three children and their grandparents? a cop car out of control slamming into a packed restaurant stopping only inches from a firepit and tanks of propane on this "american morning." -- captions by vitac -- www.vitac.com good morning. it's wednesday, december 28th. welcome to "american morning." i'm alina cho along with ali velshi. so glad you're with us today. >> good morning, alina. up first, remember newt gingrich's pledge to keep his campaign positive? forget about it. with six days to go before the iowa caucuses the former house speaker kicked it into slice and dice mode. listen to newt gingrich in "the situation room" with wolf blitzer challenging mitt romney to man up. and the massachusetts governor was willing to return the fire. >> mitt romney's the guy running the most ads attacking me, and he's doing it through this disingenuous, oh, gee, i don't control all of my former staff and millionaire friends. it's baloney. he wants to defend his negativity, show up in iowa 90 minutes face to face. let the people decide whether or not in fact he'll back up what he's been saying and let him back up his moderate record, not conservative record, as governor, and i don't think he'll do it. >> running his campaign the way he thinks best. obviously, the virginia setting was not the best hour of his campaign. it's more like, lucille ball at the chocolate factory. i mean, you've got to get it organized. >> we have not heard of last of those two. gingrich didn't hold back when he came to his other challenger in iowa, ron paul. listen to this bombshell gingrich dropped on wolf blitzer. >> you look at his newsletters and then you look at his ads. his ads are about as accurate as his newsletters. >> if he were to get the republican nomination. >> he won't. >> let's say he were. could you vote for him? >> no. >> when newt gingrich ask was a if he could vote for barack obama calling boast choices bad for america. with us live from des moines, iowa, this morning. certainly getting ugly this morning. what's it looking like in iowa? >> ali, look, liooks likes glovs are off. didn't take newt gingrich long to break his promise to stay positive. sad about taking all this incoming newt has been taking from the superpacs aligned with mitt romney as well as with ron paul running his own ads, attacking newt gingrich. you know, the ron paul campaign responded in kind to those very harsh words from newt gingrich. let me read you a little bit about what the campaign manager said in response to newt gingrich. frustration from this floundering campaign has newt gingrich showing who he really is. a divisive, big government liberal. we are less than a week before the iowa caucuses and things are just going to get uglier and uglier as we get closer to january 3rd. >> rick perry is also making news in iowa. he's telling voters why he has toughened his stance on abortions. tell us what he's done. >> yeah. you know, rick perry made this announcement yesterday. he was here in iowa campaigning. in fact, he said that he is hardening his position now on abortion. before he did not -- he is a povertied the right of a woman to have an abortion if she was a victim of rape and incest. that has now changed, he says. listen to rick perry explain it himself. >> she said, i am the product of a rape, and she said, my life is worth -- it was a powerful moment for me. >> and listen to that applause. that plays very well with the image, born again conservative voters here in iowa. rick perry said that he came to that transformational moment after watching a dvd. the woman he's explaining that he heard talk about her problems with abortion was the fact that she, her mother, was a vick testimony testimo victim of rape. it was produced by mike huckabee, the governor who won the 2008 caucuses. a lot going on nr iowa. it's only going to get busier and busier. >> none of us are in a position to question rick perry's belief and whether they shifted and people's beliefs evolved. is in talk this may have something to do with the tougher and tougher battle for the evangelical wing in iowa? >> no question that that is certainly going to be questioned. the fact you have made the switch just in the past few weeks, that rick perry would come out and make that announcement here in iowa. we should say that it was, and he has been against abortion. his life. he was a social conservative. you're right, ali. why take this moment to say he's actually hardened it across the spectrum? >> mark, a busy week. good to see you, my friend. full coverage of the iowa cau s caucuses on tuesday. political director in des moines. the shaky hold democrats have on the senate just got a little shake jer. ben nelson of nebraska says it's time to move on. he will not seek re-election next year. nelson's announcement has democrats scrambling to preserve his senate seat and their 53-47 majority. party officials are reaching out to former nebraska senator bob k kerry kerrey to run for his sea. wolf blitzer will ask him on "the situation room," putting in comments of newt gingrich to mitt romney and see what he says. and the late leader of north korea, kim jong-il, funeral services took place very early new york time. the services are expected to last the two days. his son and hand-picked successor, kim jong un, walking along the front of the hearse as the world looks for signs of instai instability. paula hancocks with more on that. >> reporter: hello, alina. this was certainly a very well choreographed event. north korea was very aware that the rest of the world would be watching this very closely, and this is what north korea does best. the pomp and ceremony of these kinds of events. now, what we saw was kim jong un walking alongside his father's car, carrying the coffin, and also behind him his uncle, who's believed to be helping in his first few years of reign, and also on the other side, there were very significant military personnel. the head of the military was flanking the hearse as well. so this was really a show of unity by the north koreans. they wanted to show that kim jon isle was alrea jong-il was already in control and had the support of the military behind him. it was a snow-laden street, a very heavy snow that didn't affect proceedings. the state-run media even said the heavens and the sky was mourning the loss of kim jong-il. tens of thousands of people came out to mourn the dear leader as his coffin went past, and there were many scenes of weeping and wailing and chest beating. among them, many soldiers. definitely more of a military theme it appears, this time than kim il-sung, at the fra grandfather's funeral 17 years ago. north korea showing the succession as far as they're concerned is going according to script. alina? >> when kim jong-il's father, kim il-sung died a four-year period of mourning where he largely remained quiet. is it expected to be the same this time around? >> reporter: no one's sure if kim jong un will have this luxury. kim jong-il had 14 years of grooming before he took over and effectively in chargof the military when his father died. kim jong un, only a few days. he was shown to the public and the world just over a year ago. so he has very little military experience, if any. he has no political experience. he's not even 30. and so experts are suggesting that he doesn't actually have the luxury of waiting a few years until he tries to consolidate power, but he will have to consolidate power. he has relatives around him. his uncle and his aunt, the sister of kim jong-il, supposedly going to be mentoring him, and in theory, according to state media, he has the military behind him, which is crucial in north korea. it's more than 1 million-person strong army. it's absolutely crucial the military is behind him. this is all what we're seeing publicly. the only thing we can see is what north korean television is showing us. we don't know what's going on behind the scenes. >> i remember being in north korea the first time they unv l unveiled kim jong un. the first time the public saw him as well as the world. we'll be watching closely. paula hancocks, thanks very much. the bloody crackdown in syria continues right under the noses are the arab league monitors who are in the country. they will visit two new towns at the center of the uprising. an opposition group says 14 more people killed. thousands in the streets to protest the al assad regime. a human rights group is accusing them of hiding hundreds in military sites. iran is threatening to block the flow of crude l through the strait of hormuz that is driving oil prices up. every day some 15 million barrel of crude flow through the channel connecting the indian ocean and persian gulf. iran's vice president is warning that the strait will be blocked if the west following through on threats to impose sanctions on its crude exports. >> these are long-standing threats. the u.s. military patrols that area as well. terrifying moments in new mexico. a police squad car crashes into a crowded restaurant. the officer loses control after being clipped by another car on the highway. the cruiser stopped in front of one of the fire pits right in front of kerosene and propane. the restaurant starting clearing everybody out. >> we rushed everybody out the back door is what we did, because we didn't know if it was going to blow up. >> we heard this all happen and all of these people are involved, and no one was hurt. we just all said it was like a christmas miracle. >> incredibly, as they said, that one was hurt. this is an incredible story. luck has run out for whoever pulled this summer's winning powerball ticket. i said this summer's. $77 million jackpot sat waiting more than 100 days. the winner never came forward. the prize expired this monday. the winning ticket was purchased in georgia. the unclaimed jackpot apparently divided among its participating powerball states. >> wow. >> i know. >> it's not too late for one lucky person to claim -- pardon me. the $206 mega millions jackpot. whoever won bought their ticket in new york state. the megaball number is 8. >> they haven't come forward either. >> i would be in a relative hurry to get my money. >> me, too. coming up investigators will reveal what started the fire that killed three little girls and their grandparents on christmas day. a big settlement in the price fixing case among tv manufacturers. are you one of the customers that might get some money back? and bill maher, bashing the bronco's quarterback in a tweet. we'll tell what you he said. [ woman ] my boyfriend and i were going on vacation, so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates. earn points you can use for travel on any airline, when bp made a commitment to the gulf, we knew it would take time, but we were determined to see it through. today, while our work continues, i want to update you on the progress: bp has set aside 20 billion dollars to fund economic and environmental recovery. we're paying for all spill- related clean-up costs. and we've established a 500 million dollar fund so independent scientists can study the gulf's wildlife and environment for ten years. thousands of environmental samples from across the gulf have been analyzed by independent labs under the direction of the us coast guard. i'm glad to report all beaches and waters are open for everyone to enjoy. and the economy is showing progress with many areas on the gulf coast having their best tourism seasons in years. i was born here, i'm still here and so is bp. we're committed to the gulf for everyone who loves it, and everyone who calls it home. . welcome back. new dames in the christmas day tragedy in connecticut. investigators reveal the fatal mistake that took the lives of three little girls and their grandparents as their house went up had flames. hot, smoldering ashes from a yule log, thrown outside without being doused in water. fire marshals say those embers sparked the deadly fire. deb feyerick joins us with more on this horrific story. deb, good morning to you. it was the way the embers were discarded, number one and there was not, from what i understand, a working fire detector. >> there wasn't. the house waseneder reconstruction. that may have been one of the reasons they didn't have that. an alarm system. it doesn't appear that was activated. seven people in that house. only two, the mother and her boyfriend, made it up alive. they'd stayed up late wrapping christmas presents. thought they were doing the right thing by cleaning out the fireplace and putting the ashes outside. as fire raced through the victorian home just before dawn christmas morning, neighbors frantically called 911. >> what's the emergency? >> a huge fire at the house next door. the whole house is on fire. >> what is the address, ma'am. >> 2241 shippan avenue. it's the house next door. three kids and a woman. >> reporter: trapped inside the stamford, connecticut home, two grandparents and their three granddaughters. >> a major, major fire with people in the house. >> we have a fire crew on the way, ma'am. >> please, come quickly. >> reporter: the house was under renovation. it appears fireplace embers placed in an outdoor trash enclosure outside the home caused the blaze. the mom climbed out on scaffolding frantically directing firefighters to the third floor where she said her children were sleeping. >> the crew pushed through two rooms unable to find the children. pushed back by intense heat and flames. >> reporter: grabbing two of the frightened girls, family friend michael seen here on his facebook page reached the second floor. >> the heat drove them to get spramt separated. one went back upstairs and another found with the grandmother. >> the grandfather spent christmas eve playing santa. he managed to leave one granddaughter at the back the house, climbed on to the roof and died when he tried to pull her to safety. >> just outside the window he came out of we found one of the young children. i guess there were a pile of books. looks like she was placed on the books. >> reporter: the mother, a successful marketing executive, is said to be in shock. she was taken from the scene sobbing, my whole life is in that house. >> when you don't make that rescue, that you failed, and i don't think anybody wants to fail. >> reporter: now, investigators continued to search for answers, but it appears that the home did not have smoke detectors, nor did it have a fire alarm system. it appears by the time the family realized they were in danger, the fire was just well underway and much of the house consumed. >> there are a couple of lessons. number weren't, check your fire detector. number two, know the proper way to discard the embers. in a metal enclosure, right? and make sure you douse it with water? >> exactly right. clearly they thought we were doing the responsible thing by taking the many bers outside, by not leaving them in the home. again it was that just one small mistake. and -- >> incredible how quickly that house went up in flames. >> exactly. old victorian house and, really, they just couldn't get out. >> all right. >> deb feyerick, thank you very much. check on the weather. 20 minutes after the hour. rob marciano is in the extreme weather center for us. good morning. >> good morning. a storm rolled through much of the eastern half of the country yesterday. king of prussia, north and west of pennsylvania. street flooding. the northeast got hammered with how much heavy rain fell's in some places, just to the west, highway, cincinnati blowing out their annual rainfall record. over 70 inches just outside of philadelphia. connecticut parts of upstate new york and northern new england seeing a fair amount of rain and wind. today the big story is wind. rainfall moving out. a little snow behind this system finally. not a tremendous amount. advisories out. anywhere from one to five inches in parts of western pennsylvania and upstate new york. the wind is the bigger issue. 20 to 30 mile-an-hour winds across the corridor slowing down air travel for sure at the new york metro in philadelphia, boston, d.c. as well to a lesser extent. san francisco starting to crank up the storm train out in. in between, though, decent weather, mild conditions at temperatures begin top rebound. a cold front coming through the northeast. not drastically cold. not an arctic outbreak by any stretch. the jet stream staying further north but slams into the pacific northwest. an incredibly dry december and making up for it in a hurry. the jet stream pointing at the passes well up and over 60 miles an hour. 36 degrees in chicago. about where you should be for this time of year. 39 in minneapolis. probably above average. 52 in memphis. it will be 44 in new york city today. but it will be breezy. hold on to your hats. >> you've got the same thing in your throat that i've got. >> i don't know how to get rid of it but hope to have it gone by the next hour. >> i only pay attention to the morning stuffy say, because i don't really care about the rest of it. doing erin burnett's show. >> he didn't mean that. >> i'm learning. ip should listen all the time. i got outside. like i was going to build an iu ark. so much rain. he laugh at me. the doorman says, do you not listen to the weather? >> here's the other thing. get an umbrella, maybe? >> raining like mad, but unseasonably warm. why ali is wearing a vest and no jacket. >> there you go. >> i don't want you -- stay cool. >> thank you, rob. >> thank you. >> see you, guys. still ahead, the new leader of north korea. north korea holding funeral services for former leader kim jong-il. his son, talking about whether he can possibly a bigger threat than his father. our guest along in a few minutes. it's 23 after the hour. [ female announcer ] lactaid milk is easy to digest. it's real milk full of calcium and vitamin d. and tastes simply delicious. for those of us with lactose intolerance... lactaid® milk. the original 100% lactose-free milk. 26 minutes after the hour. welcome back. we'remondened this morning. u.s. markets are crawling to the finish line. three trading sessions to go in the 2011 frayeding season. trading season. yesterday was a downright snoozer. the dow dropped three points. the other major indices moving mostly sideways in a sluggish, low volume session. if you thought you'd make it to the end of 2011 without hearing the word debt ceiling again, you were wrong. president obama plans to ask congress this week to raise the nation's debt limit by 1.2 trillion dollars next year. that will put it at $16.4 trillion. the request is expected to be granted by the democratic-controlled senate. no end in sight for the housing market. home prices falling for the sixth straight month in october. according to the case schiller index, they fell from a year ago. oil prices back up. the price of a barrel of light sweet crude just above $100 a barrel. prices shot up more than 2% yesterday after iran threatened to choke off oil supplies flowing through the strait of who are moos. and the strait of hormuz. if you purchased a flat-screen tv, you might be entitled to a refund. sharp and samsung agreed to a settlement after being charged with lcd panel price fixing qualifying buyers in 24 states and washington, d.c. will be notified at a later date how to get some of their money back. "american morning" back, right after this break. , the mo, because for every two pounds you lose through diet and exercise, alli can help you lose one more by blocking some of the