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American Morning
Hillary Clinton's Future: Secretary of State or Senator?; Global Markets Plunge; Big Three Automakers Hitting a Major Roadblock on the Hill; New Runaways Opening at Busiest Airports; Taming President Clinton; Is 2008 the Year of the Woman?
Aired November 20, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: It is just about two minutes until 7:00 here in New York. A look at the top stories this morning. The Pentagon saying international shipping companies should be doing more to deal with piracy off the coast of Somalia. Adding that the U.S. and other navies are doing what they can, but that there must be more shared responsibility. Meantime, Russia's Navy chief has announced that Moscow is sending more ships to help battle the hijackers.
A showdown brewing between the White House and Congress, and the Senate is expected to defy the president's veto threat and vote today on an extension of unemployment benefits. The bill would give another seven weeks to those out work or 13 weeks in states where unemployment is over 6 percent. Also, the White House says that the expected $6 billion price tag is fiscally irresponsible.
Gas price serving as a silver lining yet again. The price at the pump falling 64 days in a row now. The national average for a gallon of regular gas is down to $2.02. 23 states have an average price below $2 and the last time gas was solo, March of 2005.
Well, just 61 days now until inauguration, and bit by bit, the Obama cabinet is starting to fall into place. Sources are telling CNN that former Senator Tom Daschle has been chosen as the president-elect, Secretary of Health and Human Services. And two more names being talked up right now. Arizona governor, Janet Napolitano for Homeland Security Secretary, as well as Chicago business mogul Penny Pritzker who ran Obama's record-breaking fund-raising campaign. She's being talked about for Commerce.
Ed Henry is with the Obama team in Chicago. He joins us this morning.
You know, of course, we're talking about these appointments. But overshadowing all that of course is any buzz about Hillary Clinton, and whether she is going to indeed take the Secretary of state spot.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, that's right. Good morning, Kiran.
Once again, Democrats buzzing this morning about a new wrinkle in all of this talk, all these negotiations about whether Hillary Clinton will be secretary of state. The fact that Senate leaders now privately are working on maybe creating some sort of a new role for Hillary Clinton in the Senate if she decides to return there, possibly sort of the -- some sort of a point person on health care issues, which has been her real passion on the domestic front obviously.
What we don't know at this point is whether this is sort of genuinely a sign that she's conflicted about whether or not she would take the secretary of state job, whether she's conflicted about going back to the Senate possibly, or whether this is just kind of a fallback position in case she ends up not getting officially offered the job or if the vetting process with Bill Clinton does not go as smoothly as she hopes.
What will be interesting if she goes back to the Senate and deals with health care issues, she will be dealing, as you mentioned, with Tom Daschle, someone who did not endorse her in the Democratic primaries. Instead, Daschle went with Barack Obama even though he was very close to Hillary Clinton for a long time.
Interesting, Barack Obama now rewarding Tom Daschle by putting him in charge of secretary of Health and Human Services, but also giving him a dual role, and the point person in the White House in sort of writing the health care legislation. What's significant about that is the fact that he picked a power player like this suggests health care will be a big issue. And as you mention, another big issue is immigration reform. And Janet Napolitano, someone who has a tough stance on securing the border and that suggests as well Barack Obama wants to make that a priority next year too, Kiran.
KIRAN CHETRY, CNN ANCHOR: All right. And then also, what can you tell us about Obama's interest in billionaire Chicago businesswoman, Penny Pritzker, as his commerce secretary?
HENRY: Well, look, she raised a lot of money for Barack Obama in that campaign. That was one of the many reasons why he won. He had more money, was better organized. She's somebody as a business woman who is seen as a good fit for commerce secretary.
The only question right now, we're told she's a leading choice. The only question is how the vetting process will go. She's somebody who's not been really in public office before. Has all kinds of business dealings and so there are some people privately saying that they're still waiting to see that all the i's are dotted, just as we've seen perhaps in the Clinton case. But all suggestions from top Democrats is that she's the leading choice to become commerce secretary -- Kiran.
CHETRY: All right. Ed Henry for us sorting through all of this for us this morning in Chicago. Thanks.
JOHN ROBERTS, CNN ANCHOR: Breaking news this morning. World markets in the red and sinking fast. The bad news coming out while you were sleeping.
Tokyo's Nikkei index losing nearly seven percent of its worth. Numbers nearly identical in South Korea. Hong Kong's Hang Seng falling by more than four percent.
European markets also far in the red today. All of this in response to the Dow meltdown yesterday, dropping 427 points closing below 8,000 for the first time since the start of the Iraq war. And right now, Dow futures are down around 100 points. Who knows, it might end up by the end of the day.
Our Christine Romans looking at all of this for us this morning. The Dow, the bailout.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Oh, really, a ferocious afternoon for stock investors. But more than one stock market analyst has told me, look, we'll talk about this in February. Just don't worry about it right now.
ROBERTS: It's OK to sleep from now until February. .
ROMANS: Well, you know, we can go to work and --
ROBERTS: Don't look.
ROMANS: Don't look. Really, because it has really been bad. The Dow is down 40 percent. You don't know what it's going to do tomorrow. You don't know how it's going to go close. Really, it can be nerve- wracking. New lows for this crisis.
The reason why the market is so unhinged here is because there are concerns about rising unemployment, rising defaults on mortgages, on consumer loans, and also this bailout -- the bailout of the automakers. Will it work? Will it happen? If it happens, will it work? Are we facing the impending bankruptcy of maybe one of these big Detroit automakers?
So there's a lot of talk about what's happening there in Detroit. You can look at the Ford stock yesterday. You can look at the GM stock yesterday, and you can see that investors are really pessimistic about the future for both of these shares. Over the past year, they're down very, very sharply. And yesterday, GM was down 10 percent. Ford was down 25 percent yesterday.
Take a look at that chart. That's over just the past year. Investors are saying -- I mean, GM is a flat line here. Investors are saying that there's a lot of trouble here as well.
Now, there's bailout outrage, a bailout -- people are tired of bailouts. People are tired of hearing about bailouts. They're asking where is my bailout? And yesterday, Neel Kashkari, the guy who runs the TARP, the treasury's bailout of the financial system, he admitted that he's hearing a lot from people about where's my bailout.
(BEGIN VIDEO CLIP)
NEEL KASHKARI, INTERIM ASSISTANT TREASURY SECRETARY: My phone is ringing off the hook. People around the country, businesses, communities are calling saying, hey, we need help. Can we apply for TARP? And if we took the $700 billion and went to everybody individually who needs help, it wouldn't be enough.
(END VIDEO CLIP) ROMANS: It wouldn't be enough. The focus is on stabilizing the financial system for your $700 billion that has already been authorized to use. Will we get a bailout of autos? Will we get a bailout of insurance? Will we get a bailout -- I mean --
CHETRY: There are so many places to go with it. But I mean -- and one of the things is and you remember, we were all sitting here as they were talking about why this needed to happen immediately, saying, faster Congress, faster and faster. This has to happen. And it doesn't appear that there's a plan for how it's really going to work still.
ROMANS: You can either look at it this way. They are operating on the fly and don't know what they're doing and they make it up as they go along. Or they're changing quickly to unprecedented conditions. So it depends on whether you're an optimist or a pessimist. But I mean, there will be -- there will be books written about what has happened here and right now with our money that they're -- I mean --
ROBERTS: Hopefully there won't be tragedies.
ROMANS: Well, we just don't know how it's going to turn out. We know there's a lot of our money, and people are tired of hearing about bailouts. They're tired of talking -- I mean, when I -- I was on Ali's radio show yesterday and I'm telling you all these people are talking about where's my bailout. Don't bail them out. We don't want anymore bailouts? What are they doing with my money? Where's the oversight.
People are really --
ROBERTS: It's like 1933. Bold experimentation.
ROMANS: People are upset about this.
ROBERTS: Thanks, Christine.
CHETRY: And still ahead, the bailout as we've been talking about for the big three automakers hitting a major roadblock on Capitol Hill. Well, during yesterday's testimony, there were some huge criticism coming from lawmakers because all three CEOs -- stick around for this, Christine, I'm sure you know, though -- flew into town on private chartered jets.
Joe John is looking at the high flying fallout from Washington.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN SENIOR CORRESPONDENT (voice-over): No matter what you think about bailing out the big three automakers, and no matter what you think about their CEOs, this just doesn't look good. In fact, flying to Washington in corporate jets to ask for a $25 billion bailout from the taxpayers is a public relations car wreck.
REP. PETER ROSKAM (R), ILLINOIS: You're talking to people that are slipping back and forth going through all the drama in the airports every day along with the American public. My suggestion is that those types of symbolic things, they really matter.
REP. GARY ACKERMAN (D), NEW YORK: A delicious irony in seeing private luxury jets flying in to Washington, D.C. and people coming off of them with tin cups in their hands.
JOHNS: In the first place, corporate jets are infamous gas guzzlers. Flying in one round trip from Washington to Detroit could cost as much as $20,000 as opposed to the more economic and efficient commercial flight which could cost a single passenger about $600 both ways. In the second place, the more obvious question to some is whether a company on the verge of bankruptcy ought to ditch the jet as part of its cost-cutting measures.
REP. BRAD SHERMAN (D), CALIFORNIA: I'm going to ask you to raise your hand if you're planning to sell your jet in place now and fly back commercial. Let the record show no hands went up.
JOHNS: Ford, Chrysler and General Motors later issued statements essentially saying that the top executives are required to use the company plane for security reasons. GM went further saying that "making a big to-do about this when issues vital to the jobs of millions of Americans are being discussed in Washington is diverting attention away from a critical debate."
(on camera): Obviously it's not illegal. It's not even unethical. This was company business for the CEOs. Even so, at some point, it's all about how things look and to some on the Hill at best, this corporate jet thing flies in the face of, well, common sense.
STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: I mean, when you're talking about how you're about to go bankrupt and that you're hemorrhaging cash then flying here in your Lear jet is really pretty insulting to the taxpayers.
JOHNS (voice-over): But still, one of the real, nice perks of being a big three CEO.
Joe Johns, CNN, Washington.
(END VIDEOTAPE)
ROBERTS: I couldn't tell if that was a G-4 or a G-5.
CHETRY: Christine, you said that there's a very different reaction. There was outrage of every day folks.
ROMANS: Right.
(CROSSTALK)
CHETRY: Many were saying --
ROMANS: And then there's a lot of people in business are saying oh, gee, this isn't real. It's kind of a populace way to look at things.
ROBERTS: But -- ROMANS: $20,000 flight in the grand scheme of it is just so little and they --
ROBERTS: You know the interesting thing about that, though...
ROMANS: It's our money.
ROBERTS: ... is they don't control the purse strings.
ROMANS: That's right.
ROBERTS: It's about perception here. And if the people on Capitol Hill say you're screwing with us, flying in these jets, top hat and tails going to a soup kitchen, walking out of your jet with a tin cup in hand, you're not going to get your money.
ROMANS: They don't think we get it. We understand how business works, but here's -- here's the bottom line. They were knocked off message and we just spent two minutes doing that story instead of talking about, you know, how they were begging for the money. So they were knocked off message.
CHETRY: Many people see this a window in, you know, small window into why they're in trouble.
ROBERTS: My bet is they don't get the cash.
ROMANS: Really?
ROBERTS: Yes.
ROMANS: Well, they could have shared a plane, right?
ROBERTS: No. It wouldn't be decadent enough.
If you're leaving on a jet plane but not the private kind, it may be a little easier this holiday season. Thanks to some new real estate at the nation's airports. We'll tell you all about it coming up.
CHETRY: The bubba factor.
(BEGIN VIDEO CLIP)
CHARLIE HILL, YALE UNIVERSITY: Unless he were to simply go home and become a gardener or something, it's just not going to work.
(END VIDEO CLIP)
CHETRY: How Hillary Clinton's most important political relationship might be holding her back.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: All right. Gas prices are falling, but Americans aren't picking up the car keys. Drivers logged 10.7 billion fewer miles in September compared to one year ago. That's the equivalent of more than four million laps around the globe. Experts say that people have changed their driving habits in the worsening economy, but it also may signal a lifestyle change. But they're calling it the largest decline in driving since the gas crisis of 1979.
Well, Americans may not be driving much but many will be taking to the skies for the thanksgiving holiday. And just in time, new runways are opening up at some of the nation's busiest airports. Jeanne Meserve takes a look.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: John, Kiran, if you want a concrete reason why flying might be easier this holiday season we've got three.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): Concrete and lots of it. New runways at three of the nation's busier airports, Seattle Tacoma, Chicago O'Hare and Washington Dulles.
Mary Peters, the secretary of Transportation, says travelers will benefit.
MARY PETERS, SECRETARY OF TRANSPORTATION: Jeanne, it is going to make a difference. It will allow us to conduct more operations, meaning more takeoffs than landings per hour at these airports, and will help move passengers efficiently.
MESERVE: Want proof? Hartsfield Airport in Atlanta, where a new runway opened in 2006. Airport officials say capacity has increased, wait times have decreased, saving airlines $10 million each week.
A similar payoff is expected in Seattle, although savings (INAUDIBLE) funding grounds increased the price tag of the new runway.
At O'Hare, the nation's second busiest airport, the new runway is also expected to be a big plus. But air traffic controllers at Dulles doubt the new runway there will increase capacity. There is only one taxi way between the terminal and the runway. Controllers say it's a bottleneck.
KIERON HEFLIN, NATIONAL AIR TRAFFIC CONTROLLERS ASSN.: You're left with kind of a white elephant in the interim until the taxi ways can be completed?
MESERVE: Is that what you're calling this? Is this the white elephant?
HEFLIN: In the short term, yes. I don't believe it will be as useful as it could have been.
MESERVE: One aviation expert says runways are not being built where they're needed most.
DARRYL JENKINS, AVIATION CONSULTANT: We had at the nation's most congested airports, if we had even one new runway in each of them, it would do an enormous amount to relieve congestion throughout the entire nation.
MESERVE: And those airports would be?
JENKINS: LaGuardia, Newark and JFK.
MESERVE: And is that going to happen?
JENKINS: I doubt it.
MESERVE: The problem? Little land and a lot of community opposition.
(END VIDEOTAPE)
MESERVE: The goal of opening the runways this week was to ease holiday travel, but experts say their forecasts remain unchanged. If the weather is bad, flying will be bad. New runways or not.
John, Kiran, back to you.
ROBERTS: Jeanne Meserve for us this morning. Jeanne, thanks so much.
Lame duck on the clock. The Bush administration with a list of last minute moves. Hustling to take the pen out of Barack Obama's hands. How late decisions could impact everything from uninsured patients to endangered species.
Praying for help.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We're standing in front of the treasury building to pray, to blow the trumpet of prayer so our nation's leaders will wake up.
(END VIDEO CLIP)
ROBERTS: The group that's looking to the bible for answers to the housing crisis.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Eighteen and a half minutes after the hour. Welcome back to the "Most Politics in the Morning."
Multiple sources tell CNN that after meeting with Barack Obama, Hillary Clinton feels that the job of secretary of state is hers if she wants it. But that would mean a lot of changes for her famous husband. How is he going to handle all that?
CNN's Jason Carroll looks at that for us this morning. Good morning, Jason.
JASON CARROLL, CNN CORRESPONDENT: Good morning to you, John.
You know, the former president is still popular all over the world. He likes the limelight. He likes to be out there talking. The question is, can he still do and be all that without harming Hillary?
(BEGIN VIDEOTAPE)
CARROLL (voice-over): Former President Bill Clinton signed autographs, shook hands at a bridge dedication in New York and sounded like someone ready to cooperate with the president-elect's vetting team.
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Whatever they want. This is a deal between the president-elect and Hillary. You should talk to them.
CARROLL: Some political watchers had wondered if Clinton might hurt his wife's chances to be secretary of state citing concerns over his financial dealings, but sources say Clinton has made several concessions including agreeing to release the names of donors to his foundation and to get approval from the Obama administration before accepting speaking engagements.
PAUL BEGALA, DEMOCRATIC STRATEGIST: He has been completely transparent. If there are more things and apparently there are, that people want to know as part of the vetting process, I can guarantee you that he is not going stand in the way.
CARROLL: That would not surprise Clinton's fans who see someone dedicated to his wife's success. But critics remember the man who not only embarrassed his wife when she was first lady.
CLINTON: I did not have sexual relations with that woman.
CARROLL: Someone who at times hurt her during her presidential campaign.
CLINTON: It's the biggest fairy tale I've ever seen.
CARROLL: A comment about Senator Barack Obama that ended up costing her African-American votes. Feminist author, Susan Brownmiller, says Bill Clinton just can't help being Bill.
SUSAN BROWNMILLER, AUTHOR, "AGAINST OUR WILL": He's always been the strangest combination of supporter and has also been a detraction. Yes, but she wouldn't have been anything in politics if she hadn't married Bill Clinton.
CARROLL: But yesterday, Clinton was being nothing but supportive.
CLINTON: Whatever they do, I'll support.
CARROLL: But some analysts say whether Hillary Clinton is chosen as secretary of state or not, her husband won't ever fade from the political limelight. CHARLIE HILL, YALE UNIVERSITY: I think with the best will in the world, Bill Clinton is an international figure, and can't stop being that. So, unless he were to simply go home and become a gardener or something, it's just not going to work that way.
(END VIDEOTAPE)
CARROLL: Yes. Don't think he's going to be a gardener any time soon. Those who know the former president say he is not the story here, nor is he an obstacle but an asset. And they say if the job is offered to Senator Hillary Clinton and if she accepts it, he will be her ally and an ally in the White House.
ROBERTS: He could be the constant gardener, though.
But I mean, here's the thing. You know, the Obama campaign wants to make her the secretary of state and all we can talk about is him.
CARROLL: You know, that goes to show just how much influence this guy still has.
ROBERTS: Exactly.
Jason, thanks so much.
Twenty-two minutes now after the hour.
CHETRY: Midnight madness.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You have a president issuing rules at the last minute that he knows might be contrary to what his predecessor wants to do.
(END VIDEO CLIP)
CHETRY: Extending his agenda. And up close look at the final acts of President Bush.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Some of the damage that will be done to the environment as a result of these rules will be irreversible.
(END VIDEO CLIP)
CHETRY: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most News in the Morning." You know, for Hillary Clinton she almost tops the Democratic ticket and now she could become secretary of state. And then, of course, Sarah Palin, we could see her back again in 2012.
This year saw as well a record number of women elected to office in the Congress. So is 2008 the year of the woman?
Well, joining me now is "60 Minutes" correspondent Lesley Stahl, and syndicated columnist Liz Smith. They're also founding partners of the Web site wowowow.com, which is going great for you guys. Thanks for being with me this morning.
We asked the question based on a couple of very interesting articles saying that while it was supposed to be the year of the woman, unfortunately it was not. One of the things that they say in this New York magazine article and they talk about it being the witch but with a "b" and the dips (ph) is that the candidacies of Hillary Clinton and Sarah Palin ended up reinforcing some of the worse stereotypes about women. What do you think about that, Liz.
LIZ SMITH, FOUNDER, WOWOWOW.COM: I just think to say there were two extraordinary women that people, you know, have really strong feelings for and against. And -- but I think if we ask if it's the year of the woman, I think it will be the year of the woman from now on, for a long time, because maybe they didn't break the glass ceiling, Lesley, but they sure put a big crack in it.
LESLEY STAHL, FOUNDER, WOWOWOW.COM: We do inch forward, except little baby step by baby step. Really little baby step. But what strikes me and the piece we just saw on Hillary Clinton, I haven't heard a single peep that she isn't the most qualified, the most able. There is absolutely nothing about her qualifications based on how she ran her campaign that is questioning her ability to do a great job as secretary of state.
And that's a step forward. No one is saying she's being offered the job because she's a woman. I haven't heard that once. So the trouble -- yet all the negatives are about him.
SMITH: Yes. That's good.
CHETRY: You're right. You're right.
STAHL: So I mean, I think we do inch forward. The year of the woman, no. But another baby step forward for women, absolutely.
CHETRY: Well, you bring an interesting point that I want to ask you about. It's about Hillary Clinton because she did suffer from some problems in the primary when it came to likeability issues. That's what people talked about.
She was referred numerous times as the "b" word. And, in fact, one of the -- another pundit on our rival network one time said that every time he hears her speak, he feels the need (ph) to crawls and to cross his legs involuntarily. So why? And there are some career women who say that I understand this really hard situation of appearing strong and yet not appearing offensive. Why are we still dealing with that in 2008?
SMITH: Because as Lesley says we just go along inch by inch. I think that's why people objected so much to the "you've come a long way baby," remember that? STAHL: Yes.
CHETRY: Yes.
SMITH: I mean, oh, God, well, a long way wasn't long enough for most women. But you've got -- but women were important in other ways. I mean eight million women voted for, more than men voted for Barack Obama. So they have put him in the White House.
STAHL: You know, my sense about stereotypes is, and this is huge, that young women aren't facing it. Young women do not feel themselves that they're being discriminated against. It's almost a generational split.
And just for whatever reason, for whatever reason and it just may be human nature can't help it, the progress women have made in politics and in all the professions is just incremental. And you just have to go on and work by example and do a good job and do what Hillary did to prove herself.
CHETRY: Was Sarah Palin a setback for future thoughts about nominating a woman for either the vice president?
(CROSSTALK)
SMITH: I guess not because -- I don't see the class by herself.
STAHL: No.
Exactly. She's not the woman. And frankly, I think, if there was any major progress made this time, it is that there isn't a category called woman.
Hillary Clinton was a great candidate, period. And so, Sarah Palin was another candidate over here. And I think slowly, slowly, slowly we're going to get away from that woman. I think all these women who are governors are showing...
SMITH: Yes.
STAHL: ... that they don't look upon them as women.
SMITH: That's right.
STAHL: They look upon them as a person doing a good or not good job.
CHETRY: All right. Well, it was great to talk to you both today. We're out of time.
Lesley Stahl and Liz Smith, thanks so much for being with us.
ROBERTS: It's coming up on half past the hour, and here are this morning's top stories.
Handing over two wars. An important meeting today for two members of the Obama transition team. They will sit down with Defense Secretary Robert Gates to discuss how best to hand over Pentagon power. There is talk inside the beltway that Obama could keep him on board in the new administration.
Russia is sending reinforcements in the war against Somali pirates. The Russia Navy has pledged more warships from a number of its fleet to the region. They will join a NATO-led international fleet that's already in place off of the coast of Africa, after pirates seized a Saudi oil tanker that's the size of an aircraft carrier. Despite that presence though, they continue to hijack these vessels.
And the Bush administration reportedly in a rush to relax some of the regulations that protect endangered species. The regulations must be in by tomorrow to take effect before President-elect Obama is sworn in. if not, Obama could undo them before they take effect just as soon as he takes office on January 20th. But time is definitely running out for the president. So what can the president do before he leaves office that will make a lasting mark on the nation? The answer is a lot. Our Deb Feyerick is here now with that story. Some people are asking what more does he need to do to make his mark on this nation?
DEB FEYERICK, CNN CORRESPONDENT: Well, that's exactly every president leaving office really wants to do something, tries to push through changes that they've had the power to impose all along. Sort of like these 11th hour pardons but for rules. Well President Bush is trying to leave a lasting mark on everything from family leave to birth control to highway safety and the environment.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): As medical director for family planning in a clinic in west Philadelphia Dr. Steven () worries that last minute rule changes by the Bush administration will hurt his uninsured patients.
DR. STEVEN SONDHEIMER, HOSPITAL OF THE UNIVERISTY OF PA.: They're going to make access to care more difficult. You're just going to burden us and it's going to burden the patients.
FEYERICK: With time running out President Bush and his agencies have been working hard to push through last minute rules known because of their timing as midnight regulations.
MICHAEL WHITE, MANAGING EDITOR, "THE FEDERAL REGISTER": This is about 2,000 pages of regulatory material.
FEYERICK: Michael White works at the federal register where the new rules are published.
WHITE: This administration has planned it out much more aggressively.
FEYERCIK: Once the rules are finalized and printed it takes 60 days for them to go into effect, meaning many will be in place the day President-elect Obama is inaugurated.
JERRY BRTIO, MERCATUS CENTER, GEORGE MASON UNIVERSITY: That's what makes regulations possibly so pernicious. You have a president issuing rules at the last minute that he knows might be contrary to what his predecessor will want to do. It's what ties the hand of the next president.
FEYERICK: But experts say presidents are entitled to extend their agenda and promote their legacy. Among the biggest changes, employers now able to access some of your health information. Truck drivers clocking longer 11 hour shifts on the highways. And family planning clinics that get government money now able to deny information on abortion and birth control.
SONDHEIMER: It's mean spirited and wrong to not have available basic health care.
FEYERICK: Other big changes would weaken the endangered species act, raise levels of air pollution and make it easier for companies to destroy mountain tops to remove coal. Matt (Meytia) with the liberal watchdog group says many of the new rules favor industry.
MATT (MEYTIA): Some of the damage that will be done to the environment as a result of these rules will be irreversible, even if a couple of years down the road these policies are undone.
(END VIDEOTAPE)
FEYERICK: Now, so what are President-elect Obama's choices. Well he can start over and try to pass his own rules. That's complicated and takes years. Or he can try to reverse the midnight regulations using a law that's only been used successfully only once since it was created some 20 years ago. What happens is the Senate and House pass a joint resolution overturning the regulations they don't like, the President signs it, giving both houses or democrats this possibly could work this time around. John.
ROBERTS: Do you know if they need that 60 vote margin in the Senate to be able to overturn those rules or can they do it in simple majority?
FEYERICK: It should be able to done on a simple majority but it's got to be both houses. Yes.
ROBERTS: Deb Feyerick, good to see you this morning. Thanks.
FEYERICK: Any time.
KIRAN CHETRY, CNN, ANCHOR: Well, speaking of his parliament on America's election day, the Russian president Dmitri Medvedev blamed the U.S. for Russia's war with Georgia as well as the world financial crisis. He also announced that Russia would send more missiles into Eastern Europe. As things get chilly between old cold war foes, state department correspondent Zain Verjee has today's "Memo to the President." It's a look at some of the top issues facing Barack Obama.
(BEGIN VIDEOTAPE)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: May God bless the United States of America.
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Mr. President, just hours after your victory speech a threat from Moscow. President Medvedev warning he'll move Russian missiles near Poland to counter a U.S. missile defense shield being based there. Tough talk as Russia comes roaring back on the world stage. Bolder. Richer. Rolling in oil and gas money.
JAMES COLLINS, FORMER U.S. AMBASSADOR TO RUSSIA: Russia has reemerged as a major economy, major political player, security player. Much more organized. Much more self-reliant than it was at the beginning of this decade.
VERJEE: And behind Medvedev is one of the toughest world leaders, Vladimir Putin, determined to flex Russia's new muscle.
NICHOLAS BURNS, FORMER UNDERSECRETARY OF STATE: The new president will have to find a way to work with Vladimir Putin.
VERJEE: Russia wants to be taken seriously. Can the U.S. work with Russia without giving in?
VERJEE (on-camera): On every big international issue the U.S. runs into Russia on ending North Korea's nuclear program on confronting Iran over its efforts to build the bomb on getting a Middle East peace agreement. The U.S. needs Russia.
VERJEE (voice-over): But Russia is also the bear, threatening its neighbors, crushing opposition at home, echoes of old Soviet ways. Its heavy hand beating back Georgia, a U.S. ally whose damage was seen to be a promising partnership between Washington and Moscow. How far can the U.S. push back? Putin is fuming over the U.S. trying to get Georgia and Ukraine into NATO, and that American missile-defense system in Eastern Europe, all in Russia's backyard.
BURNS: All that I think speaks to the need for the next American president to have a relationship with the Russians that works. But on the other hand, we certainly don't want to see a world re-created in Central Europe where Russia feels free to intimidate and bully it's smaller neighbors.
(END VIDEOTAPE)
VERJEE: The U.S. must also keep working with Russia to stop the spread of weapons of mass destruction and especially to keep those weapons away from terrorists. Kiran.
CHETRY: All right. Zain Verjee for us. Thank you so much. And also tomorrow Homeland Security correspondent Jeanne Meserve is going to be looking at the challenge of cyber terrorism facing the Obama administration. That's tomorrow on AMERICAN MORNING. We also want to hear from you. Send us your "Memo to the President." Go to cnn.com/am. Click on the I-report link and you can give the president-elect a piece of your mind. Maybe explain in detail why there's certain issues that the new administration really must focus on. ROBERTS: Looking to the bible for a bailout. Our Christine Romans is taking a look now at how some homeowners are really hoping for a miracle. Hey, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hey, John. We're going to introduce you to some folks who went to Washington to pray for a mortgage bailout, taking their advocacy from the pews to the Treasury Department.
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ROBERTS: A lot of people trying to find some ways to deal with the mortgage crisis and homeowners are looking for deliverance from foreclosure by turning to a higher power, praying for God to save your house. Well it's not a new plan but now it's an organized effort. And Christine Romans joins us now with the details in chapter and verse.
ROMANS: That means nothing else is working when you have to turn around and pray for it, right? Looking for the answers to the foreclosure crisis in the Bible? Kiran and John, one group is using the power of prayer and advocacy from the pews to urge more help for homeowners.
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UNIDENTIFIED MALE: We come to let Congress know it's time to wake up. Secretary Paulson, it's time to wake up! Senators, it's time to wake up!
ROMANS (voice-over): It might look like a protest rally on this Washington D.C. sidewalk but this is a prayer rally to stop foreclosure.
PASTOR LUCY KOLIN, RESURRECTION LUTHERAN CHURCH: We're standing in front of the Treasury Building to pray, to blow the trumpet of prayer so our nation's leaders will wake up to the crisis that is devastating families all across the country.
ROMANS: This group of churches called PICO National Network is asking Treasury Secretary Henry Paulson to create a more systematic way of modifying mortgages.
KOLIN: Today PICO says Secretary Paulson, we don't want to reduce preventable foreclosures, we want to stop them.
ROMANS: PICO leaders say every bank that accepts taxpayer bailout money should be required to adopt the same set of loan modification procedures, setting monthly payments to 34 percent of the borrowers' income and in some cases reducing principal to reflect current property values.
MINISTER MARVIN WEBB, BETHLEHEM MISSIONARY BAPTIST CHURCH: The Treasury is involved because when there's no one to turn to a lot of times they will come to the church and ask for help. ROMANS: Minister Marvin Webb is looking for a mortgage modification himself. He says his monthly payment takes up more than 60 percent of his income. He said the solution to the foreclosure crisis is in the Bible.
WEBB: You see your brother lacking something. You are supposed to give him, don't just say I'm going to pray for him but you see other people, not just Wall Street needing a handout or a coat, give them a coat. Give them some shelter.
ROMANS: PICO members met with congressional leaders and treasury officials and they believe their prayer rally will help get their message through.
KOLIN: It's our testimony to ourselves and to the public that we have a god who never forecloses on anybody.
(END VIDEOTAPE)
ROMANS: PICO leaders say they really like the foreclosure plan Sheila Bair of the FDIC has proposed. It's basically what they have been asking for, modifying mortgage payments to around 30 percent of income and they say they met with Obama's economic staff and still hoping that that plan will gain some traction. And they have not been able to meet directly with Secretary Paulson.
ROBERTS: How did the reverend end up with a mortgage that costs 60 percent of his income?
ROMANS: An adjustable rate mortgage. He has lived in his home since 1968 so he took money out of his home. He refinanced and take money out to pay his bills. He said he was paying his bills but he said the people in his pews are in the same situation. And we asked him, what do you say to people who are like, look, a lot of people have done the right thing. A lot of people had not taken money out of their house? What do you say to that? And all he could say it could happen to you. You know, the Bible says it could happen to you. So you should help your fellow man.
ROBERTS: The old home equity line of credit.
ROMANS: Well, it's fine when home prices are going up. A lot of people did it. Now home prices are not going up and a lot of people are really stuck.
CHETRY: All right. Christine, thanks.
Well skiing season starting with a big chill in the northeast. Killington opens its slopes and Rob Marciano - he's also doing some praying. He's praying for breaking news in the hills of Vermont so he can head over there and strap on those skis.
ROB MARCIANO, CNN, METEOROLOGIST: Well, they opened up yesterday. So if that's not breaking news I don't know what is. And more cold air on the way. So what didn't fall from mother nature man will make. Complete details coming up when weather comes back on "the most news in the morning." 43 minutes after the hour. Stay right there.
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ROBERTS: It is definitely cold in Minneapolis today. Mostly cloudy, 28 degrees right now. Later on it's going to get even better. Flurries and the temperature will go down. A high of 24 later on today. Our Rob Marciano is checking out the weather across the country for us today in Atlanta where, I guess, things are pretty nice. What do you got? About 50 degrees down there? But look at that thermometer up there in the north.
MARCIANO: Yes. You know everybody got a piece of the cold there, John, even though the thermometer is right over Minneapolis where it should be. The cold air is driven all the way down to the south. We had record lows yesterday as far south as Tallahassee, Florida. Check them out. Tallahassee got to 28. Let's see I forget what the number 25. Goodness. Columbia, South Carolina 22. Jackson, Kentucky 19. Akron, Ohio, 14. And flurries in Charlotte, North Carolina with record low temperatures there. All right. Not so bad right now. But on the radar scope a little bit of flurry activity across the big Apple. This is not going to add up too much. You will get your reinforcing shot of cold air over the next 12 to 24 hours.
All right. Green mountains of Vermont, white mountains of New Hampshire, not a whole lot going on right now. But there has been enough to open the slopes in Killington. There you go. A little bit of fresh snow from mother nature and of course man added to that. They opened up yesterday and they're looking good. They will be piling up the manmade snow no doubt over the next several days. Cold air will help them along with mountains of snow and all the rest of them as they get geared up for the season. There's your webcam. Live K-1 web cam. I love the technology. You can just get on the web and see what they are doing right now. And there's a live webcam from K-1 there in Killington, Vermont. Adding up that base. Too bad there weren't big mountains near Buffalo and Rochester and Syracuse because they just get hammered with the snow.
Lake-effect snow showers will continue today. They will be developing as this cold air begins to in. And we're seeing it now Traverse City, back to Grand Rapids, lake-effects, snow warnings in effect for those folks. 27 if we're lucky in Minneapolis. That's where they are right now. 33 in Chicago and 40 degrees in New York. So wax up the skis John, just what three, four trip from New York City up there to Vermont.
ROBERTS: Yes, Killington is about 4 1/2, five hours from here. What's going out in my favorite place called Colorado?
MARCIANO: Hey, they are looking good as well. A lot of them have been open already. If they can have half the snow they had last year we would all be smiling.
ROBERTS: I know. My son was in heaven last year.
All right. Rob, thanks so much for that. We'll check back in with you.
MARCIANO: All right.
ROBERTS: Today the great American smokes out. Yes. This is the day. We got an update on our President-elect's fight to quit, by the way. Who really made Obama put that butt out? And you're surely smarter than a fifth grader. But are you smarter than a politician? Surprising results from a brand new test. Wait until you see what some people just don't know. You're watching "the most news in the morning."
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CHETRY: Well, it's an herbal supplement that's supposed to help your memory but a new study on ginkgo biloba finds it does not help stave off Alzheimer's or dementia. We're "Paging Dr. Gupta," CNN's chief medical correspondent is in Atlanta for us this morning. So what is the word about this. you know there's a lot of hope for ginkgo biloba. Last year, in fact the annual sales of $107 million in the U.S.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: People certainly buy into it. It made all the sense in the world when it first came out. It was this powerful anti-oxidant. And the thought was processes like oxidation accelerate dementia in Alzheimer's. Give anti-oxidants and it's going to slow it down. It made a lot of sense in the laboratory 20 years ago when it was first tested.
But Kiran, more tests started to emerge to show that it really wasn't as beneficial as people thought. And researchers decided to put a more definitive test together. They looked at people over the age of 75. They followed them along for six years asking this question, was gingko biloba working? Was it slowing down Alzheimer's or dementia? And the answer really came back no. It really does not seem to provide benefit, at least the benefit that people think. And it joins a list of herbs that have had similar problems. Echinacea, for example, to fight colds. This has been put to a more definitive test and show not to be beneficial. St. John's wart for example for depression, again, not shown to be beneficial.
Part of the problem here is that about one in five people take some sort of herbal supplement like this, around 20 percent of the folks. And in two-thirds of those supplements that are being taken, there's really no known benefit. The attitude seems to be Kiran, may not help but won't hurt, so why not. The flaw of thinking there is that some of these can actually be problematic as well. We've heard about some of those. We've reported some of those on AMERICAN MORNING. For example, kava root in retrospect has been shown to cause some live problems. Ephedra was taken off the market, banned by the FDA because it was linked to 100 some deaths. And some ayurvedic supplements let's say far eastern Indian supplement base, a lot of them safe but some of them contain heavy metals and that can be problematic as well. You're starting to see real science now behind some of these supplements, Kiran.
CHETRY: All right. I won't ask you about my old standby, Airborne, also those emergency packets, you know, vitamins. This one says it has 17 different herbs and nutrients. Please tell me this is going to help John and I not get sick this winter season.
GUPTA: Well Airborne has been in the news a little bit lately you know because it makes some pretty solid claims about what it can do to fight off colds. It says it can fight off colds, it can lessen the symptoms of cold. The company, by order of the FDC, had to change its claims on the labeling and now has a much more general claim of supporting the immune system. So you know it may help somewhat. It contains vitamin c, echinacea and zinc along with some other things as we just said some of those things have been shown not to work. So it's a little bit skeptical at best and even the makers of Airborne have pulled back on how effective they think this might be. Sorry, Kiran. I do want you to stay healthy though, still.
CHETRY: Thanks.
All right, well, you know what, they still haven't disproved sleep, right? Sleep does help.
GUPTA: Yes. I'm trying to help you guys out with that. Morning anchors, a particular problem with that, but do the best you can.
CHETRY: Until you think of a pill for us, until you make one up, we're stuck.
GUPTA: I'll retire after that but I'll make sure you get some.
CHETRY: Exactly. Good to know Sanjay about the ginkgo this morning, thanks.
GUPTA: Thank you.
CHETRY: It's 54 minutes after the hour.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): Deep concern over the Dow.
ALI VELSHI, CNN, SENIOR BUSINESS CORRESPONDENT: Further down all of the way down to below 8,000.
CHETRY: Is this any time for lavish inaugural?
UNIDENTIFIED FEMALE: A lot of it is about tone and making sure that, you know, the celebrations that do take place are not over the top.
CHETRY: Justifying glitz and glamour when America is struggling.
Plus, your guide to the chi-conomy.
UNIDENTIFIED FEMALE: Credit cards are completely off limits.
CHETRY: How to look like you have money to burn when you're strapped for cash. You're watching the most news in the morning.
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CHETRY: Well you probably know a thing or two about fifth grade math and science, right? But what about the basics of your government? Could you possibly know more than our elected officials? Our Alina Cho joins us now with the results of a new report that may surprise you. Do we want to know?
ALINA CHO, CNN, CORRESPONDENT: Well, I don't know. Brace yourself, guys. Good morning. Good morning, everybody. We should tell you random sample of 2500 people across the country, 33 questions in all, many of them taken from basic citizenship exams. And guess what, those who have held elective office scored an average of five points lower than those who have never held public office. Not good. Overall, 71 percent of people who took the test failed. The survey by the Intercollegiate Studies Institute included questions about political history, foreign relations and the economy. And at a time when the country is facing such serious economic problems, one of the report's authors told us it's the worse time to be experiencing what he calls an epidemic of civic ignorance.
(BEGIN VIDEO CLIP)
RICHARD BRAKE, INTERCOLLEGIATE STUDIES INSTITUTE: American citizens are not going to be able to exercise informed judgment at the ballot box and then through a public opinion polls tell their elected representatives what to do about this problem.
(END VIDEO CLIP)
CHO: Our anchors are incredibly surprised by all this right. We want to take the questions, guys. Look at the questions rather that people have a hard time with, and not to put you on the spot but OK -
CHETRY: Not to put you on the spot, but we will.
CHO: We're going to put you on the spot. So let's a look at one of the questions. Identify the three branches of government. What are they?
CHETRY: All right.
ROBERTS: There's the main, trunk, and then the left branch and then the right branch, right?
CHETRY: Corporate, the executive branch which would be the president.
ROBERTS: Legislative.
CHETRY: Judicial.
CHO: Legislative and judicial. That's right. That's the answer there. Can we reveal it? There we go. Hey we brought back the truth squad ring - executive, legislative and judicial. That's right.
The next question, we should mention, fewer than half, 49 percent got that question right. We want to take a look at the next question here. What was the source of the phrase "government of the people, by the people, for the people," was it, a, the "I have a dream speech," b, " the declaration of independence," c, the U.S. constitution, or d, the Gettysburg address, guys?
CHETRY: I'm going to go d, the Gettysburg address.
CHO: And that is correct, d.
CHETRY: Did you know that one, too?
CHO: The Gettysburg address. How did this respondents do, guys? Well, not well. 21 percent of citizens got that question right. Only 23 percent of elected officials answered that question correctly. And by the way, double that number, 56 percent of Americans knew that Paula Abdul was a judge on "American Idol."
ROBERTS: I know she didn't write the Gettysburg address.
CHO: She most certainly didn't.
CHETRY: She did help put it to music.
ROBERTS: What most people didn't know is that the Gettysburg address was very short.
CHO: Yes, it was. Just an added bit of detail. John's so smart.
All right. Last question. What part of the government has the power to declare war? Is it a, congress, b, the president, c, the supreme court, or d, the joint chiefs of staff?
ROBERTS: Well a lot of people -
CHETRY: This is funny because -
CHO: Absolutely.
CHETRY: Because officially it's Congress -
CHO: That's right.
CHETRY: But many would argue that during the last eight years that was called into question a little bit.
CHO: That's right.
ROBERTS: And also some people might perceive as sending troops into battle as being a declaration of war. It's not necessarily because the president under the War Powers Act does have the --
CHO: That's right.
ROBERTS: -- ability to commit troops for 60 days before he has to go to Congress.
CHO: That's right. That's right. The answer -- we all know by now is A. Congress. 54 percent of citizens answer that correctly. Get this, guys. Only 46 percent of elected officials knew that Congress was the right answer. Isn't that incredible?
We should mention --
ROBERTS: I said, you could be fooled because the president --
CHO: Yes. You can be fooled.
ROBERTS: President Bush did go to Congress for authorization for the war. But, he could have done it without it.
CHO: That's right. That's right. But, I mean, you know, elected officials I think should know that, right?
CHETRY: You know what I find interesting? Is that people who have had to study to become U.S. citizens, I mean and they weren't just born here, like my dad. They know this stuff like the back of their hand --
CHO: Oh, absolutely.
CHETRY: Because it takes on a new meaning.
CHO: Sure, they do. Sure, they do. Yes. I mean, my parents, same way. You know, one thing we should mention. We weren't allowed to cheat -- everybody, we should note that.
(CROSSTALK)
CHO: It didn't matter if you went to college, or didn't go to college. People scored pretty much the same. Didn't matter if you were conservative or liberal, picked pretty much the same. But, the most interesting finding of course, I think, is that the survey says that the average citizen scored better than elected officials. It's really, really incredible. And --
ROBERTS: As Jack Cafferty would probably say, just more evidence that when you go to Washington, your brain rots.
CHO: And you know, one other important thing, especially coming ouot of the election guys, is that when you know about your country's history, you are more likely to vote and participate. You know, so --
ROBERTS: Alina, thanks for that.
CHO: For what it's worth.
ROBERTS: Fascinating stuff this morning.
