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American Morning
Fight for Michigan: One-on-One Interview with Mitt Romney; Dennis Quaid Speaks Out About Twins Health Scare; Citi Trouble: Stocks Down; Calling a Truce: Clinton and Obama Race Fight
Aired January 15, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And welcome. It's Tuesday, January 15th. They're going be voting in Michigan today. And the polls open actually right this second for most of the counties there. Welcome to a special edition of AMERICAN MORNING. I'm Kiran Chetry in New York. Hi, John.
JOHN ROBERTS, CNN ANCHOR: Hey, good morning to you, Kiran. I'm John Roberts. We're live in Warren, Michigan this morning at the National Coney Island Diner. The polls now open across most of the state. It's primary day here in Michigan. The Republicans are battling it out. The Democrats not competing here. They're protesting Michigan moving up its primary date. The Democratic National Committee had set February 5th as the earliest date that any state could go, unless it was specifically allowed by the DNC. Michigan jumped the gun on that. And so, they had all their delegates taken away. Hillary Clinton, really, is the only major candidate on the ballot here.
We're just north of Detroit in Macomb County. It's the home of the original Reagan Democrats, often considered a bellwether when it comes to electing a president. For all of the talk across the nation about Iraq and immigration, the economy is the issue here. Michigan has the highest unemployment rate of any state in the nation. It's 7.4 percent and heading northward. It's also home to the struggling American car industry. Mitt Romney is counting on his native state to rev up his expensive campaign that so far has gotten off to a slow start. We're talking with him, one-on-one this morning about his plan to bring Michigan and the auto industry back.
And our AMERICAN MORNING team of correspondents are with me here in Warren. Ali Velshi and Gerri Willis talking markets, jobs and the housing crisis. Dr. Sanjay Gupta looking at the candidates and health care. And Chris Lawrence talked to families about the issues most important to them. We should point out that both Sanjay and Chris were born here in the state of Michigan, so they are intimately familiar with the issues that are going be driving votes here today.
Let's begin though with CNN's Dana Bash. She's on the campaign trail in Grand Rapids. And Dana, by many accounts, this could be the beginning of the upswing for Mitt Romney or maybe part of the long road home.
DANA BASH, CNN CORRESPONDENT: There's no question. You just have to look at Mitt Romney's actions to prove that is true for him how important the state of Michigan is to his viability as a Republican candidate. This, as you mentioned, is his home state. He grew up here. He hasn't lived here in quite sometime. He was governor not of Michigan, but of Massachusetts. But his pitch has been that the state of Michigan is personal. In fact, he's been so focused on the intricacies of Michigan, of the economic problems here, that people have remarked that he almost sounds like he's running for governor or statewide office rather than president. But he understands pretty much everything right here in Michigan. He's moved his money and his resources from some of the later contest dates to Michigan. And his pitch is essentially been that he not only is somebody who understands it because he says Michigan is in his blood. But he says he is a CEO whose job it has been to fix Michigan's problems or to fix problems in general. That's why he is perhaps best suited to fix the economic problems here in Michigan. That has been his pitch. He understands that this is something that this is a place he has to do well in. He didn't have a first place finish in Iowa. He didn't have a first place finish in New Hampshire. If he doesn't here, it's going to be pretty hard to see how he goes on and continues. He says he's going to continue to February 5th, but it's pretty hard to see how he's going to actually seize the nomination without a win here -- John.
ROBERTS: And he's trying to convince voters here in Michigan that as a Washington outsider, he is the one best positioned to fix things like the auto industry.
BASH: Yes. That's right. And that is how Mitt Romney is trying to position himself against his chief rival for the top five here in Michigan, and that's John McCain. For John McCain, it's not quite as important and imperative for him to win. But John McCain did win the state of Michigan in 2000. And after his win in New Hampshire, if John McCain does win here, it could really shift the dynamic of the Republican race because it will put him in the command. For his part in terms of John McCain's pitch, he is saying, you know, Mitt Romney is insisting that he can bring jobs back.
McCain is saying, you know, for me, he says, I'll give you a little straight talk particularly when he's appealing to independent voters who are incredibly crucial here. He says my goal here is to perhaps re-train workers and to have them go to community colleges. From his perspective, he says that is the best way to rejuvenate the economy in Michigan because it's all about the economy on the campaign trail for the past four days or so here.
ROBERTS: And we'll be hearing from Governor Romney himself coming up in just a few minutes time here in AMERICAN MORNING. Dana Bash for us in Grand Rapids this morning. Dana, thanks -- Kiran.
BASH: Thank you.
CHETRY: And for the Democrats, it's really been a back-and-forth war of words if you will. Barack Obama and Hillary Clinton now way they want to bury the hatchet. Each made statements last night softening the tone that erupted after Hillary Clinton's comments about Martin Luther King, Jr.
(BEGIN VIDEO CLIP) SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I may disagree with Senator Clinton or Senator Edwards on how to get there. But we share the same goals. We're all Democrats. We all believe in civil right. We all believe in equal rights. We all believe that regardless of race or gender, that people should have equal opportunity.
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We may differ on minor matters. But when it comes to what is really important, we are family.
(END VIDEO CLIP)
CHETRY: The fighting between the two camps started when critics complained that Clinton diminished the importance of Martin Luther King. She said that his dream could not be realized without President Lyndon Johnson signing the Civil Rights Act.
Civil rights activist, the Reverend Al Sharpton, has some strong ideas on what the candidates should be talking about, and he'll be our guest in the next half hour at 7:30 Eastern time.
Also, new this morning. Secretary of State Condoleezza Rice is in Iraq. We have some pictures this morning of her meeting with Prime Minister Nouri al-Maliki. She flew from Saudi Arabia where President Bush was talking with Saudi leaders. Secretary Rice is expected to push for more political progress to go with the military gains made on the ground in Iraq in recent months.
President Bush speaking in the last half hour from Saudi Arabia warning that there will be serious consequences if they hit one of our ships. Iranian speedboats swarmed around U.S. warships in the Persian Gulf on January 6th. He also pressed OPEC to lower the price of oil explaining that it's in the oil producer's best interest to cut the price. He says expensive oil hurts the U.S. economy and that means Americans spend less. Also lowering the demand for oil.
And some late-breaking news this morning. Progress amid the bloodshed in Kenya. Its parliament opened for the first time since the disputed presidential election last month sparked a week of violence that killed more than 600 people. The East African nation's bitter political rivals are expected to choose a new house speaker -- John.
ROBERTS: Also, breaking news this morning, Kiran, on the economic front about Citigroup. Job cuts and more mortgage debt writeoffs. Ali Velshi joins us with more on that. This is just a pretty staggering figure we're talking about today.
(CROSSTALK)
ALI VELSHI, CNN CORRESPONDENT: Unbelievable numbers. For folks who thought that this was hopefully over, it's not. Citigroup has just announced writedowns of more than $22 billion related to subprime and mortgages. It's also -- a writedown is the reduction in the value of your assets. It's also announced a $9.8 billion loss. That's a straight loss. There are other things coming out of Citigroup including a 40 percent cut in the dividend.
Now most people, many people invest in Citigroup either directly or through their 401Ks or IRAs. So that's going to affect those people who have invested. There are cash infusions into Citibank from other countries, from the Kuwait Investment Authority, from overseas authorities including a U.S. bank. So the $12.5 billion being invested as sort of a bailout to help Citigroup out, and we are still waiting on confirmation of the number of jobs lost. But there have been reports that there will be up to 20,000 job losses at Citigroup as a result of this mortgage crisis that is continuing. So major, major news out of Citigroup.
ROBERTS: And overall, too, for investors. Citigroup, like General Electric, is one of the stocks you not necessarily buy because it accrues value. It's for that dividend.
VELSHI: For the dividends. A lot of people get income. That's very big deal.
ROBERTS: So how could this affect the stock price?
VELSHI: The stock price was expected to actually jump on some of this news because it's that idea of getting all the bad news out. This news is much worse than what Wall Street has expected, so I'd be very surprised if we thought the only good news is that Citigroup is able to say this is it. It's done. But it's not -- you know, we're just hearing from Merrill Lynch as well this morning. Another $6.6 billion cash infusion from government investment funds overseas, including the Kuwaiti Investment Fund. I mean, this is getting from bad to worse.
ROBERTS: Right. Well, somebody does seem to have faith at this bank.
(CROSSTALK)
VELSHI: Some people think that these American banks are a good investment. And probably for the long term, there are. The issue right now, whether it's housing or the stock market is relatively short term. But if that's your money, it seems very important to you at the time.
ROBERTS: We'll keep watching the markets this morning and see what kind of effect it has. Ali Velshi, thanks very much.
Mitt Romney is pushing a plan to help people here in Michigan. In a speech to the Detroit Economic Club, he said although new fuel economy standards are helping the environment, they are killing automakers. I sat down with him to talk about that.
(BEGIN VIDEOTAPE)
ROBERTS: You said in your speech that the new fuel efficiency standards that President Bush recently signed into law are an anvil on the auto industry.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Yes.
ROBERTS: President Bush called it a major step forward when he signed the legislation. Was he wrong?
ROMNEY: Well, it certainly adds to better fuel efficiency which is terrific and reduces dependence on foreign oil. That's good. But to the automaker, it's an anvil because it's a new mandate coming from Washington saying here's the new number you have to hit. All the vehicles you're making now are outmoded. You're going to build new engines, new transmission, new axels. All of these things have to be changed at the cost of tens of billions of dollars. Good luck. Now, it's a benefit to the entire nation paid for by one industry that's already in trouble.
ROBERTS: So if you were president, would you seek to roll back those standards?
ROMNEY: What I'd seek to do is to sit down with the leaders of the industry, and unions, and the state and congressional leaders and say, how do we help? How do we make sure that the schedule we put in place is one that could be met by the Detroit automakers.
And number two, how do we make sure that tax incentives, tax policies, research and development incentives are all put in place so these companies can meet the standards and survive. The last thing you want to do and sit back and say, great, we have wonderful fuel efficiency and all the cars are made in China.
(END VIDEOTAPE)
ROBERTS: We'll have more of my one-on-one interview with Mitt Romney coming up throughout the morning including his plan to rebuild the auto industry and whether or not he has a plan. An economic stimulus plan to stop the United States from sliding into recession. But right now, let's go back to New York. And here's Kiran.
CHETRY: Thanks, John.
Also, new this morning, federal investigators getting ready to announce why the I-35 W Bridge collapsed in Minneapolis last summer. The NTSB is saying now a design flaw is what helped bring down the bridge killing 13 people and injuring many more. The steel plates that held the beams together were apparently not strong enough to hold the weight of the 40-year-old bridge and then the renovations that were added to it. The NTSB says states should begin inspecting bridges with that same type of steel plating.
Two climbers may be missing on Mount Hood in Oregon. The two men did not return from a planned climb yesterday. Conditions on the mountain right now were blizzard-like. Their families say the men have not been answering their cell phone, and they have no idea whether or not they're safe. Search and rescue teams are now being put together to look for them.
Actor Dennis Quaid and his wife speaking publicly for the first time since their twin babies had a major health scare. Quaid talked to "The Los Angeles Times." Their twins were given an overdose of the blood thinner, heparin. They're OK now, but Quaid says that Cedars- Sinai Hospital did not tell him about the overdose when he called to check on them. They were not suing the hospital before, but now they're saying they considered it. They felt betrayed about information that was not given to them about their children's condition and also the fact that it was leaked to the press -- John.
ROBERTS: Thanks, Kiran. Here in Michigan, when voters talk about the issues most important to them, health care is right there near the top of the list. Iraq is the number one concern, but 30 percent of Michigan voters want to hear about health care. The economy and immigration come after that. So what do the voters want to hear from the candidates? Our Dr. Sanjay Gupta, a native of Michigan joins me now. Is there anything in particular on health care that people want to hear from these candidates as they come through?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: There's about a million people in Michigan who are uninsured right now. So I think that really is the top of the list, first of all. So affordable health care insurance is what they're talking about most specifically, but also this idea that, you know, it's harder to attract businesses to come into Michigan because of the cost of health care. It's something that a lot of people are talking about.
It's an interesting history here actually in Michigan. If you trace it back, you'll find that the fact we have employer-based health care coverage as opposed to a single pair of system or a government responsibility really dates back here to Michigan as part of an agreement between the United Autoworkers and General Motors, where General Motors started providing health care benefits to their employees as part of a benefits package. And that sort of translates to the sort of system that we have now. But a lot of people here in Michigan, John, as we know, think it's broken. Too many people are without health care insurance and those who are paying for it are paying too much.
ROBERTS: And, you know, talking to Governor Romney yesterday, he said that is one of the big legacy costs for the auto industry. Health care costs in the state are so high. We've got to do something to bring them down so that they can cut the added production cost. To a vehicle out there, make them more competitive with foreign carmakers. What about the candidates themselves? Their health?
GUPTA: Well, you know, it's interesting. All of them have some direct tie to health care. If you think about it. First of all, Rudy Giuliani and John McCain as we well know had histories of cancer. Rudy Giuliani had prostate cancer. John McCain had melanoma.
We talk about Barack Obama. He talks about the fact that he was a smoker, and you see him chewing Nicorette Gum on the campaign trail quite a bit. Mike Huckabee is probably the most startling example. I think he lost 100 pounds. They also -- a lot of them talk about obesity. And I thought one of the interesting quotes that Barack Obama gave was that if we went back to 1980, obesity rates especially in the state of Michigan but the whole country, Medicare would save about $1 trillion a year. Think about that. Obesity alone is another big issue that a lot of Michiganders are talking about here.
ROBERTS: There's no question that, you know, as Americans grow in size by and large on average, that the health care -- continued health care costs are going up. Sanjay, thanks very much.
Reminder. Catch Sanjay's special look at the health care system called "Broken Government: Critical Care." It airs Thursday, January 31st, at 11:00 p.m. Eastern.
And we'll be covering the candidates all day long. And if you're for some reason away from your television set, you can watch all of the action on your computer. Head to CNN.com/live -- Kiran.
CHETRY: All right. Well, the Mona Lisa mystery solved. Just who is she? A secret possibly revealed. We'll tell you about the new evidence.
Also, race remarks by the Clinton and Obama camps. How will the attacks drive Democratic voters? We're going to ask Reverend Al Sharpton when he joins us live after the break on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Well, Democrats Hillary Clinton and Barack Obama calling a truce this morning. The two camps have been fighting over her comments on Martin Luther King, Jr. Both have said now that they're on the same side.
Civil rights activist, the Reverend Al Sharpton, has not taken sides in this fight. He joins me now from Atlanta with his perspective on what's going on here. Reverend Sharpton, great to see you. Thanks for joining us this morning.
REV. AL SHARPTON, PRESIDENT, NATIONAL ACTION NETWORK: Good morning. Good morning.
CHETRY: You know, of course, you haven't missed the controversy last week. A lot of criticism about the comments made by both Hillary Clinton and Bill Clinton. First, let's listen to some of what Hillary Clinton said that started this in the first place.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Dr. Martin Luther King, Jr. led a movement. He was gassed. He was beaten. He was jailed. And then he worked with President Johnson to get the civil rights laws passed because the dream couldn't be realized until finally it was legally permissible.
(END VIDEO CLIP)
CHETRY: Reverend Sharpton, what were your reactions when you heard those comments?
SHARPTON: Well, I think that the fact that some of that was politicized and people said she was minimizing Dr. King, I think that is now if this truce holds up, old news. I think the real point is that Senator Clinton, Senator Obama, Senator Edwards are all running to fill Lyndon Johnson's shoes, not Dr. King's.
And what I want to hear is how will they do that? Where is their great society or John Kennedy's new frontier? What will they do about racial disparities? What will they do about the gap in income? What will they do specifically about the criminal justice system's gap? And I think that we've got to bring this from the truce that I'm glad to hear to not the content of how would you complement the 21st century civil rights movement?
You know, we spent a lot of last year dealing with Jena Six and hanging nooses. What we have not had is a corresponding Washington answer to say therefore, we will implement these policies. That's what we need to hear now.
CHETRY: It's interesting. Now, you're saying it's old news, but it did ignite a real firestorm of controversy over those comments? Do you think that what she said was racially insensitive?
SHARPTON: I think that what we have seen is some racial jockeying on all sides of this campaign that needs to stop. Today is the actual birthday of Martin Luther King, born here in Atlanta 79 years ago. Martin Luther King III, who has continued his work and we work closely together, we talked about how the acrimony only cost the voters that need the help the most.
CHETRY: Yes.
SHARPTON: And other poor people and people of color. So in the middle of people taking sides and the gang up, what happens to the people that really need some assistance? And I think that if this continues, we're going to end up letting the forces that are adverse to those that Dr. King tried to save and help. They're going to prevail because we were so busy taking cheap shots of each other. No one dealt with the real meat of what's going on in this country.
CHETRY: And you had a chance to actually talk with former President Clinton last week about the comments that he made that also touched off some of this controversy. Let's listen to what former President Bill Clinton said.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: You said in 2004 there was no difference between you and George Bush on the war, and you took that speech you're now running on off your Web site in 2004 and there's no difference in your voting record and Hillary's every since. Give me a break. This whole thing is the biggest fairy tale I've ever seen.
(END VIDEO CLIP)
CHETRY: Now he says he was talking about the changing stance on -- on Obama's war stance. Not on his candidacy in general. How did it sort of balloon into that Bill Clinton was saying that Barack Obama's candidacy was a fairy tale?
SHARPTON: I don't know how it ballooned into that. I think it's unfortunate that we're getting into this give-and-take rather than deal with the issues of war and deal with the issues that are underlining. And President Clinton came on my radio show to explain it after. Martin Luther King III, he's coming on today taking calls from all over the country. I've invited Senator Obama to do the same at some point, Senator Edwards and Senator Kennedy. I think we need to raise the dialogue now. And no day is better than Martin Luther King's birthday to deal with the real issues.
I challenge all of them. But no one can deny Senator Obama has done some concrete things to bring hope and rejuvenate the process. Senator Clinton has done solid work in the senate. And President Clinton, even though I challenged him on things when he was president, did things that helped many Americans and still with the global issue. We can't throw out the baby with the bath water. At the end of the day, they ought to be debating on how good they can do and how they can best each other in goodness.
CHETRY: Right.
SHARPTON: Rather than how they can show how they can show the worst in taking cheap shots at each other.
CHETRY: Now are you closer to making an assessment of that? Are you backing anybody at this point or preparing too soon?
SHARPTON: I am going back who has the best program that is aligned with what is best for what men like Dr. King and others gave their life for. It's about the meat with me, not the sizzle. And I still can't get to the meat because I keep hearing all the sizzle.
CHETRY: All right. Reverend Al Sharpton, thanks for joining us this morning.
SHARPTON: Thank you.
CHETRY: John?
ROBERTS: Kiran, President Bush firing another warning shot at Iran. We're going to go live to Saudi Arabia for the latest on his escalating war of words.
And the Mona Lisa revealed? Why is she smirking? Probably because she just went shopping. A 500-year-old secret possibly spilled ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Well, just in from Saudi Arabia. President Bush talking with reporters, issuing a new warning to Iran not to threaten U.S. ships and pressing his host to cut oil prices. CNN's Ed Henry is in Riyadh this morning with more for us. First, about this warning the president sent from Saudi Arabia as he was there to Iran. ED HENRY, CNN CORRESPONDENT: Well, good morning, Kiran. That's right. The president declaring to the pool of reporters that the Iranians, "better be careful." He's referring, of course, to the Strait of Hormuz incident that has caused so much concern. He added, "What I said in my statement is if they hit our ships, there will be serious consequences. I meant it."
The president also repeated the mantra we've heard about all options being on the table with Iran. Essentially referring to the fact that there could be a military option if there were ever to come to that. And obviously, the context here is the president is supposed to be in the Middle East really talking up peace. But on almost every stop along the way, this confrontation with Iran keeps coming up -- Kiran.
CHETRY: Also, the president talked about oil prices and pressing the Saudis to curb oil prices back in the U.S. How has that convincing gone?
HENRY: Well, quite interesting. It's the second day here in the oil-rich kingdom of Saudi Arabia. The president is being honored and yet, he's ever so gently putting a little bit of pressure on OPEC to increase production, to try to lower those oil prices. But he also -- the president who has been accused of being very close to this royal family said that he was doing this in the spirit of friendship, not that he was pressuring them too hard. So it's interesting.
He has more meetings. He had some yesterday. Did not bring up the subject of oil, but is planning to today with King Abdullah, some more meetings. So obviously, those high gas prices back in the United States, hitting Americans so hard on the president's mind here in the Middle East -- Kiran.
CHETRY: Ed Henry for us in Riyadh, Saudi Arabia, this morning. Thank you -- John.
ROBERTS: Yes.
Coming up to 28 minutes after the hour. And potentially a centuries-old mystery solved. We may now know who Mona Lisa really is.
A scholar working at the Heidelberg University Library in Germany found that her real name is Lisa, and apparently, she's loaded. Probably while she's smiling. Lisa del Giocondo is the wife of a wealthy Florentine merchant, and that's who is suspected to be the "Mona Lisa." Notes from October 1503 written in the margin of a book in the library's collection may reveal her identity.
Lisa was first linked to the Da Vinci work in 1550 by an Italian writer which is why for centuries the Mona Lisa has also been known as La Gioconda. The library says that there were always doubts about that, though. The painting on display at the Louvre Museum in Paris, and it really is just about the most captivating painting that anyone has ever seen. It has a certain magic to it when you stand in front of it. You're watching the most politics in the morning. What are the candidates doing to address voter concerns about the skyrocketing cost of health care? Our Dr. Sanjay Gupta will examine that.
And last year it was the iPhone. What will make big headlines as this year's MAC world gets rolling today. Our Veronica De La Cruz has a sneak peek. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
JOHN ROBERTS, CNN, ANCHOR: We're back live here at half past the hour at the National Coney Island Diner in Warren, Michigan, suburb just north of Detroit. We've been here all morning talking politics. It's Tuesday, January 15th. Welcome to a special edition of AMERICAN MORNING, primary day in Michigan. I'm John Roberts. Good morning, Kiran.
KIRAN CHETRY, CNN, ANCHOR: Good morning. Good to see you. I'm Kiran Chetry here in New York. You know, what's interesting, John, it's primary day for the republicans. What's going on in the democrats' side there in Michigan?
ROBERTS: Well, what happened was it's all of these states moved up their primaries, the Democratic National Committee said February 5th is the date before which no state could go without special permission from the DNC. The DNC gave permission to Nevada, South Carolina, as well as of course Iowa and New Hampshire. Michigan decided it wanted to move up its primary to today, the 15th. So the Democratic National Committee said you do that, we're going to penalize you. Take away all of your delegates. The state of Florida also did the same thing. And so the DNC penalized it. There are no democratic candidates who are campaigning here. And in fact, the only democratic candidate who was on the ballot in Michigan of the major three is Hillary Clinton.
So some democrats this morning are saying they we're a little frustrated, maybe we'll go play in the republican primary. They did some of that in the year 2000. That helped give John McCain a victory here over George Bush. Because 52 percent of the people who voted in that primary were not republicans. But in any way, getting up, getting out, and voting as primary day begins here in Michigan. We're live in Warren.
As we said, it's a suburb just north of Detroit, Michigan. It got the highest unemployment rate in the country. It's home to the American car industry, of course, an economy in transition. When people talk about a nationwide recession, they point right here as the starting point. In fact, you can even see the effects here at this diner. When we were in Iowa, when we were in New Hampshire, the diners that we were in were jammed with people. This diner, as popular as it is, is mostly empty this morning. And they say that's because a lot of the buildings around this area, a lot of the office buildings are half if not more empty.
We've got our AMERICAN MORNING correspondent with us. You see Ali Velshi just sitting down with some folks there. We'll be talking with a couple of the diner patrons this morning and find out what they want to hear from the candidates. But first, back to Kiran in New York.
CHETRY: Thanks, John. We have some financial news to tell you from New York here as well. Troubled mortgage lender Merrill-Lynch receiving $6.6 billion from overseas investors. That help is coming from three investment funds in Japan, Korea, and Kuwait. All three will be passive investors only, meaning they have no control over decisions. Last month, Merrill-Lynch sold a $5 billion stake of itself to a Singapore fund and a $1.2 billion stake to an American fund. The company lost billions over the past few months on mortgage defaults.
And a New York hedge fund firm is making a very big higher official today. Today's "Wall Street Journal" says former Fed chairman Alan Greenspan will be joining the firm of Paulson and Company. Paulson has assets of more than $28 billion. Greenspan has admitted that his decision to keep the federate low a few years ago may have contributed to the housing bubble which has now burst.
3,200 more marines are preparing to go to Afghanistan. The troops getting ready for an expected Taliban offensive this spring. The deployment means there would be 30,000 U.S. troops in Afghanistan. The highest level since the 2001 invasion. John.
ROBERTS: It could be a make-or-break day for Mitt Romney today, Kiran. He was in Michigan and is yet to win or he was born in Michigan rather and yet to win a major state in the primary race. I sat down with him to talk about the major issues - Iraq, the war on terror, and the economy. Here's that conversation.
(BEGIN VIDEOTAPE)
ROBERTS: You said in your speech that the new fuel efficiency standards that President Bush recently signed into law are an anvil on the auto industry. President Bush called it a major step forward when he signed the legislation. Was he wrong?
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Well, it certainly adds to better fuel efficiency which is terrific and reduces dependence on foreign oil. That's good. But to the auto maker, it's an anvil. Because it's a new mandate coming from Washington saying here's the new number you have to hit. All the vehicles that you're making now are outmoded. You're going to have to build new engines, new transmissions, new axels, all these things have to be changed at the cost of tens of billions of dollars. Good luck.
ROBERTS: When you look at the nation, are we in a recession?
ROMNEY: Well, we could well be. I don't think we are at this stage. But the economists are going to do the calculation. Has the GNP shrunk? We actually keep saying it's doing better than anybody expected. So maybe it has not gone negative at this stage but clearly we're in a fragile setting right now with regards to our economy.
ROBERTS: You're president, what's your economic stimulus package to prevent the United States from slipping into a recession or at least softening the blow. ROMNEY: Well, that's something my team and I are looking at right now as to just what action we would take at the current stage.
ROBERTS: No plan yet?
ROMNEY: I haven't released a plan at this stage. That's coming soon. I'll give you this much of a window though. I don't believe in just sending out checks to people and saying go out and buy more oil with it.
ROBERTS: On Iraq, President Bush recently said that he would consider and be open to the idea of slowing the withdrawal of American troops or even halting it to maintain the progress in Iraq should General David Petraeus say that's what he wants to do. Would you agree with that?
ROMNEY: Well, of course, we have to listen to the commanders in the field. It's essential for us not to have a setting where Al Qaeda is able to establish a beach head, a safe haven in Iraq from which they could train, launch, and carry out attacks against the United States. We're not going to let Iraq become the way Afghanistan was with the Taliban.
ROBERTS: So, how long would you leave U.S. forces there?
ROMNEY: Well, again, you talk to the commanders in the field. But the key is this, don't allow safe havens to exist from which Al Qaeda is going to launch attacks against us. And what do I believe. I believe you're going to see that the withdrawal is successful. That the Iraqi military is able to stand up to the requirements of providing security in their country, keeping Al Qaeda out. But if for some reason there's a reversal in that regard, you don't say, too bad, we're leaving, let them launch attacks against America. We have to protect our own nation.
ROBERTS: You like to say that you've got two silvers and a gold so far in the primary season. Michigan is a very important state to you, you were born here, your father was the governor. If you don't win this state, can your campaign recover from that?
ROMNEY: Oh, sure. If I lost among republicans, that would tell me one thing. If on the other hand, the same thing happened as happened in 2000 where the democrats gave the nomination to John McCain, why, that might be another.
ROBERTS: It was a combination of democrats and independents.
ROMNEY: Yes. So, I look at each race and make the assessment. But look, I'm not going to let four states, only four states decide for 50 states who our nominee ought to be.
ROBERTS: Are you committed just staying in beyond super Tuesday?
ROMNEY: Oh, I'll make the decisions one by one but I'm certainly going all the way through February 5th and probably a lot longer.
ROBERTS: Because this is starting to cost you a lot of money.
ROMNEY: You know, I've raised more money than any other republican running for president.
ROBERTS: Or you put a lot of your own in?
ROMNEY: And I put a lot of my own in. And you know, I don't think it would be fair for me to ask my friends to raise money for me, take time off to do it and not contribute myself and we have the means to do that and I don't think there's anything more important I can do with my funds than to try help America at a critical time.
ROBERTS: Governor Romney, it's always good to see you.
ROMNEY: Thanks, John. Good to see you.
ROBERTS: Good to sit down with you, sir.
ROMNEY: Thank you.
(END VIDEOTAPE)
ROBERTS: In terms of personal money, at last count, he put in $17.4 million. We'll find out how much more he put in with the campaign reports on January 31st.
Our Ali Velshi joins us now. You know, from his time is running a venture capital firm. Mitt Romney liked to consider himself a turn- around artist for his ability to pick out companies that were failing but had promised and suddenly put them in the black again. What did you find out about his record/
ALI VELSHI, CNN, BUSINESS CORRESPONDENT: Well, he's got something behind this comment about him being a turnaround guy. Back in 1990, he took over Bain, a strategic consultancy. A company that helps other companies turn around. It was in big trouble. It was on the verge of financial collapse. And he did a lot of restructuring within that whole company and did turn it around. It turned a profit within a year. Then he moved over to be the CEO of the Olympics in Salt Lake City in 1999. That committee, that Olympic Committee was plagued with sort of scandal. It was not doing very well. He comes into that. And, again, he clears $100 million profit on the Olympics. So he's got something behind the idea that he's able to take troubled things and turn them around.
Now, he told you that he hasn't fully offered an economic plan. That's of course something that the candidates are all going to have to face clearly now because these troubles are getting larger in the economy, particularly here in Michigan which he claims some attachment to his father as governor. He's got a lot of history here. Here's what he has and he will do. He wants to make those 2001 and 2003 tax cuts permanent. He wants to make some savings tax free. In a nation where we're not savers, he's thinking if you make savings tax free, that will help. He obviously is in favor of reducing some corporate regulation and some lawsuit reform, tort reform. He also as he discussed with you he would like to evaluate fuel efficiency standards. Here in Michigan, those fuel efficiency standards that seemed very appealing to everyone around the rest of the country have been seen damaging to the already beleaguered auto industry. So he's walking a very fine line when it comes to fuel efficiency standards.
ROBERTS: He described them as an anvil dropped on top of the auto industry like the anvil that falls on the coyote.
VELSHI: We are - you talk about fuel efficiency standards, that's what it means. We're surrounded by people who have lost their lives in the auto industry, hundreds of thousands of them. So, that's something Michigan is not feeling the same way the rest of the country is. Everybody else thinks we should be going more green.
ROBERTS: But they didn't lose those jobs because they increased fuel.
VELSHI: That's absolutely true.
ROBERTS: We should point that out. Ali, thanks very much. Good information for us this morning. Of course, we're going to be covering the candidates all day long. And if you're away from your television set, you can watch it on your computer. Head to cnn.com/live. Just don't let your boss catch you doing it. Our primetime coverage begins tonight with a special edition of "Lou Dobbs Tonight" called "Independents Day." That's at 8:00 p.m. Eastern. Kiran
CHETRY: John, thanks. Well, the FDA is about to announce that cloned meat is safe to eat. The "Washington Post" reporting health officials have concluded that food from healthy cloned animals and their offspring is just as safe as food that comes from ordinary animals that have not been cloned. They do acknowledge that there are moral, religious, and ethical concerns that have been raised. The agency noted that in a document that accompanied the report, they said however that the risk assessment is strictly a science-based evaluation. And as far as that goes, it is safe. But it brings us to this morning's quick vote question. Even though the FDA is deemed cloned food safe, would you eat food from a cloned animal? Right now, 36 percent of you say yes. 64 percent of you say no. It would be interesting to hear others weigh in throughout the morning. Cast your votes at cnn.com/am. We're going to continue to tally the votes throughout the morning.
We're talking health care. How do candidates plan to fix a system that many say is broken. Our Dr. Sanjay Gupta is going to be taking a look at that for us.
And also it's the Math World Expo. It kicks off today. And fans of Apple are so excited to see what they're going to unveil. They unveiled major products like the iPod, iTunes, and the iPhone at this event. So, wan we expect another blockbuster gadget this year? Veronica de la Cruz has the scoop, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Look at this poor moose sticking out of the ice in Washington state. There he is. He wandered out on to Loon Lake, north of Spokane. And that's when the 900-pound animal was too much for the ice to handle. So, he fell in. The moose watched anxiously as crews used sledge hammers and chainsaws to cut through the ice and finally they were able to pry him out with an oar. After a quick shake off and you'll see in a second when he finally stands up there. He looks fine. He starts shaking himself off. The rescuers back up wisely. Who wants to get sprayed with wet moose water?
ROB MARCIANO, CNN, ANCHOR: No. It's wet moose water certainly is discouraging. Look how big that animal is. That's amazing.
CHETRY: And obviously, they're equipped to be able to handle cold temperatures. Because he was able to get up and stand and walk around even after being in the frozen water for as long as he was.
MARCIANO: I don't think that was part of his therapy, though.
CHETRY: No.
MARCIANO: My goodness. This story with moose in Maine and how, you know, that's actually very dangerous to drive up there in certain times of the year. You don't realize how big those animals are.
CHETRY: If you can see how much damage a deer can do to a car. How about a 900-lb moose?
MARCIANO: That was a big one, that's for sure.
All right. With some moose in Maine, for sure some moose in Michigan, some moose in Minnesota, and some moose in upstate New York. They're there. They're not going to show up on the radar but the snow is. Some lake effect snow as in Erie and Ontario today, Buffalo to Rochester to Syracuse, the usual spots, nothing too earth shattering. Some snow showers and snow advisory up for eastern, lower Michigan. Primary day there, typically winds or weather shouldn't add up to much more than an inch or two.
Chilly air though across the Great Lakes. Temps in the 20s and teens and even some single numbers. The big story that will be on going for the next several days will be the arctic blast of air dropping out of Canada and into the northern plains that will engulf a large quantity of the lower 48, including parts of Kansas which we'll see some moisture and blizzard watch in effect with winds gusting to 45 miles an hour, blowing and drifting snow as some moisture begins to work its way up from the Gulf of Mexico and through Texas. So, we'll keep an eye on that system as it develops. And watch out for those moose. They're cute too, I think.
CHETRY: Very cute. One woman has a pet. John Roberts just sent me a top screen over the computer that said that when the moose was up to his neck, he was thinking, great, this is going to end up on youtube.
MARCIANO: And it always does. Or CNN?
CHETRY: Exactly, one or the other. Right, John?
ROBERTS: You can just see the look on his face. Thanks, Kiran.
Hey, we've been hearing about how important economic issues are to voters here in Michigan and across the country but health care also very much on the voters' minds. Our Dr. Sanjay Gupta joins me once again with more on where the candidates stand. And how they might help voters here. You're a native Michigander. You got a local perspective on this. How bad is it?
DR. SANJAY GUPTA, CNN, CHIEF MEDICAL CORRESPONDENT: Well, there's about 1 million people uninsured in the state of Michigan. Obviously, thinking about this. They want a portable health insurance. But more than that, if you sort of trace the history, companies are more reluctant to come into Michigan because some of those high health care costs. They go 15 minutes across the border and not pay for some of those things. And in the meantime so, many people are dependent on employers, for the healthcare insurance you can see the vicious cycle that develops. So, it is number two just behind the Iraq War in terms of people's concerns here in Michigan.
ROBERTS: So, depending whose count you take, 47 million to 49 million people without health care insurance in this country, up to 10 million children. What are the plans out there? How might they address this crisis?
GUPTA: OK. Look at the leading democrats' plan, they all sort of address this issue head on. John Edwards was the first person to release the plan, talking specifically about the fact that everyone will get covered. Hillary Clinton has a plan like that as well saying people who can afford it who are not getting covered need to buy insurance. That's sort of one of the main tenets to their plan. Barack Obama's plan is similar although he does not mandate health care insurance purchase for adults. He does say for children, they need to have health care insurance.
ROBERTS: Expensive?
Well, yes, I mean it's a $100 million we're talking about for both John Edwards and Senator Hillary Clinton's plans. Barack Obama's plan about $55 - $65 billion. So very expensive. They say a lot of that money will come from rolling back tax cuts. They say cut some of the waste out of the program.
ROBERTS: Well, what about the republicans because they're the ones who are really in the spotlight.
GUPTA: Yes, I mean, Mitt Romney has well established health care plan in Massachusetts something that's looked at quite a bit. You know, they actually talked about universal health care plan for the state of Massachusetts. Pundits say he's back to a little bit of that as far as a national plan goes. Saying leave that in the bailiwick of the state - John McCain, Rudy Giuliani, Fred Thompson, Mike Huckabee, all talking about health care saying revamp the tax code. Try to make it more efficient. And actually encouraged competition among insurance companies. The reason that's so important is they're not saying a single pair system. They're saying making it more competitive that will bring down health care costs.
ROBERTS: This issue is one of the most urgent thing in this nation to address and yet one of the most difficult at the same time.
GUPTA: Luckily everyone is talking about it, I think for the same time.
ROBERTS: That's good. Sanjay, thanks very much.
And a reminder to catch Sanjay's special look at the health care system called "Broken Government, critical condition." It airs Thursday, January 31, 11:00 p.m. Eastern.
And a blockbuster new study that affects million of Americans. New questions about a popular cholesterol drug. Does it really do anything at all? We're paging Dr. Gupta again. He didn't even get out of our sight before we bring him back here.
And the Math World Expo kicks off today. In the past, we've seen the unveiling of major products, like the iPod, iTunes, the I-phone at this event. Can we expect another blockbuster this year. Veronica de la Cruz has got the scoop. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: We're back here this morning. Welcome back to you. The National Coney Island Diner here in Warren, Michigan, talking with some voters these morning. A couple of them undecided, one who has made up his mind. This is Becky Breining who is going to be leaving the states so this is going to be your last primary. Rob Martin is with us. You decided that you're a Romney guy and Scott Rellinger historically votes democrats but haven't really made up your mind yet about who to vote for.
Let me start with you Becky. It's feeling a little bit melancholy here but this being your last primary here in Michigan.
BECKY BREINING, UNDECIDED VOTER: Yes, I've lived here my whole life and the reason I'm leaving is I lost my job with Chrysler after 12 years of working with them and in order to survive, you know, the economic situation right now. I'm going to have to go Georgia to get a job.
ROBERTS: Is it that bad or is there nothing else out there?
BREINING: It's that bad. It really is.
ROBERTS: And how about your home? Are you going to lose? How about your home? Did you own a home?
BREINING: I just bought a house a couple of months ago and that's part of it that I'm trying to save my house. So...
ROBERTS: Oh my goodness. And how about you Rob? What has made you gravitate toward Mitt Romney?
ROB MARTIN, UNDECIDED VOTER: Because of his business background and his ties to Michigan. I think that his business sense plus the experience of his father brought to the state could make a good president. We need a businessman to help out Michigan.
ROBERTS: You're a former hotel manager and you'd been laid off, unemployed now?
MARTIN: Well, for 2 1/2 years.
ROBERTS: How difficult is it to find a job in the state of Michigan?
MARTIN: Very. I put in about an hour to about 10 to 12 resumes out there week. I'm doing that over two years. And just there's nothing out there.
ROBERTS: Your personal situation, you were working in the insurance industry. You've considered moving out of the state like Becky. What kept you here? Some thought that things might get better.
SCOTT RELLINGER, UNDECIDED VOTER: Just the family situation. My wife has MS, trying to get out and go to another state and spend time there finding something get set up and them move the family out.
ROBERTS: So, you're facing those big healthcare costs as well with the wife that has MS. So were you thinking about voting for and why?
RELLINGER: I'm looking at John McCain. I like his down to earth personality and we really need to do something with healthcare.
ROBERTS: So, even though you historically voted democrat, you're thinking about voting for McCain.
RELLINGER: Yes.
ROBERTS: And what about you Becky before you leave the state of Michigan, who might you cast your vote for?
BREINING: Romney.
ROBERTS: And reasons.
BREINING: Well, his father was the governor years ago and I thought he did a good job.
ROBERTS: So, you're thinking the apple doesn't fall far from the tree?
Folks, thanks very much for joining us this morning. I mean, we all have sympathy for your situation here. Real illumination of just how difficult things are here in the state of Michigan. Becky Breining, Rob Martin, Scott Rellinger. Thanks. BREINING: Thank you.
ROBERTS: Kiran.
CHETRY: Thanks a lot, John. Well the MAC World Expo kicks off today in San Francisco. You know, this is a big for people who love gadgets and technology. We've seen in the past the unveiling of major products like the iPod, iTunes and the iPhone of course at this event. So, can we expect another blockbuster gadget this year. We hope so. Veronica de la Cruz is here at the (inaudible) You're not sure.
VERONICA DE LA CRUZ, CNN, INTERNET CORRESPONDENT:: Well, it's the big question right now. Apple fans, journalist, they're all going to be gathering around to watch CEO Steve Jobs take the stage in just a few hours. That's going to happen 9:00 this morning to unveil that latest, and the greatest in Apple technology.
Like Kiran is saying just last year, around this time what happened, big news, the unveiling of the Apple iPhone and that's going to be pretty hard to top. So, a couple of guesses as to what we might see. An ultra slim notebook computer, about half the size of existing Mac laptops, less than an inch thick, weighing about 4 lbs. Also, more content, there are rumors that more movie studios want to have deals with iTunes. Right now, there are only a limited selection of movies available and fans definitely want to get their hands on more content for their video iPods. Is that something that you have?
CHETRY: Yes.
DE LA CRUZ: So, more films then, Kiran, possibly. There may also be plans to offer movie rentals through iTunes. These will be downloads that expire after a certain time. And we know that everyone of course is waiting with bated breath for the iPhone sequel but the buzz online is this -- Apple will only offer minor upgrades. We might see better camera resolution, possibly GPS chip, more memory maybe, going from 18 gig to 16. so, you know, big news today for Mac enthusiasts. Apple fans are nuts about the product and not just Apple fans but everybody. You just said that you have an iPod too and so, we're all waiting with bated breath.
CHETRY: Sometimes, they're happy with the small upgrades too. I mean, a lot of people said I love the iPhone, I wish it did this a little bit more so, I wish it did this a little bit more.
DE LA CRUZ: yes, absolutely. I also wanted to point people in the direction of our website. CNN.com/am. There you can log on and get the latest and the greatest in technology. You can also find my blog there. I blogged about meeting with Bill Gates, the Microsoft founder and also there's a podcast and you can also read about people's favorite gadget there. There are some iReports on there. Veronica.com is the place.
CHETRY: All right. Sounds good. Thanks so much, Veronica.
We'll take a quick break. AMERICAN MORNING will be right back.
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