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American Morning

State of the Union: How did the President do?; Global Climate Change

Aired January 24, 2007 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR: Talk to three people who would like to succeed the president. Barack Obama, John McCain and Bill Richardson are guests later this morning.
Lots to chew on for the best political team on television this morning. Let's take a look a look at the lineup. Impressive, it is. White House correspondent Suzanne Malveaux, congressional correspondent Andrea Koppel, AMERICAN MORNING's Bob Franken in Wilmington where the president is headed, and our Alina Cho and Sean Callebs will help us with our fact checks, see what the president said and how that jives with the reality on the ground, as they say.

Let's begin with Suzanne Malveaux and a wrap-up of the speech.

Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, good morning, Miles.

President Bush, of course, is trying to convince the American people that he is credible and relevant. And the question this morning is whether or not this State of the Union agenda makes any difference and whether or not Americans are even still listening.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The president of the United States.

MALVEAUX, (voice over): The president, who used to boast of having political capital to spend, is arguably down to chump change. With his Iraq policy under fire and his domestic agenda now at a screeching halt, this State of the Union was an attempt to salvage both.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This is not the fight we entered in Iraq, but it is the fight we are in. Every one of us wishes this war were over an won, yet it would not be like us to leave our promises unkept, our friends abandoned and our own security at risk.

MALVEAUX: Mr. Bush practically pleaded members of Congress to give him more time for his Iraq strategy to work, which includes sending more Americans into battle. He cleverly used the call to support the troops to get the Democrats, as well as the Republicans, on their feet.

BUSH: We went into this largely united in our assumptions and in our convictions. And whatever you voted for, you did not vote for failure. Our country is pursuing a new strategy in Iraq and I ask you to give it a chance to work. And I ask you to support our troops in the field and those on their way.

MALVEAUX: But with House Speaker Nancy Pelosi third in line to the presidency standing over Mr. Bush's shoulder, the president did recognize the political landscape had changed.

BUSH: Tonight, I have the high privilege and distinct honor of my own, as the first president to begin the State of the Union message with these words, "madame speaker."

MALVEAUX: On the domestic side, the president is also trying to prove he is still relevant and able to get things done at home. Mr. Bush pitched new initiatives regarding healthcare, energy and the environment, which received mixed reviews from the Democrats. But his immigration reform plan got a better reception from them than from the Republicans.

(END VIDEOTAPE)

MALVEAUX: And of course, Miles, the next step, the president trying to sell this agenda to the American people. He's taking it on the road. Today he's going to Wilmington, Delaware, to a research and development facility of DuPont. That is where he'll try to promote his energy initiatives.

Miles.

M. O'BRIEN: Suzanne Malveaux at the White House. Thank you very much.

Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: So how is the president's speech playing with the people this morning? Let's take a look this morning at a live shot at the radio station for (INAUDIBLE). It's "Morning in America." Steve Malzberg is filling in for him today. We're listening in. We're going to talk to Steve in just a little bit. Also with "Air America's" Rachel Maddow about what their listeners are saying to them this morning.

First though, CNN political analyst Bill Schneider has some new numbers from a CNN/Opinion Research Corporation poll. It was released right after the speech. Take a listen.

(BEGIN VIDEOTAPE)

BILL SCHNEIDER, CNN CORRESPONDENT, (voice over): How did the State of the Union speech go over? Forty-one percent of those who watched it said their reaction was very positive. Sounds pretty good. But that's actually less positive than the response to President Bush's past State of the Union speeches. This one was OK, but not a blockbuster.

One reason is that this year the audience was less partisan than usual. Usually the audience for bush speech is disproportionately Republican. This year it was evenly balanced between Republicans and Democrats. Apparently a lot of Democrats tuned in to see the new Democratic Congress and new House Speaker Nancy Pelosi.

Did viewers believe the speech would lead to more cooperation or more disagreement between President Bush and congressional Democrats? A majority said more cooperation, but only a narrow majority. One speech does not a uniter make.

Were viewers persuaded that President Bush would be able to achieve the goals he has set for Iraq? They were split. Fifty-one percent said yes, 46 percent said no. Americans are very skeptical about the president's Iraq policies. The speech does not seem to have done much to dispel that skepticism.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

M. O'BRIEN: The president keenly aware of those numbers and that skepticism. He pleaded with Congress to embrace his war plan, which he calls the best chance for success. AMERICAN MORNING's Sean Callebs checked in with some military experts about that. He joins us now.

Sean, good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Miles.

And what those experts are saying, a little less swagger from the bully pulpit last night. A big chunk of the speech was devoted to the war in Iraq and trying to sway congressional critics. Many on Capitol Hill say that they simply are adamantly opposed to the president's plan for a surge in U.S. troops in Iraq.

(BEGIN VIDEOTAPE)

CALLEBS, (voice over): President Bush's plans for 21,000 more troops in Iraq, a surge in forces there, is being met with congressional skepticism. And some leaders vowing to block efforts to bolster troops. No longer addressing a GOP majority, Mr. Bush told members on both sides of the aisle that he needs their help.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our country is pursuing a new strategy in Iraq and I ask for you to give it a chance to work. And I ask you to support our troops in the field and those on their way.

BRIG. GEN. JAMES MARKS, U.S. ARMY (RET.): The president was very wise to stick his hubris aside and very humbly reach out to Congress and say, look, this is our fight. Irrespective of how we got here, this is where we are today. I need your help.

CALLEBS: Critics say, while Congress may not be ready to sign off on Iraq, it's not ready to accept failure there either.

STEPHEN BIDDLE, COUNCIL ON FOREIGN RELATIONS: The president is taking a real long-shot gamble on Iraq and this policy and it's a long shot gamble that the public and the Congress don't want to take.

CALLEBS: The president acknowledged the fight in Iraq has morphed, from battling Saddam Hussein, to a violent, sectarian battle between Sunni and Shia loyalist. What many call a civil war.

BUSH: This is not the fight we entered in Iraq, but it is the fight we are in. Every one of us wishes this war were over and won.

CALLEBS: CNN military analyst Retired General James "Spider" Marks said the president detailed how Iraq plunged into what he calls hellish chaos.

MARKS: The president, I think, has done an admirable job raising his hand and saying, I've made some mistakes, we've made some mistakes and I take ownership of those mistakes. What really has to happen at this point is, what is the best way to accommodate and get through these mistakes.

CALLEBS: But, critics charge, there is always this risk.

BIDDLE: We could end up at the end of the day with a muddled compromise outcome that ends up neither giving us any prospect of meaningful scale of succeeding in Iraq, nor of enabling us to cut our losses.

CALLEBS: An argument the president rejects.

BUSH: It is still within our power to shape the outcome of this battle. Let us find our resolve and turn events toward victory.

(END VIDEOTAPE)

CALLEBS: And the people we spoke with last night say they found it interesting that the president started talking about the war on terror, then segued right into Iraq, as though he was perhaps trying to channel the public's support for the war on terror, Miles, and somehow bolster U.S. opinion for the ongoing U.S. involvement in Iraq.

M. O'BRIEN: Wouldn't be unprecedented if that was the case.

I've got to ask you, Sean, shifting gears here, you're based in New Orleans. Were you surprised that he didn't mention the Gulf Coast, Katrina, at all?

CALLEBS: You know, I was surprised. I mean last night the mission was to follow what was going on, talking about U.S. involvement overseas. But I fully expected him to say something about what has been going on there, especially since basically everything seems to have ground to a halt there. And so many other people who are testing the waters for the presidency are talking extensively about what's going on there. In fact, Barack Obama is now scheduled to go down I think Monday.

M. O'BRIEN: I'm sure we'll see you there with him.

All right, Sean Callebs here in Washington this morning. Thank you.

Soledad.

S. O'BRIEN: Thanks guys.

Happening this morning in Los Angeles, an arrest in that spilled mercury case on that subway platform. Armando Miranda is being held this morning. Police say he is the man with the mercury. He was seen on that subway surveillance videotape that was obtained exclusively by CNN. Police say Miranda then called to report the incident himself and they think the spill was just an accident.

A family in Indiana safe this morning. It's a story we've been telling you about for a couple of days now. Kimberly Walker and her four children between the ages of 16 months to nine years old were finally found in a motel in Elkhart, Indiana. They were allegedly kidnapped by the children's father last Saturday. He's under arrest.

In Mississippi, State Farm Insurance is agreeing to a multimillion-dollar settlement of the Katrina lawsuits. State Farm's going to pay at least $50 million to 35,000 policy holders. A federal judge has to approve the deal. The policyholders could then start getting some of their money in about 60 days.

Testimony picks up again this morning in the Scooter Libby trial. His attorney contends that Libby was the fall guy for the White House, scapegoated to protect Karl Rove. Libby faces five felony charges from a federal investigation into the leak of a CIA operative's name to the media. We're going to take you right back to Miles in Washington, D.C., this morning.

Miles.

M. O'BRIEN: Thanks very much, Soledad.

The State of the Union Address always filled with symbolism. Last night a couple of firsts. And most significant, I suppose, was who was seated behind the president as he spoke. That was symbolic of who is controlling Congress and it is also a little piece of history as well. Congressional correspondent Andrea Koppel is here with more on congressional reaction.

Good morning, Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Good morning, Miles.

You know, as I was sitting there watching, I was trying to think of an analogy. How would I describe what it looked like. And the best I could come up with is, you know, when you have the divorced parents that have to go to the wedding of their son or daughter? That is what it looked like to me.

It was just awkward. Nancy Pelosi, someone who was vilified by the Republicans on the campaign trail, seated behind President Bush. And you knew of the hundreds of speeches that President Bush has given over his career, this one was probably the one he dreaded giving the most. And even though he did hit all the right notes in terms of wanting to reach across the aisle, talked about things that really resonate with Democrats, trying to bring affordable healthcare to the American people, also comprehensive immigration reform, which more Democrats support evan than some Republicans.

Nevertheless, when it came to the issue that is going to decide this president's legacy, Iraq, he didn't seem to change many minds.

(BEGIN VIDEO CLIP)

SEN. JIM WEBB, (D) VIRGINIA: The majority of the nation no longer supports this war, the way this war is being fought, nor does the majority of our military, nor does the majority of Congress. We need a new direction. Not one step back from the war against international terrorism, not a precipitous withdrawal that ignores the possibility of further chaos, but an immediate shift toward strong, regionally-based diplomacy. A policy that takes our soldiers off the streets of Iraq's cities and a formula that will, in short order, allow our combat forces to leave Iraq.

SEN. LINDSEY GRAHAM, (R) SOUTH CAROLINA: He asked the country to give this new strategy a chance. He believes in it. General Petraeus believes in it. And I think we would be well-served to give it a chance. To condemn it as a failure before it's even implemented would be a mistake. So he talked about a lot of things, but at the end of the day, we were only listening about Iraq.

(END VIDEO CLIP)

KOPPEL: Now Lindsey Graham is one of those who's been out there trying to support the president's policy to increase troops in Iraq. But, Miles, in fact, the president didn't necessarily think he was going to change Democratic minds. What he needed to do was to win over those Republicans who are really wavering right now as to whether or not they're going to stand behind him.

M. O'BRIEN: Wavering and there's also this resolution which it seems is on its way to passage in the Senate, which would be an official breaking of ranks. No real power to it, but a statement of the intent and the feeling of the Senate and it has both Republicans and Democrats signing on.

KOPPEL: Well, exactly. And, in fact, there are a number of resolutions out there. You have the one that's going to come before the Senate Foreign Relations Committee today that's going to be voted on with Joe Biden, other Democrats Chuck Hagel, Olympia Snowe. That one is expected to go through, saying we oppose this escalation. And the problem is, there are any number that are coming out of the woodwork.

M. O'BRIEN: Andrea Koppel here on Capitol Hill, thank you very much.

Soledad.

S. O'BRIEN: Miles, thanks. Coming up this morning, flooding rains along the Gulf Coast. Chad Myers is going to have a traveler's forecast for you straight ahead.

And we have our fingers on the political pulse of the nation this morning. Radio talk show hosts will tell us how their viewers are responding this morning to the president's speech last night. You're watching AMERICAN MORNING, the most news in the morning is right here on CNN.

(COMMERCIAL BREAK)

S. O'BRIEN: It's quarter past the hour. Let's get right to Chad Myers at the CNN Weather Center. He's got the traveler's forecast this morning.

Hey, Chad, good morning.

(WEATHER REPORT)

M. O'BRIEN: In many ways the president is beginning the last chapter of his presidency this morning. But with almost exactly two years left in his term, what sort of leverage does he have to enact any of the proposals he floated last night? In short is he a lame duck? Joining us now live from Capitol Hill to talk about it, Amy Walter from the "Cook Political Report."

Good to have you with us, Amy.

AMY WALTER, "COOK POLITICAL REPORT": Thanks, Miles.

M. O'BRIEN: Let's talk about the tone he set right at the start. As a matter of fact, why don't we share, for viewers -- for those who might have missed it, what was a gracious gesture at the beginning.

WALTER: Yes. Absolutely.

M. O'BRIEN: Let's listen.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Tonight I have the high privilege and distinct honor of my own as the first president to begin the State of the Union message with these words, "madame speaker."

(END VIDEO CLIP)

M. O'BRIEN: It was a nice moment and issuing compliments to madame speaker. A moment in history right there. Did the speech follow up on that sort of bipartisan tone? Is the president in his uniter not divider mode?

WALTER: Well, he certainly was trying, and I think that was a very gracious moment there at the beginning of the State of the Union. But, of course, you still had a lot of Democrats, by the end of the speech, sitting on their hands and certainly not a whole lot of clapping from Democrats after that moment. Democrats know they're in the driver's seat here. Not only do they have control of Congress, but they're looking at a president who has approval ratings in the 30s.

The 2008 presidential campaign is already off and running. The focus is much more about what's going to happen post Bush presidency than almost what's happening with the rest of his presidency. So there's a tremendous focus right now on what Democrats want to get done, rather than how the president is going to be able to push his agenda.

M. O'BRIEN: Well, will the Democrats continue sitting on their hands as it relates to legislation? Will they just block things or do they want to be perceived as taking action?

WALTER: Well, that's why they put their 100-hour plan together to say, look, we got right out of the box. Here in the House we got six things done before we even finished 50 hours in Congress. The more important thing is, and I think members of Congress understand this a little bit, too, which is that even their relevancy starts to fade as we get closer to the summer, as the focus gets on the 2008 presidential.

And we're going to see so much more from those candidates, how much Congress is actually going to get done. And, of course, the real issue, which got very little attention until the end of this speech, is Iraq. That's going to drive the agenda really much more than any of these domestic issues.

M. O'BRIEN: A lot of Democrats would suggest there is no other agenda really because Iraq overshadows so much. Would you go along with that?

WALTER: Right. Well, that's right. That's probably fair. And then we also know that what Congress is driven by more than anything, everybody wants to put their agenda forward, it's by whatever events sort of happen to be going on at that moment. So something we don't even know about could be talked about in Congress for the next couple of weeks. But certainly Iraq has to be the main driver.

M. O'BRIEN: Give us a sense of the conversations in the halls here. How serious is the -- I don't know whether the term is revolt just yet, but Republican after Republican breaking ranks with the president on the issue of the war. John Warner, standing out in my mind as a leading Republican and someone who's connected with the military, knows military matters very well. To break ranks with the president, that's significant.

WALTER: It is. Well, and he was certainly giving signs and many of these top Republicans have been giving some warning signs that they were feeling uncomfortable with the president's position on Iraq, uncomfortable with the war. So it shouldn't be that much of a surprise.

The big question, of course, right now is, just what kind of support he's going to get from his own party. Even on his domestic agenda, remember, this is a president who two years ago, a year ago went before Congress, asked for Social Security reform, asked for immigration reform, couldn't get that with his own party's support, now on Iraq has defectors as well. So this is a president who, even when he had control of Congress, his party had control of Congress, had enough trouble getting his agenda through. This is even tougher.

M. O'BRIEN: As you look at the domestic proposals last night, if you had to pick one or a few that might have a real chance of leading to some sort of law or legislation, what would you pick?

WALTER: Well, immigration certainly stands out. And that was one where, interestingly enough, it was Republicans that the president had much more trouble with. Both sides see an upside here. The Hispanic population obviously growing in this country, becoming a bigger part of the voting population. No party wants to cede that to the other side. So both sides are really making sure that in the next election and then of course beyond they have a toehold with this group of voters.

M. O'BRIEN: So maybe a renewed immigration debate soon then?

WALTER: I think we'll probably see that.

M. O'BRIEN: All right, Amy Walter, thank you very much.

WALTER: Thanks.

M. O'BRIEN: Appreciate it.

Still ahead in the program, Senator Barack Obama, Senator John McCain they're live on AMERICAN MORNING.

Plus, we're live inside the radio studio as they are on the air. We'll talk with the talk show host, Steve Malzberg, and Rachel Maddow about what their respective listeners are saying. All across the spectrum we go there. You're watching a special edition of AMERICAN MORNING live from Washington and New York. The most news in the morning right here.

(COMMERCIAL BREAK)

S. O'BRIEN: The most news in the morning is right here on CNN. Happening right now.

Another street battle raging in Baghdad. U.S. and Iraqi groups are battling Sunnis militants along Haifa Street, right near the greenzone.

And tensions could be easing in Lebanon this morning. They might re-open those blocked roads that were closed during the pro-Hezbollah protests.

Get out your score cards. It's Katrina victims one, insurance companies zero, at least in this latest round. Twenty-five minutes past the hour. That means it's time for Carrie Lee. She's "Minding Your Business" this morning.

Hey, Carrie, good morning.

CARRIE LEE, CNN CORRESPONDENT: Hey, Soledad, good morning to you.

That's right, State Farm Insurance has agreed to a multimillion dollar settlement of Hurricane Katrina lawsuits in the state of Mississippi. So this settlement basically resolves a civil lawsuit filed with Mississippi's attorney general.

Now some details here. It will pay about $80 million to more than 600 policyholders who sued the company for refusing to cover damage from the storm and then State Farm will also pay at least another $50 million, could be as much as hundreds of million dollars more to thousands of policyholders whose claims were denied but they didn't sue the company.

The bottom line here, State Farm had argued that it was water, not wind that caused the damage to their homes and State Farm has said it does not cover flood insurance. So that's the latest there.

Hewlett-Packard reports that its CEO, Mark Hurd, received an $8.6 million bonus last year. It was a year of strong performance for the company, although it was plagued by scandal over its shady boardroom spying tactics. Hurd said all along that he didn't know about those tactics, trying to get phone logs from board members and he was not charged in the case. By the way, Hewlett-Packard also surged past IBM last year to become the world's largest technology company.

And a quick check on futures this morning. Stocks looking set for a strong open, at least technology issues, in part because of Yahoo! last night blowing past fourth quarter estimates on Wall Street for the first time in over a year. So Yahoo! could be a good mover today.

Soledad, we saw some gains across the board yesterday as oil prices added over $2 a barrel.

That's the latest. Back to you.

S. O'BRIEN: All right, Carrie, thank you very much.

The top stories of the morning are coming up next.

The morning after the president's State of the Union Address, we are combing through his big ideas for Iraq and healthcare and global warming. See what they mean for you.

And then from our studio to their studio. We're live inside a talk radio studio this morning. See what the listeners from the left and the right are saying today. You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.

(COMMERCIAL BREAK) M. O'BRIEN: The left, the right, and the State of the Union. Talk radio listeners rate President Bush on his approach and his proposals in his address to Congress.

S. O'BRIEN: And checking the facts. We spent the night breaking down the specifics of the president's plans for Iraq and healthcare and energy. You'll hear it here first on this AMERICAN MORNING.

Welcome back, everybody. It's Wednesday, January 24th.

I'm Soledad O'Brien.

Good morning, Miles

M. O'BRIEN: Good morning, Soledad.

I'm Miles O'Brien on Capitol Hill. Thanks for being with us on this special edition of AMERICAN MORNING, live from New York and Washington.

Special guests ahead -- Senator Barack Obama, Senators John McCain, Governor Bill Richardson, Iraq war vets, talk radio hosts, and the best political team on television.

A lot ahead, so stay with us -- Soledad.

S. O'BRIEN: All right. Thanks.

Let's begin with what's happening this morning. This just in, in fact, to CNN.

Former Panamanian dictator Manuel Noriega is going to get out of jail on September 9th. Noriega in prison in south Miami-Dade on drug trafficking and racketeering convictions since 1990, He's only going to end up serving two-thirds of his 30-year sentence, due, in part, they say, to good behavior and some other credits he's getting.

Now, you'll recall he's a wanted man in both Panama and in France as well.

An arrest that spilled -- an arrest in the case where mercury was spilled in Los Angeles. Remember this? We had that videotape exclusively here on CNN.

Well, this morning that man, that gentleman right there, Armando Miranda (ph), is being held on parole violation. Police say he is the man that's seen on that surveillance videotape pouring a substance which was later found out to be mercury on to the platform, then going to a call box to report the incident. Investigators now think that that spill was just an accident.

This morning, a very happy ending to a story we've been telling you about all week. Kimberly Walker and her four children, ages 16 months to 9 yeas old, are safe. They were allegedly kidnapped by the children's father last Saturday. Police found them all safe and sound in a motel in Elkhart, Indiana. In Mississippi, State Farm Insurance is agreeing to a multimillion-dollar settlement to homeowners who are trying to rebuild from Hurricane Katrina. State Farm's going to pay at least $50 million to 35,000 policyholders. A federal judge has to approve the deal. Policyholders could then start getting some of their money in about 60 days.

Testimony picks up again this morning in the Scooter Libby trial. His attorney is contending that Libby was the fall guy for the White House, scapegoated, he says, to protect Karl Rove. Libby faces five felony charges from a federal investigation into the leak of a CIA operative's name to the media.

Let's get right back to Washington, D.C., and Miles O'Brien -- Miles.

M. O'BRIEN: Thank you, Soledad.

It's the day after the State of the Union and the president is wasting no time trying to sell the domestic agenda he laid out last night. Today the subject will be energy consumption.

Air Force One burning some fuel, on its way to Wilmington, Delaware, where we find AMERICAN MORNING'S Bob Franken.

Good morning, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.

And where we gained (ph) some reaction to the president's speech. We went to a restaurant and lounge called Kid Shelleen. Kid Shelleen was a character in a movie several decades ago that won Lee Marvin an award as best actor. While the president wasn't getting any awards, he wasn't getting any heckling either.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The President of the United States.

FRANKEN (voice over): Instead of the usual Tuesday night basketball, the monitors at Kid Shelleen's restaurant and sports bar were tuned not to games, but to the deadly serious business of a president trying to seek common ground with a newly Democratic Congress, a Congress aggressively challenging the new addition of troops to the Iraq war.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our country is pursuing a new strategy in Iraq and I ask you to give it a chance to work.

FRANKEN: With all the turmoil over Iraq policy, the reaction, at least at this place, was surprisingly sympathetic, even among those who would not normally be the president's supporters.

UNIDENTIFIED MALE: I'm encouraged with the positivity of the president. I am kind of a give peace a chance generation. And, you know, I'm -- like I say, I evolved in the give peace a chance. But you know what? I think we should probably give success in Iraq a chance.

FRANKEN: This was a diverse group. And those watching had diverse agendas.

UNIDENTIFIED FEMALE: I was wildly disappointed that the rebuilding of New Orleans was not mentioned at all. There's this supposed ongoing commitment to it, and yet it gets no attention. He talked about how important the economic development is in Iraq, and there's no urban policy, and specifically there's no policy for New Orleans.

BUSH: The state of our union is strong. Our cause in the world is right. And tonight, that cause goes on.

God bless.

UNIDENTIFIED MALE: He seemed kind of humble tonight, not as forceful in the way that he made his ideas and his viewpoints across. And I think -- I think he's finally getting the message that the two parties need to work together in order to get anything solved.

(END VIDEOTAPE)

FRANKEN: Political analysis, that's every bit as valid as that for which we pay a lot of money to consultants. It's the analysis from Kid Shelleen's here in Wilmington -- Miles.

M. O'BRIEN: Bob, the president will go to DuPont. DuPont is one of the leading corporate players in America, pushing for mandatory caps on carbon emissions to fight global warming. The president didn't go that far. It will be interesting to see how that plays out today.

FRANKEN: Well, the president is trying to highlight the fact that there's some energy innovation that's going on here at special labs. He'll be talking about that at his speech right behind me at the DuPont Theater. But you're right. The corporate executives seem to be getting on the greenhouse -- the whole bandwagon about global warming, and they're trying to drag the President with them.

M. O'BRIEN: Bob Franken in Wilmington.

Thanks very much -- Soledad.

S. O'BRIEN: All right, Miles. Thanks.

You heard the reaction from Wilmington this morning. Let's hear what people around the country think today.

They're already having their say and listening in to talk radio. We're expecting a very lively discussion with two radio hosts who join us this morning.

Steve Malzberg is in New York. He's sitting in on Bill Bennett's "Morning in America" show. Rachel Maddow of Air America is in our studio.

Hi to both of you. Good morning.

They've already gotten going. Steve's in the middle of his day.

STEVE MALZBERG, NATIONAL RADIO HOST: Good morning, Soledad. Hi.

S. O'BRIEN: Good morning.

Let's start, in fact, with you, Steve. What do you think stood out most in this speech? I mean, what would you highlight for everybody?

MALZBERG: It was definitely the president's explaining the war on terror again and pointing out what we need to do in Iraq, saying that we didn't plan on this, we don't want to be here, we wish it were over and victory had been achieved, but please -- he made a plea -- stick with it, let's see it through and let's try what we proposed, the surge, so-called surge, and let's get it done. I think he presented the war plan and why it's important in a very, very well- presented manner.

S. O'BRIEN: Would you agree, Rachel? Did you think the plea stood out?

RACHEL MADDOW, HOST, AIR AMERICA RADIO: Well, I think what stood out for the speech was that there was so much nothing in it. There really was nothing new. There's no headline from it.

In terms of my show, what we talked about, what's anticipate from the president, there's usually a surprise, some new surprise announcement. There was nothing really new on Iraq, nothing really new certainly or New Orleans, nothing on any of our other major domestic challenges, anything that you could really explain in a sound bite. The biggest surprise was the Baby Einstein thing, which was not that notable.

MALZBERG: Oh, come on, Rachel.

MADDOW: There wasn't much substance.

S. O'BRIEN: Obviously Steve totally disagrees with you.

MALZBERG: Yes. I mean, he obviously addressed everything domestic.

First of all, you want a surprise on Iraq? There wasn't going to be a surprise on Iraq. We knew what he was going to be telling us about Iraq. But domestically speaking, he touted the strong economy, even though Jim Webb said we're living in the time of robber barrons. He touted the healthcare problems and addressed them, and made a proposal, which is more than the Democrat have done on any domestic problems

MADDOW: Steve, hey -- wait. Steve, what was his healthcare proposal? What was it? Just like in one sentence? MALZBERG: I assumed you were listening. He's advocating tax breaks to help people afford to pay their healthcare insurance better to prompt people to be able to buy it more readily. I assumed you were listening.

MADDOW: You can tell that's going to light the nation on fire today.

MALZBERG: He also talked about on the domestic front education. Well, you said -- you know, you said he said nothing. And if a liberal Democrat had said, hey, how about some tax cuts to help people afford healthcare, you'd all be applauding. But it was Bush. And no matter what he said, it's DOA with you people.

S. O'BRIEN: But, you know, Lindsey Graham said that any issue that's not Iraq really, for the most part, is going by the wayside. Do you think that's true with your listeners this morning, Steve? Are they really talking to you about Iraq or are they bringing in all these other domestic issues that you're mentioning?

MALZBERG: Well, so far in the short term of the show, we've had people comment on that someone was disappointed that the president didn't introduce a flat tax, and talked about the income tax problem in the country. We had people admire him for standing firm on Iraq.

I think immigration, as the show goes on, is going to be a huge topic, because the conservatives in the audience are going to be very unhappy with the guest worker program that the president said is not amnesty. But in my view and the view of many others, is nothing more than amnesty.

S. O'BRIEN: You saw some of that unhappiness, actually, when they did the cutaway shots to some Republicans who were listening in on the president's speech in person who were clearly very unhappy about that.

Let's talk a little bit about the working together, the bipartisanship. We heard the president talk about that, really another plea -- let's work together on this.

Do you think or do your listeners think this can possibly happen over the next two years of this president in office?

MADDOW: Well, it was interesting, specifically on Iraq, that what I felt was like a little bit of false humility. When he announced the recent escalation and recent rise in troops number for Iraq, the president announced it two weeks ago. The troops were already there by the time he gave the State of the Union.

He did not propose this to the nation or to the Congress to discuss. He just went ahead and did it. And then he goes out in the State of the Union and says, "I'm asking for your support on this," for something that's already a done deal. And so he got stylistically points for appearing to be humble on this, while he's already gone ahead with it.

S. O'BRIEN: And not all the troops are there, obviously. Not all...

MADDOW: No, but the 1st Combat Brigade from the 82nd Airborne is already on the ground in Baghdad. So for him to be asking permission now from the Congress to consider this...

MALZBERG: Well, good. Good. Good.

MADDOW: ... is a little bit, a dollar late and a day short.

MALZBERG: He's not asking -- well, Rachel, Rachel, he's not asking permission from anybody. He's going to do it no matter what the Congress says and what the polls say, unless the Congress cuts off funding.

MADDOW: But Steve, when you just said...

MALZBERG: He's the commander in chief. He didn't -- excuse me.

MADDOW: Steve, when he just said...

MALZBERG: He didn't say, please, let me do it. He said support me, please. Difference, Rachel.

MADDOW: Steve, when you just described what he said in the State of the Union, you said he asked for support on Iraq. He asked for the nation's support on this. He's asking.

MALZBERG: Rachel, not permission. Rachel, not permission. Support.

MADDOW: Right.

S. O'BRIEN: How about when he asked for everybody to work together? Do your listeners think that, in fact, we're going to see -- I mean, he mentioned crossing the aisle, working together. Some people have said, well, nice time to ask when you're looking at a Democratically-controlled Congress.

MADDOW: Right.

S. O'BRIEN: What are your listeners saying about that?

Let's start with Steve first.

MADDOW: Sure.

MALZBERG: Well, I mean, he did it to the chagrin of many of my listeners with No Child Left Behind. He let Ted Kennedy write the whole No Child Left Behind Act.

So, this is a president that's worked across the aisle and has reached out time and time again. I don't think it's a surprise, but I predict that the Democratic-controlled Congress will take nothing that the president proposes. They'd rather have nothing get done over the next two years than agree and give the president credit for anything. S. O'BRIEN: So hearing both sides have said by now we should all work together, you're saying that none of your listeners are buying it.

How about your listeners?

MADDOW: No. I mean, what's -- what's hard to take...

S. O'BRIEN: No, they're not saying that, or no they're not going to work together?

MADDOW: No, nobody is accepting that this as a legitimate proposal from the president. After the way the Republicans ran Congress when they were in control for the first part of the Bush administration, the idea that the Republicans suddenly have now discovered bipartisanship and the wisdom of working across the aisle, you know, they didn't live that way, and it's not likely that the Democrats will either.

S. O'BRIEN: OK. So you're saying the Democrats are saying, since we didn't see it, we certainly aren't going to deliver it, even though we've said we'll try to deliver it.

MADDOW: Well, yes. It just seems hypocritical coming from them, who ran -- they ran on -- you know, they wanted to pass everything with a majority of the majority. They only wanted Republican votes on passing legislation, they never wanted Democrats. So for them to ask for bipartisanship now, it just comes across as a little sad.

S. O'BRIEN: Go ahead, Steve.

MALZBERG: You know that Democrats chose Jim Webb. Jim Webb in the past has said that when he sees -- saw Bill Clinton saluting a Marine it revolted him, it disgusted him. He's called affirmative action state-sponsored racism. He said the Clinton are elitists who are taught the laws don't apply to them.

I think it's interesting choice of Jim Webb to give the Democratic response with those issues in his past.

S. O'BRIEN: So we're going to leave it there because we're out of time. You know you have three hosts essentially on TV, going to eat up a lot of time.

MALZBERG: I got you.

S. O'BRIEN: Steve Malzberg, Rachel Maddow, thanks, guys -- appreciate it -- for joining us.

MADDOW: Thank you.

MALZBERG: Thank you.

S. O'BRIEN: Ahead this morning on AMERICAN MORNING, a closer look at President Bush's big ideas, including what we were just talking about a moment ago, his plan for health insurance, what it could cost you, what it could save you, how it could help you. All ahead.

Plus, another reality check. Is America ready to ease off gas and really do something about global warming?

We'll take a look at all of those issues straight ahead on AMERICAN MORNING.

The most news on the morning is right here on CNN.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. It's 45 minutes past the hour. Chad Myers, at the CNN weather center, has the traveler's forecast for you.

Cold.

CHAD MYERS, CNN METEOROLOGIST: Yes.

(WEATHER REPORT)

M. O'BRIEN: A fact check now. The president is pushing his energy plan today in Wilmington, Delaware. During the speech last night, he once again called for more conservation in this country, something he did last year as well. Remember he said we were addicted to oil? But this time, there was an important difference.

(BEGIN VIDEOTAPE)

M. O'BRIEN (voice over): The president uttered three words that he's never said before in a State of the Union Address: global climate change.

BUSH: America's on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil, and these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change.

(APPLAUSE)

M. O'BRIEN: The president is once again pushing for alternative fuels and better mileage for cars and trucks. The goal, to reduce U.S. gasoline consumption by 20 percent in the next decade.

So why bring up climate change now? It may be the president finds himself in a new political climate with a growing number of legislators clamoring for a change in direction on global warming. But change was not in the offing Tuesday night.

Most climate experts say any effective policy to combat global warming must also include mandatory limits or caps on how much carbon dioxide and other greenhouse gases power plants and other industries are permitted to pump into the air. And critics say the Bush policy, which continues to rely on voluntary measures, is essentially toothless. GENE KARPINSKI, LEAGUE OF CONSERVATION VOTERS: If we're serious about the problem on global warming, which, as we all know, is the most and important environmental challenge we face, we really need mandatory caps on global warming pollution.

M. O'BRIEN: Bush's remarks were a small concession to what an overwhelming majority of climate scientists believe is a huge problem. They say in the coming decades, climate change will melt glaciers, flooding coastal areas as sea levels rise. It will unlikely increase the frequency of extreme weather events like catastrophic hurricanes. And it could lead to an entire species going extinct, such as polar bears, which are already struggling as their Arctic habitat melts.

It is a grim picture which many scientists believe requires more drastic action than the president has proposed.

(END VIDEOTAPE)

M. O'BRIEN: One week from Friday, hundreds of the world's leading scientists will release their latest status report on global warming in Paris. We're told it paints a stark picture and that we are drastically changing our climate and the consequences are grave. As one scientist put it, the smoking gun is on the table.

Coming up, a guest of the president last night and with us today, the subway superhero, right here on AMERICAN MORNING.

Plus, do they know how to party? We're back stage with Washington wonks for their State of the Union watching party. Some people like to watch football at bars. Here they watch political speeches.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Washington could be like a company town. Politics is what they do here, of course. So the State of the Union is more than just a speech. It's important business.

But in this town it's often hard to tell where the important business ends and the party begins. And I'm not talking about the political parties either.

(BEGIN VIDEOTAPE)

M. O'BRIEN: There it is, the Capitol dome, the beautiful symbol of our democracy. Tight security tonight for the State of the Union.

There's two ways to cover this story. We could head in that direction, get right in there, talk to all of the players, or we could head this way, right into the bars.

UNIDENTIFIED FEMALE: People just want to sort of be out. You know, just kind of talking about where our country is going.

UNIDENTIFIED FEMALE: I'm very interested in what his plans are for the energy industry.

UNIDENTIFIED FEMALE: Where some of our money will be directed in terms of social service programs.

M. O'BRIEN: You want to find the State of the Union? Come to the Union Pub, of course, where it is the absolute place to watch the State of the Union.

UNIDENTIFIED MALE: The staffers work all day and they want to come someplace to relax and just be able to watch it.

UNIDENTIFIED MALE: Well, we know a lot of people around here. It's just a good atmosphere to be on, on the Hill.

UNIDENTIFIED MALE: We hang out. If we have enough beers, we'll watch it here. We can't get back on the train.

M. O'BRIEN: Are there any drinking games associated with the State of the Union?

UNIDENTIFIED MALE: Absolutely not. Drinking games are illegal in D.C.

UNIDENTIFIED MALE: Well, the State of the Union has always been an event. We went to college together, and we used to have kegs for the State of the Union.

M. O'BRIEN: In most parts of the country when you come to a bar like this, you look up at the television, what do you see? Sports, right? In this town you're just as likely to see the State of the Union Address.

Sort of a political super bowl. Or at least the playoffs.

UNIDENTIFIED FEMALE: That's one thing I love about D.C. People are very engaged here and they're really passionate. They're just as passionate about their D.C. politics as they are about their D.C. sports.

UNIDENTIFIED MALE: I'm at the Tortilla Coast restaurant. And I came here because my buddies were here, and I live right next door.

UNIDENTIFIED MALE: I'm trying to pay attention to the president, but Nancy Pelosi's blinking -- the new speaker's blinking is distracting me a little bit.

UNIDENTIFIED MALE: We were trying to do a shot with every drink -- or every blink, but after about 10, we were, of course, stopped.

BUSH: Both parties and both branches should work in close consultation.

UNIDENTIFIED MALE: It's actually way quieter than a football game would be here. I'm really impressed with how quiet everybody is and how attentive everybody is.

UNIDENTIFIED MALE: It's good to be around other people that have the same sense. And, I mean, it's fun. You know?

UNIDENTIFIED MALE: It's always been a party as far as I'm concerned.

UNIDENTIFIED MALE: I think it could be a good two years.

M. O'BRIEN: And to think all of these years I've been sitting at home alone watching the speech. Now, this is the way to do the State of the Union.

Cheers.

(END VIDEOTAPE)

M. O'BRIEN: OK. Note to the bean counters. That pitcher of margaritas, that was a justified expense for company business.

S. O'BRIEN: And no alcohol whatsoever inside, I'm positively sure. You know, I was thinking of the same thing. I'm like, all of these years that I've watched the State of the Union alone at home in my pajamas with a notebook. Now?

M. O'BRIEN: We were missing out.

S. O'BRIEN: It seems to lame and lonely, doesn't it?

M. O'BRIEN: Yes.

S. O'BRIEN: All right, Miles. That's funny.

Ahead this morning, some of the biggest names in Washington D.C. Senator Barack Obama, Senator John McCain are going to be joining us live this morning.

And another big name for you. Wesley Autry (ph), remember him, the subway superhero? He was a guest of the president's last night. He's joining us this morning to tell us all about it.

Plus, the windfall some homeowners have been waiting for, $50 million, well more than a year after Hurricane Katrina.

That story and much more straight ahead on AMERICAN MORNING.

The most news in the morning is right here on CNN.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: Many in this chamber understand that America must not fail in Iraq, because you understand that the consequences of failure would be grievous and far reaching.

(END VIDEO CLIP)

M. O'BRIEN: President Bush making his case in his first State of the Union before a Democrat-controlled Congress.

S. O'BRIEN: CNN reality check. The first in-depth look at the president's proposal for Iraq and healthcare and energy.

M. O'BRIEN: And the contenders weigh in. Presidential hopeful Barack Obama joins us, as well as Senator John McCain, on this special edition of AMERICAN MORNING, live from New York and Washington.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com