to sell that Senate seat, Barack Obama's old seat to several candidates. One of them they had named, Senate candidate number one, number two, number three --

NGUYEN: Four and five --

HOLMES: Senate candidate number five, aka Jesse Jackson, Junior, aka the guy fighting for his political life right now. He is not, however, a target of the investigation even though he's named in that criminal complaint.

NGUYEN: But the "Chicago Tribune" is reporting that two businessmen with ties to Jackson and Blagojevich discussed with the governor raising at least $1 million in campaign cash in exchange for Jackson getting the Senate seat. According to the Trib, that meeting led to a fund-raiser last weekend attended by Jackson's brother.

Now, Jackson spoke out talking to CNN's Don Lemon. Take a listen.

(BEGIN VIDEO CLIP)

REP. JESSE JACKSON, JR (D) ILLINOIS: I've got a great name given to me by great parents and I've got a great father who has a great legacy to public service.

DON LEMON, CNN CORRESPONDENT: But explain now --

JACKSON: It's so great -- it's so great that I named my daughter Jessica and I named my son Jesse so I'm fighting now for my character and I'm also fighting for my life. (END VIDEO CLIP)

NGUYEN: He gets pretty emotional in that. Congressman Jackson, who denies any wrongdoing, said he had nothing to do with it, met with Blagojevich on Monday, one day before the Feds arrested him. We're going to delve into a lot more of this throughout the morning. You can catch more of Don's interview with Jesse Jackson, Junior, on his show tonight, 11:00 p.m. Eastern. That's the CNN "NEWSROOM" with Don Lemon tonight, 11:00 Eastern.

The Bush administration is stepping into help the nation's near bankrupt auto industry. The White House could order the Treasury Department to provide some funding from the so-called TARP fund. That's the fund to bail out Wall Street. Our Kate Bolduan is in Washington. Kate, any word from the White House this morning on what they plan to do? For GM especially, time is running out because it says it needs the money by the end of the month.

KATE BOLDUAN, CNN CORRESPONDENT: And that is one thing that you can bet that White House officials are considering is timing here, Betty. Not too much we're hearing from the White House quite yet, but two senior administration officials do tell CNN the Bush White House is leaving the door open to possibly make the move to dip into TARP funds, possibly this weekend. Meanwhile, this all comes after negotiations on Capitol Hill broke down over Republican demands for auto worker wage cuts.

(BEGIN VIDEOTAPE)

BOLDUAN (voice-over): From shock --

SEN. CHRIS DODD (D) BANKING CHAIRMAN: We were incapable of coming up with an answer.

BOLDUAN: To placing blame for the Senate's failure Thursday night to agree on an emergency loan for the auto industry.

DODD: No matter what they aim back with, unless it was everything, the Republicans, a handful wanted, this deal was not going to go forward.

BOLDUAN: Democratic lawmakers, including Senator Chris Dodd, are putting the fault squarely on Republicans, suggesting the GOP is putting the burden on the backs of auto workers. The president of the auto workers union agrees.

RON GETTELFINGER, PRESIDENT, UNITED AUTO WORKERS: They thought perhaps they could have a two-for here maybe, you know. Pierce the heart of organized labor while representing the foreign brands.

BOLDUAN: The UAW is pointing to geography as a reason for the collapse in negotiations. More than a third of the senators, both Republican and Democrat, voting against the bill come from southern non-union states where foreign auto companies have plants. Republicans are firing back. Tennessee Senator Bob Corker, the lead negotiator for Senate Republicans, suggests the UAW, a large voting bloc for the Democratic Party, is the cause of the breakdown.

SEN. BOB CORKER (R) TENNESSEE: The only way a bill is going to pass out of the Senate and the House on the Democratic side was for the UAW to say we release you to vote for this. I mean, I hate to be so blunt, but that's politics, OK?

(END VIDEOTAPE)

BOLDUAN: Now, this comes back to the sticking point of a date, when to reduce wages for auto workers. Republicans wanted a date certain in the next year. But Democrats and auto union leaders said, no, insisting they wouldn't make the change before union contracts are up in 2011 -- Betty.

NGUYEN: All right, Kate Bolduan. We do appreciate that. Thank you.

HOLMES: President-Elect Barack Obama continues to put his team together. He's now announced that Shaun Donovan will be his choice for secretary of Housing and Urban Development. Donovan is New York's housing commissioner. He's also a former housing consultant and a deputy assistant secretary of HUD.

Obama revealed his choice this morning in a radio address.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: We need to understand that the old ways of looking at our cities just won't do. That means promoting cities as the backbone of regional growth by not only solving the problems in our cities, but seizing the opportunities in our growing suburbs, exurbs and metropolitan areas. No one knows this better than the outstanding public servant I am announcing today as our next secretary of Housing and Urban Development, Shaun Donovan.

(END VIDEO CLIP)

HOLMES: Even though you saw him in video there, trust us, you could hear on it the radio as well. Donovan's appointment to the Obama cabinet must be confirmed by the Senate.

NGUYEN: We're not joking, we're talking about severe weather today. Look at this. Three different places we want to really highlight for you because a nasty ice storm cripples much of the northeast and leaves more than a million people without power at this hour. It's especially harsh for retailers because this is such a critical money-making time, of course, it being the holiday season.

HOLMES: Already struggling with the economy and other things already and now this on top of it, that certainly doesn't help those retailers trying to get in the black right about now. These are the eight states that are affected. A state of emergency has been declared in Massachusetts and New Hampshire, also a report of a storm-related death there in New Hampshire. Maine, meanwhile, under an emergency as well, but a limited emergency, so maybe not as bad there. NGUYEN: So is today going to be a little bit of a relief for these folks suffering from this deep freeze? I'm not so sure about it because when we talked to you earlier Reynolds, you mentioned something like what, 50 below outside in certain places.

(WEATHER REPORT)

HOLMES: We will be talking about hate crimes coming up. They've been on the rise, but a particular group in particular, being targeted, a dramatic increase in those numbers. We'll tell you which ethnic group being targeted and why this is so disturbing to some.

NGUYEN: And also, if you spent the last eight years at 1600 Pennsylvania Avenue, what would be your normal life after that? Well, I spoke with First Lady Laura Bush and she's going to explain what that new normal will be.

(COMMERCIAL BREAK)

NGUYEN: So chances are the attackers didn't even know their victims' names.

HOLMES: Yes, the families believe the two brothers were beaten just because they're Latino. This is not an isolated case, this one.

NGUYEN: The Brooklyn beating is just the latest, in fact, in a series of hate crimes targeting Latinos. CNN's Susan Candiotti has the latest.

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SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): From home (ph) in Brooklyn when two Ecuadorian brothers were savagely beaten. One of them, business owner (INAUDIBLE), is on life support. His brother is recovering. Police say he was struck in the head with a bottle and an aluminum bat by occupants of a car that pulled over, then attacked. Witnesses heard racial slurs. Police released a sketch of one suspect.

UNIDENTIFIED MALE: We as a society need to come together and denounce this.

CANDIOTTI: The case is being investigated as a possible hate crime. The victims' family is convinced of it.

DIEGO SUCUZHANAY, VICTIM'S BROTHER: What they was called was Hispanic (EXPLETIVE DELETED) which was, I think, a racial term, obviously, probably the attackers hate.

CANDIOTTI: The incident followed a fatal stabbing weeks earlier, also in New York, that police did call a hate crime, another Latino, coincidentally, also from Ecuador, allegedly targeted by a group of teenage boys going quote beaner jumping. Seven suspects have been arrested and charged as adults, one of them with second degree murder, the others with assault. They pleaded not guilty. UNIDENTIFIED MALE: Their motivation was to find -- to find Latinos and to assault them. That was what they went out to do that night.

CANDIOTTI (on-camera): What's going on? Latino organizations say attacks don't just seem to be on the rise, they are going up as the Hispanic population grows and in part because immigrant bias remains unchecked.

(voice-over): The most recent FBI statistics reflect an increase. Attacks on Latinos grew 40 percent from 2003 through last year. And 60 percent of all hate crimes were motivated by bias against Latinos.

FERNANDO MATEO, PRES. HISPANICS ACROSS AMERICA: People feel that they're here possibly taking their jobs. People feel that they don't belong here.

CANDIOTTI: And the attacks don't just happen in big cities. A judge said racial slurs allegedly were used during the fatal beating of a Mexican man walking down a street in a small Pennsylvania town last summer. Three teens were charged in the case, a disturbing pattern that Latino groups worry won't change any time soon.

Susan Candiotti, CNN, New York.

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HOLMES: Well, our guest here, Maria Teresa Petersen, is with the group Voto Latino, has been working tirelessly in the community and trying to work to prevent exactly some of those things we were seeing in that piece.

Ma'am, thank you for being with us. We see it on the rise. Why?

MARIA TERESA PETERSEN, EXECUTIVE DIR., VOTO LATINO: Well, I think part of it is the anti-immigrant sentiment that we're seeing and it started in the hallways of Congress. Part of it is that Congress hasn't come up with a solution to the immigration reform.

As a result, a lot of small town ordinances -- you mentioned Hazelton, where one of the beatings occurred (INAUDIBLE) beatings occurred, that was one of the mayors where they actually created a very strong anti-Latino ordinance. And basically it was that if you looked Latino to someone, a cop could pull you over and ask for your papers.

HOLMES: And you said in the halls of Congress. You believe that Congress is responsible for a lot of what we're seeing and you call it anti-Latino. I'm sure some in Congress would call it not anti-anything but just trying to protect this country and the borders and the laws.

PETERSEN: Right. Well, no, because they haven't come up with an immigration solution is why Congress has actually failed and I think that's why we see an uptick in anti-Latino hate crimes, unfortunately. HOLMES: What do the tough economic times have to do with it as well? Many people in this country, just about all of us, struggling in some way, form or fashion. You heard someone in the piece talk about feeling that some of those jobs are being taken by others, by immigrants, by foreigners, whatever they may call them. So how much do the tough economic times and will that continue to contribute to it?

PETERSEN: Unfortunately, I think we're going to see it on the rise. But as your story very well stated was that these increases have started since 2003. So this actually -- you can actually see it paralleling to when immigration debate started hitting at the forefront. So what we need to do is we need to have a strong conversation and we need to have immigration reform as soon as possible, but at the same time we have to make sure that we're not hurting each other at a very simple level.

HOLMES: Is it possible to have those strong conversations and not come across as anti-immigrant? So much of what's talked about on television -- don't get me wrong. There is some strong language out there. It's harsh and vitriolic. But, at the same time, some people who seem to just be standing up for the laws can often be seen as being anti-immigrant and --

PETERSEN: Well, I think you actually -- and that's the problem. Unfortunately, because a lot -- the rhetoric somehow has been equivocated that if you're anti-immigrant or you're an immigrant you must be Latino.

In fact, you have Latinos that have been living in this country for generations, folks that don't know Spanish and yet they can go into a Carlos junior (ph) and someone behind the desk, behind the counter can ask them for their papers because they feel that there's an ownership because again, the government has not resolved this issue.

HOLMES: Last thing here, your solution if you will for how we should move forward with the conversation. Help -- you tell me how we can all -- because we've been talking about this issue for some time, how we all should conduct ourselves in having, no matter which side you're on, how we should conduct ourselves in this debate.

PETERSEN: I think this is where the media needs to take a very strong role and start having an open dialogue. CNN a few months back did something called, you know, the state of black America. I think promoting those kind of -- those programming is incredibly useful because that's how you create dialogue among America in general. And I think that's where the media specifically can play an incredible role.

HOLMES: Well, Maria Teresa Petersen, again with Voto Latino, I'm glad you and I had this conversation this morning. I know we got you out of bed and it's early but we hope to do it again because we really would like to have you back and continue this conversation with you and with this country. Thank you so much for your time.

PETERSEN: Thank you T.J. You're not supposed to call me out.

HOLMES: Sorry about that. But thank you.

PETERSEN: Thank you.

NGUYEN: Only the truth here, folks, only the truth.

This week, I sat down with First Lady Laura Bush to find out what she has planned for life after the White House.

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NGUYEN: Well, for eight years she called the White House home, but next month Laura Bush moves back to Texas and steps into what she calls her new normal. I spoke with the First Lady about that this week when we sat down for a one-on-one in New York.

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NGUYEN: Talk to us about moving back to Dallas and what is going to be your new normal, something that you referred to as the afterlife.

BUSH: Well, we're going to have a normal life, a normal house and everything, but the president is going to build his presidential library and archives in Dallas at Southern Methodist University and then with it, he's going to build a freedom institute. And that's with this freedom institute, I hope that I'm going to have the chance to continue to work with women in Afghanistan and to work on all the issues that have to do with Burma and transition to democracy in Burma.

But it's been a wonderful privilege for me. I've been very, very honored to have the chance to represent the people of the United States as I've traveled around the world and to get to live in the White House and represent the people of the U.S. And now President Bush and I are looking forward to moving on to the next part of our life and that will be a normal life back at our home in Dallas where we lived 14 years ago when we moved to the Texas governor's mansion.

NGUYEN: Which doesn't have a cabana as it it's been reported.

BUSH: There's no cabana or service quarters or those other things that I read about.

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NGUYEN: It does have a wet bar.

HOLMES: Wow.

NGUYEN: She says a normal life in a normal house. This is a pretty nice neighborhood in Preston Hollow in Dallas and her neighbors -- just get a load of this -- Tom Hicks, the owner of the Texas Rangers baseball team. He has a house just adjacent in a little area there, $32 million. Mark Cuban has a home nearby for $17 million. But, you know, hey, in comparison, they just have a $2 million home.

HOLMES: Just $2.

NGUYEN: Only 8,500 square feet.

HOLMES: That's it?

NGUYEN: It's the first family. You don't expect them to move into a starter home, right?

HOLMES: That's a normal life now. Where do you go after you move out of the White House?

NGUYEN: It's nothing compared to 1600 Pennsylvania Avenue.

HOLMES: A two-bedroom apartment.

This just in to us here. We can confirm to you that Defense Secretary Robert Gates is in Iraq right now, there for a surprise visit. Oftentimes as we know these things are not announced for security reasons, but he's there to talk to commanders about certainly moving forward and talk about troop reductions, getting some U.S. troops out of there.

Of course, the secretary now is serving, if you will, two presidents. He's serving the president now, President Bush and also is going to be kept on by President Obama when he becomes President Obama for a little while as well, so two different missions really he's going to be balancing and trying to carry on with his current boss and his future boss, a boss he'll have here on January 20th of next year. Again, just confirmed to you Robert Gates is now in Iraq.

Stick right here with us. CNN SATURDAY MORNING continues.

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NGUYEN: More from my interview with First Lady Laura Bush. Coming up, she's going to be talking about legacy, lessons learned, perhaps any regrets. So, stay tuned for that.

HOLMES: I want to hear about that house some more she's moving in to. But first right now, "HOUSE CALL" with Dr. Sanjay Gupta coming your way right now.