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American Morning
Obama to Make Sales Pitch on Stimulus Package; Troop Withdrawal Decisions Delayed; A-Rod Tested Positive for Steroid Use in 2003; Chris Brown Charged With Felony; Surviving on Food Stamps
Aired February 09, 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 ANCHOR: It's coming up now to the top of the hour, 7:00 Eastern, and here are this morning's top stories. Japanese carmaker Nissan says it's cutting jobs and executive salaries as U.S. and global demand continue to slip. Twenty thousand employees will be slashed from its ranks worldwide. It's unclear how many of those jobs will be lost here in the United States. Nissan is also eliminating bonuses for its board of directors and cutting their salaries by 10 percent.
Also breaking overnight, the Coast Guard is searching for six missing Americans off of the northern coast of Puerto Rico. The guards sent boats and helicopters searching for survivors after a small plane went down. The plane was reportedly flying from the Dominican Republic.
And more harsh criticism for Nadya Suleman. She is the California mother of octuplets, this time from Suleman's own mother. Angela Suleman calls her daughter's actions "unconscionable."
In an interview for the celebrity Web site Radar Online. She also said, "She already has six beautiful children. Why would she do this? Suleman helps care for her daughter's six other children saying it has left her home a wreck.
Well, it's day 21 of the Obama White House and the stimulus plan still hangs in the balance ahead of a Senate vote expected tomorrow. Even the president's own economic experts are giving bleak economic warnings. But some Republicans on Capitol Hill say it is the stimulus itself that spells disaster.
(BEGIN VIDEO CLIP)
SEN. RICHARD SHELBY (R), BANKING COMMITTEE: We're going down a road where it's uncharted. We're going down a road to disaster. We've never seen this kind of spending ever, and there's a lot more to come. There's got to be some other way better than what we're doing.
LARRY SUMMERS, DIRECTOR, NATL. ECONOMIC COUNCIL: It's worse than I think most economists like me ever thought we would see.
CHRISTINA ROMER, DIRECTOR, COUNCIL OF ECON. ADVISERS: You know, the numbers that are coming out that I certainly have been watching since I joined the transition, are quite frankly truly frightening.
(END VIDEO CLIP) ROBERTS: In an effort to counter the doom and gloom, President Obama is hitting the road today. He's headed for Elkhart, Indiana, to try to sell his stimulus package.
Our Suzanne Malveaux live at the White House this morning. This has a bit of a feel of a campaign event. Of course, you know, any time a president unveils a new policy, he always gets out in the road to try to sell it. So what's he trying to do today?
SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: Well, John, initially, the Obama administration had hoped to sell this package here in Washington. Those network interviews sitting down with anchors as well as you're going to have this primetime press conference and address to the nation, but there's obviously a realization here that they have to connect with the American people, that he has to use the bully pulpit to sell this economic stimulus package.
And perhaps the Republicans have really been able to seize the message, seize this populist kind of message here when they talk about the people's money and taxpayers money, and whether or not it should be used to move forth and try to fix the economy. So this is a real acknowledgement here, John, if they need to sell this and to sell it to members of Congress to put pressure on them by reaching out to ordinary folks.
I talked to Robert Gibbs, the press secretary, this morning, and I asked him why are they doing it? And this is what he said, John.
He said, we are in Elkhart to explain Washington's process to them but instead to highlight for Washington the problems and pain that are facing Americans. Essentially, they want to show folks, look, we get it, we understand that you're suffering here. And we believe that we have the right strategy, John.
ROBERTS: Suzanne Malveaux for us live at the White House this morning. Suzanne, thanks so much.
And the president will hold his first White House news conference since taking office. That's tonight during primetime. CNN is the only place to watch along with the best political team on television, tonight, 8:00 Eastern right here on CNN. And if you can't get to a television set but you've got a computer, you can also catch it on CNN.com/live.
As the president takes his stimulus to the people, watch what happened here. Well, some people are taking their frustration to the homes of many bank presidents. Hundreds tried to save their homes from foreclosure, descended on the homes of wealthy bank presidents and Wall Street executives in Connecticut. They were armed with banners, bull horns, even furniture, which they dumped on the front lawn.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's a working class thing. It's a working class thing.
(END VIDEO CLIP)
ROBERTS: And in Kansas City, blue-collar workers held a "save our jobs" rally. The "Kansas City Star" reports about a thousand people attended. Politicians speaking at the event blasted the bailouts of the banking industry saying not enough had been done to help those who work in manufacturing jobs -- Carol.
CAROL COSTELLO, CNN CO-ANCHOR: Also developing right now, news that will affect U.S. troops on two fronts and impact two of Barack Obama's campaign promises. Pentagon officials say decisions on timetables for withdrawing troops from Iraq and sending more to Afghanistan could take a lot longer.
CNN's Barbara Starr is working her sources at the Pentagon this morning. And Barbara, what are the roadblocks in deciding how many more troops should go to Afghanistan? How many more troops, I should say?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Carol, what appears to be happening is Oval Office reality overtaking campaign trail promises.
Let's start with Iraq for a minute though. At this time, the U.S. officials are now saying that they are studying here at the Pentagon three different withdrawal options. Sixteen months, which was the president's campaign promise, 19 months, and 23 months. Mr. Obama telling the military he wanted to see more options before making a final decision. They're now looking at all three of those looking at the risks associated with them.
By all accounts, they have not gotten back to the president yet with a final recommendation. No telling when he will make that decision about how soon, how fast to draw down those combat forces from Iraq. But that is getting critical because of what's going on in Afghanistan. You have to free up troops from Iraq so you can send more to Afghanistan.
By all accounts, last week was the week that the Pentagon was ready to announce more troops for Afghanistan. That also now, no bets on when that's going to happen. President Obama telling his top commanders he wanted to see more about a strategy review for Afghanistan. What could be done to make things better there before making a final decision on sending more troops?
We may, may see an announcement about some Marines and some special forces going in the days and weeks ahead. But nobody is taking any bets on when we'll see that big announcement about up to 15,000 more troops going into that very troubled war zone -- Carol.
COSTELLO: Yes. You say it's troubled and we keep hearing about the deterioration of what's happening in Afghanistan. So will this delay, you know, compromise the stability of that region even more?
STARR: Well, you know, that is the key question. How long can you really wait? Top commanders from General Petraeus, Admiral Mullen, the chairman of the Joint Chiefs, all saying the security situation is growing more dire every day.
Back in November, General McKiernan, the top U.S. commander on the ground, said he desperately needed more troops. Now the president wanting to take the time according to officials to do it right, make sure they have a strategy, but it's going to be very critical. The weather is getting warmer. The insurgency is expected to pick up, so the clock is ticking, Carol.
COSTELLO: Barbara Starr live at the Pentagon this morning. Thanks.
ROBERTS: This morning, it is the A-bomb in the Major League Baseball steroids scandal, the story that everyone is talking about on sports radio and around the water cooler today. "Sports Illustrated" reporting that Alex Rodriguez, baseball's $275 million man, tested positive for steroids back in 2003 when he was playing for the Rangers.
And here are the headlines plastered in the front and back pages so far. Now millions of fans await his next step, with four days until pitchers and catchers report for spring training.
Jason Carroll joins us now. And, of course, you know the headlines are continuing today. Here's the front of the sports page on the "New York Daily News" today. "Cut Him." Get rid of him.
COSTELLO: Oh, my goodness. Cold.
ROBERTS: Drop him at all costs but, of course, its typical form of subtlety the "New York Post" has got this headline today.
Again, this is not describing Alex Rodriguez.
JASON CARROLL, CNN CORRESPONDENT: What.
ROBERTS: It's describing the situation he finds himself in -- "A-Hole."
(LAUGHTER)
CARROLL: Yes, that's one of looking at it. Yes, the tabs are relentless.
COSTELLO: It's pronounced a not "A."
ROBERTS: "A." Right.
CARROLL: Awful, yes. Well, either way I'm sure he doesn't want to see a headline like that. You know, there was -- as you know, John, always a cloud of suspicion around players like Barry Bonds and Roger Clemens regarding steroid use, but Rodriguez was known as the clean player. Now, he joins the ranks of other baseball greats alleged to have used illegal steroids.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): Another headline, another embarrassment for a major sports figure. This time, it's the man widely considered to be one of the greatest baseball players in the world. According to "Sports Illustrated," Alex Rodriguez achieved some of that greatness with a little artificial help.
SELENA ROBERTS, "SPORTS ILLUSTRATED": I flat out told him candidly what the evidence is we had that he had tested positive for anabolic steroids. He said, you know, you'll have to talk to the union.
CARROLL: This was Rodriguez's response just over a year ago to CBS's "60 Minutes".
KATIE COURIC, CBS ANCHOR, "60 MINUTES": For the record, have you ever used steroids, human growth hormone or any other performance enhancing substance?
ALEX RODRIGUEZ, NEW YORK YANKEES: No.
CARROLL: In 2003, almost 12 hundred players were tested by Major League Baseball to see if regular drug testing was needed. "Sports Illustrated" says Rodriguez is one of 104 players who tested positive. Those names are under seal in California.
VOICE OF LARRY BOWA, FORMER YANKEES COACH: If this is true, he's got to just forward and say, "You know what? I tried this." If you're going to sit there and deny everything, you're going to be in a world of trouble.
CARROLL: The news comes just one week after another sports figure, Olympic swimmer Michael Phelps, admitted to "regrettable behavior," after a picture of him seemingly smoking pot was published. Phelps lost a lucrative sponsor and was suspended for three months by USA Swimming.
Rodriguez also has a lot at stake. The Yankees star signed a ten-year deal worth $275 million, with incentives that could make that figure even larger.
ROBERTS: I think it's really up to him as to what the -- sort of image of his legacy is going to be. And a lot of that has to do with coming forward and talking about the truth.
(END VIDEOTAPE)
CARROLL: Well, could Rodriguez face criminal charges for all of this? Barry Bonds and Roger Clemens ended up part of a criminal investigation for allegedly lying under oath about steroid use. Rodriguez denied using steroids to the media, but he was not under oath.
So -- but he still has to answer to his fans. I mean a lot of this has to do with the hypocrisy of all this. If you got the image of I'm the clean guy, I'm the natural guy, working my natural abilities.
ROBERTS: It should be.
COSTELLO: Wait a minute, you said he had fans. Come on.
CARROLL: I don't know about anymore.
COSTELLO: I mean, this is awful. Like cut him, get him out of there.
CARROLL: But you hate the Yankees.
COSTELLO: I do hate the Yankees.
ROBERTS: The back of the "New York Post" here. See "All A- Lone," which again reinforce the idea that this is "A-Hole" on the front. This is "All A-Lone" not all a-lone.
COSTELLO: Good point, John.
ROBERTS: "A-Hole."
COSTELLO: Good point.
ROBERTS: There's another photograph you got to take a look here. The "New York Post" already putting an asterisk there, A-Rod's career.
CARROLL: Oh.
COSTELLO: The man has no friends anywhere, because Yankees fans didn't like him anyway, right? They booed him all the time because he liked tanked when he went to the playoffs, right?
CARROLL: He did not have a good season last year.
COSTELLO: No. And now, it's just going to get worse. They're paying him all that money.
CARROLL: Well, I don't know if he's going to be getting all that money from now on. We'll see.
ROBERTS: So this is the story that's obviously got everybody talking, but it was the interview that got everybody talking.
A mayor fed up, demanding more for working people and the unemployed and to restore America's manufacturing base. And he's not done by a long shot. Hear what's on his mind this morning.
COSTELLO: I like his spunk.
Australia's prime minister calling it mass murder. Wildfires trapping people in their homes and catching many trying to escape. The search for an arsonist and the race to save lives. That's ahead.
ROBERTS: Plus, one R&B artist was a Grammy no-show last night and ended up getting slapped with a felony charge instead. The details on that just ahead.
But first, a look at the Grammys opener from U2's upcoming album "Get on your Boots."
It's 12 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. Mommy- to-be M.I.A. taking the stage at last night's Grammy awards. Tracking some of the winners for you.
Brit rockers Coldplay taking home Song of the Year for their mega hit Viva La Vida. American Idol alum, Jennifer Hudson, now has a Grammy to go with her Oscar. Hudson got the Best R&B album award for her self-titled debut, and she teared up as she gave her acceptance speech. And you can imagine why. You know what happened to her family.
But it was bluegrass artist Alison Krauss and rock and roll legend Robert Plant who took top honors last night. The duo won Album of the Year for the released Raising Sand. Krauss and Plant also won Record of the Year for their song "Please Read the Letter."
I'm going to have to listen to that, Carol.
COSTELLO: I know. I am, too.
ROBERTS: I heard "Gone, Gone God" but I haven't heard "Read the Letter." So --
COSTELLO: OK, we'll go on iTunes and listen together right here (ph). You know, but R&B singer Chris Brown was a no-show for the Grammy awards in Hollywood. He was supposed to perform, instead Brown posted $50,000 bond on a felony domestic violence charge and Brown's singer girlfriend Rihanna was also missing last night. She was supposed to perform.
Kareen Wynter is live in Hollywood, and you know what people are thinking, Kareen. They're connecting the dots here and saying that domestic battery charge was perpetrated on Rihanna. Do we have any evidence that's true?
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: No evidence, no official word yet. But I can tell you, Carol, producers for the Grammy awards, they were forced to do a bit of tap dancing just hours before the ceremony Sunday in Los Angeles, when singers Chris Brown and Rihanna canceled their scheduled appearances.
Brown, who was nominated for two awards and slated to perform, was charged Sunday with a felony. According to police, Brown and a woman were in a vehicle near Hollywood early yesterday morning when they began to argue. Officers arrived a short time later, Carol, after receiving a 911 call and found the woman but say Brown had left the scene. Now, police say the victim whom, by the way, they have not identified suffered visible injuries and identified Brown as her attacker.
Here's where it gets a bit interesting. Brown and Rihanna were seen together Saturday evening in Beverly Hills at the Clive Davis pre-Grammy party. There's been so much speculation as to the identity of the victim here. In domestic violence cases, authorities don't release the names of the victims citing California law. But Rihanna's reps say it also haven't provided any details.
Even the Recording Academy was given no specifics as to her absence except that they were told by her camp she was sick. Brown has an upcoming court appearance March 5th, and has reportedly hired famed defense attorney, Mark Geragos -- Carol.
COSTELLO: It's not looking good, isn't it, for either one of them? Let's talk a little bit about Whitney Houston because she made an appearance at the Grammys.
WYNTER: Oh, yes.
COSTELLO: Some people might call it well, it was kind of sad in a way.
WYNTER: Well, Miss Whitney Houston, she had some big name stars buzzing on the red carpet Saturday night at the Clive Davis party and when she hit the stage hours later at the exclusive event, it was clear, some say, there have been so many reports to the contrary, but some believe Whitney Houston is back. She was dressed in a leopard dress. She bolted out a classic hit like "I Will Always Love You." She also sang "I'm Every Woman" in front of industry executives and dozens of stars, including Prince, Jamie Foxx and Kanye West. The night also included performances by Jennifer Hudson, Kelly Clarkson, Sean P. Diddy Combs and others. But it was Houston's return that proved again, according to some, to be the highlight of the evening.
The singer, by the way, also presented an award Sunday night at the Grammys, so it appears that she could be on her way to a comeback, but again, there were some awkward moments in the show.
COSTELLO: Oh, come on, Kareen.
WYNTER: At one point, she showed off a little bit more leg than she should have. So we'll have to see if this Miss Houston's year or not.
COSTELLO: You're a lot nicer than I am. But I do wish the best for her because you know, at one time, she was such a great -- she was such a great star.
WYNTER: She's had to battle a lot, so we'll have to see what this year brings.
COSTELLO: You are nicer than me. Kareen Wynter live from Hollywood. Thank you. WYNTER: You're welcome.
ROBERTS: Well, we have all seen the red, white and blue hope posters from the Obama campaign. Well, the artist behind that design is now in hot water in more ways than one. We'll tell you exactly how.
And going hungry in America. Our Sean Callebs is finding out firsthand the struggle for people trying to survive on food stamps.
It's 18 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Well, the number of people being laid off keeps getting worse and worse and many of the people who are already living paycheck to paycheck are now living hand to mouth. CNN's Sean Callebs is finding out firsthand what it's like to try to survive on food stamps, and he joins us now.
You went a little more than a week in this now.
SEAN CALLEBS, CNN CORRESPONDENT: Yes. This is the ninth day into it. I'm getting the maximum amount that one person can get in the state. Still, that doesn't break down to a great deal, but you know what? I'm doing a lot better than so many other people who get food stamps.
But you're going to hear a lot about this because it's also one of the linchpins in the economic stimulus package. Under that -- in that package, it calls for increasing the amount that food stamp recipient get by about 13 percent. How will that help the economy? Watch the story and you'll find out.
(BEGIN VIDEOTAPE)
CALLEBS (voice-over): This is the front line in the fight against hunger. A food bank, you can find them everywhere these days. This is the Mustard Seed food distribution center for people living in St. Bernard Parish in New Orleans.
UNIDENTIFIED FEMALE: I don't have to go beg next door. Do you have a can of corn or do you have a can of vegetables I can borrow? And I can bring them home today. Maybe I can give a can away.
CALLEBS: Forty-four-year-old Danyell Dienemi (ph) worked in the health care industry but lost her job. Here she applied for food stamps. And then stock upped on as many items as she could carry away. But she says, it won't last long.
UNIDENTIFIED FEMALE: It's like going through hell. It's just, I mean, you just don't know what to expect the next day. You know, you just got to live day by day.
TOM VILSACK, AGRICULTURE SECRETARY: We all have a stake in getting this economy back headed in the right direction. CALLEBS: Newly appointed secretary of agriculture Tom Vilsack runs the agency that oversees the food stamp program. Part of President Obama's economic stimulus package calls for a 13 percent increase in payouts to families on food stamps.
VILSACK: And you'll see a significant increase, billions of dollars going in this program because it will help to create jobs and will help take care of families during these tough times.
CALLEBS (on camera): Here's how he says it will help the economy. Spending more money on food helps guarantee jobs for farmers and producers, as well as the people who sell and distribute our food. More money also means healthier diets and that will help keep the nation's poor out of hospitals, saddled with doctor bills they simply cannot pay.
(voice-over): But the cost of food has spiked about six percent this past year and that has not made living on food stamps any easier. It's been more than a week now. I will have about 100 of the original $176 left.
Dinners have included chicken, lean ground beef, tuna. But it has been a carbohydrate heavy diet. Rice, pasta and beans are filling but can get old.
(END VIDEOTAPE)
CALLEBS: So, for folks who have been following the story wondering how I'm doing now up in New York, well, I brought a lot of my food with me. This is the staple I've been hooked to constantly, rice.
John, I can lift this up. I know measurements like that at this point. Also, this powdered drink mix, this whole thing was like 99 cents. It makes 48 quarts or something like that. So I fill this up pretty frequently throughout the day. Beans, tuna and this is the lunch I brought in. The cheese came from the dollar store as well as the bread. So, a couple --
ROBERTS: You got two sandwiches for lunch.
CALLEBS: Two sandwich.
ROBERTS: And a little bit of salad?
CALLEBS: A little bit of salad, you know. A head of lettuce, 79 cents.
ROBERTS: So we talked to you about this last week when you just started, and warning (ph) about weight loss, which, I mean, isn't necessarily a bad thing, but it is if you're losing weight because you're starving yourself.
CALLEBS: Sure.
ROBERTS: And energy as well. How are you doing in both those fronts?
CALLEBS: Yes, I've done pretty well. We're getting a lot of e- mail on the blog page, and I eat carbohydrates with every meal. I think I've run 19 miles since this started, so I'm doing pretty well on that.
I've learned that hunger pangs come and go. You'll get one after breakfast. You just kind of have to wait until lunch and then the same thing for dinner. I really miss snacking, and I miss Diet Coke in a huge way, but you know what? Another 17 days, 18 days.
ROBERTS: Seventeen more days?
CALLEBS: Yes.
ROBERTS: I guess you can stretch your dollar further if you go to one of those warehouse outlets like a Costco or Sam's Club or something like that. But most people who are on food stamps, they go in particular in a city like this, they go to the corner bodega or something.
CALLEBS: Yes.
ROBERTS: So they don't have access to that sort of bulk buying.
CALLEBS: Good point. A lot of people have written us, you know, saying why don't you go here for your vegetables like a farmer's market, here for other items, but people who are on food stamps generally don't have a lot of money for transportation.
ROBERTS: Yes.
CALLEBS: And the reason I didn't buy these things in bulk, I knew I had to come up here and spend some time with family so I bought things that I could bring on the road with me. And I'm doing pretty well. I got a lot of money left. I think I'm going to make it pretty well but challenge is to be to find some kind of diet that, you know, has a little bit of, you know, some kind of variable in it.
ROBERTS: Exactly. Yes, as you say, beans get old very quickly.
Hey, it's great to see you, you know, participating in this exercise here and really kind of bringing it home to folks who don't know what the experience is like.
CALLEBS: Thanks, John.
ROBERTS: Good to see you. Thanks.
By the way, you can follow Sean's journey all month long. Visit his blog at CNN.com/am, and if you want to talk him, e-mail your questions to him at ask Sean at CNN.com -- Carol.
COSTELLO: President Obama sounding a lot like candidate Obama on the campaign trail. His big effort to sell his stimulus plan to the American people? He, of course, still has plenty of opposition in the Senate. We'll tell you more about that.
The mad as hell mayor coming back for more. In case you miss missed it, here's a taste from Friday.
(BEGIN VIDEO CLIP)
VOICE OF MAYOR VIRG BERNERO, LANSING, MICH.: What they're really talking about is cut your wages, cut your benefits, work for nothing, like some peasant somewhere else in the world. Well, I'm sorry. No, no. I'm hearing a lot of partisan bull crap is what I'm hearing.
(END VIDEO CLIP)
COSTELLO: Oh, the man who says we've sold out American industry and the blue collar worker. Hear what he had to say this morning.
Twenty-six minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: Welcome back to the Most News in the Morning. The president's stimulus plan is teetering on the edge of the Senate, and the White House has all hands on deck trying to sell the plan. But with just three Republican senators currently on board, plenty of the GOP are pushing back.
Jim Acosta live in Washington this morning.
Good morning, Jim.
JIM ACOSTA, CNN CORRESPONDENT: Good morning, Carol. Here is a window into the way Washington works. The Senate version of the bill now is roughly 60 percent spending and 40 percent tax cuts. That's roughly the political breakdown of the Senate, almost 60 percent Democrat and 40 percent Republican.
Despite all the political wrangling that is going into this legislation, the White House is not sending out its top strategists to debate the stimulus. Instead, it's the administration's top economists who are warning the public of dangers of doing nothing.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): If at first you don't succeed, sell, sell again, and the sales pitch from top White House economists is sobering.
LARRY SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: It's worse than I think most economists like me ever thought we would see.
CHRISTINA ROMER, DIRECTOR, COUNCIL OF ECON. ADVISERS: You know, the numbers that are coming out that I certainly have been watching since I joined the transition, are quite frankly truly frightening.
ACOSTA: On top of that, the administration is navigating through a near stimulus stalemate, with just three Republicans supporting the Senate bill's massive $827 billion price tag. The legislation more than $1 billion a page.
SEN. JOHN MCCAIN (R), ARIZONA: We're laying multi trillion dollars of debt on future generations of Americans. I can't support such a thing.
SEN. CLAIRE MCCASKILL (D), MISSOURI: Every economist agrees that government spending in a recession is essential. So this bill isn't perfect, but it's essential.
ACOSTA: The Senate package is roughly the same size as the House version but huge cuts in education and aid to states will be hard to swallow for House democrats and both versions have to be reconciled.
REP. NANCY PELOSI, SPEAKER OF THE HOUSE: We will have a bill that will pass the House when we come out of the process with the Senate.
ACOSTA: All eyes are on Speaker Nancy Pelosi who's called some of the cuts very damaging. Other House leaders say they're listening.
REP. CHRIS VAN HOLLEN (D), MARYLAND: Nobody should say it's my way or the highway at this point in time. Let's get something big and done now.
ACOST: Highways are just what the administration has in mind, insisting its plan will put people to work. New transportation secretary and former Republican congressman Roy Lahood told John King on "State of the Union," the stimulus will inject money into worthy projects.
RAY LAHOOD, TRANSPORTATION SECRETARY: There aren't going to be any earmarks or boondoggles, this money will be spent correctly by the book with no shortcuts.
(END VIDEOTAPE)
ACOSTA: Here's a number. Three. That is how many Republicans have signed onto the stimulus plan not just in the senate but in the entire Congress. Still leading Senate Democrats say the bill could get to the president's desk by the end of the week. Carol.
COSTELLO: Jim Acosta, live in Washington. Thanks, Jim.
ROBERTS: Well, today, President Obama is trying to reshape the debate over his stimulus plan and convince the American people that it will make their lives better. He's visiting a town in Indiana that has an 15 percent unemployment rate that twice as high as the national average.
My next guest is dealing with similar economic problems in his city. Democratic Mayor Virg Bernero joins me now from Lansing, Michigan. Mr. Mayor, we had you on the air on Friday, and it proved to be quite invigorating and enlightening. So we thought we bring you back again today for more commentary. First of all, let me ask you, when the president appears today in Elkhart, Indiana to try to sell the stimulus package, what are you hoping to hear from him?
BERNERO: Well, look, we need the stimulus. I mean, I like what I've been hearing, and I think he's looking out for the little guy. He's trying to make sure that the little guy isn't left behind. We've seen the rescue packages not on his watch for Wall Street and now Main Street America.
You know the working people need some help, and I think President Obama understands that. But you know, we've talk about this, John, I mean, unless we do something about trade. Unless we do something real, this stimulus. This is essential. I mean, it's a lifeline. It's a shot in the arm, the American worker needs, but this stimulus will be nothing but a mirage if we don't deal with the underlying problems that got us here to this economy. The good jobs are leaving America.
You know, the American dream is in danger. Our standard of living has been outsourced. And so we've got to do something about those problems or this will be very ephemeral. It will be very temporary. The American worker is fed up. They're beaten down. They're sick and tired. They need help.
ROBERTS: And there are an awful lot of people in this country who would absolutely agree with you on that point, Mr. Mayor. But to the finer point here in the stimulus package, in the Senate version which will be voted on tomorrow, tens of billions of dollars have been removed, some $40 billion which was going to states and local municipalities such as yours, may not see the light of day. What do you think about peeling those provisions back from the stimulus package?
BERNERO: Look, you know, we need a balance in the stimulus, the idea of tax cuts as long as it's going to middle class and low and middle income people, that's fine. That will be helpful, money in the pocket will be helpful, but I still say, John, the best stimulus is a good job.
ROBERTS: Right.
BERNERO: These people want stimulating good jobs. We have productive people in America and they need to be productive in good jobs.
ROBERTS: So if you don't get that money for states and local governments, infrastructure projects and you have laid out a whole plan of what you would do with that money, can you do what you need to do to stimulate jobs in Lansing?
BERNERO: Look, we -- no, we need the infrastructure. There's no question about it. And the infrastructure spending is a great investment. It's a two-fer. Because it puts people to work right now. And look, we can't have any economic development if we don't have infrastructure. Our infrastructure is crumbling. In Lansing and across this country, we had to borrow $3 million just to make our roads passable last year.
We have, of course, now things are thawing out and once again we see the potholes and the trouble because over decades they have not been maintained. We do not have the money to do that. The stimulus, the infrastructure -- I don't think anybody argues with that. There's no debate that it's wasteful, that is needed and it will put people to work, that's great. And so I hope the president -- I know he'll keep fighting for that and they ought to do what's reasonable. We need that stimulus.
ROBERTS: But there are some lawmakers who are saying while the infrastructure spending may be a good idea, what they're concerned about is oversight and accountability as to how that money is spent. Senator John Ensign on the Republican side raised some concerns about that over the weekend. Let me just let you hear what he said about it.
(BEGIN VIDEO CLIP)
SEN. JOHN ENSIGN (R), NEVADA: So we have to be concerned about the amount of spending that is in his bill. It has to be responsible. I believe in infrastructure spending if it's done and it's done right. But what we shouldn't do is just spend money for the sake of spending money.
(END VIDEO CLIP)
ROBERTS: So he's saying he wants to see accountability. And I know that you ran into some trouble with your own city council who thought that your plan, that they hadn't been fully consulted on your plan. They said hey, Mr. Mayor, Mr. Mayor Bernero, where is the accountability here? You just came up with this plan, and you didn't tell anybody about it, how do we know that the money is going to be spent appropriately?
BERNERO: Well, mayors everywhere will feel understand and feel my pain when it comes to council relations, but we're doing much better now. Look, it's hilarious to hear senators talk about oversight when it comes to spending money. We're accountable at the local level. I'll put our record, local government, mayors across this country record up against the U.S. Congress any day of the week and you ought to talk, you look at opinion polls and see who Americans trust. They trust their mayors and their local officials. Because they can come right down to city hall and demand answers and they'll get those answer.
I don't mind oversight. They can put all sorts of oversight. Give us the money for infrastructure. We know what potholes need to be repaired, OK. Our residents know where the potholes are. They'll tell us. We'll fix those roads. We'll fix those bridges. We know where the problems are. We're not in Washington with our head in the clouds. We need that infrastructure money. We need the investment. And the American worker needs investment and commitment.
These are the people that gave away the store. Give me a break. These are the folks that colluded with Wall Street to create this mess that shipped our jobs overseas. And now they're going to lecture as about accountability. Please.
ROBERTS: Mayor Virg Bernero, it's good to catch up with you again this morning. Let's do it from time to time here as the stimulus package makes its way through Capitol Hill.
BERNERO: Fantastic. Thanks a lot, John.
ROBERTS: All right. See you again soon. Carol.
COSTELLO: Whew. I'm totally awake now.
Stimulating debate. $600 million spent on new rides for government officials. Whether buying your congressman a green car could save you money in the long run.
And Congressman Dennis Kucinich wants to hold bailed out banks' feet to the fire. He will join us live to tell us exactly how he plans to do that. It's 37 minutes past the hour.
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COSTELLO: It's 40 minutes past the hour. Breaking news right now. Deadly wildfires, the worst in Australia's history. Still out of control this morning. Officials believe some were set on purpose. The country's prime minister describing it as mass murder. So far at least 130 people have been killed. Thousands are homeless. Some survivors say they literally outraced the flames. One couple says their car caught fire on their way out.
Joining us now on the phone, reporter Alicia Byrne from southern Australia.
Good morning. Tell us how many fires are still burning now.
VOICE OF ALICIA BYRNE, REPORTER, ABC RADIO: We have about 28 fires burning across the state at the moment. So that's down from the 30s on the weekend. But the majority of them are contained, but there are a few that are still threatening property there in areas of obviously tough to get into. There's a lot of bush land around the states. And those are the areas that have been hardest for fire view crews to deal with.
COSTELLO: You know, here in America, we're used to seeing wildfires in California, but we're not used to seeing that many deaths. 130, at least 130 people killed by this fire. Why so many?
BYRNE: Well, the situation in Victoria is that we've had drought conditions for the last ten or so years. We've got a lot of -- we had on Saturday our worst bushfire conditions in about 50 years, I would say. We had had a top temperature of 46.5 degrees Celsius, which is about 115 1/2 degrees Fahrenheit. So there was also the fact that there were very, very strong winds.
COSTELLO: Let me just interrupt you for just a second. Were there no evacuation? Were the evacuation plans not put into effect quickly enough? BYRNE: We don't actually have compulsory evacuations here. Which is something that's going to be looked into. The premier, John Brumby, has announced there will be a royal commission. He wants to look into our bushfire policy. At the moment, people started the day, decide whether you're going to leave or whether you're going to stay and defend your property. And a lot of people who died stayed to defend their property.
Some of the others were the ones who had decided to stay and then saw the flames and decided it was time to get out. But they couldn't outrun the flames.
COSTELLO: Alicia Byrne reporting for us live from Australia this morning. Thanks so much.
ROBERTS: There's a huge difference between Australia and here in the United States. You have brushfires in the California, mandatory evacuation -
COSTELLO: You're out of there.
ROBERTS: They go around and they tell people, you are in harm's way and in Australia, it's like well, if you want to go, go, and if you don't, don't.
COSTELLO: Did you hear those stories about people in their cars and the flames overtook their cars and they burned to death in their car?
ROBERTS: Unbelievable. Just extraordinary.
COSTELLO: Awful.
ROBERTS: She says maybe things will change there.
Vice President Biden said the United States wants to "push the reset button with Russia," but with plenty of thorny issues dividing Washington and Moscow, what will it take to ease the tension? Our Christiane Amanpour joins us ahead to tell us.
Plus taking the Senate by storm. We'll tell you about the push to replace Senator David Vitter with porn star Stormy Daniels. Here's a story you're going to want to hear.
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(BEGIN VIDEO CLIP)
JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: The last few years have seen a dangerous drift in the relations between Russia and the members of our alliance. It's time -- to paraphrase President Obama, it's time to press the reset button.
(END VIDEO CLIP)
ROBERTS: Welcome back to the Most News in the Morning. Those words from Vice President Biden getting a good review inside the Kremlin. But with the U.S. missile defense plan for Eastern Europe and Washington support of the nation of Georgia it may take more than words to ease the tensions.
Our chief international correspondent Christiane Amanpour joins us this morning. So this idea of pushing the reset button with Russia, practically what might that mean?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Re- engaging, engaging as strategic partners rather than adversaries and Russia has basically been saying that they want a better relationship with the United States. I interviewed one of the deputy prime ministers in Davos last week and he was saying that it is time for a new relationship.
But don't expect the page to turn immediately. One of the big issues, of course is the missile defense shield. And interestingly Vice President Biden did not say we're not going to do this. Russian had hoped so. Even some Europeans had expected Biden to perhaps say we're going to walk this missile defense shield back. But he didn't although he did add caveats like if it's practical, if it's shown to work and if it's cost effective.
ROBERTS: So Sergei Ivanov, the deputy prime minister -- he was the one you talked to in Davos, right?
AMANPOUR: I actually talked to Shuval quite a lot of them.
ROBERTS: He said it was a very strong signal and it was a signal that was heard by the Russians, but as you say, it's about missile defense in Poland. Russia says that if you put the missile defense battery in there, we're going to put missile defense in our border with Poland. Vice President Biden did not talk about dialing that back. He also suggested that Georgia could seek -
AMANPOUR: Well, the thing is Russia -
ROBERTS: Entry into NATO as well.
AMANPOUR: Exactly. And that is what upsets the Russians. Basically, who knows whether it was a bargaining maneuver, not to walk back the missile defense shield because as you know, in the interim the Russians or rather the government thought to be under pressure by Russia have basically blocked the United States from any military transport. And this going to be a problem as the U.S. tries to build up forces in Afghanistan because it's one of those towns that's right on the border. So that's an issue. And it took the U.S. by surprise.
In terms of NATO, that's been the big thorn in the side of U.S.- Russian relations over the last several years. The U.S. wanting to go in and sort of scoop up or advance NATO as a security partner into what the Russians believed to be their backyard, the former Soviet Republic. So that's something that is always a thorny issue between the two countries.
Biden also talked to somewhat about Iran, Ali Larajani said that the United States has a golden opportunity here if they're prepared to offer conciliatory gestures that Iran is willing to respond in kind. There's an interesting dynamic here that Iran is playing the victim here and wants the U.S. to come to the table first with some carrots.
But Biden also said hey it's got to suspend its nuclear program. And there's no indication that Iran is prepare to do that.
AMANPOUR: Well two issues -- one, President Obama has basically said that the change in his policy will be, A, engagement, but B, very importantly engagement without poisonous preconditions. So don't set the scene before you even start to engage. So they haven't said they must or they haven't said publicly yet they must suspend uranium enrichment in order for us to engage.
But this is obviously their aim. They want to see Iran, somehow modify its nuclear behavior because while Iran is allowed to have a peaceful nuclear program, obviously the issue of trust, the issue of intent is still on the table and nobody is quite sure whether it's the Europeans or the U.S. what exactly wants to do with this program.
ROBERTS: And having that fuel cycle is still a problem as well.
Christiane, it's great to see you this morning. Thanks so much. Carol.
COSTELLO: New fury this morning over bailed out banks making big ballpark deals. One former presidential candidate says banks in trouble don't deserve naming rights to stadiums and he's here to tell us what he's doing about it. It's 49 minutes past the hour.
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COSTELLO: A new car may not fit into your budget these days, but some of your tax money could help government officials get a new ride. It's part of the president's plan to stimulate the economy by going green but some Republicans are putting up some serious roadblocks. CNN's Elaine Quijano has more for you.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: John, Carol, it's part of the big economic plan. Spend millions of dollars for green government cars with a hope of growing jobs.
(BEGIN VIDEOTAPE)
QUIJANO (voice-over): President Obama and some democrats want to spend hundreds of millions in taxpayer dollars on a fleet of hybrids and electric cars like these at a Washington car show.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It will not only save the government significant money over time, it will not only create manufacturing jobs for folks who are making these cars, it will set a standard for private industry to match.
QUIJANO: But the top Republican in the Senate dismisses buying green cars as wasteful spending. SEN. MITCH MCCONNELL (R), MINORITY LEADER: $600 million to buy government employees cars is not exactly what the American public had in mind.
OBAMA: When you hear these attacks to riding something of such obvious importance as this, you have to ask yourself, are these folks serious? Is it any wonder that we haven't had a real energy policy in this country.
QUIJANO: Who is right? One economist thinks the provision would create jobs immediately.
PROF. PETER MORICI, UNIVERSITY OF MARYLAND: Buying cars is like bridge building. It puts autoworkers to work and it provides work for engineers, especially these green vehicles. It's an ideal stimulus package.
QUIJANO: Others argue if the government borrows money to spend on fuel-efficient cars, less money is available for private business to borrow, to create jobs.
J.D. FOSTER, HERITAGE FOUNDATION: So every time you're creating jobs from the spending, you're destroying jobs from the borrowing and net effect no new jobs, you just redirected the money.
(END VIDEOTAPE)
QUIJANO: Right now, congress doesn't agree on how much money should be spent on green government cars. The House bill set aside 600 million, while the Senate version calls for 300 million. John, Carol?
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Outrage over bailed-out banks, making ballpark deals.
UNIDENTIFIED MALE: Banks are failing. Why is that? It's because they haven't put their name on enough ballparks? I don't think so.
ROBERTS: A new fight over naming rights. Should your name be on here, too?
Plus, remember the senator linked to the D.C. madam? His wife forgave him, but now -
UNIDENTIFIED FEMALE: I'm always up for a good fight.
ROBERTS: Stormy the porn star steps in.
UNIDENTIFIED FEMALE: Politics can't be any dirtier of a job than the one I'm already in.
ROBERTS: You're watching the most news in the morning.
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COSTELLO: Here in New York, Citigroup has faced a lot of criticism for backing the new Mets stadium. It will dish out $400 million to put Citibank's name on the Mets' brand-new home. And as you know by now, Citigroup got billions of taxpayer dollars in the banking bailout.
One congressman wants to see an end to those kinds of endorsements. And he is here to talk about it. Joining us live, Ohio Congressman Dennis Kucinich. Good morning.
REP. DENNIS KUCINICH (D), OHIO: Good morning.
COSTELLO: Citigroup isn't the only financial institution who's dishing out big cash to put their name on stadiums, I mean, what, nine financial institutions in all.
KUCINICH: Right.
COSTELLO: Among them, Bank of America will pay $140 million to put their name on the Carolina Panthers Stadium. JPMorgan and Chase Company, $66 million to put their name on Chase Field in Phoenix. I mean, they probably would say this is a great advertising technique. What is your take?
KUCINICH: Well, it is great advertising except for one thing: The American taxpayers have now invested heavily in these banks and the bailout fund should not be used for this purpose. I mean there's a bigger question here, Carol, and that is, how should bailout funds be used, or how should they not be used? And since we have a stimulus now that's not a bailout, that became necessary because the banks aren't lending money, then it seems to me that we have an obligation to look at always in which the banks are using these bailout funds, whether it's for advertising, marketing, putting their names on stadiums, executive salaries, perks, stock options.
COSTELLO: But Congressman, you know what these institutions are saying. We're not using the bailout money to pay out for advertising. We're using our own money.
KUCINICH: Oh, and they couldn't use their own money for running their own business? They had to get the money from the taxpayers. The money's fungible. I mean, they can use tax dollars for that as well, and they know that. The fact of the matter is that the Treasury Department, which finally intervened and said that these executives were making too much money at the taxpayers' expense. The president said there ought to be a $500,000 limit.
I imagine a lot of your viewers could live with that. But the fact of the matter is that there needs to be another reach-in and say look, stop this aggressive advertising. We own you essentially and we don't want you to advertise. We want you to use the money to keep employees. At the same time they are defending this $400 million stadium-naming deal, they lay off 50,000 people. Now how many people could you employ for $400 million?
COSTELLO: So what specifically -
KUCINICH: But the problems are -- go ahead.
COSTELLO: What specifically are you going to do about this?
KUCINICH: Well, I'm chairman of the domestic policy subcommittee, which has jurisdiction over a broad range of policy in the United States. And what I'm going to do is start looking systemically at how bailout money is being spent or not spent and let the taxpayers know whether their money is being used well.
I mean, think about this. Banks are hoarding money. They aren't using it to help people keep their homes. They're using it to buy other banks. They're using it to grow bigger.
COSTELLO: Congressman, are you going to hold hearings on this matter?
KUCINICH: Oh, absolutely. We're going to hold hearings. I'm announcing it right now. We are going to hold hearings on this.
But I'm looking at the bigger picture, too. And, you know, it includes how they waste money on naming stadiums. But there's other areas, too, where the money's being wasted or not being spent in the way Congress intended.
COSTELLO: When will the hearings begin?
KUCINICH: This is something that I have to work out with staff, but I think you could probably look to something happening within the next month. It takes a while to gather all the information and get documents. But you know, the American taxpayers deserve a hearing on this, and they deserve to know that the money that they're giving to these banks, which is over $700 billion, is being watched carefully. There's a number of congressional committees at work on this. My committee has the ability to, if necessary, subpoena documents and require testimony under oath.
And so, we are going to do everything we can to get to the bottom of this, to stop the wasting of taxpayers' dollars, and to try to make sure that we play a role in getting this economy started again. But if you don't have the confidence of the public, if the banks and their spending policies have undermined public trust, then this is the reason why the public is even leery of a stimulus package.
COSTELLO: Congressman Dennis Kucinich, thank you for joining us this morning. And we'll wait word when those hearings are going to start. Thank you.
KUCINICH: Thank you, Carol.
