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American Morning
Israeli Troops Complete Gaza Withdrawal; Gitmo Trial Halt; World Congratulates Obama on Taking Office
Aired January 21, 2009 - 08:01 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: It is one minute after the hour, and here are this morning's top stories.
New developments out of the Middle East today. The Israeli military reports all of its soldiers are now out of the Gaza Strip. The withdrawal comes more than three weeks after Israel began its bruising offensive against Hamas.
Right now -- for right now at least -- the trials for detainees being held at Guantanamo Bay are in limbo. The Obama administration has now ordered prosecutors to put the hearings on hold for at least 120 days. Some 245 detainees remain in the system.
And for the first time in eight years, former President Bush waking up at his ranch in Crawford, Texas, as a private citizen. Last night the former president and his wife received a warm welcome home when they made a stop in midland. Mr. Bush told the crowd "It was good to be back."
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: And so tonight I have the privilege of saying six words -- that I have been waiting to say for a while -- "It is good to be home."
(END VIDEO CLIP)
ROBERTS: President Barack Obama hitting the ground running this morning. It is his first full day as the nation's 44th president and the work is pressing. He'll be calling in his top economic advisors today. Mr. Obama will also meet with his top military commanders. He is expected to give them their marching orders on drawing down troops in Iraq. A full agenda. And yesterday during his inaugural address, Mr. Obama warned more hard days to come.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America, they will be met.
(APPLAUSE)
(END VIDEO CLIP)
ROBERTS: CNN's Suzanne Malveaux is live at the White House for us this morning.
And, Suzanne, what is President Obama's first priority of the day?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, John, as you know, it's going to be a busy day. The lights in the residence are on, but we haven't seen anybody. The West Wing lights are also on. We did see David Axelrod, one of his top advisors who has entered the West Wing, the office of the president.
Obviously, a lot of things, after the prayer -- national prayer service, Barack Obama is going to be holding a meeting with his top economic advisors. The big push here is that $825 billion economic stimulus package to try to convince Congress that this is the money that he needs to actually create those 4 million jobs that he's talking about to lower taxes. All those kinds of things on the economic front.
Also on the foreign front, we are going to see him sitting down this afternoon with the Joint Chiefs as well as General David Petraeus, Secretary Gates, his defense secretary, to lay out a new mission here, saying that he wants to bring U.S. troops home in 16 months, pull them out of Iraq. Obviously put some of those troops in Afghanistan, where it's a messy situation. Far from certain whether or not that is going to be a good idea in six months or one year down the road. But obviously that is his mission -- his mission statement now.
And then we're seeing things that are going to happen within hours, John. We're talking about issuing executive orders to close the Guantanamo Bay Detention Center, to ban torture, to reform White House ethics, when it comes to senior staff. All of these things are in the works. Many of these things will be put on the president's desk in the hours to come.
John?
ROBERTS: You know, yesterday, Suzanne, it was pretty much an undeclared holiday there in the district. I know that school students in northern Virginia got the day off. My daughter was off school yesterday. I'm sure that Sasha and Malia were thinking about their studies and were enjoying the day off as well. But what about the first daughters, are they heading to school today?
MALVEAUX: Actually, they're going to have a break from school today. We've learned they are actually -- the Obamas are hosting a lot of friends to their -- welcoming them into the White House today, to get a tour, to be with the family, to relax a little bit. A lot of the Chicago friends.
The little girls spending time with their friends that they've grown up with in Chicago, having a little sleepover last night with movies, that type of thing. So, yes, they're going to give them a chance to relax a little bit, to acclimate to the huge, huge changes that their lives are going to experience obviously. So, they're looking for that comfort. You know, you talk about the bubble; they want to make sure that they stay connected.
John?
ROBERTS: I wonder how they like their new rooms as well? Suzanne Malveaux for us this morning. Suzanne, thanks so much.
MALVEAUX: Sure.
ROBERTS: Kiran?
CHETRY: All right. We're five minutes after the hour right now, and Christine Romans is "Minding Your Business." She joins us now with a sobering assessment as if the new president didn't already know just how tough it's going to be.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I know.
CHETRY: You're hearing from the financial folks just about how tough and how big of a challenge fixing this economy is going to be.
ROMANS: It really is tough. And he struck a pretty good note yesterday, a lot of people are saying, because he was sobering but hopeful. You know you don't want to hear that the best days of the country are behind you. You want to hear that you're going to be able to take these challenges head-on and fix them. It won't be quick. He will not be able to fix the economy quickly. He's the first to admit that and so is his team. But today they get under way with the work.
I thought it was interesting that he was meeting with Pentagon officials, then his economic team today. There are two wars going on -- one, in the economy and the other one, of course, we're well aware of. So the market, the economy, the job prospects for millions all battered, and the new president has a very full plate.
Let's talk a bit about what happened on the stock market on his inauguration day. Stocks tanked. It was the worst inauguration day since the Dow Jones Industrial Average came into existence in the late 1800s. The Dow down four percent, the NASDAQ down six percent, the S&P 500 down five percent. And banks are in trouble.
He has been spending -- the president has been spending a lot of time talking about when he gets in to office what kind of stimulus he will have. Well, he's got to go back and look at the banking system right now, because since the day he was elected, Citigroup is down 81 percent. Bank of America down 79 percent, Wells Fargo down 59 percent. What this is telling us, Kiran, is that there are still some grave concerns about the health of the financial sector.
You can't fix the economy if the banks are on the brink. But we're trying to get forward to fix the economy with a stimulus. So there's a lot of moving parts here, things happening all at the same time. It's going to take some tough work and it looks like they're starting today.
CHETRY: But what happens if they dump $300 -- I mean, the $350 billion left may not be enough?
ROMANS: I mean from the very beginning there have been very -- there had been Nobel laureates who've been saying the $700 billion would not be enough to fix the financial system. We've been saying that from the very, very beginning. $350 billion is what he has left to work with. I'm not saying that he's going to have to ask for more, but we do know.
And I think that people should be aware that it's more than just $700 billion we've spent. We've spent $3 trillion now on stimulus in the banks and the financial systems so far have committed $7 trillion. We're spending a lot of money, historic amount of money.
CHETRY: Christine Romans, thank you.
ROMANS: Sure.
CHETRY: Well, the economy is President Obama's top domestic challenge. But he'll have to start that work without his Treasury secretary whose confirmation has been delayed. Our panel joins us to look at some presidential reality facing Mr. Obama.
Also, after President Obama made history and America threw party after party to celebrate, how is the rest of the world reacting? We're going to be live in London. It's eight minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: After a day of pomp, ceremony and celebration, President Barack Obama begins the hard work today. He promised to hit the ground running, and it appears that he's doing just that. Let's turn to our political panel now. John Avlon is the author of "Independent Nation," columnist for the Dailybeast.com, and Patricia Murphy is the editor of citizenjanepolitics.com.
What did you think of the inaugural address yesterday in terms of the type of tone that he's setting for the work ahead?
JOHN AVLON, REGISTERED INDEPENDENT: He set a very sober, responsible tone. I mean, he made a decision not to give just an inspirational address but to give a directional address. Saying that this is what the challenges we face as a nation, here's how my administration is going to accomplish them, it was policy heavy. It was Barack Obama as president introducing himself to the American people as part preacher and part professor.
PATRICIA MURPHY, EDITOR, CITIZENJANEPOLITICS.COM: Well, I totally agree, actually. And he has now the job of going from one of the most gifted communicators that we've ever seen. He needs to be one of the most gifted persuaders that we've ever seen. He is now asking the American people not just to sit back and listen to his great speeches, but to now start putting their own oars in the water. So he said it's time for you to pick yourselves up, dust yourselves off, and begin the work of remaking America in your own lives and in your community.
ROBERTS: Michael Gerson, the former chief speechwriter for President Bush put it this way. He said, quote, "Heading into this inaugural address, many people expected the speech to be rhetorically masterful but perhaps ideologically shallow. Instead we heard a speech that was rhetorically flat and substantively interesting. On his first day in office, President Obama has managed to surprise."
So if it is more about substance than style, and of course this campaign was criticize for being more about style than substance, does this an indication, John, that he is going to hit the ground running and really try to make a lot of substantive changes.
AVLON: I think it is. And that's the shift that needs to occur. I mean, the symbolic accomplishments of Barack Obama have been achieved. He enters office as an immediately consequential president. But for now, day one, it's about the substance, not the style. And so it was appropriate that he gave a substantive speech that was about policy and direction.
ROBERTS: And Patricia, what about his appeal for bipartisanship in this town?
MURPHY: Well, you know, it's almost like we hear this every two, four, eight years in Washington. It's time for bipartisanship. It's easy to say, it's very, very difficult to get done. Look at John Cornyn putting a one-day hold on Hillary Clinton, his own colleagues from the Senate. That's the type of thing that derails the spirit of bipartisanship very, very early.
AVLON: But this is different. This president gets it personally. Barack Obama is writing the post-partisan playbook in front of our eyes. He is from the beginning has run against the plate of the base politics of the past. He's said yesterday to the cynics, the ground has shifted beneath you. And he's going to need to forge a coalition in the center, in the Senate and in the Congress, to really make sure that the stimulus plan is responsible to help eventually return us to fiscal responsibility. He's going to need to line the strength of the center.
MURPHY: Obama gets bipartisanship, Washington does not. That's his problem. Good luck to you, Obama.
ROBERTS: Well said.
MURPHY: Yes.
ROBERTS: Patricia Murphy, John Avlon, good to see you. Thanks so much.
MURPHY: Great to see you.
ROBERTS: Kiran?
CHETRY: Well, another big part of the presidential transition is for the comedians. For the past eight years they've had a field day with former President Bush. But last night the comedians turned their attention to the new president.
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": People who went to elementary school with Barack Obama say that they remember him as a chubby boy named Barry. Yes. And, folks, even as we speak, those people's tax returns are being audited.
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": You know, it's really fascinating to watch this peaceful transfer of power, because we're the envy of the world that we're able to do this. I only hope that Conan and I can do it just as peaceful.
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": The First Lady, Michelle Obama, looked absolutely gorgeous. The bow suggesting she is in fact a gift to the American people. First Lady of Soul Aretha Franklin took that idea to another, less fortunate level. And, of course, in a blatant attempt to top them, Maya Angelou.
(END VIDEO CLIP)
CHETRY: Flash of excitement in Washington. So how is the rest of the world reacting today? We're live in London to show you. It's 15 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I am thankful to God to be here. I cannot believe I am here. My aunt when she told me about the inauguration, she called me at work and said, Gwen, do you want to go to the inauguration? And I said, what do you mean go to the inauguration? What are you talking about? You can't go to the inauguration, we're from Marianna, Florida, we can't go.
I just can't believe it. I did it. I'm here. (INAUDIBLE), I just didn't know what to do. I was just -- and I saw the White House, and I just -- I can't believe it! It's -- I just can't -- it's just -- it's just amazing! And the people, it's just amazing! And I just thank God for letting me see this day! I'm from Marianna, Florida. It's in the panhandle of Florida, and I just thank God for being here. It is just awesome! Just awesome! This is an awesome day.
(END VIDEO CLIP)
CHETRY: That's just -- that's just one example of the many people that were swept up in the moment. A lot of people saying that it was almost impossible to describe, that you had to be there to see the camaraderie, the excitement, the joy and just the friendship that these perfect strangers made with one another as they went out there and braved the cold for hours to get a chance to witness history.
I want to show you a couple of the papers this morning. "The New York Post," usually actually known for its editorial headlines has kept it straight. President Barack Obama and then the date. There you have a look. "The Daily News" with a big, actual poster-size spread on its front page, "A Glorious Beginning."
And we also -- we're talking about just how crowded it was out there on the mall. They said that it's 2 million people showed up, this is about how much space they had on the Mall, the size of a closed front- page paper. "USA Today" as well, "Dawn of a New Era, Obama Pledges to Remake America." So, certainly a lot of pressure, a lot of expectation and anticipation for our new president.
And the new president's inauguration is, of course, making headlines across the world as well. Joining us with an international perspective is our own Becky Anderson live from London.
So, across the pond, everyone who was watching, what was their reaction?
BECKY ANDERSON, CNN INTERNATIONAL CORRESPONDENT: Well, it was an interesting one. Not perhaps as excitable or excited as Marianna from the Panhandle, you just shown there, but you wouldn't expect that from the Brits, I suppose. Very excited.
Thank goodness it's over. Thank -- yes. That's effectively how people feel. Good riddance to old rubbish is what I heard one commentator suggesting this morning on TV alluding to the Bush era. Very pleased, I think, is the answer. Let the remaking of America begin today. Perhaps reflecting on one of the papers that you've just shown, talking about the sort of international perceptions of the states.
The French paper "Le Figaro" -- Barack Obama, a picture of him, and "The Rebirth of America." The French paper for you. A lovely one from one of the tabloids today here in the U.K. -- "You're the Daddy." One of Obama's kids, of course, there. Classic picture. They're going to be shown all over the world today.
And from Kenya to Kensington in the U.K., and from the Bonia (ph) in France down to Italy, Spain, and all over Eastern Europe, it's got to be fair to say that people are extremely excited. Perhaps, though, the sense here on this side of the pond is, let's get on with it now. And to a certain extent, this 10-week period since the election, campaign, people feel it's sort of enough. Let's get on with it. Let's see what he can do. Let's get the world moving once again. Very excited, though.
Kiran?
CHETRY: And how about the first lady's outfits? What about the fashionistas on your side of the pond? Did they like?
ANDERSON: Well, they weren't sure, let me tell you, particularly the one she wore for the inauguration. I saw one of the editors from one of the fashion magazines, the weekly magazine here in the U.K., suggested that she looked as if she was wearing inaugural upholstery in that lime green number.
So, I don't think she was particularly well received on the sartorial front. Let me say, she looked fantastic at the ball, of course. I don't think anybody would deny that. A lot of people saying very serene, very dignified and better, certainly, than most of the outfits that our monarch tends to put out these days. I think it's fair to say, it went over fairly well but not with everybody.
CHETRY: I thought about you guys, Becky. Did you see Aretha Franklin's hat? I think that would have done the U.K. proud. I mean, the bow on that thing, you know. How about it?
ANDERSON: She really looks amazing in that outfit. She loves her hats. It looked fantastic.
CHETRY: Becky Anderson for us. Hopefully, Michelle wasn't listening when you made the upholstery comment, but thanks so much.
John?
ROBERTS: He said that Barack Obama can be a transformational figure, and he crossed party lines to help him become president. Coming up, we'll speak with former Secretary of State Colin Powell.
New president, same problems. How can Barack Obama fix what George Bush couldn't? We'll get a Republican perspective on the new Democrat in the White house. It's 22 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Former Secretary of State Colin Powell crossed party lines to support President Obama during the 2008 election campaign. The retired general is a respected military expert. So, I asked him if he thought the president can deliver on the promises he made given the problems that he faces.
(BEGIN VIDEOTAPE) GEN. COLIN POWELL (RET.), FMR. SECRETARY OF STATE: A president has to come in with big ambitions. He was elected to have big ambitions and deal with the big problems that the country has. But at the same time, no president can escape the crisis that comes in every morning over the ongoing conflict that exists. I think his number one problem, not withstanding Iraq and Afghanistan, which are important, is the economy.
The American people, I think, fundamentally bet on President Obama because of the economic situation that we are in. Stock market dropped another 300 points on this glorious inauguration day, and people are losing jobs. And that's number one for him. And that will take big ambition as well as gut work, you know, the scud work to get this thing fixed. And so, a president has to organize himself and organize his administration, organize his mind, to deal with the crisis of the day, but not get so consumed by them that you cannot think about big things.
ROBERTS: One of the big tasks that he has is to repair America's image in the world. And I wanted to ask you, now that President Bush has, you know, ridden into the sunset, so to speak, how much did the Bush administration, in your estimation, damage America's reputation in the world?
POWELL: Iraq and the Guantanamo situation, which I have been preaching for years, should have been closed years ago. Abu Ghraib and lack of progress in the Middle East, and a certain way in which we dealt with the world on international issues, I think, damaged our reputation in the world. And you can measure that by popularity standings if you ask people what they think about America. But I think it's very recoverable, because as I went around the world, people would argue with me about some of these policies. But when the arguments were through, they would say something like, how do I get a green card? You know...
ROBERTS: Still wanted to come.
POWELL: Yes. In front of every embassy, every consular office we have during this whole eight-year period, there were people lined up. Just go to any city in America, walk up the streets of New York, walk the streets of Washington, look at the crowd that was here yesterday, this diverse crowd, many of whom just got to this country within the last 10 years. So, that is still there.
And I think the way in which President Obama has reached out and his background and the fact that he's an African-American, I think has already started to turn around this image that we have had in recent years. And if we start to solve these problems, the economy starts coming back. If Iraq is in a better place and we start to do things in Afghanistan, get engaged with the Middle East, I think that's recoverable, because there's still a solid residual level of affection and respect for the United States of America.
ROBERTS: Now that we have elected our first...
POWELL: Yes.
ROBERTS: ...president who's African-American, can you tell us, I think for the first time, why you didn't run. What were your concerns?
POWELL: Because I did not want to. Because I'm basically a soldier and because I never found inside of me the kind of internal passion that you got to have to run for elective office.
ROBERTS: And what were your wife's concerns?
POWELL: I never woke up -- she was concerned as well to change our family life and she was concerned to some extent about our safety. But I'm a soldier and that wasn't my concern. My concern was I never woke up a single morning to go think about this or talk to people about it and find it in my heart and soul the passion that a Barack Obama or a John McCain or a George Bush or a Bill Clinton has. And it just wasn't me. And, you know, you got to be true to yourself, John. I've always tried to be true to myself.
ROBERTS: A lot of people think you would have made a great president.
POWELL: Thank you, John.
ROBERTS: General Powell, it's great to talk to you.
(END VIDEOTAPE)
CHETRY: With the world watching, President Obama had a message for the Muslim world in his inaugural address.
(BEGIN VIDEO CLIP)
OBAMA: To the Muslim world, we seek a new way forward, based on mutual interests and mutual respect. For those leaders around the globe who seek to sow conflict or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy.
To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fists.
(END VIDEO CLIP)
CHETRY: And we're joined now by CNN chief international Christiane Amanpour, who was with me yesterday while we were watching all of the inaugural coverage go down.
And he reached out directly to the Muslim world in that inaugural address. Why is that significant?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: It was significant because it marks a complete change with the last eight years of the Bush administration, and because the Muslim world, rightly or wrongly, has thought that the war on terror is a war against Islam, and there has been a lot of discord and divisiveness between the Islamic world and the United States. And that is a problem. That makes a difference.
And so Barack Obama, who indicated that he wanted a new way forward with the Muslim world, did make that statement. And, of course, when he put his hand on the Bible and said "I, Barack Hussein Obama," this was a revolution in what the rest of the world had ever seen before coming from the United States.
CHETRY: And you know, it was interesting because I was really listening and my ears perked up for that part of the speech. How does he balance showing that, yes, I have respect, and, yes, I understand, and this is not any sort of type of war on a religion but at the same time I'm going to use just as strong of a hand to root out terrorists and to fight back if we're attacked?
AMANPOUR: Well, he said it very clearly himself. He said to those who would do America harm, that we will defeat you. He made that very clear. But the important thing in what he said, the new thing was, we seek a new way forward with the Muslim world, based on mutual interests and mutual respect.
And that mirrors a lot of the language that the ordinary people in the Muslim world have been saying they would like to hear from the United States. That they don't want to constantly be dictated to, treated like the bad boy or the bad kid in the class, you will do this because we are the superpower. What they do want, whether it's from Iran to other countries in the Islamic world, is to have a new start, a new beginning, but based on mutual interests and mutual respect.
CHETRY: So, those were his words. How about his deeds? He ordered the U.S. government to suspend prosecutions of prisoners at Guantanamo Bay at least for the next 120 days. So, what exactly does that delay in prosecutions mean?
AMANPOUR: Well, it's really important because, again, in his speech, in his inaugural speech, he directly issued - addressed implicitly the idea of torture. And he talked about a false choice between our safety and our ideals.
In other words, you know, this business of torture and no recourse to due process of the law has been a stain on America's moral standing since 9/11, since the Guantanamo prison was set up. And many, many people from former secretaries of state in the United States to officials here and around the world, have said that that must be addressed.
So, what he's done as a first order of business is to issue an order saying we want to suspend the trials and the process of the Guantanamo Bay prisoners to some 120 days, pending a legal review. And he had signaled that he wanted to take action on Guantanamo Bay as the first order of business. And, again, a huge, big deal because that's what the rest of the world has looked at, and they don't want to see a United States which holds this - these unique, high values resorting to torture and illegal incarceration of prisoners.
CHETRY: Right.
AMANPOUR: And, of course, then there was the attitude of what to do with the most dangerous ones.
CHETRY: And then there's the conundrum of the 60 who have been cleared of the 200 some whom other countries won't take back. So what do you do with that?
AMANPOUR: Yes. That is a big deal. And there are some 248 in Guantanamo and for instance still countries like Great Britain and others, other allies are saying, no, not in our backyard. So, that's something that's going to have to be sorted out. And allies are going to have to come forth and really cooperate with the new president. And as many people have said, they will not have the luxury or the expediency of hiding behind an anti-American statement anymore, because their people by vast numbers support the new administration.
CHETRY: Right. Very true. Good point. Christiane, great to see you, as always. Thanks. John?
ROBERTS: The White House under brand new management. President Barack Obama's promising change. Will republicans stand with him, or will they stand in his way? We'll ask GOP analyst Mary Matalin coming up. It's 33 minutes after the hour.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): Dancing, screaming and beaming. A mass of flags and jubilation.
UNIDENTIFIED MALE: I'm just so proud and just so happy for this country.
CHETRY: The emotion of the moment as Obama made history.
UNIDENTIFIED FEMALE: This man's going to bring us together.
CHETRY: The best of what CNN captured in the crowd. You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, TV HOST: Officials at the White House say that President Bush completed his last piece of official business in the Oval Office at 6:00 a.m. this morning. Yes. Bush says it should take Obama weeks to find where he hid the dead fish.
(END VIDEO CLIP)
CHETRY: That's Conan O'Brien taking a parting shot at George W. Bush, the former president keeping with White House tradition did leave something for his successor, a folder addressed to 44. Inside a personal note to the new president. The White House photo shows it sitting on the desk in the Oval Office.
So, of course, no dead fish, but certainly a pile of challenges ahead for President Barack Obama. He's promising change. And he's also promising to reach across the aisle to get it done. Joining us now from New Orleans, republican analyst Mary Matalin. She also served as counselor to former vice president Dick Cheney and as assistant to former President Bush. Thank you so much for being with us.
I just want to quickly get your reaction, because there were people who booed President Bush yesterday at the inaugural ceremonies. This is somebody who said that he did do his best even though there was a lot of controversy surrounding some of the decisions he made. What is that like, you know, when a president's leaving and, you know, there are those in the crowd who are booing him?
MARY MATALIN, FMR. COUNSELOR TO VICE-PRESIDENT CHENEY: You know, it was a sadly discordant note, but the Obamas, both of them, could not have been more gracious and rightly so in the historic transition that this president, his staff, has made, or the outgoing president made possible for the incoming president, including signing an executive order and getting these things rolling much earlier than before.
So, he can't - Barack Obama cannot, President Obama, cannot be responsible for the crowd. But it was discordant and it's indicative of the kind of challenge President Obama is going to have when he says I'm going to change the tone, I'm going to change politics. There's a big, almost a cult, a grievance cult, a biohateful cult out there that has to get on the program or he's going to have a hard time implementing his new kind of politics.
CHETRY: It does seem though that at least for the short term, he has the goodwill of many much like George Bush did enjoy after 9/11 when there was a willingness on the part of people to put their partisan beliefs aside and said let's do something for the good of the country.
If you were advising President Obama, how does he capitalize on that in tackling the biggest issue right now. Of course, domestically, our financial crisis?
MATALIN: You know, he really did a good start with republicans saying bring your ideas, I welcome your ideas. And Eric Cantor and some republican conservative congressmen on the Hill did hold a session and they brought Mitt Romney and Meg Whitman and they're going to bring ideas that they like, what he's been saying about tax cuts, although his particular tax cuts aren't that stimulative. He also has conservative fiscal conservatives amongst his own party, the Blue Dogs.
So, he just needs to keep working with them. I really believe his initial problems are going to be less with the opposition than with his own party. He'll have the institutional problems or issues between the executive and the legislative branch, you already have the democratic leaders saying we will work with him, not for him.
And then he'll have the partisan inside his own party problems, before he gets to republicans. Republicans are cutting him a wide berth right here at the outset, because we are all in this together. But they're not going to give up their principles. But they do like the economic team he's put together and some of the things he's throwing out there. But the proof is in the pudding as they say.
CHETRY: And what "Wall Street Journal" today had an article about that, because he made reference to the size of the government, not being a problem in his inaugural speech, of course, hearkening back to Ronald Reagan saying, you know, that government is the problem, not the solution. And "The Wall Street Journal" writing the underlying fear, though, is that government now will swing too far, becoming not the solution Mr. Obama wanted it to be, but the problem that Mr. Reagan warned it could be.
A lot of questions about how much money we've already spent as it relates to bailouts and stimulus, and how much going forward and how willing are republicans to say, let's hand over the purse strings, the oversight has been a problem before now. And let's just trust that maybe the Obama administration has a better plan to get us out of this ditch.
MATALIN: Well, one of the things President Obama has promised is transparency and that's going to be an issue, he's going to have difficulty with his own party. They've changed the rules up there. They're making it - they're stripping away some of the reforms of your -- they are transparent and they have a chance to look at all these programs that nobody really knows. But the size of the government is a problem. It is literally a problem, the role of government. What level of government? Those are issues that, by what I think, by what I heard, Barack Obama trying to say yesterday, let's not, let's change the framework of the way we have these arguments. Let's go back to what we know is true. What we know is true is what the founders, whom he referenced on numerous occasions, knew that there is a role for government.
That's Madison who said if men were angels, we wouldn't need a government, but how far it goes without chilling what is exceptional about and always has been about America is the challenge. I heard Barack Obama saying that, I'm not sure his colleagues on the hill heard the same thing.
CHETRY: All right. Well, we'll have to wait and see for that. Mary Matalin, great to talk to you as always. Thanks for being with us this morning.
MATALIN: Thanks for having me.
CHETRY: 41 minutes past the hour.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): First lady of fashion. How do you pick a designer for the day your husband makes history?
UNIDENTIFIED FEMALE: I was so happy. Really, really happy.
CHETRY: Wait until you hear how Michelle Obama's designer got the thrilling news.
UNIDENTIFIED FEMALE: The same feeling you felt, I was feeling.
UNIDENTIFIED FEMALE: Oh, no, I think you were feeling something different. I mean she was wearing your design.
CHETRY: You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
ROBERTS: Welcome back to the most news in the morning. It took time and patience to get around Washington yesterday, lots of both. Let's take a look at all the people on the National Mall. Satellite imagery puts the estimate of yesterday's inaugural crowd there at 1.5 million. These amazing images were made exclusively for CNN by Geoeye image, giving us an incredible view of the massive people. All of those dark spots in the center of that photograph there are crowds of people jammed together shoulder-to-shoulder on the Mall to watch the inauguration yesterday.
And we need to say a big thank you this morning. We have been asking you, our viewers, to send us i-reports from the inauguration festivities and you responded in a big way. We received more than 9,000 photos and videos, shattering our i-report footage. It's coverage that you provided and we put together. Check it out.
(BEGIN VIDEO CLIP)
PRES. BARACK OBAMA, UNITED STATES: Today, I say to you, that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America, they will be met. To all the other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born, know that America is a friend of each nation and every man, woman, and child who seeks a future of peace and dignity. And we are ready to lead once more.
For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus and nonbelievers. We are shaped by every language and culture, drawn from every end of this earth. With hope and virtue, let us brave once more the icy currents and endure what storms may come.
Let it be said by our children's children that when we were tested, we refused to let this journey end, that we did not turn back, nor did we falter, and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations. Thank you. God bless you. And God bless the United States of America.
(END VIDEO CLIP)
ROBERTS: Just a small snapshot of the 9,000 i-reports that we received yesterday. Our own Carol Costello and Jim Acosta both were out on National Mall all day yesterday and that sea of crowded faces, they warmed up a little bit, got a little bit of sleep, got a little bit of room around them, too.
JIM ACOSTA, CNN CORRESPONDENT: Yes.
ROBERTS: I love the picture of the baby watching the speech. Isn't that funny?
CAROL COSTELLO, CNN CORRESPONDENT: It was awesome. You know, it's just so amazing to me that people were so into this. Weren't they clamoring to be on camera?
ACOSTA: Absolutely. We had no problem getting people to talk on camera. And I have to say I was high on a new kind of drug, the American spirit.
COSTELLO: Oh, yes.
ACOSTA: It was just unbelievably inspiring to be out there with all of those people and, you know, it was one of those things where, and I think we talked about it yesterday, it didn't matter if you were republican, democrat, white, black, whatever.
ROBERTS: For that moment you were American.
ACOSTA: Absolutely.
COSTELLO: You know after each and every interview people hugged me. I don't know why, it was just like this outpouring -
ROBERTS: Were you hugging back?
COSTELLO: I was hugging back. Because it was cold. No -
ACOSTA: It felt good.
COSTELLO: You really felt hyper American. You wanted to hug people. You wanted to show the spirit somehow. And, you're right, it didn't matter if you were democrat or republican. It was just this outpouring -
ROBERTS: We are a warm and fuzzy people.
COSTELLO: I know.
ACOSTA: And for once we weren't being called vultures, which was a good thing.
ROBERTS: We could barely hear you yesterday.
ACOSTA: I know. It was impossible. And there were moments during that broadcast where I didn't know if I was on the air. You know, I didn't know if you were hearing what I was saying. I didn't know what I was saying, Carol. You know, it was - which is kind of a new experience for me. I try to know what I'm saying.
ROBERTS: You know, Jim, even if you're out there saying blah blah blah blah, the pictures were so incredibly powerful and so moving. There you are in the sea of people. That all we needed to see was the images. The audio was a bonus.
COSTELLO: You know standing in the midst of the crowd while Barack Obama was speaking, too, because you could see in real time how people were reacting emotionally to him. I really don't think it would really matter much what he said, they just wanted to see him, to hear him and every so often you would get people sobbing. People would turn and hug strangers.
ROBERTS: It was incredible.
COSTELLO: It was amazing.
ROBERTS: You guys did a marvelous job out there, braving the cold and doing all that. It was terrific.
COSTELLO: I had fun.
ROBERTS: Thanks for sharing. Kiran?
ACOSTA: You bet. CHETRY: Well, the first lady of fashion. Who designed the elegant outfit that Michelle Obama wore when her husband took the oath of office? We're going to meet the designer. And wait until you hear how she got the news. It's 49 minutes after the hour.
(COMMERCIAL BREAK)
(MUSIC PLAYING)
CHETRY: Well, the Obamas out on the town last night after nearly two years of campaigning, they got a chance to relish the moment last night. They danced their way through 10 inaugural balls. They probably felt like two would be enough. But, hey, they had a lot of people to see. The first stop was a neighborhood ball and a lot of everyday folks invited to that one to get a chance to see their new president. The Obamas were also serenaded by Beyonce during their first dance.
And the Obamas ended up sticking around as the tempo picked up. All right, there you go. There you go. A little dancing! We're getting down as well. Probably by the end of the night they were wishing they could take off their shoes, but it was really what the First Lady was wearing yesterday that drew a lot of attention in our resident fashionista, Alina Cho, who has been working the story for us. I was thinking that, from about 7:30, 8:00, until 2:30 in the morning, they were making appearances at all these balls.
ALINA CHO, CNN, CORRESPONDENT: Yes, can you imagine doing that dance 10 times. Imagine having Beyonce serenade you. She got a little teary eyed at the end. It was really something.
CHETRY: It was wonderful. And so we want to know what you thought of the dress.
CHO: I mean, listen, some people were interested in the inauguration speeches, they should be. Others were saying what is she going to wear, right? You know I want to talk about that gown, that beautiful white gown that Michelle Obama wore to all the inauguration balls last night. Jason Wu was the designer. He's just 26 years old. He's only been in the business for three years and he told us that he was on pins and needles all day long. Why? Well, he had no idea that Michelle Obama was going to wear that beautiful gown until she walked out last night and revealed it to the public.
Now, the same is true for the woman who designed the First Lady's day outfit that matching coat and dress in that brilliant yellow. We saw it all day long right here on CNN. And what a moment it must have been. Michelle Obama in one fell swoop has put these relatively obscure designers on the map.
(BEGIN VIDEOTAPE)
CHO (voice-over): As millions waited to get a glimpse of now President Obama, the world was also watching the First Lady. When Michelle Obama emerged, the fashion world applauded. A nod to her love of color, she chose non-traditional yellow, with wool lace by American designer Isabel Toledo, hardly a household name. Until now.
ISABEL TOLEDO, DESIGNER: It was a dream come true for me. It really was. I was so happy. Really, really happy.
CHO: Cuban-born Toledo has been designing clothes for 25 years. She was also briefly the creative director for Anne Klein. Michelle Obama is a fan, so Toledo sent sketches. Made the dress and matching coat and then she waited like the rest of us. Until her mother-in-law called and said "turn on the TV." You found out when we found out.
TOLEDO: That you've got it. I mean, I got the same excitement and the same feeling you felt, I was feeling it at the same time?
CHO: Oh, no, I think you were feeling something different. I mean she was wearing your design.
TOLEDO: I was so happy to see how beautiful she looked.
CHO: Not since Jacqueline Kennedy has been there been so much excitement over a First Lady's fashion choices.
UNIDENTIFIED FEMALE: We want to see what she's wearing. And we want to - we want to follow her.
CHO: Fashion insiders say that's because Michelle Obama dresses like the rest of us.
JAY LENO, TV HOST: I'm guessing about 60 grand? $60,000, $70,000 for that outfit.
MICHELLE OBAMA, FIRST LADY: Actually, this is a J. Crew ensemble.
CHO: When she's not wearing J. Crew or The Gap, the First Lady often chooses American designers who are not well known. And there's nothing like a presidential seal of approval.
MARY ALICE STEPHESON, CELEBRITY STYLIST: Everything that Michelle Obama puts on turns to gold for that brand.
CHO: For Toledo and her husband Reuben, Mrs. Obama's endorsement doesn't mean fame and fortune, it means they can continue doing what they love, designing clothes. If you could talk to Michelle Obama right now, what would you say?
REUBEN: I hope you were warm. And I hope it was comfortable. And, boy, did you look great.
(END VIDEOTAPE)
CHO: The whole warm part, you know, that was a big consideration. The seamstresses actually tried on the coat several times to make sure that Michelle Obama would be warm enough in it. A little bit more about the outfit. That yellow, Toledo calls it lemongrass and says she chose it because it's happy and optimistic.
Another little tidbit you might not know, when she was asked to make the coat and dress, Toledo initially wasn't sure she could finish it in time. Of course, she was persuaded. The wool lace we should mention was made in Switzerland. It had to be shipped to the U.S. and everything was measured, cut and stitched together.
Of course, Kiran, a real group effort, but, again, we're talking about the First Lady on a very important day in history. But you know what is so great is that Michelle Obama chose these relatively obscure designers. You're talking about Jason Wu. He was born in Taiwan. Isabel Toledo, she was born in Cuba and some people are saying you know what, these two are Americans, American designers and some people are saying, listen, Michelle Obama through her fashion choices is really telling America this is what America looks like right now and, you know, some people think that's a really great thing.
CHETRY: And also buy American, because she did, right?
CHO: That's right.
CHETRY: All right.
CHO: Made in the U.S.A..
CHETRY: Exactly.
CHO: She looked great.
CHETRY: She did look great. Alina, thanks so much.
CHO: You bet.
CHETRY: We'll be right back.
(COMMERCIAL BREAK)
ROBERTS: This just in to CNN. We reported this earlier today, that the incoming president, Barack Obama, has ordered a 120-day stay of all prosecutions of prisoners being held at Guantanamo Bay.
Today a judge at the Guantanamo Bay Naval Detention Center agreed to that 120-day stay, in a couple of cases, one of them being the case of 22-year-old Canadian Omar Khadr. Khadr was picked up in Afghanistan during a firefight at the age of 15.
He has been charged with killing an American soldier with a grenade. He's been in Guantanamo ever since. His attorney, Lieutenant Commander William Kuebler says that this will effectively stop the process and may stop it forever. There are 21 detainees at Guantanamo who are currently undergoing judicial proceedings under military code of uniform justice - or uniform code of military justice, and it looks like their stays will be put in place as well.
So, we're going to have more on this story coming up later on throughout the day here on CNN. But for the moment at least, the number of trials put on hold for at least 120 days, perhaps according to this attorney of Omar Khadr stopped forever, including that case of Omar Khadr, the 15-year-old Canadian picked up in Afghanistan, now 22 years old, has been held in Guantanamo ever since. Kiran.
CHETRY: All right. John, and we want to end with a live look now at the National Cathedral in Washington. The inauguration events officially ends here. There's a national prayer service starting at 10:00 a.m. Eastern time. There's a look inside as well. It's a gorgeous, gorgeous cathedral. If you ever have the chance to go today.
President Obama as well as First Lady Michelle Obama, Vice President Joe Biden and Jill Biden and all their families are all going to be there. Again, this is at the Washington National Cathedral. The national prayer service starts in just about an hour.
And thanks so much for joining us on this AMERICAN MORNING. We will see you back here tomorrow.
ROBERTS: All right.
