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American Morning
House Vote Expected on Obama's Stimulus Package; Grading America's Falling Infrastructure; Shame Proves to be an Effective Tool on Wall Street; Muslim World Reacts to Obama's Outreach Message
Aired January 28, 2009 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN HOST: It's one minute to the top of the hour, and here are this morning's top stories. The House expected to vote today on an $825 billion economic stimulus package. It's a combination of more than $500 million in spending, the rest in tax cuts. President Obama went to Capitol Hill to nudge Republicans yesterday who want more tax cuts and what they call last wasteful spending. Democrats have now decided to scratch $200 million to refurbish the National Mall, including $20 million to lay down new sod. The president wants a bill on his desk by mid-February.
President Obama's Mideast Envoy arriving in Tel Aviv this morning as new attacks threatened a cease-fire between Israel and Hamas. Former Senator George Mitchell is expected to meet with top Israeli leaders including Prime Minister Ehud Olmert. Mitchell says it's critical that the cease-fire be extended and that the United States is committed to vigorously pursue a lasting peace.
And former Vice President Al Gore expected to urge a Senate committee to try to reduce the effects of global warming. Gore says Congress should not be sidetracked by the current financial crisis. It comes a week after President Obama said the U.S. will roll back the specter of a warming planet on inauguration day.
Well, some say that it proves that there's no such thing as global warming. Others say it could be a factor of it. A mass of winter storm moving across the eastern half of the country this morning from snow in the northeast to freezing rain further south. Morning commutes are treacherous. The day could see some heavy airport delays.
And take a look at this, that's out of Dallas, the roads turning slick on roads. There you go. How would you like to be in that pickup truck? Goes for a spin this morning literally.
Our Rob Marciano is tracking the massive storm's every move. He's down there at the weather center in Atlanta. And it's looking pretty interesting across the country today, Rob.
ROB MARCIANO, AMS METEOROLOGIST: It is interesting. And if you're waking up in the snow or ice belt right now, you're thinking about global warming, just remember that first word, global, because in other spots of the world it certainly is warm right now.
Cold air, though, piling in from Canada and mixing with the warm, moist air where we've had this ice storm going on for over 36 hours now. It is still icy and slick in Dallas even though the moisture has moved out.
Fort Worth Airport is closed because of the ice until it warms up and melts. Look at Philadelphia, over two-hour delays already. We're just approaching the 7:00 hour.
All right, New York City metro area airports, Boston and Philly, will see snow, sleet and rain. You'll see delays over an hour easily. Baltimore, D.C., Cinci (ph), icy mix and wind and low clouds and fog, and some rain across Atlanta, Charlotte and Houston.
Here's your big storm from Houston all the way through Louisville back through New York. This thing's a big one and it is stretching out. But it is moving our or at least starting to show signs of that.
Boston, though, before it does, you're going to see several inches of snowfall. It's snowing in New York. It is freezing drizzle right now in parts of Washington and Baltimore.
Live shot of Baltimore, by the way, 20 degrees, light snow mixing with freezing drizzle. Let's take a look at what's going on there. Slick roadways no doubt about it. Very slow go.
From the ice, we go to the snow in Cleveland where it's currently 23 degrees. You could see four to eight inches of it, and it is coming down sideways there. And just outside of New York, fresh video into the CNN newsroom, showing East Rutherford, New Jersey, where the snow is coming down pretty good there. No doubt the meadowlands looking a little bit snowy on the meadow.
Twenty-seven degrees right now, Boston -- in Baltimore. Twenty-five degrees in Philly. So, obviously, cold enough for snow and winter precipitation but the warmer air will be building northward. And I think the most significant snowfall will be north and west of the bigger cities.
Look at Albany. North of Albany could see 10 to 20 inches of snow. Schools closed across Upstate New York and parts of northern England. It will 36 degrees in New York city today.
So, John, that is encouraging even though you're seeing a lot of snow right now. Temperatures will eventually warm up above freezing, but until it does that, it will be a slow and slick go across many of the major cities this morning. Be careful out there.
ROBERTS: Snow at the meadowlands, Rob, but no danger that anybody would be playing football there anyway.
MARCIANO: No. Not anymore.
ROBERTS: Thanks so much.
MARCIANO: All right now.
CHETRY: Maybe next season.
Well, back to our top story this morning. The government trying to buy its way out of recession. The House expected to vote today on an $825 billion stimulus package. It includes billions for low-income housing, millions of dollars for the arts, millions to rehab older administration buildings in Washington, and that's just the start. And critics are wondering whether it has enough punch to make a difference and whether your money is going to all the right places.
Christine Romans joins us now with more on this. What do you think about the fact that, you know, there are some who said we can't even afford to have a single hearing on this? Let's just get it through, get it through, get it through.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, it's interesting because last fall when they were trying to push through that bailout, you know, it didn't get through in the beginning. Remember, the House kind of balked and then they had to really keep going on it. But it looks like the president has a lot of momentum behind this and part of the reason why the momentum is building is because the sod is out. Rehabbing the mall is out.
It was a huge distraction in negotiations between House Democrats and Republicans. But, you know, overall, the message here is very clear.
(BEGIN VIDEOTAPE)
ROMANS (voice-over): Please, please, keep the pork to a minimum. 647 pages on how to spend $825 billion.
PROF. KEN ROGOFF, HARVARD UNIVERSITY ECONOMIST: They're spending on infrastructure. They're spending on education. They're spending on energy. You know, certainly they're hitting some important basics, but it's very hard to do without the pork.
ROMANS: To some, this smells like bacon not stimulus. $50 million for the National Endowment for the Arts to replace lost philanthropy money. Democrats already backed away from $200 million in free contraception for low-income families and another $200 million to spruce up the National Mall. Republicans want more tax relief and less of what they consider pork. And, remember, the bill is supposed to be big and spend lots of money, that's the point.
President Obama says all those billions will renovate 10,000 schools, build 3,000 miles of a new electric grid, put $25 more in jobless checks and weatherize 2.5 million homes, to say nothing of tax cuts, bridge repair, health care and more aid for college students. But make no mistake, any whiff of pork on this one has already become a big distraction.
MAYA MACGUINEAS, COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET: I would take those right out of the bill, because they're clearly not the most stimulative policies but they do a whole lot to undermine the credibility of the package.
ROMANS: And credibility is critical to restoring confidence in the economy.
(END VIDEOTAPE) ROMANS: And right now as we all know, that confidence in the economy is lacking, consumer confidence at the lowest level on record. So here we have this huge, historic spending, a big distraction, even relatively small provisions in there that critics can point to and say, look, this is not stimulus, this is just unnecessary spending. So, a little bit of distraction over the sod this week, I would say. But when you look at the big picture here, some pretty important, some pretty big things in that bill.
We're going to keep kind of bringing each little piece to you and kind of try to explain what each of these mean and how they're going to help the economy or if they will.
ROBERTS: Line by line by line.
ROMANS: Line by line. There's a lot of lines, 650 pages and the bill's getting bigger. I mean, the Senate version also we're told contains maybe some AMT, alternative minimum tax relief, which makes it even more expensive. So the Senate version of the bill is getting a little bit bigger, too, and the lobbyists, oh, they're circling.
CHETRY: All right. Christine, thanks so much.
Well, it was another day of deep job cuts as well. Close to 12,000 more layoffs came down yesterday from Fortune 500 companies to some of the nation's most recognizable retail chains.
Target, the nation's second largest discount store, is cutting 1,500 jobs. Best Buy says it's slashing jobs because not enough workers took a voluntary buyout that was offered last month. Volvo eliminating 650 jobs in March and April in a plant in Virginia, and IBM told an undisclosed number of workers that they have 30 days left. So, are we going to see more of that today, Christine?
ROMANS: I think you can see more of that today, I really do. I think you can because we're going to see more earnings reports come out. We're waiting to hear what Wells Fargo is going to say, another big bank. We've got a lot of big companies that are, you know, the cornerstones of our industry and I think if you're seeing companies like this that are cutting jobs, a lot of other ones are, too.
CHETRY: All right. Thanks a lot.
ROBERTS: Wall Street greed exposed from over-the-top toilets to big time bonuses. We induct the worst into the hall of shame this morning.
And roads, bridges, schools and phone lines, America's infrastructure just got a new report card, and with grades this bad, it should be grounding.
It's coming up on eight minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: We are back with the "Most News in the Morning." And some pictures there gridlock across the cities, across the country, all made worse by that slick winter weather out there.
A new report card shows from roads to phones and everything in between, America's infrastructure is in horrible shape. Our Homeland Security correspondent, Jeanne Meserve, joins us now live from Washington.
And Jeanne, you know, you travel the roads and bridges just about anywhere in America and you see just in what terrible shape things really are these days.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: That's right. And that accounts for this report card which is the kind of thing you really would not want to show your parents. You want to put this one in the trash because the cumulative grade for the nation's infrastructure is "D" according to the American Society for Civil Engineers. This is how it breaks down.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): Roads, "D" minus. Americans spend more than $4 billion a year stuck in traffic. One-third of the country's major roads are in poor or mediocre condition. Drinking water, "D" minus. Leaking pipes waste seven billion gallons of clean drinking water every day, and many aging facilities are near the end of their useful life according to the civil engineers.
Wastewater, another "D" minus. Billions of gallons of untreated wastewater are discharged into the nation's waterways each year. Levees, "D" minus again. More than 85 percent are locally owned, and the reliability of many is unknown, though increased development near levees has increased the number of lives at risk.
Inland waterways, "D" minus. Of the 275 locks in use, 30 of them were built in the 1800s. Another 92 are more than 60 years old.
Getting the only slightly higher grade of "D," aviation, dams, hazardous waste, schools and mass transit. Energy infrastructure was the only sector to show improvement since the last ASCE report card in 2005. It now has a "D" plus.
The highest grade from the civil engineers goes to solid waste, with a "C" plus, due to recycling efforts.
(END VIDEOTAPE)
MESERVE: The group says the decay of our infrastructure is sapping our economy and our way of life, but the price to fix it is very high. ASCE estimates government and the private sector need to invest $2.2 trillion over the next five years. That is roughly three times the size of President Obama's entire stimulus plan.
John, back to you.
ROBERTS: Pretty stunning, Jeanne, that the best grade was a "C" plus.
MESERVE: Yes, yes. ROBERTS: Wow.
MESERVE: They say that investment has just been put on -- put off for too long, and the longer we put it off, the higher it's going to be to fix it.
ROBERTS: Amazing, Jeanne Meserve for us this morning from Washington. Jeanne, thanks for that.
MESERVE: You bet.
CHETRY: President Obama reaching out to the Muslim world during his first post-inaugural interview. So how was that message received? Iran's president is already answering back. Our Christiane Amanpour joins us live with more on that.
Also in a time when we're trying to cut back, President Obama's new treasury secretary is getting quite a nice severance. We'll have more on that.
It's 12 and a half minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most News in the Morning." As the economy crumbles, it is taking some people along with it. Here's a look at some members of the financial meltdown hall of shame. One of the first banks to tumble was Lehman Brothers, and along with it -- Lehman Brothers, rather, along with it CEO Dick Fuld.
Fuld testified on the Hill trying to explain the bank's demise and his $480 million earnings over the past eight years. Unlike Lehman, AIG got a government bailout. AIG execs spent more than $300,000 for a weekend retreat less than one week after the government gave the company $85 billion.
And the big three with the CEOs of Ford, GM and Chrysler came to Washington hat in hand asking for a bailout. They did it in style. Each flew in on his own jet and took a beating for it on Capitol Hill, so much so that the next time they arrived, a couple of them were in hybrids, another one in a very high-mileage cars. So they got the message.
CHETRY: Well, they're cutting checks with your money, bonuses in the billions, millions for stuff they don't need. When is the pushback going to happen? Well, maybe it's already started.
Carol Costello joins us live from Washington.
Hi, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Hi, Kiran. I'm looking at the glass half full this morning. That wall of shame was a good thing because, you know, it's power to the people time. And the battle that pitted Main Street versus Wall Street, Main Street now has the upper hand. Really? Shame works. (BEGIN VIDEOTAPE)
COSTELLO (voice-over): Forget about Congress re-regulating Wall Street. Turns out a little public flogging is pretty darn effective. Shame works. From public demonstrations --
UNIDENTIFIED FEMALE: I think it's disgusting.
UNIDENTIFIED MALE: It's all toxic.
COSTELLO: To scathing public indictments.
CAMPBELL BROWN, CNN ANCHOR: Who is in charge of this process? Who is watching the banks? Who is demanding accountability?
COSTELLO: Right now, it's you, Main Street. When word got out ex- Merrill Lynch boss John Thain spent $1.2 million to renovate his office, public outrage was so extreme, even the man who thought it was OK to pay $35,000 for a toilet finally got it.
JOHN THAIN, FMR. CEO, MERRILL LYNCH: It is clear to me, in today's world, that it was a mistake. I apologize for spending that money on those -- on those things. And I will make it right. I will reimburse the company for all of those costs.
COSTELLO: And he didn't even have to be publicly berated by Congress as so many others have, like ex-Countrywide CEO Angelo Mozilo whose company sunk in the subprime mess and cost taxpayers millions in bailout money.
ANGELO MOZILO, CEO COUNTRYWIDE FINANCIAL: I waive any and all severance, in addition canceled the consulting agreement included in my contract.
COSTELLO: Public advocacy groups feel positively vindicated.
UNIDENTIFIED FEMALE: Totally. I mean, well, but we have before. This is not the first time. But we do feel vindicated.
COSTELLO: Keep in mind these failed CEOs don't legally have to give up their cushy perks even if their companies benefit from the $700 billion bailout. But some experts say shame is proving to be a most effective weapon.
BRAD GOOGINS, BOSTON COLLEGE CTR. FOR CORPORATE CITIZENSHIP: Change really happens from the inside out, in any institution, whether it's the churches or corporations or whatever. And it really -- you really need to have an outside agitation to open this up.
COSTELLO: Citibank certainly felt that. When word leaked out it was going to spend $42 million for a brand, spanking new corporate jet, people complained so loudly, Citibank got a call from the Obama administration. What did Citibank do? Well, no more new jet.
(END VIDEOTAPE) COSTELLO: That's for sure. Now, it's not to say experts don't think accountability shouldn't be part of the bailout. It absolutely should, or that Wall Street doesn't need a regulation makeover. It just means the tone has already changed. And the fact Main Street won't put up with it anymore gives the president and Congress tremendous power over Wall Street -- Kiran.
CHETRY: All right. Some would say finally, right?
COSTELLO: I know. Yes!
Power to the people.
CHETRY: Carol, thanks.
ROBERTS: It was trampled by roughly four million feet and covered in 130 tons of trash on inauguration day, but the National Mall will have to wait for a facelift. Why money for a new lawn became a turf war and a giant distraction on Capitol Hill.
Plus, Rush Limbaugh now drawing a Republican congressman into his radio war with President Obama. Why are conservatives getting in on the act? We'll tell you.
It's 20 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My job is to communicate to the American people that the Muslim world is filled with extraordinary people, who simply want to live their lives and see their children live better lives. My job to the Muslim world is to communicate that the Americans are not your enemy.
(END VIDEO CLIP)
ROBERTS: Welcome back to the "Most News in the Morning." The 44th president's first big interview since his inauguration aimed at improving relations with the Muslim world. Mr. Obama spoke exclusively with Arabic news network Al-Arabiya. But was his outreach effective?
Joining me now is the man who interviewed the president, Al-Arabiya's Washington bureau chief, Hisham Melhem, and international editor of Thedailybeast.com, Salameh Nematt.
It's good to see you gentlemen both this morning. First of all, Hisham, what has been the reaction on the Arab street to the interview that you did with President Obama the other day?
HISHAM MELHEM, WASHINGTON BUREAU CHIEF, AL-ARABIYA: UNIDENTIFIED MALE: It's been tremendous. It's been positive. People have been exhilarated. It's a new tone. Even through the Arabic translation, people felt the authenticity and honesty of the president of the United States reaching out to millions of Muslims in the world saying let's begin a new beginning, a new page.
There's a new wind blowing from Washington, and I think they felt it. And judging by the reaction we got on our Web site, the letters, the requests, it was translated to all sorts of languages. It was seen by hundreds of millions of people around the world mostly in the Muslim world and the Arab world.
ROBERTS: Right.
MELHEM: And the reaction of the -- of the average citizens as well as officials has been positive and overwhelmingly really.
ROBERTS: Salameh, what have you been picking up? Is there a real belief in the Arab world that relations between the United States and the Arab world and Muslims around the world may change?
SALAMEH NEMATT, INTERNATIONAL EDITOR, THEDAILYBEAST.COM: Well, there is a wish in that direction. I mean, the president comes in with a huge political capital and mostly, you know, the reception has been positive to the election of President Obama. Of course, the reaction is not always uniform. You have these people who doubt whether, you know, the change of color, "in Washington or in the White House is going to really change the colors of America."
ROBERTS: Right.
NEMATT: But he does have a lot of, you know, positive kind of impressions left with the people, and I think that in that sense, he can start expending that political capital.
ROBERTS: And Salameh, there was an interesting observation posted Fouad Ajami of Johns Hopkins University who suggested that Obama was signaling to the Arab world that despots there are safe, that America's diplomacy of freedom is officially over. He said, "The irony is now obvious. George W. Bush is a force for emancipation in Muslim lands, and Barack Hussein Obama as a messenger of the old, settled ways."
Did you read it that way that President Obama is saying we want to take things back to the way they were before, so despotic governments throughout the Arab world, you're safe, we're not going to come after you and try to change things?
NEMATT: Well, I think that, you know, some people had that kind of impression. I think that it's too early to say. You know, there are elements in this speech, in the inaugural speech and also in the interview that my friend and colleague, Hisham, did with the president, that he does want to support the people of the Muslim world. He addressed the people, even, you know, beyond the heads of the leaders we've seen more extensively in his earlier speech.
ROBERTS: Right.
NEMATT: And so I think that it's too early to say, but he's not going to adopt these kind of slogans like spreading democracy in the Middle East, you know, axis of evil, you know, if you're not with us, against us. He's going to be more pragmatic and in a sense, that may be more effective than what we've seen before.
ROBERTS: Right.
And Hisham, as you said, your interview was seen by millions of people throughout the Arab world. It was not seen, though, on the rival network, Al Jazeera, which would just count as the biggest network in the Arab world. They didn't air any part of the interview, didn't even mention it for 24 hours. Is that just, you know, competition here? Were they feeling shut out? Or what was going on there?
MELHEM: Well, I really don't know what was happening in their minds and the decision-making process. I mean, I would leave it up to them.
You know, I always believe, you know, that let a thousand flowers bloom. I really -- that's not really my concern. My concern is that we have -- we have a new president, who's trying -- who fully understands the complexity of the world that we live in, the complexity of the Muslim world. He realizes, I think, the legacy left by the previous president, a legacy that created a greet deal of alienation between the United States and the majority of the Muslims all over the world.
ROBERTS: Right.
MELHEM: And I think he sees that his job now is to rebuild bridges -- rebuild bridges by being honest, forthcoming and sometimes he will be also blunt, even with the Muslim world, as he should be.
ROBERTS: Right.
MELHEM: And I think he -- he alluded to that in his inauguration speech and his interview with us when he said if you unclench your fists, we will deal with you.
ROBERTS: Right.
MELHEM: He talked about despots and he said don't blame the West for the ills of your society. There is a clarity, there is honesty in the dialogue that he seeks, and I think when he addresses the Muslim world in the next few months from the Muslim capital after he close down Guantanamo, beginning the withdrawal from Iraq, sending Mitchell to the region, he would be on a higher moral ground, moral ground, to speak some and to show some tough love to the Muslim world as he should.
ROBERTS: Right.
Well, we'll see. Hisham, great interview. Well done. Congratulations.
Salameh, thanks for being with us this morning as well. Good to see both of you.
CHETRY: We're coming up at 28 minutes after the hour. A look at the top stories this morning. Former President Jimmy Carter is saying that there can be peace in the Holy Land. He spoke to Larry King last night just as President Obama's new envoy arrived in the Middle East.
(BEGIN VIDEO CLIP)
JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: The worst possible thing that could happen to Israel, in the long run, is to continue down the road toward a one-state solution, which means that eventually you'll have a majority of Palestinians, of Arabs, in the one state and a minority of Israelis and of Jews, and that would be a catastrophe, I think.
LARRY KING, HOST, "LARRY KING LIVE": Do you expect him to have a kind of balanced outreach to the Middle East?
CARTER: Probably this is a very good start and I believe it will pay rich dividends to reach out to them. I think his phrase that he wants to shake hands if they will unclench that fists, those who are inclined in that direction was a very memorable thing.
(END VIDEO CLIP)
CHETRY: And the man helping President Obama sell his stimulus package getting a sweet severance deal of his own. Treasury Secretary Timothy Geithner got a $435,000 parting gift from his old employer, the New York Federal Reserve. Financial records show he also made about the same amount as the president of the New York Fed last year. Geithner took heat from Republicans during his confirmation hearings over his failure to pay $42,000 in back taxes on time.
And the National Mall will have to wait for a facelift. Democrats conceding to Republicans and dropping a $200 million provision from the president's stimulus plan. $21 million of that would have been used to re-sod the lawn on the mall. $21 million, I hope I said it right.
The House, meantime, is expected to vote on the stimulus bill in just a matter of hours. Suzanne Malveaux joins us live from the White House and the president's giving in to some of the GOP demands and then, of course, standing strong against others.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kiran, you're absolutely right here. I mean, it really is kind of this give and take that's taking place behind closed doors.
Now, there was a late-night meeting and the chief of staff, Rahm Emanuel, met with key Republicans. Despite that late-night meeting that happened, the White House doesn't expect that they're going to get any more than perhaps a dozen Republicans to sign off on this. The president really desperately wants a bipartisan bill. He believes it will give the Americans more confidence in this huge economic stimulus package in the process, but it's not likely, at this point, it's going to happen, but maybe there's still a little bit more working out here. In terms of yesterday, the closed-door meetings, my colleagues, Dana Bash and Brianna Keilar, on the Hill say that some of the things that happened, Republicans pressing the president on actually the tax cut that he is giving to some Americans who do not make enough money to actually have income taxes. They believe that that is wrong. But the president shot back, saying, feel free to whack me over the head, because I probably will not compromise on that part.
So, the question is, Kiran, what are they compromising on? Well, the $200 million for sod to put that down in the national mall. Democrats saying that perhaps there's something that they are now willing to take out of the package. Also President Obama involved in reaching out to democrats, particularly Congressman Henry Waxman, to get a $200 million contraceptive initiative, also out of that economic stimulus package.
All of this part of the back-and-forth to try to peel away some of the republicans and get them on board. But, Kiran, I have to say just looking at the numbers it does not look like they're going to get a lot of support. Kiran.
KIRAN CHETRY, CNN ANCHOR: All right. Suzanne Malveaux for us at the White House. Thanks so much.
And line by line, item by item, CNN's Lou Dobbs is separating the pork from the stuff in a new series "Lou's Line Item Veto." Here's a sneak peek.
LOU DOBBS, CNN HOST: Kiran and John, thank you. We're going line by line through the massive stimulus package to find out what's really going on as this package has been designed to stimulate the economy and create jobs. So, what's really happening? We'll tell you.
And we know members of Congress don't read the bills they pass, but we do, and we're reading this one, all 647 pages and very carefully. We will hold Congress accountable, I'm sure. Last night we reported on billions of dollars of so-called stimulus that critics say looks more like backdoor earmarks and pork.
Tonight, hundreds of millions of dollars being proposed to study climate change which isn't really stimulus. It may even be worthwhile, but it's not stimulus. We'll be taking a look at that program and others that require a little more examination by our legislators.
So, join us tonight, 7:00 p.m. Eastern, right here on CNN for "Lou's Line Item Veto" on "Lou Dobbs Tonight." John, Kiran, back to you.
ROBERTS: Lou Dobbs, thanks very much.
Rush Limbaugh getting hit with a right hook. Republican House members slamming the conservative talk show host telling him to back off after Limbaugh said the president is more scared of him than the current GOP leadership. Alina Cho is following this story for us this morning. Those are fighting words. ALINA CHO, CNN, CORRESPONDENT: Oh, lots of sword throwing going on, John. Good morning. Good morning, everybody. You know, we have been following that back-and-forth between Rush Limbaugh and President Obama. It hasn't been pretty. It all started with Limbaugh saying he wanted President Obama to fail. The latest salvo? Limbaugh is now responding to comments the President made on Friday. It appears that Mr. Obama told republican lawmakers, "you can't just listen to Rush Limbaugh and get things done." Well, here's how the conservative radio talk show host, Limbaugh, responded -
(BEGIN AUDIOTAPE)
VOICE OF RUSH LIMBAUGH, CONSERVATIVE TALK SHOW HOST: He's obviously more frightened of me than he is Mitch McConnell. He is more frightened of me than he is of, say, John Boehner, which doesn't say much about our party.
(END AUDIOTAPE)
CHO: Limbaugh, of course, talking about the republican leaders of the House and Senate. The GOP not happy. Firing back. Georgia Representative Phil Gingrey told Politico that McConnell's and Boehner's leadership is the right appropriate. Adding "it's easy if you're Sean Hannity or Rush Limbaugh or even sometimes Newt Gingrich to stand back and throw bricks, you don't have to try to do what's best for your people and your party. You're just in these talk shows and you're living well and plus you stir up a bit of controversy."
And Limbaugh we should mention does live well. He recently signed an eight-year $400 million contract, responding to Gingrey, Limbaugh told Politico, "I'm sure he is doing his best, but it does not appear to be good enough. He may not have noticed but the number of republican colleagues he has in the House have dwindled and they will dwindle more if he and his friends don't show more leadership and effectiveness in battling the most left wing agenda in modern history."
As for an official White House response on all of these, when asked about the comment that the president reportedly made to GOP lawmakers about Limbaugh. Press Secretary Robert Gibbs apparently smiled when he was told that Limbaugh was on the air at the time and he said, tell him I said hi.
John, sometimes you say more when you don't say anything at all, right?
ROBERTS: Yes, I expect, too, that Congressman Gingrey may find himself mentioned on the air today.
CHO: That's right. Probably so. And listen, I mean Limbaugh has a large bully pulpit, if you will, 13.5 million listeners each week. A lot of people may not be following the ins and outs of this, but you know, and also we should mention that the latest Gallup poll shows that President Obama has 43 percent support among the republicans. So, you know, that's the other side of it.
ROBERTS: An interesting battle shaping up here. Alina, thanks for bringing that to us.
CHO: You bet.
CHETRY: Meanwhile President Barack Obama has promised to change politics as usual in Washington but is he doing it? Especially when some say the president is breaking his own rules.
Also, exclusive news this morning about the deadly missile strikes in Pakistan. The country's prime minister contradicting our defense chief. Christiane Amanpour breaking the news. She's going to be joining us live with the latest. It's 35 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: And breaking news this morning, a major miscommunication between the United States military and Pakistan. Defense Scretary Robert Gates gave strong testimony yesterday before the Senate Armed Services Committee about those deadly missile strikes in Pakistan. He talked about going after Al Qaeda. Gates said the missile strikes would continue inside Pakistan and that that country's leaders are aware of America's intentions.
(BEGIN VIDEO CLIP)
ROBERT GATES, U.S. DEFENSE SECRETARY: We will go after Al Qaeda wherever Al Qaeda is, and we will continue to pursue that.
UNIDENTIFIED MALE: Has that decision been transmitted to the Pakistan government?
GATES: Yes, sir.
(END VIDEO CLIP)
ROBERTS: But our chief international correspondent Christian Amanpour, just spoke with Pakistan's Prime Minister Gilani, and he said that in fact is not true, going further to say that the missile strikes should stop. Christiane joins us now this morning from Davos, Switzerland. What did he tell you, Christiane?
CHRISTIANE AMANPOUR: Well, John, like the previous Pakistani government, they strongly protest U.S. missile strikes inside Pakistan. He said to me that the U.S. should respect Pakistan's sovereignty and he also said that there was no permission so to speak given by Pakistan to the U.S. for these strikes.
(BEGIN VIDEO CLIP)
YOUSUF GILANI, PAKISTANI PRIME MINISTER: We don't have any sort of an agreement with the government of United States and the government of Pakistan if there are any drone attacks, these are counterproductive and it would not be in the benefit of both the countries.
(END VIDEO CLIP) AMANPOUR: So when I pressed him on how frustrated the United States is over the fact that so much of Pakistan has been given over to the militants and so little has been able to be accomplished by the Pakistani government, he said that what we want is to share intelligence. He wished, he said, that the U.S. would share intelligence, if there is actionable intelligence, that they would try to do it together. He said that anytime a U.S. missile strike happens, it simply unites the militants with the ordinary people and is counterproductive. That was his - his line this morning. John.
ROBERTS: Another interesting little piece of news today, that Iran's President, Ahmadinejad, is calling on the new president, Barack Obama, to apologize for 60 years of crimes against Iran. Also talking about pulling back U.S. troops, saying, "if they want to change their policy, they should pull their forces out and take them back inside their own borders.
Now, President Obama has said that he wants to engage directly with Iran in terms of diplomacy, but is there any indication here that Ahmadinejad's wishes may be met and that relations will fundamentally change between the United States and Iran?
AMANPOUR: Well, John, President Ahmadinejad of Iran has said several apparently conflicting messages over the last several months. He sent a letter of congratulations to President Obama after the election. They sent a positive statement to the United States after the inauguration speech, which included that reach out to the Muslim world by President Obama. And now President Ahmadinejad is putting the hard line face back on his speeches regarding the U.S.. This was a speech to Iranians in a town called Kermanshah. Ahmadinejad is running for election and he really showed a very hard line in his speech today.
So, on the other hand, it has to be recognized that it is not just President Ahmadinejad who would be involved if there is any engagement or reach-out from the United States. It will be a sort of consensus process, and one of the most important areas of power in Iran is the supreme leadership, the religious leadership of Ayatollah Khomeini, and there are also for my reporting strong signals that is something that the Iranians want to pursue, engagement with the United States. From what I can tell on a win/win basis, although Ahmadinejad has said that he wants an apologize.
ROBERTS: A lot of news on the foreign policy front coming our way in the next few months. Christiane Amanpour in Davos, Switzerland this morning. Christiane, thanks.
CHETRY: President Barack Obama promising reform in Washington saying he can bridge the partisan divide. Now Mr. Obama is taking some heat from critics who say he is not playing by his own rules.
Also dramatic new information about what can happen to a young athletes brain. Dr. Sanjay Gupta shows for the first time the harmful fallout from playing hard.
(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)
REP. MIKE PENCE (R), INDIANA: As grateful as we are for the president's spirit, as I told him personally, House democrats have completely ignored the president's call for bipartisan cooperation.
(END VIDEO CLIP)
CHETRY: All right. Well, welcome back to the most news in the morning. President Obama was elected promising an end to politics as usual, but there's already been pretty of shots across the bow on Capitol Hill. And Mr. Obama is drawing some fierce criticism for a few of his administration's appointments. Some say that he is actually breaking his own rules. One of those critics is syndicated columnist David Sirota, who joins me live. Hey, David, thanks for being with us.
DAVID SIROTA, SYNDICATED COLUMNIST: Thanks for having me.
CHETRY: One of the things that we had talked about was this (inaudible) on the campaign trail, talked a lot about needing to usher in a change in Washington. Let's just talk briefly about - about a couple of these appointments that have sort of raised questions about that pledge that you have brought up as well as others.
Newly installed Treasury Secretary Timothy Geithner appointed Mark Paterson and this is a former top lobbyist for Goldman Sachs as his chief of staff and then last week there is a lot of buzz over William Lynn. He was appointed to the number two position at the Defense Department. William Lynn also a former top lobbyist for Raytheon, which is one of the five largest defense contractors. So, how is that a change in what Washington - in how Washington works?
SIROTA: Well, it's not a change. I think Obama's initial declaration on the campaign trail where he said if you're - if you're a lobbyist, you're not going to be working in my administration. That changed a little bit, but then on his first day in office, he issued a lot of lobbying rules where he basically said you can't - if you're a lobbyist, you can't work on the issues that you worked on in our government.
But now he's putting in place, you know, you've named two examples of people who are going to be in government, who were just previously lobbyists for huge companies that I would suggest the Treasury Department and the Defense department can't avoid regulating or dealing with those - with those companies. So, in other words those people are going to be in positions where it's going to be almost impossible for them to avoid working on the issues that they were previously lobbying on.
CHETRY: Right, so the administration defending itself saying that these appointments - the people who were appointed, have significant experience and that they would be the perfect person for that job. A lot of people say, look, this is how Washington works. If you try to eliminate people who have had a direct influence, lobbying or within the - within prior administrations, you're cutting out a lot of talent.
SIROTA: Well, look, this is a country of 300 million people. I do not believe that the only person who's qualified to be the chief of staff at the Treasury Department is a Goldman Sachs lobbyist. I don't believe that the only person who isn't qualified to be deputy secretary is a Raytheon lobbyist. I mean, that doesn't make any sense. It is the way Washington works. And the way Washington thinks about these things is that the only experience that's applicable is if you're lobbying for corporations that are - have their hand out for federal dollars. That is experience, but I don't think that makes somebody uniquely qualified to be a regulator of the companies that they were previously lobbying for.
CHETRY: I got you. Now, do you give Barack Obama any credit? Some people say that he has gone farther than others have gone in the past. Yet at the same time he's taking a little heat for issuing waivers for people that he wanted within his administration.
SIROTA: Oh, absolutely. I mean he gets a lot of credit for his statements on the campaign trail and for issuing a rule that is stronger than any president in the past. I think he should get a lot of credit for that. I think the problem is that it's so soon that he's issuing these waivers. You know, the old idea that the exception makes the rule. He's issued this rule. He's gotten a lot of favorable press for it. And I think he should have. But in terms of timing, he's almost immediately undermining it. I think that's - that's the problem here.
CHETRY: I got you. All right. David Sirota, nationally syndicated columnist and author of "The Uprising." Thanks for joining us this morning.
SIROTA: Thanks for having me.
ROBERTS: President Obama wheeling and dealing, trying to bring republicans on board before a house vote on his stimulus package. But is it enough? We'll talk with Senate Minority Leader Mitch McConnell who met with President Obama yesterday.
Then it's dejavu, John McCain and Barack Obama at odds over economic stimulus and other issues. Can't the president and his campaign rival just get along. We'll talk to a few McCain advisor coming up. It's 49 and a half minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Playing sports can take an enormous toll our body, but what about your mind? In our special medical series, "Concussion and the brain," Our Dr. Sanjay Gupta looks at brain trauma that can easily go undetected.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Punishing blows have become an inextricable part of many sports.
UNIDENTIFIED MALE: Somebody tackles were with my right side.
GUPTA: Ted Johnson took his share as a linebacker for the New England Patriots.
TED JOHNSON, SUFFERED MORE THAN 100 CONCUSSIONS: I've had maybe four or five, six documented concussions.
GUPTA: Those were just the dizzying knockouts. By his count, Johnson suffered more than 100 mild concussions. Impossible to test for, a concussion is a vague injury. Invisible, until now. This is the brain of an athlete -
DR. ANN MCKEE, BEDFORD VA HOSPITAL: Right.
GUPTA: Is that right?
MCKEE: That's right.
GUPTA: That's the only thing you know at this point?
MCKEE: That's right.
GUPTA: How many brains have you looked at so far?
MCKEE: From athletes?
GUPTA: From athletes.
MCKEE: I think this makes eight.
GUPTA: What have you found in the first seven?
MCKEE: They've all had changes of traumatic encephalopathy.
GUPTA: A new study confirms what some scientists have long suspected, concussions start an injury cascade that looks like this.
MCKEE: I think what's been surprising is that it's so extensive. It's throughout the brain. Not just on the superficial aspect of the brain but it's also deep inside.
GUPTA: This is a healthy brain and this is the brain of a former NFL player in his 40s. Those brown tangles, they indicate brain damage that could eventually kill cells. The trauma in this NFL player's brain looks a let like damage in this brain, a 70-year-old who suffered from dementia. Did it surprise you to see some of these things?
MCKEE: Oh, absolutely. Absolutely. To see the kind of changes that we're seeing in 45-year-olds is basically unheard of.
GUPTA: Years removed from the football field, Ted Johnson is still tackling side effects of all those concussions -- depression, headaches, anger issues.
JOHNSON: I almost forgot what I was like before, before the hits. I couldn't remember. And I just lost myself for the last three years.
GUPTA: Johnson and former pro-wrestler Chris Nowinski are part of the Sports Legacy Institute which asks athletes to donate their brains to continue the study into the impact of concussion. Is there a message for football players and is there a message for the NFL here?
MCKEE: Well, I think the message is that we need to identify what constitutes a significant head injury and we need to treat it. And I think that probably means resting an injury a lot more than we rest it.
GUPTA: So many of these changes typically take place in someone in their 70s or 80s. But as you've seen today, an athlete's brain is different. Sometimes the abnormalities, these changes, can take place in their 30s and 40s. And tomorrow I'm going to show you just how young a brain can start to show some of these changes. I'll give you a clue, before they even graduate from high school. John and Kiran, back to you.
ROBERTS: Sanjay Gupta this morning. And in part two of "concussion and the brain," Lacrosse it's a heavy contact sport. See what happened to a healthy teenage boy who got hit once too often. Dr. Gupta has got some potentially lifesaving information for you. It's 55 and a half minutes after the hour.
(BEGIN VIDEOTAPE)
ROBERTS (VOICE-OVER): Everything they own, for sale on ebay. A family so desperate to pay their children's medical bills.
UNIDENTIFIED MALE: nothing's more precious than the kids. I mean, not a sofa, not a TV.
ROBERTS: Before you call it tragic, strangers to the rescue.
Plus, what's booming in a bad economy?
UNIDENTIFIED FEMALE: In the time of crisis, we really want somebody to snuggle with.
ROBERTS: Losing jobs, but finding love.
UNIDENTIFIED FEMALE: No paycheck, but maybe a love check?
UNIDENTIFIED FEMALE: Exactly.
ROBERTS: You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: The house will later today vote on President Barack Obama's $825 billion stimulus plan. It's expected to pass on a party-line vote despite the president's best efforts to drum up republican support. The president wants to fast track the stimulus package and have a bill on his desk by mid-February. But how will the stimulus plan actually help fix the economy and how soon can we expect to see results? CNN's Allan Chernoff is here to break it down for us this morning. Hi, Allan.
ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning to you. You know, I wish there were a quick fix. The fact is, there is not. There's no guarantee that the government can pull us out of recession, but at least Washington can target its spending to deliver a big bang for the buck.
(BEGIN VIDEOTAPE)
CHERNOFF (voice-over): Construction owner (Sanjee Dawan) is hopeful that President Obama's stimulus program will get through Congress quickly so he can win new government contracts and rehire workers he's had to lay off.
SANJEE DAWAN: Hopefully what we're going to do is make a few phone calls, get some of those people back to work, some of these talented folks that we had working for us before. Unfortunately right now they are sitting at home.
CHERNOFF: New projects Dawan said would also have him buying concrete, steel and other material and equipment.
PRES. BARACK OBAMA, UNITED STATES: We'll put people to work repairing crumbling roads, bridges and schools by eliminating the backlog of well-planned, worthy and needed infrastructure projects.
CHERNOFF: President Obama also hopes to improve our electricity infrastructure, computerize more medical records and upgrade hospitals. Each will take months to begin putting the money to work, and most of the funding wouldn't be spent until next year and the year after, estimates the Congressional Budget Office. Even so, some economists say, Obama's plan makes sense. And with many private businesses scared to spend, they say big spending to help the economy has to come from the government. But government can do only so much if the nation's banks refuse to start lending again.
NIGEL GAULT, CHIEF U.S. ECONOMIST, HIS GLOBAL INSIGHT: If we get the stimulus package and it comes and goes but the financial system remains broken and the banks are still not lending, then any help that we get from the stimulus will prove short-lived.
CHERNOFF: Government spending will help, but the Obama administration has to find a way to get banks lending again. They have been holding on to their cash just like this, with a tight grip. The Obama administration needs to loosen up that grip, because after all, credit greases the wheels of capitalism. Without that grease, those wheels can grind to a halt.
KIRAN CHETRY, CNN ANCHOR: That's right. A lot of people say that, you know, we need to see this sooner rather than later. And they're not even having a bunch of hearings on this. They want to just sort of be able to get it done as soon as possible. CHERNOFF: ASAP. Even if they were to approve this deal today, the entire Congress, and if President Obama were to sign it today, it would still take months and months for this to have any impact at all.
CHETRY: Right. All right. Allan Chernoff for us. Thanks.
