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CNN LARRY KING LIVE

Obama: Pass Stimulus Now/Suze Orman Reacts and Gives Advice

Aired February 5, 2009 - 21:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


LARRY KING, HOST: Tonight, miracle on the Hudson's cockpit tapes just released.

(BEGIN VIDEO CLIP)

CHESLEY "SULLY" SULLENBERGER: Cactus 1539 hit birds. We have lost thrust in both engines. We're returning back toward LaGuardia.

(END VIDEO CLIP)

L. KING: Three minutes of terror -- 155 lives on the line and just one way to save them.

(BEGIN VIDEO CLIP)

SULLENBERGER: We may end up in the Hudson.

(END VIDEO CLIP)

L. KING: Survivors are here with their incredible reactions.

Plus, Suze Orman on another shocking day for the economy -- jobless claims are at a 26-year high.

What can you do if you lose your job?

She's taking calls, so start dialing.

And then, Caylee Anthony latest -- her grandpa is just out of the hospital. He tried to kill himself.

What really happened?

And will the murdered child finally be laid to rest? Next on LARRY KING LIVE.

Good evening.

President Obama just put the full court press on Democrats at their retreat in Williamsburg, Virginia.

The message -- hey, let's not mess around and get that stimulus plan passed.

Listen.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This package is not going to be absolutely perfect and you can nit and you can pick and, you know, that's the game that we all play here. We know how to play that game.

What I'm saying is now we can't afford to play that game. We've got to pull together.

There are going to be some things that don't get included that each of us would like to see included. All of us are going to have to make some sacrifices. And we have to accommodate the interests of a range of people. And the House is going to have to work with the Senate.

But let's think big right now. Let's not think small. Let's not think narrowly. Just as past generations of Americans have done in trying times, we can and must turn this moment of challenge into one of opportunity.

(END VIDEO CLIP)

L. KING: Suze Orman is going to join us in a little while.

Let's check in with John King, CNN's chief national correspondent, the host of "STATE OF THE UNION" Sundays on CNN. He's in Indianapolis.

And Dana Bash, CNN's Congressional correspondent, who's on Capitol Hill.

Anything surprising here -- John?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Larry, a very interesting speech from the president. He had a choice to make. He decided to let cameras into the room tonight. He could have gone in with House Democrats and been conciliatory and said we need to work better with Republicans.

Instead, he essentially said I won the election, I'm going to take charge of this debate. Privately, as Dana will tell you better than I can, he doesn't have the votes he needs in the Senate just yet. He's going have to compromise with Republicans and even with some conservatives in his own party.

But tonight was a signal that he will do that in private. But publicly he is saying I'm the president, 70 something percent of the American people are behind me. We need to do this fast -- essentially calling the Republicans and saying try me.

You want to slow this bill down?

I think I have the American people behind me and I'm willing to take this fight to the public -- Larry.

L. KING: Dana, would you call it a little harsh? DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: It was definitely strong. But just in -- to what John was exactly saying, just as President Obama was speaking, Larry, behind-the-scenes here on Capitol Hill, in the Senate, the Democratic leader -- the majority leader, Harry Reid, actually spoke with the White House. He was planning on pushing this legislation through tonight. He was planning on keeping the Senate here all night long.

But he spoke with the White House and he came out and he changed course. He said we're going to give this a little bit more time, because there's a group of bipartisan senators that President Obama was alluding to that have been working. He said -- the majority leader said I'm going to give them until tomorrow in order to get their work done.

That was, it seems to me, according to my sources, that was because the White House understands, despite what President Obama is saying in terms of his tough rhetoric in public, in private, he understands he doesn't have the votes in the Senate. His economic stimulus plan is really in limbo and he needs to give it a little bit more time so he doesn't have a huge embarrassing loss here.

L. KING: John, you're a great head counter.

How many votes does he want?

J. KING: Well, he would like, Larry, to have 60 votes, 63 votes, 65 votes in the Senate. That would help him enormously, not only in this bill, but heading into more difficult debates down the road on bigger issues, tougher issues.

Larry, as Dana said, the Senate will take the night off. When they come back to work tomorrow, guess what will have happened?

At 8:30 tomorrow morning, the Labor Department will put out the unemployment report for last month. We've lost more than a half million jobs two months in a row. All economists expect we're going to lose another half million jobs in this new economic report.

I'm in Indiana tonight. The unemployment rate is 8.2 percent.

So the president believes he has the urgency of the debate on his side and will have it even more so when Americans wake up to an even higher unemployment rate and more jobs bleeding out of this economy.

There's policy arguments still to be made, compromises yet to be made. But the president scraped his knees up a bit in this, his second full week in office. A little off message. Tonight was a clear effort by this president to say I think I'm going to get back on my game and I'm going to challenge Republicans.

He'll have to challenge the Democrats, too. But he embraced them publicly tonight. It appears that this was a handing off a battle with Republicans. Still some compromising down the road. But very interesting to watch this president decide I think I have political capital and I'm willing to spend it. L. KING: Thanks, John -- and, Dana, what's he going to get?

BASH: Well, he needs that -- he needs those 60 votes. And I think it's very interesting. You know, we heard from the White House and even from Democratic leaders here for some time that they were hoping to get this stimulus bill passed by a huge bipartisan majority -- maybe 70 or 80 votes.

They're not saying that anymore. They just want to squeak by and get what they need for this to pass in the Senate so that they can get to the president's desk as soon as possible.

So it is going to be very interesting to see whether or not they can pick off those two or three Republicans, because, at this point, again, they have given up on that big vote that they were hoping to use to change the tone and give him, you know, more power with what he's trying to do here with this spending of the taxpayers' money -- hundreds of billions of dollars in taxpayer money.

KING: Thanks, Dana Bash and John King.

Now to San Francisco and Suze Orman, the personal finance expert, number one "New York Times" best-selling author. Her latest book is "Suze Orman's 2009 Action Plan."

What's your thoughts on this stimulus plan?

SUZE ORMAN: I'm not exactly sure, to tell you the truth, Larry, because we haven't really seen it. There's been many versions of it. It was $900 billion. Now it's $800 billion.

So for me, personally, I'm going to wait to see what actually gets passed and what's in it.

However, here is the key. Even if it gets passed, when it passes -- obviously, it will pass sooner than later, it's not going to take effect immediately for the American public. It's not going to be if you lost your job today, that means you're going to have another job tomorrow.

So the real key here is what is everybody doing personally to have their own financial economic stimulus or recovery package?

Because people -- all of you that we're talking to tonight -- how do you pay your bills right now?

Are you preparing for a job lay off right now?

And everything that we're talking about that's passing is still going to take time to take effect. So I'm more concerned, seriously, about what does every single family do right here, right now to save themselves, Larry.

L. KING: Suze Orman is our guest in this first portions of the show.

Are we in a depression?

More of Suze's financial help when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OBAMA: ...can simply dictate the terms of the debate. I don't think any of us here have cornered the market on wisdom or that do I believe that the good ideas are the province of any party. The American people know that our challenges are great. They're not expecting Democratic solutions or Republican solutions. They want American solutions.

I've said that same thing to the public and I've said that in a gesture of friendship and goodwill to those who have disagreed with me.

(END VIDEO CLIP)

L. KING: Suze Orman is the guest.

Last night we did a show at the end of the program on finances and the audience took me to task -- probably rightfully so -- when I expressed surprise, Suze that -- about underwent mortgages that people had...

ORMAN: I saw that, Larry, when you said...

KING: All right. And people...

ORMAN: ...25, 30 percent. I saw you say that.

L. KING: Well, here's my problem was that people -- I know that people have homes in which the mortgage is greater than the value of the house. What I was surprised at was the amount of people who have this situation. That surprised me.

ORMAN: And here...

KING: So I apologize to those who thought I didn't -- I knew about the situation. I just had no idea of its enormity. ORMAN: Yes.

KING: So I apologize.

ORMAN: And but here's the thing. Let me just address that for a second in that that is something that I still don't see this recovery plan addressing at any level. The amount is enormous of the number of people that currently are still up to date on their mortgage, but they're so under water.

I know people -- I'm dealing with them every day from my own show. Bought a home, have a $700,000 mortgage in Tampa, Florida. Now, the exact homes next door to them are selling for $250,000.

They're not just 25 percent or 30 percent under water, they're 60, 70, 80 percent under water.

And yet no bank will deal with them. It's really a catastrophe and nobody is helping them out whatsoever.

L. KING: But didn't you have a solution to that problem the last time you were on, that some -- that you can go to your bank in that situation and do something?

ORMAN: Yes. You can do what's called a short sale. But only -- and this is what drives me bats, Larry -- only if you are currently behind on your mortgage payment one, two, three months. Only if you show them that you really do not have the resources to pay the current mortgage payment will they allow you, in most cases, to do something known as a short sale.

However, if you're in a situation where you can afford it -- but why in the world would you want to pay it when you have a $600,000, $700,000 mortgage, the house is $200,000 at most. You're $3,000, $4,000, $5,000 a month be -- you know, under water, in terms of what you're putting out.

Why do you want to keep doing that?

It doesn't make financial sense.

Yet, good luck getting a bank to understand that one.

So what are people doing?

They're just walking away.

L. KING: Another occurrence last night. Donald Trump was the guest. And he said flatly we are in a depression.

Do you agree?

ORMAN: We'll, I'm not sure we're in a depression. But we sure are depressed, truthfully. I mean a depression, obviously, is an elongated recession where it's getting really bad. There -- well -- and I've said this to you before. For some people, it's going to feel like a depression for their -- for some people.

There are people out there, they can't find a job. They are trying everything.

I myself have gone into McDonald's, Taco Bells: "Do you have any job applications?"

"Sorry, lady, you know, we aren't taking any job applications because we're full up on job applications."

So there are some people, they can't find a job. They're trying to do anything and everything in their power to get by. They've lost their home. They've lost their car. They don't have any money in retirement. They don't have a penny.

And what are they doing?

They're doing food stamps. They're in bread lines. Go by the bread lines, Larry. Look at the people that are standing in soup lines but -- so to speak, bread lines, where they just want food. There are white collar workers in some of those lines. It's absolutely, to them, like a depression.

L. KING: Do you see any -- any light here at the tunnel -- the end of the tunnel?

ORMAN: Well, it will depend, again, do we pass this recovery plan?

Do we not?

In the very near future, I'm sorry to say, I don't see any light at the end of the tunnel because it's going to take time. And that's why I keep saying to you -- and I've been saying it all the time -- you've got to play recession, so to speak. Play depression. Play like you got a job lay off, even if you're in a situation right now where you have a paycheck coming in, everything is relatively OK, you have got to put every single penny away just in case -- in case you get sick, in case you are laid off, in case your corporation shuts down.

You've got to really have a contingency plan in place in case it happens to you. You've got to do it and you've got to do it now.

L. KING: Suze Orman is the guest.

Great article on Suze in the current "People" magazine.

Every time we ask, can the economy can get any worse, it does.

We'll be back in 60 seconds with Suze and your calls and maybe how to cope.

(COMMERCIAL BREAK)

L. KING: Suze's latest book, by the way, is "Suze Orman's 2009 Action Plan".

Let's hear more from President Obama putting the squeeze on Democrats to pass the stimulus package.

(BEGIN VIDEO CLIP)

OBAMA: ...this debate. But come on. We're not -- we are not going to get relief by turning back to the very same policies that, for the last eight years, doubled the national debt and threw our economy into a tailspin. We can't...

(APPLAUSE)

OBAMA: We can't embrace the losing formula that says only tax cuts will work for every problem we face, that ignores critical challenges, like our addiction to foreign oil or the soaring cost of health care or falling schools and crumbling bridges and roads and levees.

I don't care whether you're driving a hybrid or an SUV, if you're headed for a cliff, you've got to change direction. That's what the American people called for in November and that's what we intend to deliver.

(END VIDEO CLIP)

L. KING: Suze, we've got a question from our blog at CNN.com/larryking. Smokey (ph) asks: "I have $70,000 in debt. I have a fairly secure job and the means to pay the debt, but nothing left over at the end of the month. I'm not sure where to turn to dig out of the hole. How does debt consolidation affect your credit status? Help."

ORMAN: Well, you know, Smokey, it's kind of funny that's your name. It's kind of like you're burning up here and there's smoke here. And where there's smoke, there's fire. And the fire here is your debt.

When you consolidate debt, such as with the National Foundation of Consumer Credit or the Consumer Credit Counseling Service, it doesn't hurt your fico score or your credit score whatsoever.

Just be very, very careful of the companies out there that want $700 or $800 up front and consolidate your debt for you. When they say to you, you know what, we're going to go to your creditors and we're going to reduce the amount of money that you owe.

Can you just stay away from those?

You created this debt. It is your obligation to pay this debt off. I don't care that you don't have anything left over at the end of every month, Smokey. You borrowed this money. It is your responsibility to pay it back.

Pay it back, sir.

KING: Suze, stick around.

(COMMERCIAL BREAK)

L. KING: We're back with one of our favorite people, Suze Orman.

Tampa, Florida -- we go to calls.

Hello.

UNIDENTIFIED MALE: Hi, Larry.

My question for Miss. Orman is, with millions of foreclosures and seeing our neighbors leave left and right, what advice would you have for folks when they start to see our dissolution of our neighborhoods and perhaps even having to keep up their -- the houses next to them and the abandonment the houses. We're seeing a real break down of our neighborhoods.

What are your thoughts about that and what advice for neighbors who are trying to actually keep their neighborhoods, you know, in some type of upkeep that you have...

KING: OK. Got it.

Suze?

ORMAN: Yes. My -- my thoughts are that I'm really sorry that's happening. And I do wish that somehow -- somehow this recovery act would address that. Because what you're going to find yourself in a situation of -- oh my god, especially in Tampa, Florida. You're seeing the properties absolutely go down the drain.

So I don't have a solution. And that's why I'm so going we need something here, people. Because you need money to come into these neighborhoods. You need these incentives to get people to buy these homes again, which is why this tax break with buying homes may help you.

But how that's going to happen right away, I've got news. The reality is, you've just got to keep it going as much as you can. But that is a serious problem that -- it's not really being addressed at this point in time.

L. KING: Wayne, Michigan for Suze Orman.

Hello.

UNIDENTIFIED FEMALE: Hi, Larry.

Hi, Suze.

KING: Hi. Hi.

UNIDENTIFIED FEMALE: I have a question. I'm a new homeowner. I'm expecting a tax refund of just over $7,000. I have a credit card that would consume that entire amount. I'd like to know if I should use that pay off my credit card or just sit on it for a safety net.

ORMAN: Here's my question to you.

Is your job secure?

Oh, so we don't know.

Here's -- so here's what everybody should think about. If you're getting a $7,000 refund, let's say that's true. And you have $7,000 of credit card debt. But, it is a good possibility that you are going lose your job, get a lay off or whatever it may be, do not pay off your credit card debt with that money because you're going to need that money to live on.

And if you pay off that debt and you lose your job, chances are they're going to close down your credit card and you won't be able to charge things.

So if your job is in jeopardy, keep the cash safe and sound. If you know without a shadow of a doubt that you're going to have money coming in, you're just fine. Take the $7,000 and pay off the credit card debt.

L. KING: Garden Grove, California.

Hello.

UNIDENTIFIED FEMALE: Hello.

L. KING: Hello.

UNIDENTIFIED FEMALE: Yes, hello.

KING: Go ahead.

UNIDENTIFIED FEMALE: Yes. I'm calling from California.

My question to Suze is, I was talking to a company yesterday because I was trying to refinance my loan. And they told me I have good credit and that I definitely qualify. But the fees that they were trying to charge me, they come -- they came up with a new fee that they're saying is a change in Fannie Mae's rules and that is a quarter percent of my balance because I don't do impounds.

Now, I pay my taxes and my insurance separately so that I can afford my mortgage. And as I said, I am in good standing. But now they want to punish me with a quarter percent because I don't pay impounds.

ORMAN: So go and find another...

UNIDENTIFIED FEMALE: I don't understand this.

ORMAN: Go find another lender.

For those people who are watching tonight and they're going what is an impound?

You pay your mortgage. You pay that to a mortgage company. But this particular mortgage company wants to you pay them, as well, your property taxes and your insurance. That's called impound account. And they want to be the ones to pay your property taxes and your insurance for you. They get to earn interest on that money rather than you do.

I don't like impound accounts. If that's the contingency for you to refinance, oh, go find yourself another company.

If you qualify to refinance, somebody else will do it in the right way for you.

L. KING: A question on the blog from Robbie: "I have a job, very good credit. But should I buy a house with such a high rate of job loss? Like, what if I lost my job tomorrow?"

ORMAN: That's when you prepare for a job loss, meaning you are only to buy a home right now -- and there are great buys -- great buys out there. Interest rates -- great interest rates if you have 10 to 20 percent to put down. If you have an eight month emergency fund, so in case you lost your job, you'd be able to continue to pay your monthly payments.

You have got to be financially OK before you buy a home. Just because the home prices are good, interest rates are great, does not mean that you should be buying a home. So that's what determines it.

Can you afford it or can you not?

You should know.

L. KING: Another blog question, this one from Tracy (ph). This is interesting: "I can't get refinancing on my house because I only owe $20,000. But I can't afford the thousand dollar a month house payments now due to a lesser paying job. What now?"

ORMAN: That's interesting. So you've been paying close to -- you know, you had a mortgage that was probably like a $150,000 mortgage. You only owe $20,000 left on it. But your mortgage payments are still $1,000 a month and you can't afford it anymore, but you can't refinance because it won't do it.

That's a fabulous question.

Here's what I would do.

Can you get a credit card?

Can you get money anywhere where you can take that money out, pay off your loan altogether, so you're not paying it that way, as if it were $150,000 mortgage to begin with, and then pay your credit card company back or some other place where it makes sense?

I would look around. I bet you can find someone who would lend you money or something in order to make sure that you could do this.

L. KING: One more caller.

Detroit, hello.

UNIDENTIFIED MALE: Yes, how you doing, Mr. King?

L. KING: Hi.

UNIDENTIFIED MALE: OK. My question for Ms. Orman, I'm 52 years old. I've got $150,000 cash. I'm debt free. I've got excellent credit. I own a home, which I (INAUDIBLE) under the enterprise zone back here and it then dropped my mortgage payment down to about $400 or $500.

I'm wondering should I -- I would like to buy some more property.

Is that a good thing right now?

ORMAN: If -- you can buy property if you want. And it could be a good thing right now if you know that you could either pay for it outright or if you buy it and you have a renter and the renter is paying you income and all of a sudden that renter cannot pay you that income because the renter lost their job, that you have enough money to pay the mortgage payment on that rental so that you won't ruin your credit and everything else.

I think if you have that money and you want to buy a piece of property outright and you can get a steal -- you can get a $100,000 property for maybe $40,000, go ahead, boyfriend. Now may be the time.

L. KING: Suze, see you soon.

Thanks so much.

ORMAN: Any time, Larry.

L. KING: Suze Orman.

Well, you've got to hear this to believe it. Nothing rattled the man behind the controls of a jet about to crash in the Hudson River -- the cockpit recordings and reaction from people on board, next.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: Cactus 1529 over the George Washington Bridge wants to go to the airport right now.

UNIDENTIFIED MALE: Going to our airport.

Check.

Does he need assistance?

UNIDENTIFIED MALE: Yes. It was a bird strike.

Can I get him in for Runway 1?

UNIDENTIFIED MALE: Runway 1.

That's good.

UNIDENTIFIED MALE: Cactus 1529, turn right 280. You can land Runway 1 at Teterboro.

SULLENBERGER: We can't do it.

(END AUDIO CLIP)

(COMMERCIAL BREAK) KING: I was about to say we have four survivors of US Airways Flight 1549, because everyone was a survivor on that extraordinary flight. In Jacksonville, Florida is Carl Bazarian. In Charlotte, North Carolina is Vince Spera. In Fort Lauderdale, Florida is Alberto Panero. And in Charlotte, North Carolina is Brad Wentzell.

Radio communications between the pilot of US Airways Flight 1549 and the air traffic controllers were released today by the FAA. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Cactus 1549, 700 (INAUDIBLE)

(INAUDIBLE)

UNIDENTIFIED MALE: Maintain one and 5,000, Cactus 1549.

(END VIDEO CLIP)

KING: We now know that the plane hit birds. Let's hear another piece of audio. There's been a drastic change of circumstances. Listen.

(BEGIN VIDEO CLIP)

CHESLEY SULLENBERGER, PILOT: This is Cactus 1539, hit birds. We lost thrust in both engines. Returning back toward Laguardia.

UNIDENTIFIED MALE: Turn left heading about 220.

SULLENBERGER: Two two zero.

UNIDENTIFIED MALE: We've got emergency returning. I believe 1529, bird strike. He lost all engines -- he lost the thrust in the engine. Returning immediately.

UNIDENTIFIED MALE: Cactus 1529, which engines?

UNIDENTIFIED MALE: He lost thrust in both engines he said.

UNIDENTIFIED MALE: Got it.

UNIDENTIFIED MALE: Cactus 1529, do you want to try to land runway 13.

SULLENBERGER: We're unable. We may end up in the Hudson.

UNIDENTIFIED MALE: (INAUDIBLE) Cactus 1549, there's going to be less traffic runway 31.

SULLENBERGER: Unable.

UNIDENTIFIED MALE: OK, what do you need to land? Cactus 1549, runway four is available, if you want. There's less traffic at runway four.

SULLENBERGER: What's over to our right? Anything in New Jersey? Maybe Teterboro.

UNIDENTIFIED MALE: Off to your right side is Teterboro airport. Do you want to try to go to Teterboro?

SULLENBERGER: Yes. UNIDENTIFIED MALE: Teterboro, (INAUDIBLE) emergency inbound. Cactus 1529 over George Washington Bridge wants to go to your airport right now.

UNIDENTIFIED MALE: Check. Does he need assistance?

UNIDENTIFIED MALE: Yes. It was a bird strike. Can I get him in for runway one?

UNIDENTIFIED MALE: Runway one, that's good.

UNIDENTIFIED MALE: Cactus 1529, turn right 280. You can land at runway one at Teterboro.

SULLENBERGER: We can't do it.

UNIDENTIFIED MALE: OK, which runway would you like at Teterboro?

SULLENBERGER: We're going to be in the Hudson.

(END VIDEO CLIP)

KING: They never made Teterboro. They made the Hudson River. Four survivors join us. By the way, the entire crew, flight attendants and both pilots will be on this program Tuesday night. They're -- a special appearance in prime time. Tuesday night on this show from New York. Carl, what goes through you when you hear that, especially the calmness?

CARL BAZARIAN, SURVIVOR: You know, to me -- my son played it for me this morning. I found it incredibly stressful and sobering that we were so close to death. And that's the bad side. And I'm really not keen on hearing it too many more times. But on the other side, it's exhilarating. Again, we were blessed with the best feat in aviation, with the best pilot and co-pilot. That's all I can say.

KING: Vince, what goes through your mind?

VINCE SPERA, SURVIVOR: Larry, the entire conversation that you hear going back and forth is just indicative of how the entire cabin was. It was calm, controlled, but tense. That's really what that conversation started to sound like to me.

KING: Alberto?

ALBERTO PANERO, SURVIVOR: It's filling in pieces to the puzzle. While everything was going on in the plane, we didn't have much information of what was going on actually. So hearing this now kind of fits into the puzzle, where we see where I was at the point when everything was happening in the plane.

KING: Brad?

BRAD WENTZELL, SURVIVOR: It's an amazing thing to hear, not only from our perspective, when we were basically going for a ride, but to hear from the man who -- just him and the good lord had our lives in his hand.

KING: We're back in a moment with more of the drama and we'll have the captain and crew right here, as we said, this coming Tuesday night. Stick around.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Cactus 1529, which engines?

UNIDENTIFIED MALE: He lost thrust in both engines, he said.

UNIDENTIFIED MALE: Got it. Cactus 1529, couldn't get it for you. Do you want to land runway 13?

SULLENBERGER: We're unable. We may end up in the Hudson.

(END VIDEO CLIP)

KING: Captain Sullenberger did an interview with Katie Couric of "CBS Evening News." Watch.

(BEGIN VIDEO CLIP)

SULLENBERGER: It was the worst, sickening, pit of your stomach, falling through the floor feeling I have ever felt in my life. I knew immediately it was very bad.

KATIE COURIC, "CBS EVENING NEWS": Did you think, how are we going to get ourselves out of this?

SULLENBERGER: No. My initial reaction was one of disbelief.

(END VIDEO CLIP)

KING: How do you feel, Carl -- you'll see the whole crew with us Tuesday night -- when you hear the captain talk?

BAZARIAN: First thing, he's very honest about it. But I don't know how -- we all had disbelief. It was all surreal. How then he was so energized to exhibit the highest professionalism. I think it's an incredible aviation feat. And my fellow friends, they will comment. But how did he get that composure?

We were all panicky. Not panicky, I think Vince is right. We were kind of cool, but concerned, overly concerned. How did he regain himself and do what he did? I don't know how he did it.

KING: Vince, were there a lot of moments, Vince, when you thought you bought it?

SPERA: Actually, no. There was never a point in time when I thought I was going to die. Obviously, I think the way the people in the cabin behaved contributed to my feeling that way. It was just a lot of control. We felt like the pilot was in control. Obviously, it all worked out. At no point did I feel like I was going to die. I'm very happy to hear the captain truly didn't feel that way either.

KING: Alberto, how about when it hit the water? Did you think you were going to go under?

PANERO: No. I think as soon as we hit the water, we realized that the worst was over and the most important thing was to get out as soon as possible, making sure that the doors got open quickly and that everybody stayed calm and tried to exit as calmly as possible, because at first people were trying to get out quick and trying to push a little bit. But I think everybody realized that the more organized that we did it, the faster we would get out. I think that helped out a lot.

KING: Brad, the last few weeks, have you had flashbacks? Do you think about it a lot?

WENTZELL: I've had a few flashbacks. For me the most real thing that I keep playing back in my head is saying good-bye to my family in prayer and saying good-bye to my little daughter, my loved ones, my wife, and waiting to die. It's a very real feeling. I wasn't as optimistic. No one ever knows when they're going to die. I felt that was my time. Apparently, the good lord still has a few things for me to do on this Earth.

KING: Here again, the final moments of flight 1549 before it crashes into the Hudson.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Check. Does he need assistance?

UNIDENTIFIED MALE: Yes. It was a bird strike. Can I get him in for runway one?

UNIDENTIFIED MALE: Runway one, that's good.

UNIDENTIFIED MALE: Cactus 1529, turn right 280. You can land at runway one at Teterboro.

SULLENBERGER: We can't do it.

UNIDENTIFIED MALE: OK, which runway would you like at Teterboro?

SULLENBERGER: We're going to be in the Hudson.

(END VIDEO CLIP

KING: Carl, you're looking out the window here, I guess.

BAZARIAN: Yes, I was.

KING: What are you thinking?

BAZARIAN: The first reality when we hit, I thought, initially, the landing was so good I thought we were back on the tarmac. That was my immediate reaction. But then the water -- immediately, we saw the water out the window. Again, like Vince said, when we saw that daylight of the door opening, it wasn't a herd of people trying to rush out. It was pretty good composure. I guess Vince is right. We picked up on the courage of the crew and the flight attendants.

KING: Vince, there was one passenger who thought he landed.

SPERA: Yes. I heard several stories about reactions of different people. Honestly, most of the people knew exactly what was going on and they really just wanted to get out and get to safety. But I did hear somebody attempting to pick up their bag and do some other things like that. Fortunately, most of those people were on the right side of the plane. I got to get out the left.

KING: Alberto, have you flown since?

PANERO: Actually, I have. The next day I took a plane home. I figured that was going to be the easiest way to just get over any kind of possible trauma, just get back on the plane. And I just kept focused on seeing my family and friends and that got me through the flight pretty well. And also the lady that was sitting next to me was very nice and just happened to make friendly conversation. So it worked out pretty good.

KING: Brad, have you met the captain?

WENTZELL: I did meet the captain. That was very real thing. He's just as cool and calm in person as you would expect, for someone who was able to do, from what I believe, no one else on the planet could do. He was very humble. I think we all have been humbled from this experience.

KING: Thank you all very much. Congratulations. Again, I hope you all watch Tuesday night when the whole crew will be with us.

It looks like the family of Caylee Anthony will finally be able to give her a proper good-bye. The latest in 60 seconds on LARRY KING LIVE.

(COMMERCIAL BREAK)

KING: The Caylee Anthony case continues to grip the country, capture the attention of media across the nation. Last month, the grandfather apparently tried to kill himself. Watch.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What is your emergency?

UNIDENTIFIED MALE: George Anthony has been gone since 8:30 this morning, and he has taken several bottles of medication from his house.

UNIDENTIFIED MALE: George Anthony went missing sometime this afternoon.

UNIDENTIFIED FEMALE: Several Orange County deputies surrounded the Anthony home immediately and brought dogs and helicopter, because they were prepared for an all-out search to find George Anthony.

UNIDENTIFIED MALE: Basically, he had text messaged family members that he wanted to end his life.

UNIDENTIFIED FEMALE: Officers found an unfinished suicide note in his car and possibly another. Local sixes learned he used words like he wanted to be with Caylee.

UNIDENTIFIED MALE: Had it not been for a cooperative effort between Orange County and Valucia (ph) County, I don't know what the outcome would have been.

(END VIDEO CLIP

KING: What really happened to George Anthony? How's he doing now that he's finally out of the hospital? We'll find out next.

(COMMERCIAL BREAK)

(NEWS BREAK)

KING: Joining us now from Orlando, Florida, Brad Conway, the attorney for George and Cindy Anthony. George and Cindy are the grandparents of the murdered toddler Caylee Anthony and they're the parents of her accused killer, her mother, Casey. George had some suicidal moments last month. He was released from the hospital yesterday. How's he doing?

BRAD CONWAY, ATTORNEY FOR GEORGE AND CINDY ANTHONY: He's doing much better, Larry. He's glad to be home. When he got home, he found hundreds of e-mails from people he doesn't know across the country. And they are wishing him good luck and prayers and compassion has gone out for him.

KING: He's such a sensitive guy. Do you fear he might try to hurt himself again?

CONWAY: I don't think so, Larry. He realizes now that Caylee's voice is -- it goes on with him and with -- with Cindy and with Lee. I don't think he wants to give that up.

KING: Has he told you exactly what happened? Or why it happened?

CONWAY: Well, we have talked about it a little bit, Larry. That's something I wouldn't go into, because it's private. Not attorney/client privilege, necessarily, but it's between two people talking. And I don't want to share that.

KING: George and Cindy were on this show just hours before Caylee's remains were found. I asked him how he reacted when he heard that his daughter was arrested. Watch.

(BEGIN VIDEO CLIP)

GEORGE ANTHONY, GRANDFATHER OF CAYLEE ANTHONY: When they took her into custody the very first time, I was just appalled, because I wanted them to -- I wanted to put an amber alert out for my granddaughter, which they never did. They never contacted the FBI that I wanted them to contact.

I have a little knowledge on some stuff. You really would think they want to have some -- someone wanting to have helped them assist, trying to find this beautiful three-year-old little girl. And all I was doing was trying to help them.

KING: Why do you think they wouldn't?

ANTHONY: They had their mind made up.

(END VIDEO CLIP)

KING: Brad, are they still holding out for their daughter's innocence?

CONWAY: Larry, they support their daughter 100 percent. They love her. And that's never going to change. In terms of the case, you know it's hard to comment on that, because there is so much evidence that has yet to come out from the state attorney's office and from law enforcement.

KING: I understand you have got news tonight about Caylee's memorial?

CONWAY: Yes, sir. Her memorial is set for Tuesday, February 10th at 10:00 a.m.

KING: Where?

CONWAY: It is at the First Baptist Church of Orlando. It's a large church, holds about 5,000 people. And I'm expecting it probably will be filled.

KING: Do you know the time?

CONWAY: Yes, 10:00 a.m., Larry.

KING: All right. Let me repeat that. If you are in the Florida area, and this case has become cause celebre everywhere, the memorial service will be held Tuesday, February 10th -- that's this coming Tuesday -- at 10:00 a.m. at the First Baptist Church of Orlando. Open to anyone in the public who comes?

CONWAY: It is. But the family and the church reserve the right to refuse entrance to anybody that is not going to conform with dignity and respect to her service.

KING: You are referring to paparazzi types or tabloid types?

CONWAY: That and there are some people out there that do not have good intentions. I know there are people out there looking for pictures of Caylee's remains, as well as the actual remains. We are going to make sure that security is tight. And nothing is going to get in the way of a dignified and respectful service for this little girl.

KING: Can her mother go?

CONWAY: No. No. That is something that -- Larry, she would have to be furloughed from the jail. That is not really an option.

KING: We'll be back with more with Brad Conway on this edition of LARRY KING LIVE. Don't go away.

(COMMERCIAL BREAK)

KING: Brad Conway, again, George Anthony is out of the hospital and doing OK. No fears he would repeat that act. And informing us of the memorial service next Tuesday at the First Baptist Church of Orlando at 10:00 a.m. How is -- if you know, how is Cindy holding up, Brad?

CONWAY: She is doing well. She is glad to have George back. And she has been busy trying to plan this service for quite a while, trying to get the details down. So that I think occupies a lot of her time and thoughts.

KING: Will there be many speakers?

CONWAY: Larry, I don't know the details. It's funny, because I'm getting asked that. Cindy has told me I am not going to tell you. Anybody that wants to know needs to come and pay their respects to Caylee and they will find out in person.

KING: We showed you a clip earlier; George and Cindy were on the show in December. I asked George then why Casey wouldn't call him to say that Caylee is gone. Watch.

(BEGIN VIDEO CLIP)

ANTHONY: I know we kept in contact with her, at least Cindy did every day or every other day. Little text message here and everything was fine.

KING: What do you make of it? She is your daughter. You have to have some -- why wouldn't she not -- why would she not tell you?

CINDY ANTHONY, GRANDMOTHER OF CAYLEE ANTHONY: I think she's -- I think she was frightened. I think, from what we understand, that you know there has been threats to not only Caylee's well-being, but also to our family's well-being.

(END VIDEO CLIP)

KING: Brad, how have they dealt with the stress? They didn't do anything wrong. And they're very nice couple. How have they dealt with the stress of all of this?

CONWAY: Well, not very well, given George's recent hospitalization.

KING: Yes.

CONWAY: And the constant media attention has been a part of that. So focusing on the service for Caylee is important. And then moving on will be difficult. You know, you never get over something like this. But they have still got another -- at least probably another year before this -- the trial is over. And they have got to go through that.

KING: How do they deal with all of the -- as you said, she is worried about what might happen at the church, with all the paparazzi and all this lights on their house and the attention?

CONWAY: Well, you know one thing, Larry, since George's hospitalization, the media have, I think voluntarily, backed off a bit. And you always have that one or two journalists that won't do it voluntarily. But they have given them some space. And they'll continue to do that, I think, until the next story comes up. And if it involves George and Cindy, they'll be there. If it doesn't, hopefully, they will maintain their distance.

KING: I know there is a trial coming. But -- and this will have to be part of evidence. Where are the young girl's remains?

CONWAY: Right now, they're still in the funeral home. They have not left. They will not be at First Baptist on Tuesday for the service. We want to make sure that security is the first -- first and most important thing. And knowing that her remains would be there would cause problems. So they will not be there. They are not in the Anthony home. They are at the funeral home still.

KING: Are they still part of evidence? Or is all that taken, done already?

CONWAY: That is all done, Larry. The state has the had their opportunity to do all their examinations and they have done that to their satisfaction, as well as the defense. And so everybody is done. We wanted to make sure that they did it right the first time around, so that there is no need to re-examine her. We can put her to rest, and everybody can move on and do their jobs from there.

KING: So, therefore, this is not a funeral service. It is a memorial service?

CONWAY: Yes, it is, Larry. It is a memorial service.

KING: And, again, the public is invited, but the parents reserve the right to deny admission to anyone they see not fit?

CONWAY: That's right, Larry. We want to make sure -- it only takes one person to disrupt what would otherwise be a nice service. We are not going to let that happen if we can stop it.

KING: Thank you, Brad.

CONWAY: You're welcome. KING: Brad Conway, the attorney for George and Cindy Anthony. The memorial service Tuesday, February 10th, 10:00 a.m., First Baptist Church of Orlando. It's a very large church.

Ashley Judd will be here tomorrow. She's tearing into Sarah Palin on the issue of animals. And the Alaska governor isn't taking it for a second. Ashley Judd exclusive on Friday's LARRY KING LIVE. And we'll be talking to Captain Sully Sullenberger and his entire crew Tuesday night. We'll take calls and answer e-mails too. Get a jump on it all by going to CNN.com/LarryKing. Click on the blog with your questions.

Right now, no question about it, Anderson Cooper and "AC 360." Anderson?