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American Morning
How the $700 Billion is Being Spent; Obama Mends Fences; Inauguration Frenzy; Obama's Energy Plan
Aired November 18, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN HOST: 8:00 right on the nose here in New York. A look at the top stories this morning. More than 100 retired generals and admirals are now calling for the military to repeal its don't-ask, don't-tell policy so that gay men and women can serve openly. That's according to a California Think Tank which supports the movement. Don't ask, don't tell was signed into law back in 1993. It stops the practice of asking potential service members if they're gay. But still require the dismissal of openly gay service members.
And the White House planning to help with your holiday travel plans. President Bush expected to announce plans to open two lanes of military airspace to commercial planes this holiday season. The Air Traffic Controllers' Union is not impressed. It says that the White House did the same thing last year and it did little to ease congestion.
Well, Ford is selling 20 percent of its take in Mazda in an effort to raise cash. The sale valued at $543 million. The shares will be bought by Mazda, along with several other business and insurance companies. The news comes on the same day that Ford's CEO will be on Capitol Hill to press for an emergency loan. America's number two automaker helped save the Japanese car maker from bankruptcy twelve years ago.
Also new this morning, Washington gearing up for a showdown as Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke try to convince skeptical lawmakers that the $700 billion bailout will benefit you and the struggling economy. CNN's Jim Acosta is live in Washington.
A big battle shaping up as they try to figure out, whether or not this is going to the places it was supposed to go and whether it's having the intended effect.
Hi, Jim.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: Hi, Kiran. That's right. And with this lame duck session of Congress expected to wrap- up at the end of the week, there are indications Treasury Secretary Henry Paulson won't seek the other half of the $700 billion bailout. He is scheduled to appear at a hearing today on the handling of the program. One of the big questions, who is minding the bailout store?
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): The bailout is one month old. Billions of dollars have flowed to the nation's biggest banks. But the government is just now getting around to naming someone to oversee the program full time. That someone is this man, Federal Prosecutor Neil Barofsky.
NEIL BAROFSKY, INSPECTOR GENERAL NOMINEE: I fully intend to keep you fully and properly apprise of significant findings and concerns.
ACOSTA: At his confirmation hearing, one senator compared oversight of the bailout to the Wild West.
SEN. RON WYDEN (D), OREGON: I would characterize the operation of this program now in terms of oversight as like Dodge City before the Marshalls showed up.
ACOSTA: The Treasury Department's inspector general who is unofficially keeping an eye on the bailout told the "Washington Post," "I don't think anyone understands right now how we're going to do proper oversight of this thing." The non-profit watch dog group, Taxpayers for Common Sense, points to the application for bailout funds. A form the banks must fill out to receive some of the money. It's just two pages, the group notes, shorter than the typical application for a mortgage.
RYAN ALEXANDER, TAXPAYERS FOR COMMON SENSE: I mean, anybody thinks about the amount of credit they have applied for in their life, be it a student loan, a car loan, their house, anything. Lend credit personal business -- you know, it's more than two pages.
ACOSTA: A Treasury Department spokeswoman counters that banks must sign off on other supporting documents, as well. "It's entirely inaccurate -- the spokeswoman says -- to imply this operation doesn't have oversight."
Oklahoma Senator Jim Imhoff says he believes lawmakers were not told the truth about the bailout, adding "Congress, doesn't know how much money Treasury Secretary Henry Paulson has given away to anyone. It could be to his friends. It could be to anybody else. We don't know."
Of the $700 billion in the bailout, only half has been authorized by Congress. Some key lawmakers say they're not quite ready to hand over the other half.
REP. ELIJAH CUMMINGS (D), MARYLAND: We have learned now from what we have already seen that we -- we have to have some pretty strict oversight. Mr. Paulson has disappointed a number of us.
(END VIDEOTAPE)
ACOSTA: Congress may be falling behind in its own oversight duties. It has just started making appointments to its own panel to oversee the bailout and its already missed a deadline to file a report on the program's progress.
Kiran?
CHETRY: So what does this application that the banks have to fill out for the bailout look like?
ACOSTA: Well, I have it right here, Kiran. And it's fascinating to look at. We pulled this right off the Treasury Department's Web site. On page one is the institution name, the address, the primary contact name and phone number. And then on page two, the CEO does have to put his signature down and date that signature. But that's it. Just two pages.
There are some supporting documents that they have to sign off on. And when we talk to the taxpayers for common sense about this, they say this is an indication about how quickly the federal government wanted to get that money out to these institutions, Kiran.
CHETRY: All right, Jim Acosta for us this morning, thanks.
ACOSTA: You bet.
ROBERTS: Well, happening now in Chicago. Aids to President-elect Barack Obama pouring over some of former President Clinton's finances and overseas links -- part of the vetting process for his wife, Hillary, as a possible pick for Secretary of State.
CNN's Ed Henry is working the story for us live in Chicago this morning. Ed, just how serious a contender is she for the position?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, John. Senior Democrats say with all this digging around going on by the Obama camp, they think that's a clear sign that she is a very serious contender for the job of secretary of state. It comes at a time when the President-elect seems to be reaching out to a lot of former rivals.
(BEGIN VIDEOTAPE)
HENRY (voice-over): This is a president-elect who believes in keeping your friends close and your enemies closer. Whether it's mulling Hillary Clinton for secretary of state or making nice with John McCain in Chicago.
OBAMA: We're just going to have a good conversation about how we can do some work together to fix up the country, and also to offer thanks to Senator McCain for the outstanding service he's already rendered.
HENRY: The two former rivals privately discussed some controversial issues they plan to work on together next year as they turn the page on a bitter campaign.
A senior Obama transition official told CNN they talked about trying to revive the immigration reform plan that fell apart last year, and finding a way to close the military prison at Guantanamo Bay, Cuba. Those are hot button issues that will be hard to find common ground, especially since their body language suggested it's not easy to heal their divisions.
OBAMA: Hey, guys. What's up?
HENRY: This moment had awkward written all over it. So they did what guys do. Talk football.
SEN. JOHN MCCAIN (R), ARIZONA: I noticed that yesterday's football.
OBAMA: Oh, see there.
MCCAIN: Greeted with --
OBAMA: Oh, they brought up the bears.
HENRY: They're trying to show they can bury the hatchet, but there are limits. People on each side insist McCain will not get a cabinet post.
SEN. HILLARY CLINTON (D), NEW YORK: I'm not going to speculate or address anything.
HENRY: Speculation is only intensifying, however, about a place in the cabinet for another former rival. Two Obama transition officials confirm they have started looking at former President Bill Clinton's finances and post-presidential dealings, including his charitable foundation and presidential library to identify potential roadblocks to his wife being nominated as secretary of state.
The president-elect has still not made a formal job offer, but senior Democrats believe the vetting shows he's serious about considering it.
(END VIDEOTAPE)
HENRY: Now, the Web site, Politico, is reporting that there is exasperation in the Obama camp about the slow pace of turning over records from the Clinton camp. But I can tell you, senior Obama aids insist that is not true. They say they are satisfied with what they have gotten so far, but they do want more information.
And they point out, look, Bill Clinton has also done a lot of good work with his charitable foundation and they don't want that to overshadow everything. And they want to get some records, but they also want to point out he has done a lot of good work, John.
ROBERTS: It's a great guessing game going on over there, isn't it, Ed?
HENRY: Absolutely.
ROBERTS: All right. Ed Henry for us this morning in Chicago. Ed, thanks so much.
CHETRY: Barack Obama's energy plan. He campaigned on change, but will the falling price of oil actually cost some of his big ideas to hit the skids?
Also, taking a page from Barack Obama. The president-elect changed the game online during the campaign. We're going to tell you which candidate on the other side of the world seems to have noticed. It's eight minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: 11 minutes after the hour. Christine Romans is here "Minding Your Business." She's with us.
And all we want to do is spend, spend, spend.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: If drill, baby, drill was the GOP mantra from the energy debate this summer. Spend, baby, spend is what Democrats and business frankly want for how to fix the economy. The President-elect would like a big economic stimulus package. He's made that pretty clear. Democrats are along there with him. The Chamber of Commerce wants a big one.
How big is it? Well, you know, the President hasn't said exactly how many hundreds of billions of dollars he'd like to spend to get the economy going. But we can safely assume, it will be hundreds of billions of dollars, because that's the kind of numbers that people who advise him and are close to him are throwing around. This is what he said -- he told "60 Minutes" that this is no time to worry about deficits.
(BEGIN VIDEO CLIP)
OBAMA: We're going to have to spend money now to stimulate the economy. And that we shouldn't worry about the deficit next year or even the year after.
(END VIDEO CLIP)
ROMANS: Just in case you're wondering, the deficit next year could be $700 billion, maybe a trillion dollars. So, we have a national debt of $10 trillion, but a lot of economists, even those who are worried about deficit say it's worse -- it's worse not to spend the money and then the hurt that the economy would have and the hurt that our budget and our books would take if we have something really terrible next year. So, they say it's sort of money well spent, although it's incomprehensible.
CHETRY: Are they also agreeing in that potential stimulus -- the auto bailout?
ROMANS: That would be -- I don't know. That could be something different. We're talking about hundreds of billions of, sort of, you know, what would the money look like? It would look like incentives to unemployment benefits. It would look like maybe infrastructure spending, probably not a tax rebate.
Remember, we got that. President Bush signed that last February. That was $168 billion and it didn't really help. There was a blip to consumer spending but people saved it and they paid down their debt and it didn't really help. So, they're talking about a whole lot more. A whole lot more. We just don't know how big it would be. But this will be the new kind of bailout debate. A bailout for the economy, a big, big stimulus.
ROBERTS: Numbers are just getting incomprehensible. ROMANS: They really are.
ROBERTS: Christine, thanks.
Trying to get the hottest ticket in town? Well, good luck. It's an inauguration frenzy. And now scalpers have stepped in. We'll tell you how to witness history without getting ripped off.
And how can Barack Obama keep his green energy promises when the price of oil keeps on dropping? The ideas he proposed aren't practical anymore. Where Obama's energy plan stands now. 13 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: A small silver lining to the economic crisis. Oil prices have plunged to their lowest level since January of last year. The price for a barrel of crude now less than $55 a barrel. And the price for a gallon of regular gasoline now down for the 62nd straight day. It's averaging about $2.07 a gallon. According to AAA, Alaska is now the only state with gas prices now averaging above $3 a gallon.
And while lower gas and oil prices are an economic bright spot, it may also put a damper on President-elect Barack Obama's energy plans to beef up the taxes on oil companies and create new green technology. CNN's special correspondent Frank Sesno is in Washington.
Certainly, Frank, the President-elect is saying, hey, you know, don't be fooled by this drop in energy prices, there's still a crisis out there that has to be addressed. Let's listen to how he put it on "60 Minutes" on Sunday night.
(BEGIN VIDEO CLIP)
OBAMA: The prices go back down. And suddenly, we act like it's not important. And we start, you know, filling up our SUVs again, and as a consequence, we never make any progress. It's part of the addiction. That has to be broken. Now, is the time to break it.
(END VIDEO CLIP)
ROBERTS: So, Frank, is there that danger that with the pressure off on prices, the urgency may be off on energy reform?
FRANK SESNO, CNN SPECIAL CORRESPONDENT: Absolutely. I mean, we've seen it before. When oil prices swing, when prices go high, everybody talks about alternative energy; the government puts a lot of money into R&D; the government puts a lot of money into the tax subsidies that fund the kind of research and fund the purchases. And then when prices come down, it's easy to back off. Take this as an example. When gas prices were at their high point, it cost you about $120 to fill that SUV. Now it's about $60. That's a big difference.
ROBERTS: Yes. And you know, we talked to the chairman of Ford just a little while ago, and they're hoping that because gas prices are low, that there will be renewed interest in their pickup trucks, to bring in a thousand people back in to try to satisfy that demand. And while the truck gets, you know, better gas mileage than it used to, it's still a truck.
SESNO: It is. And, you know, it really raises a very interesting question. That is, just how brave does Barack Obama really want to be? There are some who say, you know what, now is the time to actually put a tax on gasoline to prevent gasoline from falling down, you know, through the floor. And say, call it three bucks a gallon, and then take that tax, and put it into the R&D, in the green technology Barack Obama has talked about.
What would that do? It would stabilize the price of gas. It would stabilize the market into which these automakers are trying to sell, if they're going to go small car and try to pitch those and then they actually have some stability there. And it would create the fund that would power this next generation of technology that you heard Obama talking about. That's going to take guts, though, because pushing new taxes is never easy.
ROBERTS: Yes, particularly on gasoline, people say, what, the price just came down, now you want to put it back up again?
SESNO: I know. And you know what? We've been through this movie before, you know. One month after he took office, Bill Clinton and Al Gore, the two of them proposed a BTU tax. Remember that? British thermal unit. You know what it amounted to? It amounted to, they figured at the time, about 75 cents a month added on to your electric bill.
It was laughed right out of the Congress. It didn't last long. The question is whether things have changed enough now and whether Barack Obama really is an agent for change and is ready to stick his neck out on something like that.
ROBERTS: Yet another question to ask the incoming president-elect. Frank Sesno, it's always great to see you. Thanks so much.
SESNO: Good to see you, John. Thanks.
ROBERTS: Kiran?
CHETRY: Well, tickets to the presidential inauguration are supposed to be free. But that's not stopping the scalpers. We'll tell you how to take in the festivities without being taken for a ride. 18-and-a- half minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": Barack says he is taking his time picking out a dog for his daughters, because he is looking for a pet that won't shed its hair. Yes, that's true. Which is the exact same reason apparently he picked Joe Biden.
(END VIDEO CLIP) CHETRY: Very funny. I think that Biden is hypoallergenic, though. The upcoming presidential inauguration of course is the hottest ticket in town. There's an absolute frenzy to witness history, and our Brianna Keilar is live in Washington.
So, what is the possibility, Brianna, of getting a ticket to inauguration?
BRIANNA KEILAR, CNN GENERAL ASSIGNMENT CORRESPONDENT: Well, Kiran, I'm not going to sugar-coat it, it's nearly impossible.
(BEGIN VIDEOTAPE)
KEILAR (voice-over): If you're trying to get a ticket to the presidential inauguration, prepare to be disappointed.
SEN. CHARLES SCHUMER (D), NEW YORK: We have gotten requests for over 100,000 tickets.
KEILAR: And how many do you have to give out?
SCHUMER: 393.
KEILAR: That's how many tickets each senator will get come January. House members will receive fewer than 200. New York Democrat Chuck Schumer says he is trying to dole them out fairly to constituents.
SCHUMER: Well, I thought the best way to do it given so many requests -- and many of them are very heartfelt stories as well -- was to do a lottery.
UNIDENTIFIED FEMALE: Good afternoon, Senator Schumer's office.
KEILAR: Four of Schumer's interns are still staffing the phones and taking names. But each office is different. Washington, D.C.'s only member of Congress, Eleanor Holmes Norton, has stopped taking phone requests.
ELEANOR HOLMES NORTON (D), WASHINGTON, D.C. DELEGATE: It became clear that taking names only raised people's expectations.
KEILAR: Call her office...
UNIDENTIFIED FEMALE: If your call is not related to the inauguration, please press zero.
KEILAR: ...and you will be redirected to her Web site. Showing up in person won't improve your chances.
UNIDENTIFIED FEMALE: The congresswoman's office will not be able to accommodate all of those requests.
KEILAR: The minute possibility of scoring a ticket has some people looking online to expand their odds by opening their wallets. Some brokers have offered tickets for sky-high prices. Senator Dianne Feinstein is trying to put a stop to it, introducing legislation that would punish those who sell tickets with a fine of up to $100,000 and as much as a year in jail.
FEINSTEIN: These tickets are supposed to be free for the people. No one should have to pay for them.
(END VIDEOTAPE)
KEILAR: OK. But here is the good news. Because even if you don't have a ticket, which no doubt many people will not, you can still come to Washington, come down to the National Mall, and try to see Barack Obama sworn in. Police are expecting hundreds of thousands of people to do this without a ticket. You may be farther down the mall watching the ceremony on a JumboTron set up by organizers there on the mall.
But as one Democratic House aids put it to me, Kiran, at least you're still going to be part of history.
CHETRY: Wow. Did I read that correctly? One of the scalpers, they wanted $90,000?
KEILAR: Well, that was actually -- and that was -- I should say we -- that was something we shot about a week ago. And we've noticed some of the prices have disappeared from online. But what I noticed was some of these ticket brokers online were making you buy two pairs of two tickets, so basically four tickets. And then there was like a $7,000 ship -- not shipping fee, but handling fee, and that's what the total bill of $90,000 was.
CHETRY: Wow, what a mess. All right. Brianna, thanks so much.
ROBERTS: They lost the White House and plenty of colleagues in Congress. So, when the next session meet, how will Republicans in the House and Senate make their voices heard? We'll find out. It's 24 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most Politics in the Morning." When the next Congress meets, Republicans will be finding their numbers are smaller in both chambers, along with the Democrat in the White House. So, that's going to make it hard for the GOP to push through any agenda. So what will their role be.
Joining me now is the man hoping to be the next House Minority Whip, it's Congressman Eric Cantor. Thanks for joining us this morning. Great to see you.
REP. ERIC CANTOR, NEXT HOUSE MINORITY WHIP: Thank you. Good morning.
CHETRY: You wrote in the "Washington Times," "Where we've really fallen down -- speaking of the GOP -- is that we've lacked the ability to be relevant to people's lives." You say "forget about the last eight years and what happened there, but it's a relevancy question." So as the incoming Minority Whip, and you're going to be officially elected tomorrow, how do you plan to make the Republican Party relevant again?
CANTOR: Well, first of all, Kiran, I think our role with the upcoming administration and the new Congress will really be to serve as the honest opposition. I think that Republicans in Congress will stand ready to work with the new administration in the best interest of the taxpayers of this country. And if there are proposals that are put forth that serve to reduce the tax burden, and reduce the size of government, and try and get this economy going in, so we can see more jobs created, we're going to work with them.
But if instead -- if this new administration decides to go the route of increasing government spending, which ultimately will put the burden on our future generations, we're going to oppose them.
And so, really, going forward, you know, we're going to have to make sure that we stand up and we will be ready to work with them. But, honestly, it is about opposing the new administration if they are not acting in the best interest of this country.
CHETRY: And so moving forward, I mean, the big question is, the number one issue right now is this bailout plan -- whether or not, it's really doing what it was designed to do, and whether we're going to see more, as some are calling them, blank checks to various industries, banks, even possibly the auto industry.
What is the GOP's role in that, since most of the GOP also did vote in favor of that bailout?
CANTOR: Well, I think, first of all, when you look at the requests by the auto companies for a $25 billion injection of capital, the question that needs to be asked is, how is this not throwing good money after bad? And frankly, there's not been any demonstrations that things will operate any differently as far as those companies are concerned going forward.
And, you know, secondly, we have to ask, who is going to pay for this money? Honestly, we all know that money doesn't grow on trees. Ultimately, the taxpayers pay the money. And I think that the average family in this country is trying to grapple with this notion of the fact that no one is there to bail them out when they get into trouble.
We've got to start doing things differently in this country. We've got to start rebuilding America. But we're going to rebuild for the future through innovation, not by doing things the same way. And I'm fearful that this request for a bridge loan would end up having the taxpayers throw in good money after bad.
CHETRY: You know, and I was going to ask you this. After the party that loses, it's always a time for introspection in the days after the presidential election. And there seems to be a real divide within the GOP as to why they did face the losses they did in the Senate, in the House and of course the White House. Some feel you need to get back to the more conservative issues, and others say it's time to take a look at the changing demographic, and to make sure that the party is broad enough in terms of things it emphasizes. Where do you stand on how the GOP reaches out in the future?
CANTOR: Well, first of all, I think it's very important for us to realize that we need to do some work in rehabilitating our conservative voice. We as a party can no longer support the kind of spending that we continually accuse the other side of engaging in. Secondly, we also need to make sure that we are not defending the kind of unethical behavior that we can constantly criticize the other side for. And then we also need to make sure that we're providing solutions for everyday problems that families are facing. It's just not enough to talk about our principles. What we need to do is to be applying those principles to families' problems every day. Right now, families are very concerned about the cost of life. Whether it's filling up at the gas station, providing for their kids to go to college, whether it's providing for their healthcare. These are the kinds of things that we need to be talking about -
CHETRY: But congressman, let me just ask you this. You said getting back to the conservative principles, and you did vote for the bailout, though, right? And now you're saying that it's time to rethink whether you should have supported it. Does that put you in a tough situation?
CANTOR: No, Kiran, I'm not saying that. What I'm saying, in the bailout that occurred in late September, had to do with a systemic failure in our financial system. And I believe that our financial system, the credit markets in this country, are much akin to a utility. So if we were to shut off the electricity in this country, everyone, businesses, families, small and large, would be impacted, the same way for credit. Everything in our society and in our economy operates on credit. We had to - it was essential that we had to get our credit markets moving again, so that people can access a loan to send their child to college. So that people could have a loan if they needed to buy a car or a house.
CHETRY: I got you.
CANTOR: That is essential for everyone.
CHETRY: All right. Well, I want to thank you for joining us today, Representative Eric Cantor, you're going to be the new incoming minority whip. Thanks so much.
CANTOR: Kiran, thank you.
JOHN ROBERTS, CNN, ANCHOR: 32 minutes after the hour now. And updating our breaking news this morning, a hijacked Saudi oil tanker stolen by Somali pirates now reportedly anchored off the coast of Somalia. The company that owns the tanker Aramco says all 25 crew members are believed to be safe and they are waiting to be contacted by the pirates.
The king of pop is being sued for $7 million by an Arab sheikh. The sheikh is making his case in a London court saying that he gave Michael Jackson the money as an advance for an album and autobiography that never saw the light of day. The embattled singer claims the money was a gift.
The CEOs of America's biggest three car companies, Ford, General Motors and Chrysler, will testify on Capitol Hill today to the Senate banking committee. They're asking for a $25 billion slice of the bailout bill. Many republicans vigorously oppose that plan, but the CEO of Ford made the case that his industry must be part of the plan when he appeared earlier on AMERICAN MORNING.
(BEGIN VIDEO CLIP)
ALAN MULALLY, PRESIDENT & CEO, FORD MOTORS: The automobile industry is just absolutely essential to the United States' economy. We're in an economic situation now with the credit crisis and the financial and the banking issues that we really, more than ever, the automobile industry needs to be part of the solution. And the only thing that we're asking for is to set up a bridge loan mechanism, and if the economy continues to deteriorate in the near term, that we could access that, so we can continue to invest in the products that people really do want and value, and help be part of this economic recovery.
(END VIDEO CLIP)
ROBERTS: Well, John McCain and Barack Obama agreeing to put the country first after meeting for the first time since the election. And while both sides find it unlikely that McCain will join an Obama cabinet, the question now, what role will McCain play when he returns to the Senate? CNN's Jason Carroll joins me now. We know he's fabulous at comedy but he's probably not much a call for that.
JASON CARROLL, CNN CORRESPONDENT: Probably not. You know the public has seen many different sides of Senator McCain during that campaign and over the past two years. As he returns to the Senate, he could once again be someone senators on both sides end up reaching out to.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): Once opponents, now political analysts wonder if the president-elect's formal rival, could become his ally.
MARK HALPERIN, "TIME" MAGAZINE: John McCain's days as a presidential candidate are over. His chance now to leave a lasting mark in public life going forward probably involves working with a man who beat him for the presidency, Barack Obama.
CARROLL: John McCain's campaign slogan, country first. But here's the question, what's next? Does McCain return to the Senate, being the McCain who built a reputation, criticizing democrats, and members of his own party? Or, analysts ask, does he become the McCain of the campaign? The one whose partisan attacks angered democrats?
SEN. ARLEN SPECTER (R), PENNSYLVANIA: I think he has the potential to be effective in the Senate again. It's not the same as running in the year 2008 for president on the republican brand. CARROLL: Like McCain, republican Pennsylvania Senator Arlen Specter also has a reputation for being an independent spirit. Specter says McCain could play a key role on issues important to both parties.
SPECTER: Comprehensive immigration reform, campaign finance reform. Global warming. I think John McCain can pretty much write his own ticket.
CARROLL: For a hint at what he might do at this time, analysts say look at what happened the last time McCain returned to the senate after losing a presidential bid. In 2000, McCain reinvented himself as a maverick, using the issue of campaign finance reform to reach across the aisle. It worked before, and it could again.
PROF. MICHAEL MEZEY, DEPAUL UNIVERSITY: It's the independently- spirited maverick McCain that will return. And I think he'll very quickly return to the sort of centrist positions on a number of issues, which he's always had.
(END VIDEOTAPE)
CARROLL: Again, Senator McCain has two years left in the Senate, after that, some analysts say they would not be surprised if he ran for a fifth term, representing Arizona, which would make him 74 years old. But remember, the Senate has a long history of senators serving in their 70s, 80s, even beyond. I mean, look at this week, I think Senator Robert Byrd from West Virginia is going to be having a birthday and I think he's going to be 91.
ROBERTS: Well you know in his book, Senator McCain always talked about this idea of staying too long. So we'll see. Jason Carroll, thanks very much for that. All right. Kiran.
CHETRY: All right. Well, as the saying goes, imitation is the sincerest form of flattery. Well if that's the case then Barack Obama should feel pretty good right now. We're going to head across the globe to show you how his campaign's on-line game plan is being used again.
(COMMERCIAL BREAK)
CHETRY: Just in right now, new numbers on the economy showing how weak it is right now. Christine Romans is "Minding your Business." And she joins us with a look at what we're talking about. Hey, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Kiran. We're talking about a record drop in wholesale prices for the month of October. 2.8 percent drop in wholesale prices, this according to the labor department. This is much bigger than anyone was expecting in terms of the folks that we're following and the consensus estimates on Wall Street. What this tells us is that the economy is weak. So weak that prices are actually falling, so weak that demand for gasoline and energy prices is - products is falling. And that is driving the wholesale prices lower. So it is a sign of weakness in the economy, Kiran.. And what it tells us is those concerns maybe even a year ago about stagflation, which is slow growth and inflation, those concerns are not here right now. In fact, we are showing no concerns about inflation at all here, Kiran.
CHETRY: All right. Christine Romans for us. Thanks. John.
ROBERTS: Well, welcome back to the most politics in the morning. During his run for the White House, Barack Obama used the internet to his advantage so well that some say he has changed American politics forever. But is the Obama game plan changing politics around the world, too? Even in places like Israel? Chief international correspondent Christiane Amanpour looking into that for us. It's long been said, imitation is the sincerest form of flattery. Plenty of people seem to be imitating him.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Indeed, Benjamin Natanyahu, the right wing (inaudible) member who is running for Prime Minster. He is saying the very same thing. And on his Facebook page is a picture of him meeting with Barack Obama and on his website, you will see quite a similar look to what the Obama website was during the campaign. The bottom line is, even Natanyahu is trying to reach out in terms of twitter, Facebook, all of the internet outreach in terms of volunteers, in terms of grass roots for funding.
ROBERTS: Right.
AMANPOUR: So as they say, imitation is the most sincerest form of flattery, but everybody likes success and everyone wants to go that way.
ROBERTS: It took us a while to get there, but there are the two websites.
AMANPOUR: There you go.
ROBERTS: It's almost mirror images of each other.
AMANPOUR: There you go. And they are sort of saying yes BB Netanyahu is the change candidate for Israel, although he has already been prime minister before, and he's very well-known.
ROBERTS: And some of the other things that Obama was talking about in the campaign trail are being emulated by governments around the world, as well.
AMANPOUR: They are. In various ways - in France, for instance, a group of minorities have put out a affirmative action manifesto, in which they have literally taken the slogan, "Yes we can." Ou nous pouvons in French. Because in France which has the biggest minority and Muslim population in Europe, barely an official elected to national office in the Parliament. So this is something.
In Indonesia where Barack Obama grew up, they are trying to use change and yes we can on things like climate change and the economy. In Jamaica, a senator today has said, let's use the slogan change and "yes we can" to meet some of the challenges that we face as a nation.
ROBERTS: It's yes mon we can in Jamaica though. What's the flip side of all of that?
AMANPOUR: Well, the flip side, certainly in Europe is that they simply don't have their Obama. There are many, many countries in Europe which have very huge minority populations of immigrants, long- standing, and there are barely any representatives in parliaments, whether it be in France. England is a little bit better. Germany has almost never had - they have a huge ethnic Turk minority. Just this week, though, for the first time ever in Germany, they elected a party leader who was an ethnic Turk, the Green Party leader. So that's a huge leap forward.
ROBERTS: And we've also seen some people say some - I don't want to say intemperate things about Obama, but some not so politically correct things.
AMANPOUR: That's correct. Not so politically correct, and there is latent racism, that's for sure. But I think the momentum is to try to get over that, which is what is happening in France. Use that slogan, try to empower their own minority consciousness movement.
ROBERTS: And we'll see what impact he continues to have when he takes office. Christiane Amanpour, it's always great to see you. Thanks.
AMANPOUR: Thank you.
ROBERTS: Kiran.
CHETRY: What's a mindless scribble worth? If it's Barack Obama's, it could actually be worth quite a lot.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): Doodles from the campaign trail. What scribbles from Sarah Palin and the election - President-elect are now actually worth. 42 minutes after the hour.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: 45 minutes past the hour now. Our Rob Marciano getting ready to deliver a forecast for us today. Boy, it's chilly, at least here in the northeast.
ROB MARCIANO, CNN, METEOROLOGIST: Did you see any snow flakes outside?
CHETRY: I did not. I was trying to be your own personal weather watcher. I did not see a flake this morning.
MARCIANO: Listen, at 9:05, I better get a call letting me know what's going on our there. Because on the radar scope, we do have a little light snow that's falling. They are in parts of Tetterboro, JFK and Newark, a little bit of snow flurry activity. So it shouldn't add up to much, but certainly will get you in the spirit, won't it? Not if you live in upstate New York, because in spots, they have been shoveling, especially west of Syracuse. Now we got north winds, so Ontario and Eerie are seeing snow develop to the south of the lakes and same deal with Michigan. Lake Michigan here, south through just east of Gary, Indiana is where a lot of that snow is piling up.
Some video for you, first off from upstate New York, where they got it piled up in some spots to 24 inches. And that will bury the car, no doubt about that. Springville yesterday, and, oh, god, you know just makes my back hurt thinking about how you're going to get into that thing. Illinois, similar stories, so all of the lakes getting the action and that obviously traffic an issue. So you got snow flying in some spots in the United States.
And we take you to the land down under, where this is not snow, but something much more different. Locusts, a swarm of locusts, my friends, four miles long and 600 feet wide, and this is causing some problems in New South Wales there. They've been in a drought the past several years, and this is really the first year where they have had enough rain to get a good crop, and the farmers are having to deal with locusts who are feeding on the green vegetation. So some issues down there. I don't think I would want to be in the middle of a swarm of locusts, Kiran. I would much rather be in snow flakes in upstate, New York.
CHETRY: There were some people who shouldn't see that video, if you know what I mean.
MARCIANO: Really?
CHETRY: Whew! It will strike fear in the hearts of some.
MARCIANO: They're squirming in the sight of the swarm there?
CHETRY: Yes, I don't need to see that again. Oh, boy, Rob. All right. Thank you.
MARCIANO: It's good eating.
ROBERTS: Wait until it starts raining frogs. Then they have a problem. CNN NEWSROOM just minutes away. Heidi Collins at the CNN Center with a look at what's ahead. Good morning, Heidi.
HEIDI COLLINS, CNN ANCHOR: Good morning, John. That's right. Here's a check of what we're working on in the NEWSROOM. Rescue plans, architects explain the change in design. Live coverage of the $700 billion bailout hearing from Capitol Hill.
Teddy bear with several lives. He survived the blitz of Britney in World War II and is still around after this week's California fires. Great story.
And showing the love in Loveland. Colorado coffee drinkers pay it forward and back. We get started at the top of the hour right here on CNN. John.
ROBERTS: Looking forward to that. Heidi, just 12 minutes away. Thanks. COLLINS: Thank you.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Dreams.
UNIDENTIFIED FEMALE: I was 67 inches around on my butt. And 65 inches tall. So I was two inches wider around than tall.
ROBERTS: The woman who lost 200 pounds, so she could live out a lifelong dream. Our Dr. Sanjay Gupta shows us how she did it. You are watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: Well, it's never easy to lose a lot of weight, but losing almost half of your body weight has to be incredibly difficult, especially if you do it, as they say, the old fashioned way. Dr. Sanjay Gupta is here now with one woman's uplifting story. Well we say the old fashioned way because a lot of people do surgical means now, as well, to lose large amounts of it.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: That's correct, and this woman's story is truly uplifting. She wanted to ride in a hot air balloon her entire life, and then she got there and they turned her away. Not because she weighed too much, but she was physically too big. So it was that moment, that moment that we talked about so much in this "Fit Nation" segments. This is a story that is really going to make people feel good. Take a look.
(BEGIN VIDEOTAPE)
GUPTA (voice-over): Karen Daniel is in a hot air balloon, thousands of feet in the air above the Arizona desert. Who would have thought? Certainly not her.
KAREN DANIEL, LOST 200 POUNDS: I was - I was 67 inches around on my butt. And 65 inches tall. So I was two inches wider around than tall. So I think - I don't know. I think I'd be pretty - I would probably feel that.
GUPTA: Two years ago, her fitness trainer, Bill Crawford remembers seeing a woman in desperate need of help.
BILL CRAWFORD, TRAINER: When Karen first walked in the door, she weighed 375 pounds, and she could barely make it from the car to the front door. And I knew that just making it to the front door of the fitness center, someone that presented like Karen was a big deal.
GUPTA: After a strict diet and a grueling workout routine, she is now 200 pounds lighter, and it was time for Karen to live out her dream.
DANIEL: Oh, my god. This is awesome!
GUPTA: And she allowed us to come along for the ride.
Actually we got a good picture.
DANIEL: Oh, so neat. It's so - words can't even describe this.
I dedicated and committed myself, I was going to change my life. And every ounce of sweat, every ounce of pain, every crying session, is worth 100 times that.
GUPTA: A life-changing adventure, in so many ways.
DANIEL: If they came out with a pill today, would I go back in time and take that pill? You know, to lose the weight? And I honestly don't think I would. Because I've learned so much.
GUPTA: Karen hopes to lose 50 more pounds, and when she does, watch out. She'll be taking to the skies again. This time, in a helicopter.
DANIEL: So worth it. So worth it.
(END VIDEOTAPE)
GUPTA: It's a pretty amazing story. I love stories like that. She has done a 32-foot ropes course. She's been in a biplane with her daughter. This is a woman who has made some amazing changes in her life.
CHETRY: She opens up a whole new world, when you're able to do that type of stuff. She is going to be here in New York for the second annual "Fit Nation" summit. What's she doing?
GUPTA: That's correct. And we're very excited about the summit. And what she is going to do is going to start off on the ground floor of this building and she's going to walk all the way up to the top, 55 flights of stairs. Pretty amazing. We're going to meet her at the top. We'll take the elevator, but we're going to try and film a lot of that. But you know the "Fit Nation" summit is something we have been doing for some time. You know last year, President Clinton joined us to talk about real solutions, as much as we do pieces for your show, we also want to talk about solutions. This year, we're going to have three other guests, as well. And really have a theme this year about Rachel Ray is going to join us tonight, talking about diet and the role of food. Jillian Michaels, from NBC's "biggest loser" is going to be talking about lifestyle changes, and some of them have admired Eric Shanteau, an Olympic swimmer who's going to talk about exercise and how to incorporate them into your life, even if you're not an Olympic athlete.
CHETRY: And the good news is if you see people like Karen, it's like that - that's me - if she can do it, I can do it. So it's nice to draw inspiration from people. I mean it takes a lot of guts to walk into a gym.
GUPTA: We wanted to develop on air partners for all of your viewers at home. People look at people and say, look, they did it, it's a source of inspiration for them, as well.
CHETRY: Sounds great. Thanks, Sanjay.
GUPTA: Thank you.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): Presidential pictures.
JEANNE MOOS, CNN CORRESPONDENT: Senator Feinstein, Senator Kennedy, Senator Harry Reid, and this is Senator Chuck Schumer, only it doesn't look like him.
CHETRY: A future presidential artifact, and the man who is refusing to sell.
Jeanne Moos gets an up-close look at Obama's doodle pad. You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ROBERTS: 57 minutes after the hour. What would Barack Obama's doodles be worth to you or how about Sarah Palin's scribbles? Our Jeanne Moos now for doodling for dollars.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice-over): A lot of people can say -
UNIDENTIFIED FEMALE: I got it!
MOOS: But this guy can say, I've got Obama's doodles, and he's not selling.
WAYNE BERZON, OWNER, OBAMA'S DOODLES: They said, what if your offer was six figures?
MOOS: Nope. Financial consultant Wayne Berzon is not selling the doodles he bought for about 2.000 bucks at a charity auction a year and a half ago.
MOOS (on-camera): Senator Feinstein, Senator Kennedy, Senator Harry Reid and this is Senator Chuck Schumer, only it doesn't look like him. Compare this to another famous doodle that made the rounds recently.
Here is Sarah Palin's.
The new republic uncovered it in a box of odds and ends, kept by the woman who ran Palin's campaign for mayor of Wasilla, Alaska.
UNIDENTIFIED FEMALE: She is fantasizing about her win. It's me, check this box. MOOS: Palin jotted down possible slogans, like "time for a change." Telling citizens you would be my boss!
UNIDENTIFIED FEMALE: It looks confused and talky.
MOOS: Talky? What's talky?
UNIDENTIFIED FEMALE: Like she is talking too much.
MOOS: As for opinion on President-elect Obama's doodle.
UNIDENTIFIED MALE: The guy is intelligent. This actually looks done well. Except for the hair. I don't like the hair.
MOOS: What's wrong? Not yellow enough? We had graphologist Sheila Kurtz put the two sets of doodles under her magnifying glass.
SHEILA KURTZ, GRAPHOLOGIST: He is economical and clear and to the point.
MOOS: Ronald Reagan used to like to doodle faces. The book "Presidential Doodles" features LBJ's devil cat, FDR'S fish and JFK's sailboats. As for Sarah Palin's doodles from back before she was famous. Our graphologist notes the circled dot over the "I," the hook on the "p" and the words scrawled over words.
KURTZ: She's smart but she's very scattered and all over the place. And wants everyone to recognize her and to know who she is. It's almost like a teenager's writing.
MOOS: Yes, well tell that to the guy who wanted his cell phone signed, the collector who bought the Obama doodle is putting it in a safe deposit box for now.
BERZON: It's kind of a neat idea to own something that could end up in a presidential museum.
MOOS: In a museum, or on some blog? Makes you want to hide your doodles, lest they be criticized.
UNIDENTIFIED MALE: Really, it looks like somebody in prison would write on their wall.
MOOS: Or someone posted after eyeing Sarah Palin's doodles, I think the "o" in mayor just winked at me. Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHETRY: There you go. I'm stopping officially doodling, not that anyone would want my doodles anyway.
ROBERTS: You never know, it could be worth money someday.
CHETRY: Well, thanks so much for joining us on this AMERICAN MORNING. We'll see you back here tomorrow.
ROBERTS: Right now here is CNN NEWSROOM with Heidi Collins.
