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American Morning
Obama Demands Swift Action on Economic Plan; Palin Fires Back at Media Portrayal; U.N. Security Council Votes Unanimously for Cease- Fire; Dynamic Duo: Obama and Spider-Man; Accused Swindler Madoff Might Go to Jail Today
Aired January 09, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Israel says the military offensive in Gaza will continue despite a new call to end the violence in the Middle East. You're looking at live pictures right now. The United Nations Security Council did approve a resolution calling for an immediate cease-fire.
However, the U.S. abstained from that unanimous vote even though it did help draft the resolution. This morning though, Israel is taking mortar fire from Gaza and then responding with fire of its own, hitting dozens of suspected Hamas targets overnight.
Well he begins his new job in just 11 days but this morning Vice- President elect Joe Biden is in Pakistan. Biden is on a tour of south Asia as the outgoing chairman of the Senate foreign relations committee. Republican Senator Lindsay Graham is also traveling with him, and they are expected to meet with Pakistani government official to discuss a number of issues including the U.S. war on terror.
And in about 2 1/2 hours, President-elect Barack Obama will officially name two intelligence appointments, key ones at that. Former Clinton White House chief of staff, Leon Panetta to head the CIA and retired Admiral Dennis Blair as director of National Intelligence.
This morning, President-elect Barack Obama is putting Congress on notice to move slowly on his economic plan and risk a recession that lingers for years. Yesterday, Obama laid out the details of his plan for recovery. CNN's Jessica Yellin is live in Washington with more that. Hi, Jessica.
JESSICA YELLIN, CNN CORRESPONDENT: Hi, Kiran. You know these days, the president-elect has been avoiding battles by insisting there is only one president at a time. But when it comes to the economic crisis, he's not shy about using the bully pulpit. Now he is warning Congress and the American public the only way to get us out of financial quicksand is with swift action on the stimulus plan.
(BEGIN VIDEOTAPE)
YELLIN (voice-over): A bleak picture from President-elect Barack Obama.
BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: If nothing is done, this recession could linger for years. The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity.
YELLIN: When it comes to the economy, he is not afraid to shock Washington into action. Warning it's cash or crash, he's urging Congress to spend almost $800 billion to stimulate growth.
OBAMA: There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short term, but equally certain are the consequences of doing too little or nothing at all.
YELLIN: Included in the plan? Tax cuts to the tune of $300 billion, with money going to the unemployed, small businesses, and some middle class families. Infrastructure spending, rebuilding roads and bridges, expanding Internet service, and making buildings energy- efficient. He's urging Congress to act fast.
OBAMA: For every day we wait, or point fingers, or drag our feet, more Americans will lose their jobs. More families will lose their savings. More dreams will be deferred and denied. And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse.
YELLIN: But so far, mixed reaction from his partners on Capitol Hill, where negotiations continue over how much to spend and to whom the money would go.
(END VIDEOTAPE)
YELLIN: And, Kiran, this morning, two transition officials are also confirming that Obama's economic team is also working to overhaul that massive Wall Street bailout, which you'll remember Congress passed in the fall. They're trying to get some of that money redirected so it can also be used to help relieve the nation's credit crunch and help homeowners facing foreclosure. There are still $350 billion yet to be released as part of that bailout.
CHETRY: Yes. And it could be a much tougher sell with Congress because of a lot of the criticism of the first 350, and whether or not it was spent wisely.
YELLIN: Very frustrating, yes.
CHETRY: All right. Jessica, thanks.
JOHN ROBERTS, CNN ANCHOR: So the president-elect says he wants to create some 3 million jobs with his new economic stimulus package. Can he do it? Ali Velshi here "Minding Your Business." He's running the notes in all of this.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Some interesting timing on this speech, because this morning in less than half an hour, we're going to get the unemployment numbers for the month of December. That will of course give us the tally for all of 2008. We are going to cross the 2 million mark, 2 million jobs lost mark in 2008.
So Barack Obama knew that today is going to be a rough day any way you count it. And he wanted to get ahead of this thing. So, so much of this speech is, as Jessica said, warning of the dire consequences of not acting soon. You had to go back all the way to FDR to hear a president speak in such dire terms about the economy.
ROBERTS: About the economy, yes.
VELSHI: About the economy.
ROBERTS: We had eight years of an administration speaking in dire terms about the security.
VELSHI: Well, that's exactly right. And part of the issue here is that Barack Obama made a reference to, if we don't do something now and soon, we could be in for years of recession. We never had a recession that lasts years. The only thing that lasts years is a depression.
There's a real scare tactic going on here. It might be effective. But remember, the first bailout package, the first stimulus package, that was the language that Hank Paulson used with Congress. And said, you know, really very serious consequences could occur from you not doing anything about this. And there are some people who think we were rushed into doing that and it didn't work. There is an entire school of thought, I'm one of them, that says things would have been a lot worse if they hadn't done something about it.
CHETRY: Right. But now there is a report coming out today, as I understand it, that is really critical of how the Treasury Department handled oversight for that first $350 billion.
VELSHI: Sure. There are problems with the oversight of it. There's problems with the accountability. Where that money has gone? We still cannot get answers. CNN as recently as ten days ago was calling the banks to say, "what exactly did you do with that money? They don't seem oblige to tell us, which is kind of fascinating, and it doesn't sort of bold well for them.
(CROSSTALK)
VELSHI: Yes, it's taxpayer money. So that's -- I think Barack Obama was really, really walking a fine line here. There was no real news in the things that he talked about doing. But there was a real sense that he's got to sell it to Congress and the American people. It's that serious.
Remember how much we talked earlier in 2008 about how we wished the administration would come forward and say more about how serious things were in the economy? Because if you're serious about it, you can take necessary action.
And one other quick point I want to make, our friend here ask me about --
ROBERTS: You want to plug your book?
(CROSSTALK)
VELSHI: No. She asked me about Alabama.
ROBERTS: Shamelessly?
VELSHI: He asked me about Alabama. Let's put that map up showing you how the different states compare to the national unemployment average. Right now, the national unemployment rate is 6.7 percent. That will probably go up when we get our announcement within half an hour.
But John had asked about Alabama, which is green, which means the unemployment rate is more than half a percent lower than the national average. And he was wondering why in that little southeastern quadrant stood, Alabama stood out. One of our great producers downstairs is Graham Flanagan. He's from Alabama. And he sort of steered me toward the auto industry there.
Honda makes the Odyssey and the Pilot there, 4,500 employees. Hyundai makes the Sonata and the Santa Fe, employing 3,000 people. Mercedes has a plant there. There's NASA, the Marshall space station is there. And so they've got a lot of large employers in Alabama, and the state is actually doing better than its neighboring states in terms of its unemployment rate.
ROBERTS: All right. Sure you don't want to plug your book?
VELSHI: You can. I mean, I can plug my book, if you'd like.
ROBERTS: Well, I'll tell you what, instead of plugging the book, why don't they plug your TV show?
VELSHI: Let's plug something.
ROBERTS: There we go. Tune in this weekend to a CNN special event. "I.O.U.S.A. America's Money in Crisis." Ali Velshi and Christine Romans take a look at America's record deficit and the potential of disaster ahead. Catch it this Saturday at 2 p.m., Sunday at 3 p.m. Eastern. Corporately in ominous music there.
CHETRY: Love it. "Give Me My Money Back" is the book, by the way.
VELSHI: Thank you.
CHETRY: My friends are going to buy it.
ROBERTS: Available at book stores across America.
CHETRY: Thanks, Ali.
Well, new this morning, team Obama saying please stand by on the switch to digital TV. President-elect staff has ask key members of Congress to delay the switch to a digital television signal scheduled for February 17th. Because there's not enough money left to help people upgrade and not enough resources to handle problems that may pop up.
The House of Representatives will vote on two equal pay bills today. House Speaker Nancy Pelosi calling the legislation a high priority. One bill loosens restrictions on suing for pay discrimination. The other makes it harder for employers to get around equal pay for equal work.
Also, the flood threat easing up in Washington State after three days of nearly nonstop rains and heavy snow melt. But thousands of people are still out of their homes. And, right now, a state of emergency is in effect in at least 19 counties.
Our Rob Marciano tracking extreme weather for us from Atlanta this morning. And it looks like they're getting a bit of a break today, but still what a mess left behind.
(WEATHER REPORT)
ROBERTS: Rob, thanks so much.
Sarah Palin taking on the media. Hear what she is saying now about its campaign coverage, and who she is blaming for some of her most unflattering moments during the presidential campaign. It's 8- 1/2 minutes after the hour.
The Obama train. Riding the rails to Washington. But the president-elect's inaugural trip has special risks.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Security will be provided in the air, on the ground, and in the water.
(END VIDEO CLIP)
ROBERTS: Train with Obama on board. How will they keep him safe? You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: This morning, the Illinois House of Representatives will vote whether to impeach Governor Rod Blagojevich. If the motion passes, the State Senate will then put Blagojevich on trial. Yesterday a committee unanimously recommended the governor be thrown out of office after he was accused of trying to sell Barack Obama's Senate seat, among other things. The governor's office called the proceedings, quote, "flawed and biased."
Also new this morning, Sarah Palin lashing out about her treatment by the media and the McCain campaign. And in a new documentary, she is blaming a double standard for crushing her vice presidential dreams. CNN's Jason Carroll has been looking into this. He's with us this morning.
She is a little worked up about all this. JASON CARROLL, CNN NATIONAL CORRESPONDENT: She's back and she is not happy. This are some of Governor Palin's most critical comments yet about the media, saying sexism and maybe classism played a role in how she was treated. She talked about her experience for an upcoming documentary by conservative filmmaker John Ziegler.
Palin discussed a number of topics, including the much-criticized interviews she did with CBS news anchor Katie Couric. Palin had trouble recalling major Supreme Court cases she disagreed with, other than Roe v. Wade, and could not name a newspaper she regularly reads. Palin admitted the interview bombed, but blames the McCain campaign for not doing a better job at damage control.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: I knew it didn't go well the first day and then we gave her a couple of other segments after that. And my question to the campaign was, after it didn't go well the first day, why were we going to go back for more? And because -- however it works in, you know, that upper echelon of power brokering in the media and with spokespersons and it was -- told me that, yes, we were going to go back for more. And going back for more was not a wise decision either.
(END VIDEO CLIP)
CARROLL: Palin also slammed the media saying it favored Barack Obama's campaign and she says she was not treated fairly because she's a Republican.
(BEGIN VIDEO CLIP)
PALIN: Had I been chosen perhaps to run as a -- former on the Democrat ticket, we would have seen an absolutely different and, I think, if you will, a much prettier profile of Sarah Palin and the Palin family and my administration.
(END VIDEO CLIP)
CARROLL: The criticism did not stop there. Palin turned her attention to Caroline Kennedy's bid to fill Hillary Clinton's New York Senate seat.
(BEGIN VIDEO CLIP)
PALIN: I've been interested also to see how Caroline Kennedy will be handled and if she'll be handled with kid gloves or if she will be under such a microscope also. It's going to be interesting to see how that plays out. And I think that, as we watch that, we will -- perhaps be able to prove that there is a class issue here also that was such a factor in the scrutiny of my candidacy.
(END VIDEO CLIP)
CARROLL: And finally, how did Governor Palin react to being the butt of so many jokes, especially all those Tina Fey spoofs on "Saturday Night Live"?
(BEGIN VIDEO CLIP)
PALIN: I know that a lot of people are capitalizing on -- I don't know. I think some -- perhaps exploiting that was -- that was done via me, my family, my administration. That's a little bit perplexing and also says a great deal, though, about our society.
(END VIDEO CLIP)
CARROLL: On the governor's Web site, she said some of her comments were being taken out of context to create adversarial situations. Take Kennedy, for example. Palin wrote, she considers her to be qualified and experienced. It is the media that she is taking issue with. Also -- she was also asked how she thinks she would have been treated by the media if Obama had chosen her as his VP choice. She said, quote, "They would have loved me."
ROBERTS: Well, I guess we'll never know because -- it's not like Caroline Kennedy is getting a free ride here.
CARROLL: No, no. And also what's so strange about this is that they feel a lot of comparisons, a lot of comparisons between Kennedy and Palin.
ROBERTS: There's been a lot of articles that have been either skeptical or critical. A lot of people have been saying -- we had Robert Zimmerman on, right, who was saying some critical things about her. So -- I don't know. We'll see what the documentary brings.
CARROLL: Yes.
ROBERTS: Jason, thanks so much.
CHETRY: All right. Well, it's a historic trip from Philadelphia to Washington, but when Barack Obama rides those rails ahead of inauguration day, authorities also have the daunting task of keeping him safe. How will they do it? It's 15-1/2 minutes after the hour.
Spider-Man, Captain America, Iron Man and -- Barack Obama?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: When you're being compared to superheroes, obviously, the public's expectations of you will soar. Even Spider- Man couldn't solve the economy.
(END VIDEO CLIP)
CHETRY: How the future commander-in-chief wound up in the middle of a comic book caper. You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Working hard on a Friday, the crew at AMERICAN MORNING. Anyway, welcome back to the Most News in the Morning. The world's most famous web slinger, Spider-Man, has fans of all ages, including one very famous politician -- Barack Obama. And that's why Obama is being penciled into the superhero comic. Alina Cho has the story for us this morning, and the comic book.
ALINA CHO, CNN CORRESPONDENT: That's right.
CHETRY: That I'm sure is going to be -- everybody wants it.
CHO: It's not out until January 14th. So, we can fight over it after the show. It's mine, though, Kiran.
Good morning, everybody. You know, Barack Obama has been on the cover of "Time," "Newsweek," "Rolling Stone" and "US Weekly," but on cover of a comic book? It's true. Obama is featured in this upcoming issue of the "Amazing Spider-Man." It's the first time Marvel Comics has ever featured a president-elect on the cover. So, is it a marketing gimmick? The editor says, no, just a tip of the hat to a big fan.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: With great power comes great responsibility.
CHO (voice over): In the movies, Spider-Man is quite the tough guy. But move over, there's a new superhero in the house -- Obama.
(on camera): Geeks everywhere unites?
JOE QUESADA, EDITOR-IN-CHIEF, MARVEL COMICS: It's unbelievable. We are legion, legion.
CHO (voice over): January 14th, Marvel Comics is releasing a special issue of the "Amazing Spider-Man" featuring the web slinger and a character with the likeness to Barack Obama. Why? The president-elect is a Spidey fan.
QUESADA: Wow! This is going to be the coolest moment. The future commander-in-chief of our country is actually the future nerd- in-chief -- you know, we have a geek in the White House.
CHO: It's not the first time a president has been featured in a comic book, but it is the first time Marvel has put a president-elect on the cover. Inside, Spider-Man's alter-ego Peter Parker, a newspaper photographer, is on a big assignment, Mr. Obama's inauguration. No spoilers here. We're not giving away any of the plot. We can tell you Spidey and the president-elect join in a fist bump.
QUESADA: I think it's one -- it's very, very applicable to a president, especially during these times of crisis.
CHO: But should the president also be a pop culture icon? Mr. Obama has been featured on the covers of "US Weekly," "People," and now a comic book. Does that diminish the image of the commander-in- chief? LARRY SABATO, Dir. UNIVERSITY OF VIRGINIA CENTER FOR POLITICS: When you're being compared to superheroes, obviously, the public's expectations of you will soar. Even Spider-Man couldn't solve the economy.
CHO: But can the incoming president?
(on camera): Is there anything that the president-elect could learn from Spider-Man?
QUESADA: No matter how great his powers are, no matter how many buildings he can climb or ultimately, those things don't necessarily cure your day-to-day problems. You always have to remember where you come from and who you are.
(END VIDEOTAPE)
CHO: And the Spider-Man mantra of course is "with great power comes great responsibility." So this special issue we should mention of the amazing Spider-Man featuring Barack Obama is expected to sell out quickly. No surprise there. Some say it will be an instant collector's item and could be on eBay for $50 on the very day it goes on sale.
Now, political watcher say, you know, it's the honeymoon period when the president-elect is featured on the cover of a comic book. They say, Kiran, enjoy it, it ain't going to last. It never does with any president.
CHETRY: And yours -- and your comic book isn't going to last if you don't put it back in its plastic.
CHO: I know. They say that's what makes it valuable, right?
CHETRY: Exactly.
CHO: But you know, we have to use it.
CHETRY: Yes, we've already paged through it, but we won't tell you how it ends. Alina, thanks.
CHO: Sure.
ROBERTS: Well, this just in to CNN. You thought tickets for U2 performances were hot. Wait until you hear about this one. The Presidential Inaugural Committee will release at 1:00 this afternoon 5,000 bleacher seats for the inaugural parade to be held in around 1:00 in the afternoon on January the 20th. So they will be releasing those. They're 25 bucks apiece. You're limited to four. You can get them by going online at ticketmaster.com.
There are also some phone numbers as well that you can call. I don't know if we're able yet to flash those up on the screen. But we'll certainly let you know about that. We'll also have it on our Web site. So ticketmaster.com. Also, phone numbers that you can call. Their 202 area code and 410 for folks in Baltimore, 703 for folks who are in Virginia.
Five thousand bleacher seats that are available, 25 bucks apiece, limit four per customer. Now you don't need tickets to see the inaugural parade. You can stand along the route anywhere between the Capital and close to in front of the White House, although right in front of the White House will be a restricted zone. But these will guarantee you a seat. You just got to show up by 1:00 in the afternoon on the day. And there's the numbers there at the bottom of your screen that you can call. So 5000 seats this afternoon. 1:00, 25 bucks apiece, limit of four per customer.
We are --
(CROSSTALK)
CHETRY: (INAUDIBLE)
ROBERTS: Yes, it's great. Great to give people an opportunity. I guess they just found that they had these seats available so wanted to make them available to the public.
We're just minutes away now from the December unemployment numbers. They are expected to be the highest numbers in 15 years. Will the jobless claims be as dismal as predicted? Ali Velshi will be here with the latest on that. Stay with us.
(COMMERCIAL BREAK)
ROBERTS: Just in to CNN. More live pictures looking at Gaza City. There has just been a bombardment that took place. The Israeli military very, very active today, despite that call for an immediate cease-fire, an immediate and durable cease-fire by the United Nations Security Council yesterday, unanimous approval to that, 14-0 with the United States abstaining.
We saw -- we're just seeing the aftermath of it here. A number of explosions. Don't know if they were bombs that were dropped by the Israeli Air Force or if it was a result of artillery or mortar fire, but you can see the smoke hanging over Gaza City there. Some 778 Palestinians killed in this operation. At last count, 13 people on the Israeli side. And Ehud Olmert, you know, the prime minister of Israel, vowing that the operations will continue because there is still outgoing fire from Gaza into Israel. We'll be watching this for you. You can hear the explosions. They're going off in the distance.
President-elect Barack Obama is warning of a dire economic situation, and how much worse it could get if there is not bipartisan support and quickly for his stimulus plan. But will his proposals work?
Joining me now from Denver is nationally syndicated columnist David Sirota. He's also the author of the book, "The Uprising."
David, you wrote a column yesterday, a fascinating one, in the immediate aftermath of Obama's speech called "The Good, The Bad and The Ugly Plan." Let's walk through it. What's the good, first? DAVID SIROTA, NATIONALLY SYNDICATED COLUMNIST: The good is that Obama seems to understand at least the size and scope of the problem and is proposing robust package of public spending, and we know that public spending is probably the most efficient way to stimulate the economy.
ROBERTS: Yes. Some people, though, were saying that there isn't enough public spending in this.
SIROTA: Well, it gets to the bad. The bad part of this is that he's also including a lot of tax cuts and that he is paying for it -- he seems to be paying for those tax cuts with that public spending. In other words, he's taking the money that could be going to public spending and proposing putting it into a lot of tax cuts that a lot of people don't think are going to work.
ROBERTS: So why do you say the tax cuts are bad? Because if you look at the other side of the political fence over on the Republican side, they believe that the tax cuts are good and that probably needs to be more of them.
SIROTA: Well, because the data tells us that the best way, the quickest way, the most efficient way to stimulate the economy is through public spending. You know, Mark Zandi of economy.com, one of John McCain's advisers, has said that you get about a 1.58 GDP benefit with public spending. You only get about 1.23 or 1.24 when you put that money into tax cuts. So if we want to stimulate the economy in a short-term, quick kind of way, the best way that we know how to do that is through public infrastructure spending, unemployment, insurance, food stamps.
ROBERTS: We'll get to the ugly in just a second, David. But do you have enough information about what's in this plan to be able to say whether or not it would work?
SIROTA: Not yet. And that's a good point. I mean, we don't know what the final size of this package is going to be. We don't know what percentage is going to be spending. What precise percentage is going to be tax cuts? So it's still a negotiation in process. That's absolutely true.
ROBERTS: All right. So give us the ugly of all of this.
SIROTA: Well, the ugly was that Obama seemed to mention that he wants to connect deficit reduction to entitlement, quote/unquote, "entitlement reform." Entitlement reform refers to social security and Medicare. Now, when you tie deficit reduction to entitlement, quote/unquote, "reform," it usually has meant in the past efforts to try to cut those programs. Now, that's a bad idea in a bad economy. Medicare and social security are very, very stimulative to the economy. You do not want to cut those programs.
ROBERTS: Yes. Then there was one other aspect to all of this that John Dickerson from Slate magazine picked up. He noticed how this was being solved. And he writes, quote, "For a president who was repeatedly promised an entirely new way of doing business in Washington, Obama's address had a deep familiarity. Doom was its central and recurring message. Unless the federal government acts quickly and boldly and expensively, the roof is going to cave in." It's almost like he is using the tactics of the Bush administration as it sold security to try to sell this economic recovery package.
SIROTA: I think there's something to that, but I don't necessarily think that's a bad thing. I mean, you know, every crisis is an opportunity. And I think that this economic crisis is an opportunity to reassert the role of the government as a force for good in the economy on behalf of the middle class. We haven't had that in the last 30, 35 years, and so I do think that's a paradigm shift, at least from the last couple of decades.
ROBERTS: David Sirota in Denver this morning. It's good to see you, David. Thanks for coming in.
SIROTA: Thanks for having me, John.
CHETRY: All right. It's 8:30 here in New York. Just 11 days until Barack Obama will take the oath of office. And hours before, he'll travel by train from the home of the Liberty Bell in Philadelphia to our nation's capital. And it's a journey that's littered with potential security risks as well.
Homeland security correspondent Jeanne Meserve joins us live from Washington with more on the extraordinary measures of being taken to make sure the president-elect is protected on inauguration day. Hi, Jeanne.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Hi, Kiran. These are the tracks that the president-elect is going to travel a week from tomorrow. And as you say, keeping him safe is going to be a tall order.
(BEGIN VIDEOTAPE)
OBAMA: Don't tell me that Democrats --
MESERVE (voice-over): The president-elect will journey from the cradle of our democracy to the seat of our government, a trip full of symbolism, history, and risk. Mr. Obama will travel 137 miles on a fixed route with vulnerability. Hundreds of bridges that could be sabotaged, tall buildings that could hide snipers, and plants that manufacture and use dangerous chemicals that, in a terrorist attack, could be released.
RICK HIND, GREENPEACE: When you look at a map of the chemical plants in that route, there is over 10 plants along that route that we can count that put 100,000 people or more at risk. Half of them, put a million or more people at risk.
MESERVE: On Saturday, January 17th, one of those people will be President-elect Obama. The Secret Service won't be specific, but says it is addressing the chemical issue. Sensors detecting not just chemicals, but biological, nuclear and radiological threats will be used, along with other technology, which officials say they began positioning two weeks ago.
It would tell you if there's a problem with those tracks, if there's been a sabotage to the tracks, if there's explosives nearby.
MESERVE: The Secret Service won't comment on security enhancements to Obama's train. Amtrak, state and local police will help create a safety envelope around it as it moves south.
UNIDENTIFIED MALE: Security will be provided in the air, on the ground, and in the water.
MESERVE: There is a long history of presidents taking train trips, so people can see them, and hear them.
BILL CLINTON, FMr. U.S. PRESIDENT: Thank you.
MESERVE: The Secret Service is confident it can keep this president-elect safe.
MICHAEL CHERTOFF, HOMELAND SECURITY CHIEF: Remember, the Secret Service is taking the president into Iraq, into Afghanistan and just some very hostile places around the world. I'm comfortable that they have the skills working, of course, with state and local authorities, to protect the President-elect in Pennsylvania and Baltimore and Washington, D.C.
(END VIDEOTAPE)
MESERVE: Mr. Obama will be stopping along the way to give speeches. Those venues will be secured as usual but they're also expecting throngs of people along the tracks, along the stations. The Secret Service won't comment on how they're planning to handle that. Kiran, back to you.
CHETRY: All right. Jeanne Meserve for us this morning. Thank you.
ROBERTS: And just in to CNN. Unemployment numbers for the month of December. Ali Velshi is "Minding your Business" this morning. He's got the latest. What does it look like, Ali?
VELSHI: It's not good. John, it was as expected, much bigger than we've seen all year. But the unemployment rate in the United States is now. I'm sorry the unemployment rate is 7. percent. 7.2 percent is the new unemployment rate in the United States.
What is more important is that 524,000 jobs were lost in the United States in December. That brings the total for 2008 to 2.6 million jobs lost. 2.6 million jobs lost in 2008. That is the second worst year on record. It's the worst year since 1945. We now have the worst year of jobs lost since 1945 at 11.1 million Americans are listed as unemployed. That's 11.1 million people listed as unemployed. That is the worst number that we've seen since 1983.
John, there is nothing good in this report. The biggest group of people who lost their jobs are manufacturing workers, manufacturing and construction have led the job losses for the last, so far as we can recall, three years or more. There's just nothing particularly encouraging. We're going through it right now to figure out what the breakdowns were, but we do know we have losses in manufacturing and construction and business and professional services and retail. I'll go through the list and get back to you in a bit.
ROBERTS: Hey, Ali. You know some economists have been predicting eight percent or maybe nine percent unemployment as a result of this recession. We are not far off the lower number yet.
VELSHI: Not at all.
ROBERTS: Wall Street opens in about 55 minutes' time. What is the expected trickle down effect going to be?
VELSHI: Well I got a couple of things could happen. One is we're waiting to see the market futures. The indication of where the markets would open. We're flat going into this report to see whether or worse than expected.
As this information trickles out, two things can happen. One is the market can go down on expectations that this is really bad news, or they can strengthen on expectations that this is the bad news that Barack Obama was talking about in his economic speech yesterday. So we do need to take the serious action that needs to be taken in order to recover from this economy and that could help markets. We'll have to wait. I'll see what is going on in the next few minutes and bring that back to you.
ROBERTS: All right. It's going to be a busy day for you. Ali Velshi, thanks so much.
CHETRY: Well it's the words the President-elect is dreading, surrender your BlackBerry but will he get to keep it after all? We're going to hear what Barack Obama himself has to say about it.
(COMMERCIAL BREAK)
CHETRY: Well, the guys in the studio are certainly working overtime to remind us it's Friday morning and that the day ends early for them.
Well, she is a straight-talking, no-nonsense love guru, who is the star of the A&E show "Confessions of a Matchmaker," and now Patti Novak has taken her tough love approach and put it into a book. It's called "Get over Yourself! How to get real, get serious and get ready to find true love." And Patti Novak joins me now this morning.
I see you on the cover of the book. You got great advice inside of it, as well. So you opened up this matchmaking business after 9/11. And you talk about the feelings after 9/11 that many people felt, they didn't want to be alone. Are we in a similar situation now with the recession and fears about where we're headed in the future?
PATTI NOVAK, STAR OF A&E "CONFESSIONS OF A MATCHMAKER", AUTHOR: Yes, absolutely, very parallel. 9/11 our hearts were heavy in all over the country but particularly here in New York. And I think that they came to me in droves after that. And without knowing that was going to happen. You know?
CHETRY: Right.
NOVAK: Now with the recession, and if you can only afford popcorn and a six-pack, guess what? Being with somebody would really make a difference. So I do see the increased on people calling on me.
CHETRY: That's very interesting. Because also after 9/11, a lot of people, they talked about the -- people felt this sort of fatalistic approach to their life and felt, you know, why not take up drinking or smoking again? Because this terrible tragedy that happened and it reminds me of my own mortality. Do you find that people are riskier in times of tough economies when they feel like maybe there's no hope?
NOVAK: Well, if finding love is a risk, then yes. And it is, isn't it? He walk out there and make ourselves vulnerable in the hopes to find love? Absolutely.
CHETRY: You know it's very interesting. One of the things you write about in your book is the excuse that people give for why they are not with somebody and you have the underlying reason for that. So if somebody says I'm too busy or I'm working too hard, it's really an underlying cause. Or --
NOVAK: It's an avoidance.
CHETRY: Right.
NOVAK: Avoiding why. Why are you taking care of everybody but yourself?
CHETRY: And so, what do you tell people when they say look I just can't find love?
NOVAK: Well I sit them down and it usually takes about two hours in my office but I can usually figure it out. Sometimes we often look in the mirror and we don't see what the rest of the world see so there is a fussy situation going on and we can't ask for something we don't offer now, can we?
CHETRY: No.
NOVAK: And so the fussy thing is part of the problem. The dating don't is part of the problem. and I think if we can get to the core and find out what keeps them from focusing on their own personal world, you know, finding balance in their life which would be career, mind, body and soul, you know?
CHETRY: And this is interesting. So you say that men need to feel as if they are needed. And so how does a woman who wants to date and show that she's independent and has an independent life make sure that she can fit with somebody who -- a man who wants to feel needed? NOVAK: Well, I think that it's OK to be independent and we all are successful, independent women today. The growth of women is just unbelievable over the last 50 years. But I think we don't have to share how independent, our toys. There's nothing worse than a bragging man, is there?
CHETRY: Right.
NOVAK: We don't want a bragging woman, either. You know men don't. And so I think those first three dates, less is more. Kiss it with one "s," and keep it simple.
CHETRY: What is the biggest mistake that people make on their first date?
NOVAK: Not keeping it simple where they talk about their exes or the lack of sex. They haven't had a date in 10 years and who really needs to share that, right?
CHETRY: Right.
NOVAK: So all of those nervous energy conversations instead of just going in, relaxing, listening to understand so that we respond properly, people don't listen as well as they should.
CHETRY: And also, one piece of advice for how do you avoid falling into the same trap? So a lot of people say they date a type. They like bad boys or guys, I always end up going after women who turn out to be very shallow. How do you avoid the traps? And find -
NOVAK: And find out why you're attracted. So, in the book, it's going to help you find out why you're attracted to the narcissist or why you're attracted to the cranky woman.
(LAUGHTER)
CHETRY: Or I got you.
NOVAK: Do you follow me? You know what I'm saying? So I'm thinking that you have to go to the core and find out why you're attracted. Maybe it's the father, the brother, the uncle, the -- you know, the image of the bad boy. Because underneath the bad boy is usually a bad boy.
CHETRY: It's a very interesting book. Because you say you got to figure out what is going on with yourself before you're able to find somebody.
NOVAK: It's all about self. Self-love, self-respect, self- worth. So many of those things are why people are alone.
CHETRY: All right. Good advice, Patti Nowak. Thanks for being with us this morning.
NOVAK: Thanks for having me.
CHETRY: John.
ROBERTS: I'm taking notes here. Taking notes.
What to wear and what not to wear to inaugural balls. Blue is the color of being in power. But can you still wear red? We'll show you how to avoid making a fashion faux pas at the party of all parties. Stay with us.
(COMMERCIAL BREAK)
ROBERTS: The man accused of the biggest rip-off in Wall Street history could be hauled to jail today for violating the conditions of his bail. Right now, Bernard Madoff is awaiting trial in his multi- million dollar apartment.
You're now getting live pictures of the building where any moment he could be hauled off to jail for, according to the Justice Department, try to shield some $300 million in assets and having ready to send out $173 million of checks so that the feds couldn't get their hands on the cash.
He is accused of swindling thousands of individuals from ordinary people to Hollywood's elite, out of a total of $50 billion. So how did all of these people get fooled so badly? Christine Romans dissected the scandal for a CNN special investigation that premieres this weekend. And she's here now to tell us more about it.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And so many secrets. You know, what made him tick? Where did the money go? How much money was there in the first place? How did so many people get fooled? Where is it now? And what makes a guy who is sitting in his luxury penthouse under house arrest decide that it's not a violation of his bail to send a diamond Cartier watch and cuff links and family heirlooms, million dollars worth of jewels in the mail?
ROBERTS: Checks.
ROMANS: $173 million worth of checks found in his top drawer -- in the drawer of his desk when he was arrested. So every day, a new secret about Bernie Madoff. A lot of people who knew him said -- they had no idea, not even rumor that this was happening. Muriel Seabert is someone who I have talked to for years. She runs her own very well-respected investment firm. Believe it or now, she has offices on the same floor as Bernie Madoff's 17th floor lair, his inner sanctum. His private hedge fund offices in the Lipstick Building in Manhattan and this is what she said to us this week.
(BEGIN VIDEO CLIP)
MURIEL SIEBERT, PRESIDENT, SIEBERT & CO.: You had him running that amount of money and it was all done on faith and trust.
ROMANS: Right next door to you?
SIEBERT: Right next door to me. Down the hall. For a while, I couldn't go to the ladies room. I was tripping over FBI people! (END VIDEO CLIP)
ROMANS: Normally, a very quiet floor. As you can imagine, the FBI was in there copying everything. They kind of -- instead of moving everything out of that office, they went right into that office and were doing their investigation right there on the spot. It's an incredible story really. She says that she didn't want to say anything bad about Bernie in the beginning. She had known him a long time. She saw him a week before the arrest. He was fine. He was chipper, normal, genuine, warm Bernie but then now her friends have been coming out of the woodwork bringing their statement saying you know, Mickey what do i do? What do I do?
And now she is horrified. She is horrified and shocked. It's taken a real big hit. Everyone who manages money and everybody who is involved in finances has taken a big hit. She has been stuffing her own clients' returns with a little note saying, no, I did not invest anything in Bernie Madoff. Of course, if this is a $50 billion scandal, if it's even half of that, it would be the biggest Ponzi scheme in American history.
Mitchell Zuckoff wrote the book on Ponzi.
(BEGIN VIDEO CLIP)
Prof. MITCHELL ZUCKOFF, AUTHOR, "PONZI SCHEME: THE STORY OF A FINANCIAL LEGEND": What we have here I think is a regulatory failure of tremendous proportions. We are not talking about red flags pointing, we are talking about flaming arrows that everyone was saying there's something wrong here. This is not mathematically possible. You cannot return money this way. And certainly not the way he claims to be doing it. And the SEC, again, looked and kept brushing it off and saying, nothing there.
(END VIDEO CLIP)
ROMANS: All those secrets. The SEC, Bernie Madoff, the people who worked for him, the people who invested money were going to get through all of those secrets. Look at what made him tick and try to uncover some more this weekend, Saturday, 8:00.
ROBERTS: What an amazing and tragic story.
ROMANS: Absolutely.
ROBERTS: Christine, thanks for the preview. Don't miss Christine's special, "Madoff, secrets of a scandal" tomorrow and Sunday at 8:00 p.m. Eastern. 49 minutes after the hour. We'll be right back.
(COMMERCIAL BREAK)
CHETRY: Well, like many of us, President-elect Barack Obama is addicted to his BlackBerry. Because of security concerns, he'll likely have to give it up when he takes office. CNN's Jason Carroll was following the story. This morning, we talked about this, we talked about this yesterday morning and, today, I felt like something was missing. It wasn't you. It was that I forgot to bring my BlackBerry.
JASON CARROLL, CNN CORRESPONDENT: See that was what it was. So you're addicted just like the rest of us but you know, we're not going to be the president. I mean, there are some major security concerns over hackers, legal concerns Obama's e-mails may be subject to public record laws. Even so, Obama still doesn't want to give it up. It seems he has become just as dependent on it as so many others have.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): Some can't live with it.
UNIDENTIFIED MALE: I would love to give up my BlackBerry. I don't like it, but I need it.
CARROLL: Others can't live without it.
UNIDENTIFIED FEMALE: You'd be lost without them.
CARROLL: Our culture seems obsessed with the BlackBerry. Web sites regularly post pictures of celebrities on theirs. President- elect Obama was spotted throughout the campaign using his and wants to keep it, even though the Secret Service says he shouldn't.
OBAMA: I'm still clinging to my BlackBerry. They are going to pry it out of my hands. I'm hoping to do is to see if there is some way that we could arrange for me to continue to have access to a BlackBerry.
CARROLL: Obama says it helps him stay in touch with friends and the flow of everyday life. That may help explain why he ranks second on one celebrity Web site's list of obsessive Blackberry users ahead of Britney Spears and Lindsay Lohan.
But former Secret Service agent Joe Funk says a president using a BlackBerry is risky.
JOSEPH FUNK, FORMER SECRET SERVICE AGENT: With the advent of the GPS tracking devices which is inherent in most of today's cell phones, somebody, with the proper technology, would be able to know where the President Obama is at any given time. All it would take really is just one innocent e-mail that he would reply to or that he would send to somebody that would allow someone to gain access to areas which he shouldn't be.
CARROLL: Why can't Obama or the rest of us, for that matter, kick the BlackBerry habit?
NICHOLAS THOMPSON, "WIRED" MAGAZINE: There's something hardwired in our brains that makes us like small flashy things. I have a six- month-old kid he can't stop playing with my Blackberry.
CARROLL: So what are the signs of Blackberry addiction? THOMPSON: If you are using it when you cross the street, if you use it at dinner when you're talking to your wife or it's the first thing that you check in the morning, if you use it while exercising, if any of these things are true.
CARROLL: OK. I'm definitely addicted then.
THOMPSON: Then have you a problem.
(END VIDEOTAPE)
CARROLL: Well some experts say the security risk can be resolved and do not think it's a bad idea for Obama to keep using his BlackBerry, so long that he's aware of the legal consequences. Remember, both presidents Bush and Clinton did not e-mail while they were in office.
CHETRY: Yes. You're right. I mean they missed out on at least President Bush on e-mailing his twins because he used to love to do that and he didn't want that to be public record. So to be continued. But we all feel for you, President-elect Obama, to have that type of relationship with your Blackberry.
CARROLL: Yes, I know I love mine.
CHETRY: Thanks, Jason.
CARROLL: All right.
(BEGIN VIDEO CLIP)
CHETRY (voice-over): What to wear and what not to wear at the biggest party on earth.
UNIDENTIFIED MALE: It's sort of Republican.
LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT: Even though it's blue, we may see a lot of red?
UNIDENTIFIED MALE: I think you're going to see a lot of red.
CHETRY: Avoiding a dreaded faux pas at the upcoming inaugural balls.
OGUNNAIKE: Wow, I want to try this baby on.
CHETRY: Dress rehearsal time. You're watching the most news in the morning.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ROBERTS: Eleven days now until the inauguration when all eyes are on Barack Obama and you can bet that along with the history of this important day, everybody will be talking about what Michelle Obama wears to the balls but what is proper inauguration dress etiquette?
What should other ladies attending know before they commit a huge fashion faux pas? Our Lola Ogunnaike went for her own dress rehearsal for the big event to find out.
(BEGIN VIDEOTAPE)
BRIDGET FOLEY, EXEC. EDITOR "WOMEN'S WEAR DAILY": You have to look chic. You have to be representative of not only your husband's administration, but of the country.
She's already established an interest in and a love for color. So she has the luxury to be a little bit more flamboyant in her color choice.
TODD OKERSTROM, Dir. OR PERSONAL SHOPPING, BERGDORF GOODMAN: I have this red for this inauguration. I know it's sort of Republican.
OGUNNAIKE: Even though it's blue, we may see a lot of red?
OKERSTROM: I think you're going to see a lot of red.
FOLEY: This is a very interesting day because there are two brides. And during the afternoon, Barack Obama is the bride and it's really all about him. People, of course, will pay attention to what Michelle Obama and her daughters are wearing, but then come evening, she's the bride.
OGUNNAIKE: If you had to give a woman advice for this inauguration in particular, given what is going on in the economy, you would say bring it down a thousand?
OKERSTROM: Yes. Maybe 500. Now let me indulge you.
OGUNNAIKE: Indulge me, indulge me.
OKERSTROM: Do you ever want to take it off?
OGUNNAIKE: No! Put it on me, honey.
OKERSTROM: I will. Let me get this button done.
OGUNNAIKE: Hurry up! Hurry up!
OKERSTROM: And it's like this little bit.
OGUNNAIKE: OK. See you later. Nice meeting you!
FOLEY: You don't want to look like va va va boom. This is the inauguration.
OGUNNAIKE: Beyonce wore these?
What is underneath here? I'm lost! You could wear this to Al Gore's Green Ball. You just sit down, cross your leg and bam! Looks like Candy. Like I want to eat it but like a Skittle. Wow I want to try this baby on.
OKERSTROM: All right.
OGUNNAIKE: That looks like a good time.
OKERSTROM: I think that this should be a joyous celebration, and the dressing should reflect that.
(END VIDEOTAPE)
ROBERTS: Jim Carrey said it best in the movie "The Mask": smokin'!
CHETRY: The one-shoulder red one.
OGUNNAIKE: That's the one for you?
CHETRY: Looks great on you.
OGUNNAIKE: I like the magenta one as well.
ROBERTS: But you're our recessionista expert here. Do people need to tone it down this time around some?
OGUNNAIKE: They've got to tone it down. It's all about being glamorous but more subdued glamour, no over-the-top bling this year at all. Keep the bling to a minimum. Nice understated dressing. That is the key for this season.
ROBERTS: You do you glamour and understated or overstated very well.
OGUNNAIKE: Thank you, John. Thank you.
CHETRY: And that's going to do it for us. Thanks so much for being with us this week on AMERICAN MORNING.
We'll see you back on Monday.
ROBERTS: Have yourself a great weekend. Right now here is CNN NEWSROOM with Heidi Collins.
