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American Morning
Bill Clinton on Hillary Clinton; Inauguration Party Plan; GM Says Company Will Tank Without Bailout; New Mexico Governor Tapped As Commerce Secretary; Secretary Rice Arrives in India
Aired December 03, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): CNN exclusive. Clinton on Clinton.
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I talk to her about everything.
ROBERTS: The former president's emotional first interview since his wife joined team Obama.
CLINTON: I just try to be a helpful sounding board to her.
ROBERTS: And from Motown to Main Street.
ALINA CHO, CNN CORRESPONDENT: Could a buy one get one free offer help this dealership?
ROBERTS: Desperate dealers go as low as they can go.
ALI AHMED, ROB LAMBOIN'S UNIVERSITY DODGE: The first thing people think when they come in is that, yes, it's a fake ad.
ROBERTS: Why it's a great time to buy and why no one is biting on this AMERICAN MORNING.
(END VIDEO CLIP)
ROBERTS: And good morning. Thanks very much for joining us. It is Wednesday. It's the 3rd of December, and Bill Clinton talking and talking a lot in Hong Kong, as he opens up his global initiative campaign.
KIRAN CHETRY, CNN ANCHOR: Yes. He sure is. Choking up a little bit as well. So we're going to bring you a lot of what the former president had to say.
First of all, though, Secretary of State Condoleezza Rice arriving in New Delhi, India overnight for meetings on last weeks' terror attacks in Mumbai. Rice will try to soothe strained relations between India and Pakistan as evidence mounts of a Pakistani link to the massacre.
Pakistan's president telling CNN that he won't hand over suspects wanted by India in connection with the attacks but to try them in Pakistan if there's evidence of wrongdoing.
This morning Congress knows the drastic steps Detroit's big three are willing to take for your tax dollars. The restructuring plans include massive layoffs, executive pay cuts, possibly eliminating entire brands. General Motors, Ford and Chrysler say they need about $34 billion to weather the top economic times. Hearings are scheduled for tomorrow and Friday.
And former First Lady Barbara Bush is back home this morning. She was released from a Houston hospital one week after undergoing surgery to repair a perforated ulcer. Doctors say that the 83-year- old Mrs. Bush will continue on a liquid diet for another week, but they say she's in excellent condition and recovering as expected.
ROBERTS: Well, we begin this morning with a CNN exclusive. Former President Bill Clinton talking for the first time since his wife's nomination to the U.S. secretary of state, suggesting that while he doesn't plan any direct involvement with the Obama administration, he certainly will be a sounding board for his wife on foreign policy. And he says being America's next top diplomat was something that Hillary Clinton did not see coming.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I think she was shocked. She first read about it in the newspaper, the speculation.
UNIDENTIFIED FEMALE: Really?
CLINTON: Yes. And she -- it was, I think, a very wise decision by the president-elect, and I think she made the right decision. But for her, it was hard. She adored being in the Senate.
I think my involvement will be what our involvement with each other's work has always been. That is all the years I was a governor and president, I talked to her about everything. And I, you know, found her advice invaluable. And I'm sure that we'll talk about all this.
I mean, I really care about a lot of these profound challenges that our country and the world are facing. But the decisions will have to be ultimately President-elect Obama's decision. I'll try to be a helpful sounding board to her, but I don't think I will do any more than that, unless he asks me to do something specific, which I'm neither looking for nor closed to.
(END VIDEO CLIP)
ROBERTS: CNN's Suzanne Malveaux joins us now live from Washington. Suzanne, you spent a lot of time with the Obama campaign. You've been talking with people inside the campaign, and we know that one of the reasons he did not pick Hillary Clinton to be his running mate for vice president was because they were afraid of what would happen with Bill Clinton, how involved he would be. Did they really believe that he'll step a foot back for her? SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: In a word, no. In a formal way, they've been given all the assurances they possibly can get that he's not going to interfere. He's got to submit his speeches, his business activities to the State Department ethics board, White House council's office. He's got to release all the names of his donors to the foundation. No longer accept contributions from foreign governments for his global AIDS initiative and so on.
All these agreements here but ultimately they know they can't entirely control Bill Clinton. I mean, he speaks his mind. He works the world stage with charm and intellect. And really the trick is they believe that they need to harness that in some ways as this kind of a husband and madam secretary to allow them to collaborate in some ways, John.
ROBERTS: And you know, the other thing is today we're going to get another cabinet announcement from the Obama administration. It's going to be Bill Richardson. Looks like he's going to get the nod for commerce secretary. He was the energy secretary in the Clinton administration as well as being the ambassador to the United Nations. And when you put all of this together, this cabinet is really beginning to look like Clinton redux. Can Barack Obama really be the element of change that he said he was going to be during the campaign if he's got all these Clinton holdovers on his staff?
MALVEAUX: That's a very good question because obviously there's going to be some influence in how they did business in the Clinton administration. And Bill Clinton is going to be talking to these people, no question as well.
The one thing that I learned covering the campaign and Bill Clinton, as you know, is that the Clintons operate within two different worlds. They have their official staff who carry out much of what they do, and then there's a very powerful and formal network of people that they turn to. And they're not necessarily on the payroll or even talking to the official staff and they're seeking advice from them and they're also courting them. I don't think that that is going to change, John.
ROBERTS: All right. Thanks very much, Suzanne Malveaux. We're expecting that announcement, by the way, at 11:40 this morning.
Also this morning, major political developments. Democrats waking up to find that their dreams of a filibuster-proof majority in the Senate have been crashed. Republican Senator Saxby Chambliss will hold on to his hotly contested Senate seat. He defeated Democratic challenger Jim Martin, 57 to 43 percent. A critical race affecting not only the balance of power in the Senate but also President-elect Barack Obama's agenda, something that Senator Chambliss touched on during his acceptance speech.
(BEGIN VIDEO CLIP)
SEN. SAXBY CHAMBLISS (R), GEORGIA: This race has been nationalized. People all around the world truly had their eyes on Georgia. And you have delivered tonight a strong message to the world that conservative Georgia values matter.
(END VIDEO CLIP)
ROBERTS: And there is still one outstanding Senate race in Minnesota. The official recount between Republican incumbent Norm Coleman and Democrat Al Franken ends on Friday.
CHETRY: Breaking news from India. Secretary of State Condoleezza Rice arriving in New Delhi overnight, and she's hoping to ease growing tensions between India and Pakistan, a week after the Mumbai massacre that killed 179 people including six Americans. Authorities are interrogating the only one of the ten terrorists to survive the attacks. They claim he's Pakistani and was trained by the Islamic militant group Lashkar-e-Taiba operating inside Pakistan.
And these pictures are dramatic video coming in from gunmen being beaten by Indian police, the one gunman who survived as he was being captured. Pakistan's president is demanding that India hand over 20 suspects, saying that if there's evidence and any of them were involved in the attacks that they will be dealt with under Pakistani law. He spoke exclusively with CNN's Larry King.
(BEGIN VIDEO CLIP)
LARRY KING, HOST, "LARRY KING LIVE": Pakistan, you called on India to produce evidence of the complicity of any Pakistani group in the attacks. If it's produced, what would you do?
PRES. ASIF ALI ZARDARI, PAKISTAN: I would -- my government would take action. Our government would take action. The democratic government of Pakistan will take action against all the actors and anybody who is involved.
(END VIDEO CLIP)
CHETRY: Meantime, U.S. intelligence say the signs point to Lashkar-e-Taiba, the group responsible for an attack on India's parliament as well as a series of bombings aboard trains at railway stations in Mumbai two years ago.
Well this morning, passengers aboard a luxury U.S. cruise line are safe after a scary run in with Somali pirates. It happened Sunday as that ship was sailing between Rome and Singapore with nearly 700 passengers on board.
According to the ship's owner, two bands of pirates were spotted. The captain sped up to outrun them. According to the captain, one of the pirates was able to fire eight rifle shots in the direction of the vessel before trailing off. No one aboard the ship was harmed.
ROBERTS: Seven minutes after the hour.
Parents, you may want to think twice before letting your kids logon or tune in. A new study finds that television video games and the computer may be doing your kids more harm than you actually realize. And Detroit's auto executives back in front of Congress today. They're going to plead their case again for a bailout of America's big three automakers. They'll outline the drastic steps that they intend to get your tax dollars. That's coming up as well as the chief operating officer and president of General Motors, Fritz Henderson. He'll be with us in about 40 minutes time.
(COMMERCIAL BREAK)
ROBERTS: It's 11 minutes after the hour now, and Christine Romans joins us "Minding Your Business." We mentioned that we're going to have the president, CEO of General Motors.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right.
ROBERTS: Fritz Henderson, coming up at about 10 minutes to the top of the hour. And they're going to Congress.
ROMANS: They're going to Congress --
ROBERTS: Hand again.
ROMANS: Hat in hand, you know, with their little tin cups.
CHETRY: Hybrid in hand.
ROMANS: Hybrid in hand. OK. Do you buy it? Do you buy it now that they've gotten religion (ph) and now the hybrids, they're going to drive hybrids to Washington instead of taking a corporate jet?
ROBERTS: Last time -- last time they flew here in their corporate jets. This time they're driving all the way in hybrids. I mean, does it seem like a little bit of overkill.
ROMANS: More than a few people on the train have been saying, oh, I don't know. Their true colors were in the corporate jets. They're going to have to get over that impression in Washington because they need the money.
This is what they're asking for. The automakers seeking $34 billion. GM wants $18 billion. GM said it would start using this money right away. It needs it now. They may have to eliminate brands. They may have to slash 21,000 or 31,000 jobs by the year 2012.
Ford asking for $9 billion but asking for $9 billion as a backstop. These are loans that they're looking for. Ford says it hopes it doesn't have to use it. And Chrysler asking for $7 billion. Salary cuts for all of them.
Think about it this way. In a nutshell, this is about hybrids, small fuel efficient vehicles and no more corporate jets. $1 a year is what the salaries are for these CEOs, what they're saying they'll take if they get the government money. So we'll see.
Hearings tomorrow and the next day. They put their plans forward. We'll see if they get the money, you know.
More than -- originally it was $25 billion. Now, it's $34 billion they're saying they need.
And then I want to update you a little bit about the other bailout, that other $700 billion bailout. The Government Accountability Office yesterday released a congressionally mandated report about oversight of this and found some flaws and found some lack of oversight. Said there's -- they need more staff, better facilities, better transition. They need to be working more on making sure that there's an overall kind of plan here, and oversight of it.
So, that's the first kind of look we've gotten and how this things have been implemented and it found a lot of flaws. No big surprise there. A lot of people have been saying that they thought that they would find some holes.
ROBERTS: What you're saying before I left on my extended vacation that, you know, we're talking to Chris Dodd, and that was one of the things you pointed to him was, hey, wait a minute. You said you wanted oversight, where's the oversight here?
ROMANS: Yes. And he said yesterday we need -- this GAO is telling us what we've been saying. We need more oversight. We need more oversight of how these things work. $700 billion is an awful lot of money and do not to know where the money is going and sort of what is the -- what is the --
CHETRY: What's the end game?
ROMANS: Exactly. Exactly.
As we're talking about more money for another industry...
CHETRY: Right.
ROMANS: ... let's go back and look at the, you know, the $700 billion that's been designated for financial services and we know that --
(CROSSTALK)
ROBERTS: By the way in our 8:00 Eastern hour this morning, we're going to be talking with Nobel Prize winning economist, Paul Krugman, about all of that.
ROMANS: Great.
ROBERTS: So make sure you're around.
It's 13 1/2 minutes now after the hour. We'll be right back.
New TV guidelines for kids.
(BEGIN VIDEO CLIP) DR. EZEKIEL J. EMANUEL, NATIONAL INSTITUTES OF HEALTH: Those have public health and health consequences for children in terms of obesity, beginning to smoke, beginning sexual activity.
(END VIDEO CLIP)
ROBERTS: What's OK to watch? What's too much? A new health report about children, television and, get this, smoking.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "NETWORK" FROM WARNER HOME VIDEO)
UNIDENTIFIED MALE: Less than three percent of you people read books! Because less than 15 percent of you read newspapers because the only truth you know is what you get over this tube.
(END VIDEO CLIP)
CHETRY: There you go, a scene from "Network." A warning to parents this morning if you don't already know it that when your kids watch too much TV it's not good for them. In fact, there's a new study finding that watching too much TV, playing too many video games, even being on the iPod a lot can have a negative impact on your child's health.
Here's CNN's Brooke Anderson.
BROOKE ANDERSON, ENTERTAINMENT CORRESPONDENT: John and Kiran, does media expose or have the capability to destroy kids' lives. A new study answers with a resounding yes.
(BEGIN VIDEOTAPE)
ANDERSON (voice-over): Kids watching TV, playing video games, surfing the Internet. Harmless pastimes or dangerous distractions?
DR. EZEKIEL J. EMANUEL, NATIONAL INSTITUTES OF HEALTH: Those have public health and health consequences for children in terms of obesity, beginning to smoke, beginning sexual activity, academic achievement, drug and alcohol use.
ANDERSON: Bioethicist Ezekiel Emanuel, a brother of President- elect Barack Obama's chief of staff, Rahm Emanuel, is a lead researcher on a study by the National Institutes of Health and other groups detailing media's effects on children.
EMANUEL: As little as eight hours a week begin to give you these negative health outcomes. The average kid in the United States spends about 45 hours a week in media.
ANDERSON: The findings were culled from nearly 200 studies conducted over 30 years with more than 80 percent revealing negative outcomes. EMANUEL: A large number of these associations is simply the number of hours watched separate from the content and what's actually on the television or in the Internet, just simply time.
ANDERSON: Psychiatrist Charles Sophy contends media is OK for kids in moderation.
DR. CHARLES SOPHY, L.A. DEPT. OF CHILD & FAMILY SVCS.: We need the media. There is a good point to it. So, limit it and watch what your child is watching.
ANDERSON: Dr. Emanuel and the non-profit group Common Sense Media, which backed the study, agree parents should take a more active role in limiting their kids' exposure but insists the government also needs to intervene.
JAMES STEYER, CEO, COMMON SENSE MEDIA: There's no research on new digital media, cell phones, iPod, the Internet, and its real impact on kids' health. So there needs to be a whole new set of research on that.
Second, there ought to be media education and media literacy in every school in the United States.
ANDERSON: Until that happens, the president-elect has a word of advice for parents.
BARACK OBAMA (D), PRESIDENT-ELECT: We're going to have to turn off our TV sets, and we're going to have put away our video games.
(END VIDEOTAPE)
ANDERSON: Dr. Emanuel did find research showing educational media seemed to do no harm. But he did tell me that positive associations between media and children were a rare occurrence -- John, Kiran.
ROBERTS: Kareen Wynter (sic) reporting for us this morning.
Will Barack Obama be getting a diplomatic two-fer when Hillary Clinton becomes secretary of state? Hear what the former president is telling CNN about his wife's new job and the role that he is prepared to play.
Coming up now in 20 minutes after the hour.
CHETRY: Desperate to make a deal.
(BEGIN VIDEO CLIP)
ALI AHMED, ROB LAMBOIN'S UNIVERSITY DODGE: The first thing people think when they come in is that, yes, it's a fake ad.
(END VIDEO CLIP)
CHETRY: Buy one get one free at a car dealership? A look at some of the crazy things that they'll do to get you to drive it away today.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty four minutes after the hour.
This morning Washington looking over the new blueprints for a $34 billion bailout of the U.S. automakers. Yesterday, the big three spelled out what they want, what they're willing to sacrifice as well, including massive layoffs and possibly eliminating entire brands -- brands you know like Pontiac and Saturn.
And as the executives gear up to go up before Congress once again, tomorrow new card numbers or new numbers are showing that car sales are plunging 30, 40, even 50 percent among some brands. Sales for all cars sold in the United States expected to come in at around 10 million. That's the worst level since 1982.
It's not just the automakers that are hurting. Hundreds of dealers have shut their doors. Others are literally giving cars away.
Our Alina Cho has been looking into this one. Buy one get one free? I mean, you know, sweater, OK, but cars?
CHO: Well, yes. I mean, it's incredible.
You know I was in Florida last week. I saw this ad on television. I said this is too good to be true. I've got to look into it. So I did. Guys, good morning. Good morning, everybody.
You know, you may be surprised to hear just how far dealers are going these days to make a deal. The truth is they have to.
Car dealers actually employ more people in this country than car manufacturers. In other words, there are more people selling cars in the U.S. than there are people making them. So with everyone talking about how Detroit is hurting, we wanted to know how are dealers affected?
(BEGIN VIDEOTAPE)
ALI AHMED, ROB LAMBOIN'S UNIVERSITY DODGE: The first thing people think when they come in is that, yes, it's a fake ad. It's a normal car dealer ad. It's a gimmick, but it's not.
CHO (voice-over): Buy one, get one free, the type of ad you normally see at a grocery store. But at a Dodge dealership in Miami?
AHMED: We've been fielding phone calls and e-mail inquiries from every state in the country, looking to get this buy one, get one deal.
CHO: Desperate times, desperate measures. This year 700 car dealers shut their doors. That number is expected to top 900 by the end of the year. And the majority of those dealers sell American cars. AHMED: It's definitely a tough climate right now. A lot of people are saying it's a perfect storm of, you know, gas prices and financing and consumer confidence.
CHO: The biggest problem, the trickle down effect of the credit crunch. Can't get a loan, can't buy a car. This Chrysler dealership in New York used to sell 150 cars a month. Today, they say it's half that.
(on camera): A year ago you might have had 15 to 20 salesmen on the floor. Today it's what?
MATT LEE, MAJOR WORLD AUTO: Eight to ten. Salesmen actually just walk out because they're not making enough money to support their family.
CHO (voice-over): They've even stopped bringing in new models because the cars they have aren't moving.
JAMIE KRINSKY, SALESMAN, MAJOR WORLD AUTO: Just, you know, you would see five people a day coming into at least look at a car. For a salesman, you're getting maybe one person a day or two people a day.
CHO: So they're offering deals too.
(on camera): Fire package included.
(voice-over): Zero percent financing for 72 months, $7,500 rebates. Even that's not enough. In the two hours we spent combing the lot, only one customer who was just browsing. So could a buy one get one free offer help this dealership?
(on camera): You have to admit, it's pretty catchy.
LEE: If it worked for them, what can we do? Maybe we'll try it.
(END VIDEOTAPE)
CHO: You know what? They may have to.
Now in the interest of full disclosure, we should tell you that buy one get one free means buy the first Dodge truck at full retail get the second one free excluding tax tags and dealer fees. Now that would cost you about $3,000. It is still, guys, but as always, there is a catch here.
CHETRY: And it just shows you how badly they must be hurting to be --
CHO: Unbelievable. They are literally getting phone calls and e-mails from all around the country. People -- you know, one person said to me it's not a bad deal if you go in on it with somebody else maybe.
CHETRY: Exactly.
CHO: Split that cost, right?
ROBERTS: Oh, yes. Yes. Split the cost of the first truck and then you get the second one for free.
CHO: Exactly.
ROBERTS: But again, you're buying a truck. Obviously, a lot of people have use for pickup trucks.
CHO: Yes, they do.
ROBERTS: And the move to more fuel efficient cars.
CHO: Well, and that's a big question too. You know, a lot of people have said in order to save the big three, they need to have more cars like the Toyota Prius. More hybrid cars and that will save the industry. This is obviously just one factor, but, you know, these deals -- incredible.
ROBERTS: Yes. Well, amazing. Well, something that we'll talk about coming up in about 20 minutes time here in AMERICAN MORNING when the president and chief operating officer of General Motors, Fritz Henderson talks about the bailout plan. They plan to down size, get rid of their corporate jet fleet and what kind of cars they plan to make in the future. Important conversation coming your way in about 20 minutes time.
CHETRY: All right. We'll look forward to it.
Meanwhile, it's about half past the hour. A look at the top stories.
The New York Giants suspending star wide receiver Plaxico Burress for the remainder of the season. The move comes by the team after Burress accidentally shot himself in a leg at a New York nightclub last weekend. Burress has been charged with illegal gun possession and could possibly serve jail time.
Also, who would have thought gas for $1.80 right after the holiday travel season? Well, that's according to AAA. The national average now down about a penny overnight. It's the 77th straight day of decline, and this is the lowest we've seen gas since January of 2005.
This morning some live pictures for you from London as Queen Elizabeth opens the British parliament as she does every year during this morning's highly choreographed ceremony. Queen Elizabeth will outline the policies for the coming year. And despite all the pomp and political showmanship, the economy, of course, is likely to take center stage.
And also new this morning, a CNN exclusive. Former President Bill Clinton gives his first interview since Hillary Clinton, his wife, was tapped to be secretary of state. In Hong Kong, Clinton telling CNN international that he plans to be a sounding board for his wife. And he also talked about the vetting progress that paved the way for her nomination.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Look, she's going to be secretary of state and I operate globally and I have people who contribute to these efforts globally. I think that it's important to make it totally transparent. Tell you the donors are and let people know that there's no connection to the decisions made by America's national security team including the secretary of state.
So, everything else that's a part of this, I have no problem with. I think it's a good idea. I think my involvement will be what our involvement with each other's work has always been. That is all the years I was a governor and president, I talked to her about everything. And I, you know, found her advice invaluable. And I'm sure that we'll talk about all of this. I mean, I really care about a lot of these profound challenges that our country and the world are facing.
(END VIDEO CLIP)
CHETRY: Joining me now from Washington to weigh in on former President Clinton's remarks -- Mike Allen, chief political correspondent for Politico.com.
Good to see you this morning, Mike. You had the chance to hear some of what the former president had to say. What do you think about how his shadow will loom large over this new assignment secretary of state for his wife and how that will factor into the perception from world leaders about his wife?
MIKE ALLEN, CHIEF POLITICAL CORRESPONDENT, POLITICO.COM: Well, in addition to being a former leader, he's a global celebrity in part because of the work that he's been doing since he got out of office. And as your viewers know, he has personal connections with a lot of these leaders. So, it's inevitable that there are going to be some conversation.
But I think we hear in the former president's tone here his determination to be differential to the new president just as he has been to the last one. We've seen very little of this president taking pod shots at President George W. Bush. In fact, as you know, he's been -- done a couple of high-profile assignments with the president's father, hurricane relief and tsunami relief. So, President Clinton's friends tell us that he thinks that every former president has an obligation to every future president. So, the translation of that is he's going to try to behave.
CHETRY: You know, you're right. It is interesting and it was astounding when you look back, I mean, how actively and passionately he campaigned for his wife. I mean, to the subject of criticism people said he was even threatening his legacy by, you know, getting down and dirty on the campaign trail, then agreeing to sort of open up his books about his global initiative to in the future get approval by the State Department and essentially the Obama White House. I mean, he really has done a lot to pave the way for his wife. So, where does that leave him in 2009?
ALLEN: Well, I think that we hear in these remarks he's determined and his willingness to do all this disclosure to satisfy the Obama vetters before the end of the year. We're going to see 208,000 donors to his projects in recent years. But I think we see his determination to be sure that his wife, Senator Clinton is not punished for what people think about him or what people think he's done.
And so, he has bent over backwards, done more than they asked. But people are going to say, does this mean that there's a new back channel to the most important democracy in the world? Is Bill Clinton the new way to get at foreign policy, and that's why this is still a complicated pick and it sure perked up my ears when he said there -- well, I'm open to taking a job. And so now there's going to be speculation about what that's going to be.
Probably, it would be some sort of super ambassadorship. People have talked about him maybe doing something with India during the campaign. Senator Clinton talked about the idea of him and former President Bush going on around the world tour to try to restore goodwill to the U.S. So, it's very possible that he'll have some high-profile role. The fact that he's throwing it out there again, that's going to get people chattering.
CHETRY: Right. And there must be a measure of satisfaction when you think about it. A lot of people have said, wait a minute, what happened to change we can believe in? This Obama administration looks a lot like a Clinton administration.
You have John Podesta, Rahm Emanuel, you have Bill Richardson, and now his wife is secretary of state. You know, the jewel in the cabinet. So, really, it seems as though his fingerprints have lasted, that the ideas that he brought into the game and the people are ones that I guess still hold today.
ALLEN: That is a very astute point. Because, yes, the reason this is such a centrist cabinet is that President-elect Obama can read the election returns. And he's pointed out, no, it's not a 50-50 country, but it's a 52-46 country, not that much difference.
So, we've seen there's a real method to the madness in these Obama picks. He's looking ahead even to 2012. He's going to be able to say that he delivered on his promise of a different kind of governing. He's looking at the fact that he needs to talk to the center of the country. He needs to have the military behind him, which is why you have him reappointing President Bush's secretary of defense.
CHETRY: Hey, Mike, before we let you go, one thing that he said that perked up our ears was that his wife first read about this possibility, the speculation of secretary of state in the newspaper. Do you buy that?
ALLEN: Well, other times they say that they don't read the newspaper. But she was speculated about for the Pentagon. They really kept the secretary of state thing a secret. There was no real speculation about it until she actually made that secret trip to Chicago, to the Obama headquarters and if you didn't want it to leak, I don't think you would do it at Obama headquarters.
CHETRY: All right. Mike Allen, great to talk to you. Thanks for being with us this morning.
ALLEN: Have a great week.
JOHN ROBERTS, CNN ANCHOR: Well, first it was $25 billion, now Detroit's big three say they need $34 billion of your tax dollars or two of them could collapse this month. GM's president joins us in about 15 minutes to tell us why we should bail out his company. It's coming up on 36 minutes after the hour now.
CHETRY: The stage is set.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: One of the things we're looking at is opening up the national mall for the first time with big screen TVs and an audio system.
(END VIDEO CLIP)
CHETRY: How do you throw a party for three million people and strike the right tone during these tough economic times? The inside word on what could be Washington's biggest bash. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: There's a sunrise for you. Look at that orange sun coming up behind the capital building this morning. 39 minutes after the hour. Clear and 35 degrees in the nation's capital right now. It's going to go up to about a high of 49. But all eyes are going to be on what's happening there in terms of the auto industry bailout.
And also while you're planning your holiday party, the Democrats are under pressure to pull off what could be the biggest bash that Washington has ever seen. Our Jim Acosta has been trying to get some details on the top secret inauguration plans. He joins us now live this morning from our Washington Bureau.
Good morning to you, Jim. I guess the plan here is to pull off a great big party, but not seem like they are going excess given the current economic conditions?
JIM ACOSTA, CNN CORRESPONDENT: Right. It's a tough job, John. And even when it comes to planning an inauguration, Barack Obama's political operation is as tight lipped as ever. But Obama insiders insist that despite all these tough times, the party will go on.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): Talk about pressure. Less than 50 days to go, some three million people expected and the stage is still being set. So Obama inauguration spokeswoman Linda Douglass says they will have to get creative.
LINDA DOUGLASS, SPOKESWOMAN, PRESIDENTIAL INAUGURAL COMMITTEE: One of the things we're looking at is opening up the national mall for the first time with big screen TVs and an audio system.
ACOSTA: Another challenge, striking the right tone. Past presidents have learned that glitzy inaugural balls can be a distraction in tough times.
LARRY SABATO, UNIVERSITY OF VIRGINIA: It's not going to look particularly good for the president-elect and his team if Americans see limousine after limousine, fur coat after fur coat, at a time when just about everybody else is suffering.
ACOSTA: These are tough times.
DOUGLASS: These are tough times and certainly we are mindful of the struggles that Americans are going through in their own lives right now.
ACOSTA: Douglass said that's why they set new limits on donations to the inaugural fund.
DOUGLASS: No corporations, no unions, no money from lobbyist. A limit of $50,000 for an individual, but there had been past inaugurations with their limit was $250,000.
ACOSTA: Obama supporters dismiss the idea of dialing it down.
UNIDENTIFIED MALE: I'm not sure that you do tone it down. Based upon the way this campaign was run, I think the president-elect wants to open the inaugural events up to as many people as possible.
ACOSTA: A tone will likely be set when the president-elect selects his inaugural theme.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: The time has come for a new beginning, a new dawn of American leadership.
ACOSTA: A new dawn? Sounds like FDR's new deal.
(on camera): Are we seeing a theme emerge, perhaps?
DOUGLASS: We're not going to be talking about themes. You'll be hearing what the theme is when we roll it out.
ACOSTA: OK, but it sounds like a theme --
DOUGLASS: Good try, though.
(END VIDEOTAPE)
ACOSTA: It was a good try. Yes. And even when it comes to inaugurals there is a roll out as you heard there. There is no way around it. This event will be big and expensive, but for now inaugural planners won't talk about a price tag except to say that private money should cover most of the cost. And John, we are hearing that D.C. officials are considering keeping the bars open 24 hours a day, seven days a week during this period. I think they've heard that Barack Obama is popular with young people.
John?
ROBERTS: Thinks that maybe a lot of people drowning their economic sorrows as well.
ACOSTA: Yes, that's possible.
ROBERTS: Interesting that Linda Douglass shut you down like that, because -- and she was a former journalist and she used to ask those same questions.
ACOSTA: She knew where I was going with that one, John.
ROBERTS: Yes, you think, Jim? Thanks very much. We'll see you again.
ACOSTA: You got it.
CHETRY: All he wanted to know was the theme, maybe the theme song. That's it.
Well, winter weather marching across the Midwest. Just how bad will things get and will it slow down travelers? We've got an update for you next. Jacqui Jeras tracking it all for us, the season, at weather center in Atlanta. It's 42 minutes after the hour.
ROBERTS: Superstar in super trouble.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The law is the law, and it has nothing to do with sports. Everybody should be treated equally.
(END VIDEO CLIP)
ROBERTS: First, he shoots himself in the leg. Now, there are serious questions of a cover up -- from the Super Bowl to facing jail. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Well, when it comes to snow in Chicago, the mayor of the city maybe playing with fire. It's because Richard Daley, the mayor, reportedly said that the city plans to cutback on plowing side streets in an effort to save money. He says from now on, crews will scale back on plowing at night and on the weekends to avoid paying overtime costs. Thrilling.
Well, I'm sure that Rob Marciano is out there, somewhere, shoveling something, probably snow. Jacqui Jeras, though -- I didn't mean it like that. He's down at the weather center in Atlanta. I didn't mean -- I'm sure, he's just -- you know, he's a strapping young man. He's the first one to pitch in.
JACQUI JERAS, CNN METEOROLOGIST: That's right.
CHETRY: Send him to Chicago.
JERAS: And he likes the snow.
CHETRY: Exactly.
JERAS: Although I bet he's skiing rather than shoveling.
CHETRY: That's true.
(WEATHER REPORT)
CHETRY: Hey, Jacqui, thanks. It's 48 minutes after the hour.
Water, water, everywhere. Why must it always come to this?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I have a story that heats up.
(END VIDEO CLIP)
CHETRY: Caught on tape. The best of the liquid slaps. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most News in the Morning." We saw some heated debates this political season, but nothing like what just happened in Romania. Here's Jeanne Moos with a look at some most unusual water wars.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): At least these two knew to drink their water not douse each other with it. But during a political debate in Romania the other day, the female candidate apparently called the male senator a bidet. And he replied that her face look like a bidet. Watch her knock the glass his way.
But why stop at water when there's wine. Remember when Joran Van Der Sloot in a cap, the suspect in the Natalee Holloway case, got angry over questions from a crime reporter on Dutch TV and tossed a glass of wine at him.
And then there was Paul McCartney's ex-wife Heather Mills. She dumped water on Paul's attorney inside the courtroom. The press watched the attorney walk in dry and walk out wet. The incident even became a computer game. Players throw water on Paul and his lawyer for a bigger settlement.
Tom Cruise got squirted a few years back by British TV pranksters yielding a fake mike.
TOM CRUISE, ACTOR: Come here, come here. Why did you do that? Hey, hey -- no, no, don't run away.
UNIDENTIFIED MALE: Because you're a jerk.
MOOS: Whether acting like a jerk on YouTube or joking around on the Colbert Report...
UNIDENTIFIED MALE: I only talked about his -- his headline.
MOOS: At least no one melts like the wicked witch.
UNIDENTIFIED FEMALE: I'm melting, melting!
MOOS (on camera): Now, all of these water-throwing incidents have involved cold water. Now the story heats up.
(voice-over): A guy wearing a bra and panties and exposing himself kept going through the drive through at this Java Girls joint in Washington State.
UNIDENTIFIED FEMALE: And then, he has underwear over his face and there's a little pee-pee hole like so you could see.
MOOS: But the third go around, the bikini barista threw boiling hot water on him. Police recently arrested the flasher.
Sometimes it's not whether the glass is half empty or half full but where it lands.
UNIDENTIFIED FEMALE: On his face and his chest and he said, oh, yes.
MOOS: Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
ROBERTS: CNN exclusive -- Clinton on Clinton.
(BEGIN VIDEO CLIP)
B. CLINTON: I talked to her about everything.
(END VIDEO CLIP)
ROBERTS: Plus, ladies put down that third beer. A startling new medical report. Dr. Sanjay Gupta on women stopping it, too.
Plus, special rules for superstars?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Plaxico Burress is in a world of trouble.
(END VIDEO CLIP)
ROBERTS: And if a Super Bowl hero shooting himself isn't enough...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What kind of moron shoots himself in the leg?
(END VIDEO CLIP)
ROBERTS: New cover-up questions.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The hospital didn't call and the Giants didn't call.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: It's coming up now at four minutes to the top of the hour. Welcome back to the "Most News in the Morning."
Detroit's automakers painting a grim picture of life without a taxpayer bailout. Yesterday, they gave plans to Capitol Hill outlining how $34 billion of your taxpayer money would be spent. While General Motors and Chrysler say that without that cash their companies could collapse before the end of this month.
Joining me now to talk more about this and the plans for getting out of the red are the president and chief financial -- operating officer, rather, of General Motors Fritz Henderson. He joins us live from Detroit.
Mr. Henderson, you said in the conference call with reporters recently, quote, "Absent support, frankly, the company can't fund its operations." It's a pretty dire warning here. But the companies like General Motors and Ford and Chrysler have been warned again and again and again, you've got a bad business model going here. You need to change. Why should taxpayers foot the bill for Detroit's mistakes?
FRITZ HENDERSON, PRESIDENT, GENERAL MOTORS: We have changed, John. We continue to change. And what we've seen certainly in the last -- not only a year, but the last three months is the markets not only our product markets but the credit markets have really taxed our ability to finance ourselves as we make it through this transition period.
What we outline is a request for a loan. We also outline our ability to repay those loans. And we tried in our paper to actually say why is this important not only for consumers but for, you know, but for citizens of the U.S.
ROBERTS: You know, you're proposing some pretty dramatic down sizing. And just to take off a few of the things that have been reported here, I mean, eliminate or sell the Saturn, Saab and Hummer line; shrink Pontiac down to sort of a boutique brand; cut 20 percent of your remaining jobs; shut nine factories; reopen contract talks with the UAW; cut CEO Rick Wagoner's salary and other board members to a buck and stop using corporate jets.
Is that going to be enough to turn General Motors back around to restore it to profitability?
HENDERSON: No, because in the end in our business, it's not only about cost reduction and what we need to do to size our business. This is about selling our way to profitability. So, the plan also talks about investment in technology, in products. Our new products have been extraordinarily well accepted. We have to keep doing that. There's no way you can cost-cut your way to prosperity in this business. You have to do both. And that's why your plan needs to start with product and technology.
ROBERTS: Of course, the auto industry is saying without this bailout, we're going to go down; we need to have it. Former Governor Mitt Romney, whose father was the head of American motors back in the 1950s and 1960s, says it would be better for you to go into bankruptcy. That would allow you to restructure.
He said, quote, in a "New York Times" op-ed, "It would permit the companies to shed excess labor, pension and real estate costs. The federal government would propel newly competitive and viable automakers rather than seal their fate with a bailout check." He thinks the bailout is exactly the wrong thing to do. You need to go into Chapter 11 to restructure.
What do you say?
HENDERSON: A couple of things. First of all, our plan is designed not only in terms of operating measures but also measures in our capital structure to achieve many of the benefits, if you will, of restructuring the business that Mitt Romney talked about without resorting to Chapter 11. Why? Because we don't want to take risk on the revenue side of the business. We don't want to give the costumer a reason not to buy our cars or trucks. And you can't underestimate the importance of that.
So, as we look at it, what we're trying to do is accomplish the same measures without resorting to bankruptcy. In the end, it's not a good option for our business for many of the reasons that we tried to articulate actually in the report.
ROBERTS: All right. Fritz Henderson, thanks for being with us this morning. We look forward to seeing what the CEO has to say. We should point out that rather than taking the corporate jet this time around, he's going to be driving to Washington in a Chevy Malibu hybrid just like the one behind you.
It's good to see you this morning, sir. Thanks for your time.
HENDERSON: Thank you for your time, John.
