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American Morning
McCain and Obama to Reunite; California Wildfire Consumes 800 Homes; Japan in A Recession; Presidential Pardons Pile Up; Pros and Cons of Hillary Clinton as Secretary of State; South Korean's President on Obama and Fixing Economy
Aired November 17, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Surprise reunion of the rivals. Obama, McCain, the winner and the loser. The first face-to- face since the slam dunk.
Plus, your incredible shrinking groceries.
UNIDENTIFIED FEMALE: They don't advertise it at all. So I really I had to --
ROBERTS: But what you don't see costs you.
UNIDENTIFIED FEMALE: I think they're kind of trying to take advantage of people not paying attention.
CHRIS LAWRENCE, CNN CORRESPONDENT: Do we consumers figure all this out? Are they just going to stop buying certain brands?
ROBERTS: And triangle of fire. Trapped in a three-sided inferno.
AUGUSTINE REYES, HOMEOWNER: This is all that's left of my house. This is it.
ROBERTS: On this AMERICAN MORNING.
(END VIDEO CLIP)
ROBERTS: And good morning. Thanks very much for being with us on this Monday. It's the 17th of November, and John McCain and Barack Obama meeting today for the first time since the election. Is there a place for him in the administration, we wonder?
KIRAN CHETRY, CNN ANCHOR: Perhaps, to be a fly on the wall at that meeting. We're going to talk more about that throughout the morning.
Also breaking news, California is in for quite a fight right now. Firefighters have another day of the infamous Santa Ana winds to deal with as three wildfires burn in and around Los Angeles County. An estimated 35,000 acres scorched. More than 800 homes destroyed, and tens of thousands of people have had to evacuate the area. Crews, though, say they are making progress but they warn that they'll need several more days before they're able to bring things under control. Investigators have called one of the fires suspicious.
And breaking overseas this morning, Japan says it's now in a recession for the first time since 2001 after a big drop in demand for Japanese exports. The announcement was expected and comes just days after the European Union declared it was in a recession. Japan is the world's second biggest economy.
Also this morning, Endeavour's crew getting to work on a huge home makeover at the International Space Station. The shuttle docked yesterday bringing with it an additional bathroom and some sleeping quarters and a water purification system allowing them to recycle waste water. Once the work is done, it will allow twice as many astronauts to live in the station.
ROBERTS: To the "Most Politics in the Morning" now, and happening in Chicago. President-elect Barack Obama moving with meticulous speed in his transition to the White House. Over the weekend, he resigned his Senate seat and today he comes face to face with John McCain for the first time since the campaign. The meeting of former rivals comes as speculation intensifies about Senator Hillary Clinton as Obama's possible secretary of state.
Last night on "60 Minutes," Obama was asked whether the New York Senator is on the short list for a cabinet position.
(BEGIN VIDEO CLIP, CBS' "60 MINUTES")
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: She is somebody who I needed advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you're not getting anything out of me, Steve.
STEVE CROFT, "60 MINUTES" CORRESPONDENT: Will there be Republicans in the cabinet?
OBAMA: Yes.
CROFT: More than one?
OBAMA: You're not getting any more out of me.
(END VIDEO CLIP)
ROBERTS: Still tight-lipped about everything. CNN's Suzanne Malveaux is live in Chicago for us this morning. Are we hearing anything more this morning, Suzanne, about a possible role for Hillary Clinton in the White House?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: John, we're trying to get as much as we can out of this group but it's kind of a tough thing to do. But what we are learning is that Hillary Clinton, as well as her husband Bill Clinton, are both going through this intensive vetting process. Obviously, Clinton's own philanthropic foundation. He has a relationship with world leaders. They want to see if there's a conflict of interest in any way.
There are a lot of Republicans who think that Hillary Clinton as secretary of state is a good idea. And we've heard from Barack Obama and his camp saying he likes to pride himself on the model of Abraham Lincoln and that is reaching out to rivals.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): Today, Barack Obama is meeting John McCain on his own terms. Hosting his former rival on a Chicago home turf, as part goodwill, part good picture. The last time the two appeared together, Obama had to engage in the messiness of debate. Now, he gets points for just reaching out.
Obama's aides say he'll focus on their commonalities, over issues like climate change and ethics reform. In Obama's first TV interview since the election, he told CBS' "60 Minutes" the global economic crisis provides a unique opening for both men and their parties to come together.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: You actually have a consensus among conservative, Republican-leaning economists and liberal left-leaning economists, and the consensus is this -- that we have to do whatever it takes to get this economy moving again. That we have to -- we're going to have to spend money now to stimulate the economy.
MALVEAUX: Obama also emphasized getting his national security team in place is his top priority, and he described the threat of Osama bin Laden this way.
OBAMA: Capturing or killing bin Laden is a critical aspect of stamping out al-Qaeda. He is not just a symbol, he's also the operational leader of an organization that is planning attacks against U.S. targets.
MALVEAUX: Obama also said he would use his unique power as president to issue executive orders to act quickly on Guantanamo Bay and U.S. detainee interrogations.
OBAMA: I intend to close Guantanamo, and I will follow through on that. I've said repeatedly that America doesn't torture, and I'm going to make sure that we don't torture.
MALVEAUX: As for the incoming first lady, Michelle Obama, she says their daughters, Sasha and Malia, will come first.
MICHELLE OBAMA, BARACK OBAMA'S WIFE: And I've, you know, had to juggle being mom-in-chief and having a career for a long time. The primary focus for the first year will be making sure that the kids make it through the transition.
(END VIDEOTAPE)
MALVEAUX: And, John, one of the things as well that's going to happen here for the McCain meeting, aides say it is not about any kind of job or appointment to the administration but really kind of reaching out here. Obviously, it is all a part of keeping those rivals as close as possible -- John?
ROBERTS: All right. Suzanne Malveaux for us this morning. Suzanne, thanks so much.
This morning, we're also talking the pulse of Americans as we wait for Barack Obama to make his key cabinet appointments. A CNN/Opinion Research Corporation poll released just minutes ago finds 77 percent of people are confident that Obama will make the right decisions when filling his cabinet posts. As for which cabinet appointment will matter most to the country's future, 41 percent say it's the secretary of the treasury. Secretary of state and secretary of defense round out the top three -- Kiran.
CHETRY: Well, Wall Street is waking up this morning to a daunting headline overseas that Japan is now in a recession. Officials made that announcement overnight after the economy there shrank in the third quarter. This is Japan's first recession since 2001. Not a total surprise but economists say it could get worse as market troubles around the world cut into Japan's exporting business, especially car manufacturers.
Well, despite news of the recession, investors in Japan taking advantage of bargains. Japan's Nikkei closed up slightly, but it was the only major market in Asia to do so. China closed down and in Europe where trading is underway, the markets are mixed this morning.
And the reforming markets, the financial markets, well just one of the agreements that came out of the emergency meeting of world leaders in Washington over the weekend. The group of 20 developed and developing nations did not agree on any specific coordinated actions, instead announcing general principles intended to head off a global economic recession.
Our Christine Romans joins me now. What really is the upshot of that decision?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Right now, well, the upshot is we don't know how long or how deep a recession is going to be, how far around the globe it's going to go. And there's really nothing in this group can do right now beyond what they have done until there's a new president of the United States. So a lot of feeling that they can make these announcements and they can try to say what their principles are for now. But until there's new leadership in the United States, this is as far as they can go.
Talking about Japan's story overnight, Japan two quarters in a row of a shrinking economy there. Why does it matter? It's the world's second largest economy and after the United States. And, of course, when it is going south, that is a concern for everyone because it means jobs lost there and it means also an effect around the world.
Now, how does it look here in the United States? Well last week, we saw job cuts announcements topping some 14,000 last week. Few industries immune. U.S. steel, Nortel, Fidelity Investments, health care.
I want to point out here, health care is one of the few industries that is showing jobs growth. So that's really important for you if you're looking for some retraining or looking for some opportunities. Health care is where the opportunities are.
We could see the jobless rate overall though next year reaching maybe 8 1/2 percent, 7 1/2 to 8 1/2 percent. There are widespread reports also over the weekend that NASCAR could announce job cuts today. So you can see anything that touches the consumer is something that is likely to have job cuts.
We'll wait to see if we have that announcement here today. But again, if you're looking for a job or you're looking to retrain for a job, health care is one of the few places that's a bright spot. We're going to see this negative news continue, Kiran.
CHETRY: All right. Christine, thank you.
Also coming up in just a few minutes, Alina Cho's exclusive interview with the president of South Korea. That country went through its own economic crisis back in the 1990s. Now the president has some advice for the U.S. and the incoming Obama administration -- John.
ROBERTS: Well, the requests for presidential pardon are piling up as we speak. Now hundreds are hoping for clemency before President Bush leaves office, but the president granting only 157 pardons during his entire presidency. Do these convicted felons stand a chance? We'll tell you.
It's 8 1/2 minutes now after the hour.
ROBERTS: Firestorm.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We're trying to do everything as much as we can to prevent my grandparents' house from burning down.
(END VIDEO CLIP)
ROBERTS: Hundreds of homes destroyed. The desperate struggle in Southern California to fight back walls of fire driven by hurricane- force winds.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Eleven minutes after the hour. Breaking news this morning.
Right now, exhausted firefighters in California digging in as they prepare for another day fighting those fires in California. Since Thursday, three major fires driven by the powerful Santa Ana winds have left a smoldering trail of destruction in and around Los Angeles County. Already 800 homes have been reduced to ashes and 34 square miles have been blackened. Right now across the region, tens of thousands of people remain evacuated.
CNN's Thelma Gutierrez is live for us this morning in Yorba Linda, California. And, Thelma, firefighters expecting a pretty big break today.
THELMA GUTIERREZ, CNN CORRESPONDENT: John, I'm happy to report that they are. In fact, those red flag warnings have been lifted for the area after four days of very intense winds. Some firefighters called this some of the worst fire behavior that they've seen in more than 30 years.
(BEGIN VIDEOTAPE)
GUTIERREZ (voice-over): Andrew Calder (ph) saw it coming, a wall of flames that raged towards him.
UNIDENTIFIED MALE: I saw it before it actually started. It was just a little ways back farther in the canyon. Within minutes, it has engulfed the entire hill.
GUTIERREZ: Fires jumped from one county to another across Southern California, charring neighborhoods and devastating lives. The firestorm began devouring homes in Montecito Thursday night. Wind-swept flames roared through the hills of multimillion dollar homes; 210 were destroyed. The cause, suspicious and believed to be manmade.
Friday night, Sylmar, north of Los Angeles, winds clocked as high as 70 miles an hour, fanned a wall of flames through the hillside destroying nine homes and mercilessly taking 500 mobile homes. Augustine Reyes lost everything.
AUGUSTINE REYES, HOMEOWNER: This is all that's left of my house. This is it.
GUTIERREZ: Saturday, fire breaks out in Corona. It quickly spread to Yorba Linda where this man stayed behind to save a home.
UNIDENTIFIED MALE: We're trying to everything as much as we can to prevent my grandparents' house from burning down. It's been here for -- since I was a baby, so you know, this is memories here, you know.
GUTIERREZ: The flames quickly jumped to homes in nearby Anaheim Hills, then hopscotched toward the town of Brea, all set on one terrible Saturday, four fires merged as one, incinerating more than 200 homes.
On Sunday, the fire made its way to Chino Hills where 30-foot flames threatened 1,000 homes. Finally, weary firefighters got a break. The Santa Ana winds eased up allowing them to make their stand and save a community. CHRIS GARCIA, HOMEOWNER: You know, the magnitude of the fire and then everything connecting, you know, growing together as one. These guys, you got to, you know, tip your hats to them. They're just -- they're just no way you can thank them.
(END VIDEOTAPE)
GUTIERREZ: Now, so many people are wondering exactly what caused each of these separate fires. We can tell you that the Montecito fire up near Santa Barbara is now being investigated as an arson, and investigators are asking anybody who might have some information about how this started to come forward -- John.
ROBERTS: Of course, Thelma, where you are there in Yorba Linda, one of the big landmarks is the Nixon Presidential Library. Was it ever threatened?
GUTIERREZ: No. And in fact, you know, this is the area where we're talking about 168 homes that actually did burn up. In Anaheim and also Yorba Linda, you can see some of the devastation right behind me. What's very strange, John, is that you can go through this area and you can see homes that look just like this, reduced to ashes and then others standing and are perfectly OK. That's what you see throughout the area, but no, the library is just fine.
ROBERTS: All right. Thelma Gutierrez for us this morning. Thelma, thanks so much for that.
CHETRY: Well, this morning, legions of convicted felons are looking to President Bush in the closing hours of his presidency pressing for pardons and commutations. So who are some of the hopefuls in the many (ph) applications? The names may surprise you.
Also the future of Hillary Clinton, she's reportedly under consideration to be the next secretary of state. Should she take the job? One expert says no. We're going to find out why when we talk to him.
It's 15 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Time now to fast forward to some of the stories you'll see throughout the day here on CNN.
Lawmakers in Nebraska will be taking another look at the state's Safe Haven Law and whether or not it should have an age cutoff. The current law does not and now dozens of parents have used it to abandon their preteen and teenage kids in the state.
There's also a new report out today that's expected to call Gulf War illness the real thing. It concludes that one of out four vets from the first Gulf War are impacted by this condition. The report says it was mainly brought on by their exposure to toxic chemicals and a drug meant to protect them from battlefield nerve gas. There are nearly 700,000 U.S. veterans at the first Gulf War. And later this evening, Treasury Secretary Henry Paulson will be talking about the economy. He'll be addressing a conference organized by the "Wall Street Journal." It will be his first set of remarks since Japan declared it's in a recession -- John.
ROBERTS: Right now at the Justice Department, the request for 11th hour pardons from President Bush are piling up. So just who are these people looking to be set free?
AMERICAN MORNING legal analyst Sunny Hostin has been checking into it. She's here with us today.
President Bush has never issued a controversial pardon in his entire presidency. What makes us believe that he might do it this time around?
SUNNY HOSTIN, AMERICAN MORNING LEGAL ANALYST: Well, you know, he's eight years in office now. People are saying if he's going to do it, now is the time to do it. His approval rating is as low as it's ever been. He really has nothing to lose. He's not going to run for office again, and this is the type of set up that a pardoner is really looking for. That's when Clinton really pardoned so many people at the end of his eight year term. Why not?
ROBERTS: Right. Hey, there are some high profile people out there who are looking for a pardon?
HOSTIN: Yes. Interestingly enough, people are talking about Marion Jones. And we know, you know, she went to jail. She served her sentence. And "New York Times," a lot of other people are reporting that Marion Jones certainly is going to seek a pardon.
I think what's also interesting, John, is people are saying that CIA operatives may be given pardon. These are people that haven't necessarily been indicted, but this would be a preemptive pardon. People that have been putting in places policies, torture policy. The controversial --
ROBERTS: Wait. Well, there is no torture policy.
HOSTIN: Sorry, sorry. Right, right. No torture policy.
ROBERTS: Major people who are involved in interrogations, and in some cases enhanced interrogations.
HOSTIN: Interrogations -- yes. And pardons for those type of people. Waterboarding, we've heard a lot about that and folks are saying that these are people that Bush may preemptively pardon. Again, they haven't been indicted. They haven't been charge, but that is something that it's sort of being bandied about.
ROBERTS: Right. Some people insist that it is torture. The White House insists it's not.
President Bush over the entire course of his presidency has pardoned 157 people. HOSTIN: Sure.
ROBERTS: President Clinton did 140 on his last day.
HOSTIN: What does that say?
ROBERTS: Well, there were a few pretty high profile and controversial ones in his last day. I remember being there with the White House the morning of January the 20th, and all this stuff came in over the transient (ph).
HOSTIN: That's right.
ROBERTS: Lo and behold, there were some interesting characters.
HOSTIN: Well, we heard about Marc Rich -- Marc Rich, the billionaire, that fled to Switzerland after a tax evasion indictment by Rudolph Giuliani. Marc Rich certainly was pardoned on the last day, and people are saying that is because his wife, ex-wife, Denise Rich, gave a lot -- a lot of money to the Democratic Party. And so that was sort of a political pardon folks were saying.
We also heard about Patty Hearst. I don't think anyone can forget the picture of Patty Hearst in the bank with the gun. But again, she was kidnapped. She was kidnapped by the SLA. She took up their cause. She said that she was brainwashed. Jimmy Carter had commuted her seven-year sentence to a two-year sentence but then, of course, she was pardoned by Clinton.
And then I'd like to also mention, let's say, Roger Clinton, his half brother, who was also convicted of drug dealing and pardoned by the president, his brother, on the last day. And so those are some controversial Clinton pardons, and I think we're going to see stuff like that from President Bush as well.
ROBERTS: Yes. Pardoning your brother certainly is controversial, but President Bush has, in fact, pardoned some people who were since dealings drugs.
HOSTIN: Yes. Yes.
ROBERTS: That's not out of the ordinary here.
HOSTIN: It isn't but I think we're going to see something much, much more controversial coming up.
ROBERTS: All right. Well, we'll see what he comes up with. Sunny, thanks so much for that.
HOSTIN: Thank you.
CHETRY: Well, Barack Obama and Hillary Clinton. He may ask her to serve as secretary of state. But would it be a good career move for her, or could it dash any hopes of running again for the White House? Also, it's the same price, smaller size though. From ice cream to paper towel, find out why you're paying more for less at the grocery store.
It's 22 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE", FROM NBC/BROADWAY VIDEO)
UNIDENTIFIED MALE: Barack Obama met with Hillary Clinton on Friday to see if she would be interested in a role in his administration. Of course, said Hillary, I'll take president.
(END VIDEO CLIP)
CHETRY: Well, the buzz intensifying this morning that President- elect Barack Obama may indeed bring his old primary campaign rival, Senator Hillary Clinton, aboard possibly as secretary of state. And while Obama is not saying out loud that he offered the job to Clinton, speaking to CBS' "60 Minutes," he hinted at it. Let's listen to what he said to Steve Croft.
(BEGIN VIDEO CLIP)
STEVE CROFT, "60 MINUTES" CORRESPONDENT: You met with Senator Clinton this week?
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I did.
CROFT: Is she on the short list for a cabinet position?
OBAMA: You know, she is somebody who I need advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you're not getting anything out of me, Steve.
(END VIDEO CLIP)
CHETRY: So should Hillary Clinton take the job if it's offered?
Peter Beinart is a senior fellow with the Counsel on Foreign Relations, also a contributor to thedailybeast.com. He joins me from Washington.
Peter, thanks for being with us this morning. The title of your column on "Thedailybeast" is "Don't do it, Hillary." Why do you think this will be such a bad idea for her to accept if it is indeed offered, secretary of state?
PETER BEINART, CONTRIBUTOR, THEDAILYBEAST.COM: Well, I think Hillary Clinton would probably be a terrific secretary of state, actually. She's a very, very talented and hardworking person. But historically, the secretary of state has really offered very little opportunity for a serious presidential run. No former secretary of state who has been elected president since the middle of the 19th century and very few who've even run after being secretary of state in the last hundred years. So I think that's something she would need to consider.
CHETRY: You also wrote in this column, "Why on earth would she want to be secretary of state? First of all, the job is an awful launching pad for the White House. It's true, long serving senators don't have a great track record of winning the presidency, but they're practically shoo-ins compared to secretaries of state."
So a couple of things here. First of all, is Hillary's time over for a presidential run anyway looking ahead to 2016?
BEINART: Not necessarily. As I pointed out in the column, actually she would be younger than Ronald Reagan was when he took office and younger than John McCain is now. So if she wanted to go that route, I think -- I still think she would be a very credible presidential candidate in 2016.
CHETRY: OK. You know, you also say that again, you don't think it's a good launching pad. You talk about how you sort of just get mired in the red tape and bureaucracy, a fogy bottom where the place is located. But there's Secretary of State Colin Powell. He's somebody that a lot of people talked about for president, and also secretary -- former Secretary of State Condoleezza Rice as well. Both of them have people talked about the fact that they possibly could make a viable run for president. Are those old, I guess, launching pads just totally changed now that you look at Barack Obama, for example, who was a first-time senator out of Illinois?
BEINART: Well, most of the conversation about Colin Powell was in 1996 before he became secretary of state. I think one of the difficulties about the job of secretary of state, if you want to run a presidential campaign is that it takes you out of domestic politics. It prevents you from traveling to the states you need to travel to, making connections with the politicians you need to make connections to, developing a profile on domestic issues, which is after all what people, you know, generally tend to vote on.
Again, I think Hillary Clinton would be a really good secretary of state, but I don't think that secretary of state historically has been a good launching pad for the presidency.
CHETRY: You also talk about the fact that you have Joe Biden, who's the vice president, has a lot of foreign policy experience and the president's ear, and also the emerging power of this role of national security adviser. What do you make of balancing those two things as well as making a decision about secretary of state?
BEINHART: Well, I think that's really the challenge for any secretary of state. I mean, Hillary Clinton would bring a lot to the table and she would be probably more powerful than most secretaries of state. But it's still a difficult job because national security adviser, this position that has emerged since about 1960 is located in the White House and therefore, has more access day to day to the president. And we've also seen that the vice presidency has emerged as a more powerful position and probably would be under Joe Biden on foreign policy, so that can be a challenge to the secretary of state.
CHETRY: All right. Well, we're still waiting to hear for sure. It will be interesting to see how those conversations take place. He also said there's going to be a Republican in his cabinet. So we'll see about that too.
Peter Beinart, great to see you. Thanks for being with us this morning.
BEINART: Thank you.
ROBERTS: Just about 30 minutes past the hour now, and here's a check of the top stories happening today.
President-elect Barack Obama plans to meet with his Republican opponent John McCain in Chicago. Advisers to both men say they do not expect Obama to offer McCain a job but rather to talk about how the new White House can work well with the Senate.
The Pentagon revising its number of juveniles held that have been held at the detainment camp in Guantanamo Bay, Cuba, to 12. That's up from the eight reported to the United Nations back in May. Pentagon officials say the mistake was not intentional and that many of the teens did not know their own birth date.
And the price of gasoline down another penny overnight. The national average for a gallon of regular now $2.08. Prices have not been this low since December of 2006.
This morning, investigators hope to put the brakes on Wall Street slide. The Dow so far this month has lost $1.3 trillion in value. This all comes as Japan, a country with an economy that rivals the United States, declares that it is in a recession. It's the first time since 2001 and in just a few hours the lame-duck session of Congress will unveil a measure to bailout the American auto industry. The big three say they need billions of your tax dollars to survive.
And last night, President-elect Barack Obama explained why it is essential that the auto industry gets the help it needs.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), PRESIDENT-ELECT: For the auto industry to completely collapse would be a disaster in this kind of environment, not just for individual families but the repercussions across the economy would be dire. So, it's my belief that we need to provide assistance to the auto industry. But I think that it can't be a blank check.
(END VIDEO CLIP)
CNN's Kate Bolduan is live on Capitol Hill for us.
And does this have any chance of passing this week, Kate?
KATE BOLDUAN, CNN NATIONAL CORRESPONDENT: You know, it really depends on who you talk to here, John. But I have to tell you it's unclear right now because it's really hard to gauge, and Democrats haven't been able to yet gauge the Republican support that they may be able to garner and that's going to be part of the discussion here.
Congress is heading back here for a lame duck session. They have new member orientation. They have leadership elections but taking center stage, as you mentioned, is the fight over whether or not to bail out the American auto industry.
(BEGIN VIDEOTAPE)
BOLDUAN (voice-over): One final round for Congress and President Bush in a lame duck session set to be a showdown centered on the hemorrhaging auto industry.
SEN. CARL LEVIN (D), MICHIGAN: One out of 10 jobs in this country are auto-related. 20 percent of our retail sales are auto- related or automobiles. So, this is a national problem.
BOLDUAN: Michigan Democrat Senator Carl Levin is drafting the Senate version of the auto industry lifeline. The bill could see a key vote as early as Wednesday and it could include $25 billion in loans to the "Big 3." The money would be carved out of the $700 billion financial bailout package.
And attempting to win more support for the plan, the bill is also expected to include an extension of unemployment benefits. But this would be no easy sell to Senate Republicans or the Bush administration.
CARLOS GUTIERREZ, COMMERCE SECRETARY: There's a line of companies, of industries, waiting a treasury just to see if they can get their hands on those $700 billion. That is for the financial system. It's to stabilize the financial system. That should not be used.
BOLDUAN: Senator Richard Shelby is the top Republican on the Senate Banking Committee. He says the Democratic plan would reward poor management at GM, Ford and Chrysler, and calls it "money wasted."
SEN. RICHARD SHELBY (R), BANKING COMMITTEE RANKING MEMBER: They would be, in a lot of people's judgment, a lot better off to go through Chapter 11 where they could reorganize, get rid of the management, get rid of the boards, the people who brought them the way they are today.
(END VIDEOTAPE)
BOLDUAN: Now, Republican leaders along with the Bush administration are pushing an alternative plan, one that would pool funds from an existing $25 billion loan program that Congress already approved back in September. And these are loans, John, that were designed or meant to help automakers retool their plants to help them produce more fuel-efficient vehicles. And that's definitely going to be part of the debate this week. ROBERTS: Is there a concern there, Kate, that this may not end with $25 billion, that few months from now they may come back and ask for more?
BOLDUAN: Not here on Capitol Hill. I'm not hearing a lot of that, but that is a big question among many -- where does it end? And that's one thing we've heard from Republicans especially some staunch Republicans who oppose this bill. They say, where does this end? Is $25 billion going to be enough? Are they going to come back in six months and ask for more? And that's why many say, if there's going to be a bailout, they're going to need to also retool their model and rework their business plan to make them viable in the future.
ROBERTS: And I guess a lot of people looking at AIG and saying, it started with $85 billion, it's up to $150 billion and they're still counting.
BOLDUAN: Exactly.
ROBERTS: Kate Bolduan for us in Capitol Hill this morning. Kate, thanks so much.
BOLDUAN: Thanks, John.
CHETRY: Barack Obama and John McCain, the former rivals, meeting today as Obama pledges to name a Republican to his Cabinet. It's 34 minutes after the hour.
Dealing with North Korea's nuclear program.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT: Were he to come to you and suggest, I want to meet face-to-face with Kim Jong-Il, is that something you would support?
(END VIDEO CLIP)
CHETRY: The leader of South Korea talks to our Alina Cho about working with President-elect Barack Obama in the future. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our credit markets are beginning to thaw having been severely frozen. Businesses are beginning to get access to short-term credit. It's going to take more time for the measures we have put in place to take hold.
(END VIDEO CLIP)
CHETRY: President Bush expressing some optimism but urging patience while discussing America's financial crisis at the weekend's G-20 Economic Summit. And he was joined by leaders from some of the world's biggest and most influential countries including South Korea. That country experienced its own financial nightmare in the 1990s and could be a big player in easing the current global slowdown.
Our Alina Cho got exclusive access to South Korea's President. And she joins us now with more on this interview.
Hi, Alina.
CHO: Hey there, Kiran. Good morning. You know, he really gave me the gift of time which for an overscheduled world leader was quite extraordinary. Good morning. Good morning, everybody.
You know, there's a reason why South Korea could play a key role in easing the global financial crisis. South Korea's leader really has the right experience. He's been called the "CEO President" because he's the former CEO of Korean auto giant Hyundai. When we sat down, we covered a wide range of topics, the global financial mess, North Korea and, of course, President-elect Barack Obama.
(BEGIN VIDEOTAPE)
CHO (on camera): Everything changes when you become president, right?
PRES. LEE MYUNG BAK, SOUTH KOREA: Everything changes.
CHO (voice-over): South Korea's President Lee Myung Bak says he can relate to President-elect Barack Obama. Both come from modest beginnings. Both campaigned on the promise of change.
BAK (through translator): I think he's the right kind of leader at the right time.
CHO: At this weekend's G-20 summit in Washington, Lee found himself in a leadership role. In the 1990s, South Korea had its own financial crisis. His advice -- act swiftly on a stimulus package.
BAK (through translator): If you do not take such measures, then the bailout in the end will only get larger.
CHO: On North Korea, Lee says Obama has promised to consult with him before taking any action.
(on camera): Were he to come to you and suggest, I want to meet face-to-face with Kim Jong-il, is that something you would support?
BAK: If a meeting between Chairman Kim and President-elect Obama will help resolve peacefully the North Korean nuclear issue, then I do not oppose the two gentlemen meeting.
CHO (voice-over): It is unclear, though, if North Korea's reclusive leader Kim Jong-Il is even able to meet. He is believed to have suffered a stroke. The North Korean government released these pictures which it says prove Kim is healthy, but some believe the photos are fakes.
(on camera): What do you know about the status of his health?
BAK: We haven't seen Chairman Kim out in public ever since mid- August. It's not like any of us saw or met with Chairman Kim and checked his health status.
CHO (voice-over): Lee says he is confident Obama will be well received on the world stage.
BAK: If there were any damages done to the global leadership of the United States, it could be because the U.S. relied maybe a bit too much on its hard power. But with the election of President-elect Obama, I am sure he will utilize the other side of power, namely the soft power.
(END VIDEOTAPE)
CHO: Interestingly enough, privately, when the cameras were off, he told me like just millions of Americans, President Lee said that he, too, was glued to the U.S. presidential campaign. He told me if it happens, Hillary Clinton would make a fine secretary of state. He also told me that he's actually good friends, Kiran, with Joe Biden. The Vice President-elect, actually sponsored a resolution in the Senate congratulating Lee when he won the South Korean election. He said the two exchange letters and he calls Biden a long-time and a very good friend of South Korea.
So, perhaps, a small indication of how U.S. and South Korea might work together going forward. They have a very good relationship.
CHETRY: And I'm sure he's also proud that one of his fellow country women is working at CNN.
CHO: It was very, very nice. You know, this is the second time I've actually met him. I had an opportunity to have coffee with him back in April when he was in New York. And so, it was really extraordinary. Always extraordinary to sit down with a world leader, as you know, Kiran.
CHETRY: Absolutely. Well, good job. Thanks, Alina.
CHO: Thank you.
ROBERTS: I'll tell you -- I mean, who wasn't glued to the presidential election coverage, right? Of course now we're all trying to figure out what to do now.
Fit versus fat. New scores just out on America's healthiest city. And the spot where people need to shape up fast. Could it be your hometown? We'll tell you. It's 41-1/2 minutes after the hour.
CHETRY: Memo to the president -- getting out of Iraq.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: A quick U.S. withdrawal with no diplomatic arrangements made for reconciliation could throw the country back into very substantial chaos.
(END VIDEO CLIP)
CHETRY: Michael Ware with a hash reality check for the next president. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: 44-1/2 minutes after the hour. Welcome back to the "Most News in the Morning."
It is a tale of two cities. A brand new study pinpointing America's healthiest city and the one where residents really need to shape up. That spot is Huntington, West Virginia. It was just crowned America's unhealthiest city by the Centers for Disease Control and Prevention. Nearly half of the adults who live there are obese. The city also leads the country in the number of people with diabetes and heart disease.
A far different story about 800 miles to the north in Burlington, Vermont. It beats now America's healthiest city, with 92 percent of residents reporting that they are in good health. Burlington also has some of the lowest levels of diabetes. The study credits people in Burlington, who are spending lots of time outside, biking, hiking and skiing.
CHETRY: How about that. Someone else who absolutely loves to ski is our own Rob Marciano. He's at the weather center in Atlanta.
You're probably excited about this time of year, right?
(WEATHER REPORT)
CHETRY: Exactly. All right, Rob. Thanks. 47 minutes after the hour.
ROBERTS: Skimping on Skippy.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: They always want to tell you if it's the new bigger size or if it's the new better taste, but they obviously aren't going to tell you, we're skimping on you a little bit.
(END VIDEO CLIP)
ROBERTS: Why you are paying more on everything from soap to cereal and might never even notice. Chris Lawrence unveils supermarket secrets. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Well, you might not know it, might have suspected it, but at the grocery store, you are now paying more for less, as manufacturers shrink the package but not the price. Here's CNN's Chris Lawrence to tell you about it. CHRIS LAWRENCE, CNN CORRESPONDENT: John, Kiran, your shopping bag is getting a bit lighter these days, but guess what? You're still paying the same.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): There's a surprise underneath a jar of Skippy. It just developed a dimple, a curve in the jar that cuts out 10 percent of the peanut butter. Less product, same price.
JAN HUTCHESON, SHOPPER: I think they're kind of trying to take advantage of people not paying attention.
LAWRENCE: Skippy skimpy? Well, they're not alone. In the last year, a the lot of your favorite products have gone on some heavy-duty diets. Dial soap is still $2.99, but it's 5 ounces lighter. There's less ice cream in the cartons and the Cheerios box is smaller.
BRIN ASHER, SHOPPER: And they don't advertise it at all. So I -- really I didn't notice.
LAWRENCE: From the front, these boxes look the same as always. Kellogg's just making them less deep.
JULIE HOLMES, SHOPPER: They always want to tell you if it's the new bigger size or if it's the new better taste, but they obviously aren't going to tell you, we're skimping on you a little bit.
LAWRENCE: We contacted these companies to find out why. Kellogg's pointed to a dramatic rise in the cost of grains. Dreyer's says, "Our ingredient costs have risen by 30 to 60 percent." Skippy's parent company Unilever says "Manufacturing and transportation costs have also increased significantly."
So, why not just raise prices, even 10, 20 cents?
DREW CONRAD, SIMON-KUCHER & PARTNERS: Consumers tend to have these psychological price thresholds in their heads. So, they say, I don't want to pay more than $1 for a bar of chocolate.
LAWRENCE: Pricing consultant Drew Conrad says when products break that threshold, sales suffer. So, the old eight-ounce Hershey bar slims down. As more companies keep the price the same, they cut the quantity.
(on camera): When consumers figure this out, are they just going to stop buying certain brands?
CONRAD: Most people don't. They're very brand loyal. Do you change your breakfast cereal? I mean, people get into certain habits. They trust certain brands.
(END VIDEOTAPE)
LAWRENCE: Experts say shoppers should be checking the small labels that tell you exactly what you're paying per ounce because ultimately it is up to the consumer to be vigilant.
John?
Kiran?
(END VIDEOTAPE)
ROBERTS: New uprising.
(BEGIN VIDEO CLIP)
CROWD: Yes, we will.
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ROBERTS: Louder and louder. Across the country, people against Prop 8.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We all have the same rights. We're not going to rest until we're all equal.
(END VIDEO CLIP)
ROBERTS: Plus, American car trouble. A new bailout question. Should we throw billions into clunkers? We're taking the issue right to your driveway on the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Top videos right now on CNN.com. Most popular -- a pastor preaching sex. Pastor Ed Young of the Fellowship Church in Grapevine, Texas kicks off what he calls a "sexperiment." He's challenging parishioners to have sex with their spouses for seven days in a row to strengthen their bonds.
Also, still working at 100 years old. Jimmy Shaw of Johnson, Rhode Island still manages the family garage he opened up. It was opened by his parents before the Great Depression. And the first car he fixed, he says, was a 1928 Studebaker.
And a hundred neighbors returning to nothing but ashes. Some escaped moments before a mobile home park went up in flames in Los Angeles. 500 homes destroyed and those are the most popular videos on CNN.com right now.
By the way, throughout the morning, we are following the latest with the firefight. They expect a better day because of the Santa Ana winds dying down slightly. So, we'll check in there a little later.
Meantime, gay rights activists took to the streets of America's major cities this weekend. They were peacefully protesting the Election Day votes against same-sex marriage and adoption in several states. But those on both sides of this issue vow that they're not going to rest. National correspondent Susan Candiotti is looking at the debate for us.
Susan?
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: John, Kiran, the battle over same-sex marriage is getting a little heated out there.
(BEGIN VIDEOTAPE)
CROWD: Yes, we will. Yes, we will.
CANDIOTTI (voice-over): During spirited rallies from Los Angeles to Orland, from Boston to Oklahoma City, same-sex marriage supporters promise a re-energized movement despite their defeat in California.
UNIDENTIFIED MALE: We're not going to rest until we're all equal.
CANDIOTTI: Those are fighting words to some opposed to legalizing same-sex marriage.
UNIDENTIFIED MALE: It is not a civil right issue. It is an issue with morality.
CANDIOTTI: Feelings are raw and accusations are flying.
UNIDENTIFIED MALE: Tax this church. Tax this church.
CANDIOTTI: Some protesters accuse Mormons and other religions of crossing the line by helping raise money to keep gays from marrying. Religious coalitions say protests are getting out of hand.
FRANK SCHUBERT, CHM. COALITION FOR PROP. 8: We're put off and we're offended that our voices are disrespected. That we're called bigots. We're analogized to Nazis.
CANDIOTTI: Even comedian Roseanne Barr is weighing in. Taking aim on her web site are a high percentage of African-Americans in California who voted to ban same-sex marriage. She called them, quote, "as bigoted and ignorant as their white Christian right-wing counterparts."
The NAACP, part of a legal challenge to overturn the California vote, insists the organization fully supports same-sex marriage as a civil right.
RON HASSAN, PRESIDENT, NAACP BEVERLY HILLS: I'm not sure to what extent people of color received a large amount of information on this proposition.
CANDIOTTI: A gay rights advocate says everyone needs to take a deep breath.
EVAN WOLFSON, ATTORNEY, GAY RIGHTS ADVOCATE: This is not a question of blaming somebody or finding a racial group or an ethnic group or even an age group. It's really about having the conversation that moves people forward. There are fair people to be found everywhere.
(END VIDEOTAPE)
CANDIOTTI: Same-sex marriage supporters promise a long civil rights battle they intend to win. Their opponents are equally convinced a majority of Americans are on their side -- John, Kiran.
ROBERTS: Susan Candiotti reporting for us this morning. Susan, thanks so much.
