Return to Transcripts main page
CNN Newsroom
Foreclosures Sky High; Obama Takes Time to Pick Cabinet Members; Stress and Depression: Recognizing Symptoms; Palin Back in the Limelight
Aired November 13, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: The economy, issue #1 on Capitol Hill. Wall Street and your street. This morning, new reports, new hearings and new concerns.
Plus, it's an illegal pill popped by club goers, but it could also help people who suffer violent attacks.
It is Thursday, November 13th, I'm Heidi Collins. You are in the CNN NEWSROOM.
Waking up to more market jitters. More grim government reports and more gloomy forecasts all leading to a crisis of confidence for both investors and consumers.
We begin this morning with Christine Romans in New York with new numbers and new worries.
Christine, what do you have this morning? I hate to start the show like that. But we have to look at these things. We have to know the data.
CHRISTINE ROMANS, CNN CORRESPONDENT: You're absolutely right and it's important for people to understand just how -- how grim the situation is for the jobs numbers.
We have a new phase of the Treasury Department bailout. We heard from the secretary, the treasury about that. But we have the same old concerns going on in the economy and those concerns coming out in this jobless claims number that was released just about half an hour ago.
It shows first-time unemployment benefits 516,000 last week. The highest in seven years. That means more people are lining up for jobless benefits for the first time at the Unemployment Office than at any other time in the past seven years.
COLLINS: Wow.
ROMANS: And when you smooth out that number for the past -- over four weeks, the four-week moving average, it's the highest in 17 years. So those were worst than people expected and they're showing that the -- that the managers across the country are cutting head count and -- and overnight some really -- a grim kind of quote from the mayor of Chicago, Mayor Daley.
After the city council meeting, he told reporters, look, you know, the CEOs and the big corporate chiefs have been coming in here and they've been telling me huge layoffs are coming in November and December and next year there's going to be even more huge layoffs.
All the corporation CEOs have come in to tell me that's just the beginning. It's not the end result.
So he's telling reporters...
COLLINS: Boy oh boy.
ROMANS: ... look, there's huge layoffs coming to Chicago. So this is something that people definitely -- you're right, it's bad news. But people have got to be prepared for it.
COLLINS: Got to be prepared for it because you have to know what to do with your own job and how to protect your own job when a lot of these layoffs are coming. Obviously very important to know how to try and stand out and be secure in your own life.
We also have some more numbers to talk about, unfortunately, Christine, with foreclosures.
ROMANS: That's right. And we know that as the Treasury Department is trying to go to this new phase of the bailout and expand kind of what they're doing and change direction on what they're doing, we know that the housing crisis is still raging.
In fact, intensifying. In October, according to numbers compiled by Realty Track, you had 84,000 homes lost to foreclosure. What does that mean? That means -- that is the sheriff putting the padlock on 84,000 homes and they're seized and repossessed by the bank.
Overall foreclosure filings as people falling in default, people who are behind on their mortgage, who are all somewhere in the stage of the foreclosure process, 279,000 just in October.
So we've stabilized the financial system, according to the treasury secretary. But still a lot of work to be done in terms of the global economy, but this housing crisis is still raging here.
So this is something that -- you know, this is something that, frankly, is still going on. People are still losing their homes despite all of these different programs out there...
COLLINS: Right.
ROMANS: ... to try to get people some help.
COLLINS: Right. Well, maybe we can talk about that next time around.
ROMANS: Sure.
COLLINS: Because I think that's what people want to know, how much longer it's going to take to start feeling some of this help kick into the market, as well. All right. Christine Romans, we'll check back with you a little bit later on. Thank you, Christine.
No doubt about it, the developed world has sunk into a recession. That assessment now from the Paris-based Organization for Economic Cooperation and Development.
A third straight sell-off yesterday on Wall Street, tumbling stocks in Japan and Hong Kong overnight. European markets are mixed this morning.
President Bush is heading to New York this hour and he's scheduled to talk about the economy coming up a little bit later on in the afternoon today.
Back in Washington, more hearings on the financial crisis. Next hour, the House Oversight Committee looks at the role hedge funds may have played in all of this and the Senate Banking Committee delved deeper into the government's $700 billion rescue program.
Well, bailout or bankruptcy for the big three. Will Washington cut another rescue check? That's been the question for quite some time now. The man in charge of coming up with a bill to bail out the American auto industry is Congressman Barney Frank.
(BEGIN VIDEO CLIP)
REP. BARNEY FRANK (D), FINANCIAL SERVICES CHAIRMAN: The economy was booming, there was a lot of jobs out there for people, it'd be a different story. We were in a very high unemployment situation. We have lost 400,000 jobs in the last two months because of the general economic problem. So this is the worst possible time for the rest of the economy to absorb this loss.
(END VIDEO CLIP)
COLLINS: The bill lawmakers are talking about could give you a stake in the struggling car business.
CNN's Kate Bolduan is joining us from Capitol Hill now to talk a little bit more about that.
So, Kate, tell us what this is all about. Is this something that people would want to have a stake in?
KATE BOLDUAN, CNN CORRESPONDENT: Well, that's a question that many lawmakers are wanting to know and that's kind of where the divide is here on Capitol Hill. But despite some very strong signals of no from the White House and the Bush administration, congressional Democrats are forging ahead. They're putting on pressure to bail out the American auto industry.
You heard from the chairman of the Financial Services Committee right there, Barney Frank. He's the man taking the lead on crafting automaker bailout legislation, but at the same time, we're now starting to see some pushback from congressional Republicans on the issue.
Republican congressman Spencer Bachus wondering when and where do the bailouts end. Listen here.
(BEGIN VIDEO CLIP)
REP. SPENCER BACHUS (R), ALABAMA: Does it end with manufacturing? What about retail? What about Circuit City? I've read now that a lot of Circuit City employees are even more angry this week than they were last week that they're losing their jobs and they're seeing what's going on on Capitol Hill.
(END VIDEO CLIP)
BOLDUAN: Now, Congressman Barney Frank told me yesterday they could have a bill ready to go as early as Tuesday. Now what could be included in that? Well, Frank says that perhaps $25 billion of assistance to the automakers to keep them afloat, to try to help them stay out of bankruptcy, and Frank says money that he -- that money he hopes to come from the Wall Street rescue package, the $700 billion we've talked so much about, Heidi.
But one thing that we also found out is that Frank will be holding a hearing Wednesday and we're told that the auto executives will be testifying at that hearing so you can expect some tough questions there.
COLLINS: Oh sure. A lot of people are going to be watching that, too.
So, Kate, what are -- what else (INAUDIBLE) when we look forward to next week's lame duck session then?
BOLDUAN: It's really kind of setting up to be maybe the last showdown, a tough showdown between Congress and President Bush. The Bush administration and Treasury Secretary Henry Paulson have been very clearly resistant to the idea of using some of that $700 billion that was already approved and passed for bailing out the auto industry.
But congressional Democrats, they're really sticking by their guns, Frank saying, very simply yesterday, we will pass a bill and he, the president, can decide to veto it or not.
COLLINS: All right. CNN's Kate Bolduan, staying on top of things for us at Capitol Hill this morning.
Thank you, Kate.
BOLDUAN: Of course.
COLLINS: Additions to the team, President-elect Barack Obama picking a couple economic ambassadors who will help in the upcoming economic summit. He's also meeting with an eye on automakers and working to put the rest of his transition people in place.
Very big job.
And CNN's Suzanne Malveaux has been watching all of it and she's joining us now from Chicago this morning.
So, Suzanne, as we look to these choices that Senator -- excuse me, President-elect Obama will have to be making, what's on tap exactly for today?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, obviously, Barack Obama really wants to show two things that he is looking at this financial crisis in a very serious way, but he's also looking at it in a bipartisan way that he wants to get difference of opinions on how to resolve this so therefore a transition team has announced two players here, one a Democrat, one a Republican, who essentially will help usher in some of these ideas, former secretary of state Madeline Albright as well as former Iowa congressman, Jim Leech.
Both of them will represent Barack Obama this weekend at that world summit, the global summit that President Bush is holding with the leaders of those industrialized nations to come up with ways to deal with this financial meltdown.
There are some differences between Barack Obama as well as President Bush on how to help the automakers. Barack Obama seeing that perhaps some of that $700 billion and the bailout money could be used for the big three companies. President Bush seeing that differently. So that is something that's going to be, obviously, talked about over the weekend at that summit.
Also just to give you a sense of who they're looking at. They're tapping into a lot of folks from the Clinton administration and that includes Joe Biden, his chief of staff, his pick is Ron Klain. And as you know, Ron Klain used to be the chief of staff and counselor to Vice President Al Gore.
So, obviously, they are looking at -- back at that former administration, those eight years under Clinton...
COLLINS: Yes.
MALVEAUX: ... and seeing some real benefits in bringing some of those people onboard -- Heidi?
COLLINS: That's interesting. And you mentioned Vice President- elect Joe Biden. I understand that he has a symbolic dinner invitation that he will be accepting. Where's he going?
MALVEAUX: He's going to be going to where he's actually going to be living for the next four years. He's going to Vice President Cheney's place, his residence.
It's the Naval Observatory, obviously, in Washington, D.C. Joe Biden and his wife, Dr. Jill Biden, will be there hosted by the Cheneys. They'll get a tour of the residence and, you know, they'll talk about -- talk a little bit of shop. It'll be interesting to see how these two men interact with each other. You may recall, Heidi, Joe Biden pretty tough on Cheney. Once saying that he was probably the worst vice president in American history.
So we want to look at the body language and see how they're doing. But this is the first time that Joe Biden will actually be living in D.C. He's been commuting back and forth from Delaware by the train. He's been taking the train for, like, more than 30 years. It's the first time he's going to be settling into D.C. but they say they're looking forward to it.
So...
COLLINS: Vice President Cheney...
MALVEAUX: ... we'll have to check that out. It's going to be an interesting dinner.
COLLINS: Yes. Yes, taking a queue from President Bush there on -- for President-elect Obama as well.
All right, Suzanne Malveaux, live for us in Chicago today, thank you, Suzanne.
As Sarah Palin set to speak to a gathering of Republican governors this morning, it's going to be happening in about 30 minutes or so. The governors are meeting, of course, to talk about the future of the party and that could include a big role for Palin.
CNN's Dana Bash has more from Miami.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice over): Republican governors gathered in Miami agree on one thing -- their grand old party is in crisis.
GOV. MARK SANFORD (R), SOUTH CAROLINA: I think this is a remarkable time for -- in essence, an after-action review wherein people say, what did we get right, what did we get wrong? I think this is a chance to really define what our party is about.
BASH: Yet wander the halls of the Republican Governors Convention and get very different answers to that question. The struggle to leave the GOP out of its ditch on display. South Carolina Governor Mark Sanford wants to return to the socially and fiscally conservative ideals of the Reagan revolution.
SANFORD: Bible again says be hot, be cold, but don't be lukewarm. I think that the Republicans have been absolutely milk toast with regard to standing to a lot of the principals that they're supposedly about.
BASH: But Minnesota's Tim Pawlenty says looking back 30 years is precisely the problem and Republicans must adapt to a changing electorate.
GOV. TIM PAWLENTY (R), MINNESOTA: I think you can be conservative and be modern at the same time in terms of keeping the principals and values but applying them to the issues of our time.
Ronald Reagan was a great leader, but he was president a long time ago. A lot happened since the 1980s.
BASH: Florida's Charlie Crist is in that camp, too. He's a popular GOP governor in a state Barack Obama turned blue, and says Republicans must look beyond the base to issues that drive swing voters.
GOV. CHARLIE CRIST (R), FLORIDA: We need to do better with Hispanics. We need to do better with African-Americans and work harder to convey that message of hope and opportunity and the fact that this is a party of Abraham Lincoln that understands we need to be very inclusive.
BASH (on camera): Now there is a lot of not-so-subtle jockeying among some Republican governors to fill the leadership vacuum in their depressed party, but several we talked to openly bristle about the fact that there is one Republican governor here getting a lot more attention than others -- Sarah Palin.
Dana Bash, CNN, Miami.
(END VIDEOTAPE)
COLLINS: Rescues as waters rise, torrential rains trigger flooding in Washington. What emergency crews are worried about now.
(COMMERCIAL BREAK)
COLLINS: Believe it or not, still a few Senate races up in the air. The closest maybe the fight for Ted Stevens' seat in Alaska. Thousands of votes, in fact, still need to be counted right now. Stevens is trailing his Democratic challenger by 814 votes. It will be late next week before all the ballots are counted.
Stevens is trying to hold on to his seat, even though he was found guilty in his federal corruption trial.
There won't be winner declared in Minnesota until late next month. The bitter battle between incumbent Norm Coleman and comedian Al Franken is less than half a percent apart.
The vote recount is expected to begin next Wednesday. Minnesota secretary of state hopes to have the 3 million ballots checked by December 5th. Challenged ballots will be counted even later.
John McCain back on the campaign trail today, not for himself, though. He is in Atlanta to support Republican senator, Saxby Chambliss. Chambliss' Senate seat is one of the three that's still have not been decided. There will be a December 2nd runoff between Chambliss and his Democratic challenger -- you see there -- Jim Martin.
Washington state under water. Look at that. Two days of steady, heavy rainfall have swamped the western part of the state. Volunteer evacuation orders issued for three coastal counties now. Flood warnings in effect for rivers in a dozen western counties.
Emergency crews today will assess the damage and the potential for mudslides. That's what they're worried. But it looks like the area will be getting a break. No rain in this weekend's forecast.
And that is very welcome relief, I'm sure, as we toss things over to Reynolds Wolf now in the weather center.
Hi there, Reynolds.
(WEATHER REPORT)
COLLINS: All right. Very good, Reynolds. We'll check in a little bit later on.
WOLF: You bet.
COLLINS: Thank you.
The National Transportation Safety Board close to announcing the probable cause of last year's Minnesota bridge collapse. The agency opens two days of hearings today.
The I-35 Bridge crumbled during afternoon rush hour in August of 2007. That sent dozens of cars tumbling into the Mississippi river. 13 people died.
In January, investigators said 16 plates that strengthen steel beams in the center of that bridge were fractured.
They call it ecstasy on the street, but one woman calls it a chance for her to live a normal life after being attacked.
(COMMERCIAL BREAK)
ANNOUNCER: Breaking news, revealing developments, see for yourself in the CNN NEWSROOM.
COLLINS: Ecstasy, the elicit drug popularized by club goers, now part of treatment for some patients suffering post-traumatic stress disorder.
Our Dr. Sanjay Gupta has the story.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice over): Gail Westerfield is showing us a tape of her therapy session. She's under the influence of MDMA.
GAIL WESTERFIELD, SUFFERED PTSD: I had a happy childhood, and when I think about it, I feel really, like it wasn't that happy.
That's MDMA.
GUPTA: Westerfield struggled with depression almost all of her life and the sense of being out of it. She says it goes back to a childhood assault and later being raped in college.
WESTERFIELD: I mean it's embarrassing to be in your 30s and be afraid to go into your house, you know, or to be alone in your house.
GUPTA: She was diagnosed with post-traumatic stress disorder but nothing helped her until she met Dr. Michael Mithoefer who was researching MDMA as a part of therapy.
(on camera): MDMA, of course, is better known by its street name, ecstasy. Take a look here. At least 99 different types of pills as you see right there. When taken it causes the brain to be flooded with neuro-transmitters, especially serotonin. And that's the key to our moods and our emotions.
Some doctors say it's the well-known effects of ecstasy --open alertness, euphoria, calmness -- that could prove useful when it comes to therapy.
(voice over): Mithoefer's pilot study involved 21 patients. Those getting MDMA with therapy saw more improvement in their mental wellbeing than patients who got a placebo. Just as important, there were no major side effects. Some elicit ecstasy users run into problems like a rapid heart rate and depression.
DR. MICHAEL MITHOEFER, LED MDMA STUDY: I'm excited that we got this kind of result, but it is only a first step.
GUPTA (on camera): Did it work?
WESTERFIELD: Oh, I'd say absolutely. I can't believe I had this in my head. I can't believe it's in me.
I had recurrent dreams since I was a little kid. I can be walking through a house and the lights would turn out and then this force will overwhelm me. After the MDMA, I fought it once and it never happened again.
GUPTA: Four years since the last MDMA session, the nightmares are gone.
Dr. Sanjay Gupta, CNN, reporting.
(END VIDEOTAPE)
COLLINS: New evidence that quitting smoking can help save your life. A study looks at the effects of a Massachusetts ban on smoking in most restaurants, bars and workplaces.
Researchers found an average of 577 fewer residents have died yearly from heart attacks since the ban began in 2004. Some smokers in the state question the report, though.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I don't think it makes a difference because people still smoke in the street so -- I do it.
UNIDENTIFIED FEMALE: They make that correlation the way they make every assumption that they make, just because they want to.
UNIDENTIFIED FEMALE: They can't blame it all on cigarettes.
(END VIDEO CLIP)
COLLINS: Researchers say they looked at several factors that may have played a role in the declining deaths. They determined the most important reason was reduced exposure to second-hand smoke.
Wall Street's opening bell about to ring on a new day. Will some sun peek through those dark economic clouds? We hope so and we are watching. Back in a moment.
(COMMERCIAL BREAK)
COLLINS: Getting ready for the opening bell on this Thursday morning, hoping, just hoping, for a little bit of a bounce since yesterday. Several days in a row now, the market, as you well know, has closed to the negative.
So as we get just a few seconds away here, we, of course, will watch those numbers closely. In fact, the stocks have fallen every day this week with losses totaling now $1 trillion.
Any chance of that turnaround, Stephanie Elam, standing by at the New York Stock Exchange, if we cross our fingers really, really hard?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Man, let's -- you know, hunker down, close our eyes, spin around three times, but I don't know. It doesn't look good at this point, Heidi.
The Dow tumbled more than 400 points yesterday and Asian markets followed suit overnight. All this comes as a new report shows Germany -- which is Europe's largest economy, slid into recession in the third quarter.
Meanwhile, recession shares are alive and well here at home since stocks are expected to be under pressure again today. Just about an hour ago we learned the number of first-time jobless claims soared above the 500,000 mark just last week. That's the highest level since just after the September 11th terror attacks that (INAUDIBLE) job cuts helped -- actually sent foreclosure filings up 25 percent last month. RealtyTrac says more than 250,000 borrowers received notices of default, auction sales or bank repossession.
And taking a look at the corporate front. Wal-Mart reported a $3 billion profit in the last quarter. Thanks to its bargain basement prices. But the retail cut its forecast for the full year. Meanwhile, chip giant Intel turns it sales outlook. Intel shares are down 3 percent. OK, we got the markets open now. And maybe because you did the nice pray there, I don't know, Heidi, but they're up.
COLLINS: We're up?
ELAM: Yes, we're up. The Dow up 62 points at 8346. Nasdaq up 5 at 1504. We'll have to see how this goes. Nasdaq began the day at its lowest level since five and a half years, while the Dow was just 107 points away from its low. So, over the last six sessions we've lost 1,300 points, Heidi. So, maybe we can make some ground back on the Dow today.
COLLINS: Yes. Boy, I hope so. All right. We will check back a little bit later on with you, Stephanie. Thank you.
ELAM: Thanks.
COLLINS: Their employer is running out of money, so they are running out of work. Nearly 4,000 people laid off from the University of Texas Teaching Hospital in Galveston. That's nearly a third of the workforce. The hospital serves as the city's trauma center, and like so many others in Galveston, they're still trying to recover from Hurricane Ike.
(BEGIN VIDEO CLIP)
MAYOR LYDA ANN THOMAS, GALVESTON, TEXAS: It was incredible and incomprehensible that anybody in Austin would use this time to put 4,000 people into the streets of Galveston and Galveston County, when we have citizens who don't have shoes on their feet or a roof over their head.
(END VIDEO CLIP)
COLLINS: The Board of Regions estimates the hospital would only be able to stay open another 3 months at the rate it's spending, and it does not have the money to cover those costs.
After the merger, look for Delta airlines to trim 12 percent of its flights out of Cincinnati, Ohio. The company's restructuring its hub there after combing with Northwest Airlines.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's a lot of airports are being cut worse than we're being cut. It's just the nature of the beast with the economy down.
(END VIDEO CLIP)
COLLINS: Delta executives say about 40 flights will be cut in Cincinnati beginning next year.
Boston Red Sox making a symbolic gesture to their fans during these tough economic times. The Sox announce they won't raise 2009 ticket prices at Fenway Park. Team officials acknowledge to the "Boston Globe," they could still sell seats at a higher price. The Red Sox have sold out 469 straight games and have a season ticket waiting list of 7,000 people.
As the government retools its financial rescue plan, the president hopes to reassure jittery investors and consumers. He's heading for New York to talk economy. CNN's Kathleen Koch at the White House for us this morning.
Kathleen, good morning to you. What is he going to be saying?
KATHLEEN KOCH, CNN CORRESPONDENT: Well, Heidi, this speech is on the president's -- has been on his schedule for weeks. So, it is not designed to respond to either the changing rescue plan to the new jobless numbers or even to the crisis right now that U.S. automakers are facing. What it really is is a speech to set the tone for the International Financial Summit that is coming up here in Washington this weekend, that some 19 world leaders will be attending.
So, aides that we have spoken to tell us the president is, first of all, going to be talking about the causes, the root causes of the current financial crisis, how we got here, and reflect on the interconnectiveness of world financial markets.
The president will discuss the importance of making U.S. markets more transparent, making sure that they are appropriately regulated. He's also going to be calling for greater cooperation between the world's financial leaders. At the same time, though, the president is going to talk about free market capitalism and tout it as what he believes being the best system for creating economic growth, for lifting people out of poverty, so that he'll stated his real firm opinion and he stated it often that any kind of fix that these leaders come up with will have to maintain and preserve the free market system and not dismantle it.
Interesting to point out, the president is going to be making these remarks in federal hall, in the heart of New York's financial district, just a stone's throw from the stock exchange, Heidi. And so, it will be very interesting to see how they react this afternoon.
COLLINS: Yes. And sure will be. I wonder, though, what is the White House saying, Kathleen, about some of the calls from Congress to include U.S. automakers in the financial bailout?
KOCH: What they're saying, Heidi, is you can't do that. At least not right now as that legislation was written by Congress. But, certainly, we're hearing Congress has talked about -- talking about rewriting it. Another option the White House has pointed out is a measure that was passed last December, that more Congress offered some $25 billion in loans to the auto industry to retool, to make more fuel efficient cars. Congress could go back and rewrite that law and give automakers more money.
But right now, either way, the White House isn't committing to signing either one of those measures. They say they have to see first what Congress comes up with.
COLLINS: All right. We'll be watching closely. Kathleen Koch, sure do appreciate that, from a rainy White House this morning.
Eye on the economy. President-elect Barack Obama naming two Washington veterans to attend an important economic summit this weekend. Today Obama and his team are looking at options for automakers. They are also working on putting together the rest of their transition team. Cabinet positions are not expected to be named until next week at the earliest.
Critical to get it right. That's why Barack Obama's aides say the president-elect is taking his time to find the right cabinet.
Here now, CNN's Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SENIOR POLITICAL ANALYST (voice-over): Barack Obama made history. But as he puts together his cabinet, he doesn't want to repeat it.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I want to move with all deliberate haste. But I want to emphasize deliberate as well as haste.
CROWLEY: What is deliberate haste? This moment, said one Obama aide, the definition is not this week.
It looks more like deliberate than haste, in part, because the president-elect wants a clear runway taking off January 20th -- nothing messy, no drama Obama. That is, no Zoe Bairds, Bill Clinton's first choice for attorney general; no Kimba Woods, his second choice for the same job -- both jettisoned for different reasons. And no Linda Chavezs, President Bush's top choice for Labor secretary. She went down in flames over an undocumented immigrant who lived in her house.
It is history not to repeat -- no mis-picks to send a fumbling first impression or taking up valuable time in the all-important first 100 days, when new presidents begin to brand their era.
OBAMA: I think it's very important in all these key positions, both in the economic team and the national security team, to -- to get it right and not to be so rushed that you end up making mistakes.
CROWLEY: Another part of the deliberate side of deliberate haste, the Obama team sees the cabinet as an ensemble cast. "I know it sounds like kindergarten," said a top adviser, "but you need people who can work together, not a collection of individuals."
Historical reference, 2001 -- George Bush taps Colin Powell as Secretary of State and Donald Rumsfeld at the Pentagon. Their disagreements were the stuff of headlines.
But hold up in Chicago transition headquarters, the president- elect is most concerned about this and this and this. A close adviser noted the selection of a Treasury secretary nominee will send unbelievable signals throughout the economy. Others, Defense secretary, secretary of State and the national security team, will send signals across the world. It is crucial they get it right.
Candy Crowley, CNN, Chicago.
(END VIDEOTAPE)
COLLINS: Shaking up California. Millions of people taking part in a disaster drill today preparing for the big one.
(COMMERCIAL BREAK)
COLLINS: With job layoffs, a bear market and an uncertainty of the future, it's no wonder people are stressed. When do you know that stress is getting out of control, though, and leading to depression?
Here now is CNN's Judy Fortin with today's "30, 40, 50."
(BEGIN VIDEOTAPE)
JUDY FORTIN, CNN CORRESPONDENT (voice-over): Eben Jones always thought his sadness was a normal part of aging.
EBEN JONES, SUFFERS FROM DEPRESSION: I turn into a very serious person.
FORTIN: But as he got older, Jones realized it was more than that. A former military man with three kids, he was always stressed and feeling down didn't make it any easier. After suffering three strokes, Jones attempted suicide, twice. At the hospital, he was diagnosed with clinical depression.
JONES: The doctor told me basically how some people look through rose-colored glasses. I was looking through dirty brown glasses at everything.
FORTIN: Doctor's say Jones is not unusual, because as we age, everyday stress can trigger undiagnosed depression.
DR. PATRICE HARRIS, PSYCHIATRIST: Untreated depression can lead to significant health risks, can lead to suicide, can lead to decreased ability to function at work. Decreased ability to have meaningful relationships.
FORTIN: In your 30s, things like determining your career path, buying a house, starting a family can all be major sources of stress. And today's economy doesn't help.
HARRIS: When you certainly lose your ability to care for your family, pay your mortgage, handle your monthly expenses, that certainly adds to one's level of stress.
FORTIN: And in your 40s and 50s, children often lead for school, which can bring on emptiness syndrome. HARRIS: Also in their 50s, folks are thinking about retirement. Do they have enough money? What are they going to do?
FORTIN: As for Jones, he is receiving treatment and this summer started volunteering, helping others in similar situations.
JONES: I laugh a lot more now and smile a lot more, because I seem to enjoy things. A lot more than I used to.
FORTIN: Judy Fortin, CNN, Atlanta.
(COMMERCIAL BREAK)
COLLINS: Quickly, we want to head over to Reynolds Wolf who is standing by in the severe weather center now to give us sort of a picture of the country. We know we've got some real trouble in the northwest, yes?
(WEATHER REPORT)
COLLINS: Preparing for the big one. To get ready, about 5 million Californians are taking part in a drill today. Schools and businesses are simulating what would happen if a massive earthquake rumbled along the Southern California Coast.
CNN's Ted Rollins has the story.
(BEGIN VIDEOTAPE)
TED ROLLINS, CNN CORRESPONDENT (voice-over): John Charnay knows what it's like to live through a devastating earthquake.
JOHN CHARNAY, RED CROSS: I could never forget it. I was sound asleep and the whole house shook tremendously and it seemed like forever.
ROLLINS: In 1994, Charnay's Northridge, California, home suffered severe damage. He and his family escaped without injury, but he says he wasn't prepared and that cost him thousands of dollars and immeasurable stress. He says his home wasn't properly secured and he didn't have an emergency kit prepared for his family.
CHARNAY: Marie (ph), I'm calling for your advice. Now, John Charnay works for the Red Cross, which along with a number of other agencies, is warning people this week in Southern California to prepare for the big one.
UNIDENTIFIED MALE: The largest earthquake to hit Southern California in modern times has just begun.
ROLLINS: This worse-case scenario video depicting a 7.8 magnitude quake was put together by state officials as part of a campaign called The Great Shake Out. Researchers think the San Andreas fault is overdue for a massive quake. This model shows what they believe is coming some time in the next 30 years. A wave of destruction, covering a huge section of Southern California, including Los Angeles.
DR. LUCY JONES, USGS: Our picture shows a pretty devastating event with 1,800 dead and $213 billion in losses.
ROLLINS: Organizers have a Web site, shakeout.org. The lesson they hope to teach is that preparing can make a big difference on how you survive an earthquake. Something John Charnay says he learned the hard way.
Ted Rollins, CNN, Los Angeles.
(END VIDEOTAPE)
COLLINS: And you are looking at Miami right now. The Republican Governors Association Conference, as you may know, began yesterday. It's three days long and we are waiting for Governor Sarah Palin to take to those microphones. When she does, we'll bring it to you. Quick break here.
(COMMERCIAL BREAK)
COLLINS: Quickly we want to take you directly to Governor Sarah Palin. She is in Miami and has just taken to the microphones for the Republican Governors Association Conference.
Let's listen.
(JOINED IN PROGRESS)
GOV. SARAH PALIN (R), ALASKA: ... As a whole, what we do in our states is govern with strong executive experiences that are put to good use. We don't let obsessive extreme partisanship get in the way of just doing what's right for the people who have hired us, the constituents in our states and, you know, we have to balance our budgets.
It doesn't matter who controls our legislatures. We balance our budgets. We're in charge of tens of billions of dollars in our states and tens of thousands of public employees all providing services and projects and implementing policies that are best for our states. And, again, not allowing obsessive partisanship to get in the way.
I think that this group is going to be looked to and looked at for leadership that perhaps had been lacking in Congress and in Washington D.C. This group is going to be uniquely qualified to provide leadership in this nation.
We're going to reflect a little bit on the presidential campaign and where some of us believe that the Republican Party could and should go here. In the future, I'll do that during the next session, which I think you guys are invited to participate in. So, I won't repeat right now what I'm going to be saying then.
But I know that a lot in the media -- you guys are wanting to dissect the past, and you're already worrying about, and kind of playing that pundits role and what's going to happen in 2012, is where so much of the discussion has been.
Well, as far as we're concerned, the past is the past. It's behind us. And I, like all of our governors, we're focused on the future. And the future for us is not that 2012 presidential race. It's next year, and our next budgets, and the next reforms in our states.
And it's 2010 when we'll have 36 governors positions open across the U.S. That's what we're focused on. We're focused on providing good service to the people whom we are serving in our states. So, that will be the moment in this next year and the year after when those 36 governors races are open that the Republican Party will see that it is the Republican governors, who have the experience and the leadership qualities that can help usher back into our states and our nation, the bedrock principles that do make up the Republican Party. Because we, as governors, we live those out every day in the governance of our states.
The media likes to focus on us as individuals. But the Republican Governors Association is a group committed to governors who know that only we, by working together, can bring back the change that has been so desired by the American public, that we know that we can usher in. I'm proud to be a part of this team. And that's what we're going to talk about today in a bit, that, and reflecting on the presidential campaign.
So, very proud to be here with this group. We are united and we understand what it's going to take to get this economy back on the right track. National security issues, immigration issues, education reform, health care reform -- those issues that we deal with every day in our states.
We want to reach out to the new administration and offer our assistance, our support, offer solutions that I think will be sought by the new administration and by Congress. And we're here to help. So, Governor Perry and a couple of others and I are happy to take some questions from you before we get into that plenary session.
And thank you for being here. Again, very, very proud to be part of this very unique team, the Republican Governors Association. Thank you.
QUESTION: (INAUDIBLE), since then, you've done interview with Fox News Channel (INAUDIBLE). Also during the campaign, you never held a news conference which I believe was unprecedented. What's changed?
PALIN: The campaign is over. And --
QUESTION: Whose decision? Was that your decision?
PALIN: You know, I didn't even want to talk about strategy within a campaign that is over. Just suffice it to say, I, like every other governor, understands that it's very important that we are speaking to constituents. We are speaking to the people whom we are serving, and you have to do that through the media. So, happy to do it today.
QUESTION: Governor, what are the key issues upon which you would like to turn your political celebrity into a nude political credibility for your party and for yourself?
PALIN: I don't know if it's political celebrity. But I want to put to good use my experience that I have as the governor of an energy-producing state to help our nation become energy independent. And, you know, we're going to focus here on what we can do as a team of Republican governors together. Because, again, what we do in our state is balance budgets despite who controls our legislature.
We don't let obsessive partisanship get in the way of doing what's right. We're all about health care reform. And doing those things in our own states to allow competition, and accessibility, affordability for health care, for more of the residents in our own states.
Our border states, of course, being very concerned and committed to immigration reform. Those issues that we work on every day. We, as a team, I believe are going to be looked to and we offer up the solutions that on a national level, our elected officials are going to need.
QUESTION: Governor, you have lost the votes of women and Hispanics. What can you do recoup it?
PALIN: You know, I treat everybody equally -- women, Hispanics. I am going to work with this group of governors to serve all Americans and individually, in all of our states, our residents. We're going to work extremely hard, but treating everybody equally and not letting gender, race, background, demographic represented -- we're not going to let that get in the way of just doing what's right for our country as a whole.
(CROSSTALK)
QUESTION: Let's have one more question. (INAUDIBLE).
QUESTION: Thank you, Governor. This is follow up on the fact that most of us are following you around, around the country. This is your first formal press conference. I'm curious --
PALIN: Well, it wasn't my first formal press conference. That's what I've been doing in the State of Alaska for years.
QUESTION: Thank you. On the national stage. What -- given that, what message are you trying to convey?
PALIN: I'm trying to convey the message that Republican governors are a unique team, a unique group. They are here, we are here together, united, ready to reach out to the new administration to offer solutions that we know will work to meet the challenges that America is facing.
QUESTION: Thank you all for coming and participating. We're going to be going to --
COLLINS: That was, as you well know by now, Alaska's Governor Sarah Palin there taking to the microphones at the Republican Governors Association conference going on in Miami right now. Tomorrow, things will wrap up there. But, you saw, I'm sure, the great interest from the press in hearing what she has to say in one of her press conferences now.
So, she says her focus is not the past. It is 2010, when 36 governors races are open. So, apparently, she'll be talking a little bit more about the campaign in a different session. We will stay on top of that conference for you right here on CNN.
(COMMERCIAL BREAK)
COLLINS: Apparently, two legs are good enough for one dog in Oklahoma. Meet Faith. She was born with no front legs, but that has not stopped her from being active with her adopted family and others. Look at this dog.
Faith works as a therapy dog. In fact, mostly with the military. She's even been named as an honorary sergeant. Faith's family got her to walk upright using peanut butter as an incentive. You go, Faith.
A big jump in jobless claims. But investors don't seem too worried for right now. We're going to be checking back on Wall Street.
And the financial crisis taking focus on Capitol Hill this hour. Hearings on how it happened and what is being done.
It is Thursday, November 13th. I'm Heidi Collins. You are in the CNN NEWSROOM.
