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American Morning
Stimulus Deal Reached; Bank CEOs Get Grilled on the Hill; Vegas Mayor Asking An Apology from President Obama; First Lady Michelle Obama Graces the Cover of "Vogue"; Bank Bailout Backlash; Obama Defends Weatherizing Homes; Nation Honors Lincoln's 200th Birthday
Aired February 12, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Breaking news. We have a deal. A $789 billion deal.
UNIDENTIFIED MALE: Today, you might call us the jobs squad.
CHETRY: The stage now set for a final stimulus vote. Will it spark the economy or has too much been compromised?
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We're surrounded by unmet needs and unfinished business.
CHETRY: Plus, throwing Vegas under the tour bus.
B. OBAMA: You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime.
CHETRY: Sin City says, we have our own problems and wants a presidential apology.
MAYOR OSCAR GOODMAN (D), LAS VEGAS: That's outrageous.
CHETRY: On this AMERICAN MORNING.
(END VIDEO CLIP)
CHETRY: There you go, the mayor of Las Vegas.
JOHN ROBERTS, CNN ANCHOR: What? Are you dissing Las Vegas? What's up?
CHETRY: Yes. Exactly. Keep coming. Keep coming, please. We need them.
Welcome. Thanks so much for being with us. It's Thursday, February 12th.
ROBERTS: Yes, the 200th anniversary of the birth of Abraham Lincoln and we're led to believe it's a little known fact that red was his favorite color.
CHETRY: Really. We're dressed appropriately.
ROBERTS: There you go.
We begin this morning with the decision that parents across the country will be watching very closely this morning. Listen up to this one.
A Justice Department special court is expected to rule today on whether certain vaccines cause autism in three cases. That's according to the lead plaintiff's attorney. The families claim their kids were sickened by a combination of the measles, mumps and rubella vaccine and thimerosal. That's a mercury-containing preservative which was in the childhood vaccine at the time. As a precaution, that preservative has since been removed from all childhood vaccines.
The government argues that the claims are not supported by "good science." Right now, 180 lawyers are representing 4,800 families with similar claims. Very important ruling coming out today that we'll be following for you here.
Another disturbing story of missing equipment at the Los Alamos nuclear weapons laboratory in New Mexico. A labs spokesman says 69 computers are missing, including 13 lost or stolen in the past year. Officials say no classified information is at risk, though. The lab has had a history of security problems, most recently in 2006, when a former worker pled guilty to removing classified information from the lab.
And listen to this one. Alex Rodriguez could be suspended for his steroid confession. Baseball commissioner Bud Selig tells "USA Today" that he has not ruled out punishing A-Rod or even adjusting baseball's record book.
Rodriguez now admits that he used performance-enhancing drugs from 2001 to 2003 when he played for the Texas Rangers. The players union would likely challenge any suspension since baseball did not have penalties for steroid use until 2004.
CHETRY: And now back to our other big story this morning. President Obama scoring a big legislative victory that his administration hopes will help Americans struggling in this tough economy. Right now, the $789 billion stimulus plan is on the fast track to his desk. They were able to come to some consensus yesterday and this morning, congressional staffers are still wrangling over the exact language of the bill but we can show you what you'll be getting.
More than a third is dedicated to tax cuts. That breaks down to about $13 more in your paycheck every week. You could also qualify for an up to $8,000 tax credit if you're a first time home buyer. Now car buyers will be able to deduct the sales tax they pay on a new vehicle, and more than $150 billion will go toward remaking much of America's roads, rails, sewer and water projects they deemed to be shovel-ready projects.
Democrats also say they made some sacrifices and did their best. Republicans though insist it's the wrong prescription for an ailing economy.
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REP. NANCY PELOSI (D), HOUSE SPEAKER: It's always the consideration of what we had in the bill that we wish was still, we wish that that was still there but the fact is that there's plenty to create nearly four million jobs that the president has set as our goal.
SEN. CHUCK GRASSLEY (R), IOWA: I could talk about substance of this bill, but the point is, we could have a better substance with more votes, and got the job done better.
(END VIDEO CLIP)
CHETRY: CNN's Brianna Keilar is live in Washington. And Brianna, despite the agreement, we're still quite a long night up on the Hill.
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yes. A really long night, Kiran, for Senate staffers because they are the ones who have been writing this legislation overnight, trying to get it ready for a vote as soon as possible. We could see that vote in the House today, perhaps tomorrow. But the overall goal is still to get this economic stimulus package on President Obama's desk by Monday. That's the Democrats' self-imposed deadline.
So here's what we know about this economic stimulus package. You mentioned the tax cuts, $13 a week. Well, overall that boils down to $400 for individuals, $800 for families. It's less than what President Obama campaigned for but enough to win over Democrats. And then also a couple of changes to two popular tax breaks scaled down, one for first-time home buyers, another for new cars. But the big issue in these negotiations that needed to be resolved was funding for education.
House Democrats, they were not successful in their effort to get funding for the construction of new schools into this bill. That's something, as you'll recall, was cut in the Senate version but overall, states will get quite a bit of money, $54 billion for education and some of that is for modernizing schools that already exist. But you still have some House Democrats, Kiran, who would like to see a lot more than that, but that's part of compromise.
CHETRY: Yes, exactly, and it's important to remember, there are only three Republicans in both Houses that supported this and those were the three senators that crossed over to help reach this deal and get it through. But the leadership not necessarily on the same page here, retelling people that there was a deal though even before the meetings ended?
KEILAR: Yes, there was a bit of a hiccup yesterday. Senator Majority Leader Harry Reid took to the microphones early on and according to several sources, this upset House Speaker Nancy Pelosi because as we look back, we now know that there was still a meeting beyond this time in front of the microphone for him. So this took some smoothing over by Harry Reid. We also understand that President Obama called Speaker Pelosi, but in the end, Kiran, as expected, they were all publicly on the same page, publicly at least.
CHETRY: All right. We've got Brianna Keilar for us this morning in Washington. Thanks so much.
ROBERTS: Let's continue the conversation this morning. Our Christine Romans is off today. Stephanie Elam filling in here, "Minding Your Business." So give us a little bit more detail.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Well, good morning, it's good to be here.
Well, the thing is about this, obviously, there wasn't complete agreement as you just heard Brianna talking about. But one of the main things that President Obama was looking for was saving or creating jobs and that's what we want to take a look at now.
They're saying because of this bill that goes through it will save 3.5 million jobs, save or create, I should say. Also this tax break you heard about originally, Obama wanted to have $500 and a $1,000. $500 for individuals, $1,000 for couples, that's not happening. It's now will be about $400 and $800 that we're looking at there.
As far as that state hiccup about education, that's what this $10 billion was really coming down to, that little hiccup we saw yesterday afternoon. That $10 billion going to education, some wanted it to go through the state government. Some saying they want it to go more directly into the states.
Obviously, they worked that part out so now $44 billion will go to states. $10 billion will be used for school construction. So those are just a few key points that are just showing how the money's going to get back out there to everyone and see if they can get this done. Obviously, $789 billion here, the compromise is far less than both the plans that originally were in the House and in the Senate bill.
ROBERTS: Now in terms of kick-starting the economy, what parts of this bill will work quickly and which will take more time?
ELAM: Well, that's what everyone wants to see. If you're saving and creating jobs, that's obviously great because you got people out there who have money that they can go back out and put into the economy. Remember, two-thirds of the economy is driven by consumer spending. We really need people to go out and spend in this economy. So you need to have cash in people's hands that banks then turn out and put it right back into the system.
ROBERTS: All right. Stephanie Elam this morning. Steph, good to see you.
ELAM: Thanks.
ROBERTS: We'll see you a little bit later on this morning.
While lawmakers were striking a deal on the stimulus bill, executives from eight of the country's biggest banks were also on Capitol Hill getting flogged by furious members of Congress. Their banks collectively received $165 billion in government bailout money, and lawmakers demanded to know why loans to consumers and businesses were still so hard to come by.
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REP. MIKE CAPUANO (D), MASSACHUSETTS: Start loaning the money that we gave you. Get it on the street, and don't say oh, well, we're not using that money for bonuses. Come on!
REP. NYDIA VELAZQUEZ (D), NEW YORK: So can you explain why your institutions are finding money to fund a multibillion-dollar merger that will produce 19,000 job losses?
REP. GARRY ACKERMAN (D), NEW YORK: When the press makes inquiries as to what you did with the first round of money that we gave you, many billions of dollars, your answers is "It's none of your business."
CAPUANO: But basically you come to us today on your bicycles after buying Girl Scout cookies and helping out Mother Teresa, telling us, we're sorry. We didn't mean it. We won't do it again. Trust us. America doesn't trust you anymore.
(END VIDEO CLIP)
ROBERTS: The Capitol grill was fired up hot enough to see there, and the CEOs admitted making mistakes and promised to regain the public's trust.
CHETRY: And we bring Stephanie Elam back in on the story as well. You know, we talked about this yesterday. While it's all fun and good that they're getting grilled now, it's a little bit late, right, because they were able to do what they wanted to do? So what was the explanation from the banks as to what was used and how much and where of the original bailout and then what are they doing differently in the future?
ELAM: At that point actually, Citigroup is the only one that actually said here's what we've done and to many it looked like it wasn't nearly enough of the money that they received in the TARP plan of the billions of dollars that it got. In fact, collectively, all of these banks that were there testifying yesterday got $165 billion last fall. So obviously, the issue here is what are you using the funds for, and that's the issue that is coming up here.
And you have to keep in mind this is an unprecedented time here for the United States dealing with what's going on, on Wall Street in the way what the hands-on approach that's going on. So I don't think necessarily when it happened the first time that they knew that perhaps transparency should have been written in there, so now they're going backwards to try to get the transparency to come forward now.
Obviously going forward, I don't think we're going to have that same problem. I don't think you'll see that. ROBERTS: I knew there was a horse in this barn here somewhere.
ELAM: Somewhere, yes. So the other issue is timing of executive bonuses. That's something else. Think about it. There's a lot of people saying when you did get bonuses? Was it right before you got the TARP money so that you're sending this out? And then the bonus money actually really coming from the TARP fund. That's what people are afraid of.
CHETRY: And what are the banks saying is the reason why lending is frozen or hasn't thawed to the extent that they were hoping?
ELAM: Well, they are saying that they're doing their part and it's the overall feeling right now on Wall Street. But really, that's exactly what this House committee is saying. You could be doing more. You could be lending more and this is what we want to see more transparency on.
One other little note I should point out to, I think they've learned perhaps a little lesson from Detroit. None of them showed up in their corporate jets. One took a train. A few flew down on regular coach airlines in New York.
ROBERTS: None of them rode on their bicycles, did they?
ELAM: I don't think that's possible.
CHETRY: That's not the case.
ELAM: Yes, yes. I don't think that's true.
ROBERTS: Thanks, Steph.
CHETRY: Well, the mayor of Las Vegas is accusing President Obama of saying hurtful things to Sin City. Here what the president said and why the mayor is now calling for a presidential apology.
Also, fashion and the first lady, Michelle Obama, gracing the cover of "Vogue." We're going to show you the pictures that everyone is going to be talking about as the magazine hits newsstands.
It's ten and a half minutes after the hour.
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ROBERTS: Well this morning, two makers of private jets are fighting back after what they say is an unexpected backlash that erupted after Detroit's big three flew to Washington last year to ask for a bailout. The new marketing campaign now under way. Cessna aircraft will run an advertisement that says, "Pity the poor executive who blinks and gets rid of the company jet. One thing is certain, true visionaries will continue to fly."
Across the industry, new orders for private jets have almost evaporated with some jet makers cutting production by 56 percent. And jet makers aren't the only ones who are playing defense. The mayor of Las Vegas delivering a message to President Obama to lay off Sin City.
The dust-off coming after the president criticized executives for holding corporate junkets in Vegas at the taxpayer's expense. Here's CNN's Brian Todd with that story.
BRIAN TODD, CNN CORRESPONDENT: Good morning, John and Kiran. We all know about the various reputations that Las Vegas has, but one that it's reeling from right now is the perception that it's this Mecca for the wasteful corporate junket. That's something President Obama hit on recently and he's taking some real brush back for it.
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TODD (voice-over): On its face, it seemed like the president was just stepping up again for us taxpayers, hitting execs whose companies are taking the bailout money for those pricey corporate trips.
B. OBAMA: You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime. There's got to be some accountability and some responsibility.
TODD: But a fellow democrat who runs Las Vegas isn't buying in.
MAYOR OSCAR GOODMAN (D), LAS VEGAS: That's outrageous. He owes us an apology. He owes us a retraction.
TODD: Mayor Oscar Goodman's town is reeling. Las Vegas reports a heavy drop-off in visitorship from last year, layoffs at casinos, in one of the country's highest foreclosure rates. Wells Fargo, Citibank and Goldman Sachs, all of whom are getting TARP money, recently pulled out of meetings in Las Vegas, and the mayor says they can't afford more cancellations.
GOODMAN: They change their mind and go someplace else if they cancel, and at the suggestion of the president of the United States? That's outrageous.
TODD: Mayor Goodman wrote a letter to the president and separately said he'd asked the entire Nevada congressional delegation to get Mr. Obama to "stop this kind of talk." At least one member of that delegation, a Republican, sides with the mayor.
SEN. JOHN ENSIGN (R), NEVADA: Business meetings are an important tool. Let's just make sure that we don't leave common sense off of the agenda.
TODD: So far, no formal response from the White House. But Senate Majority Leader Harry Reid, another member of that Nevada delegation, said White House Chief of Staff Rahm Emanuel clarified the president's remarks to him.
SEN. HARRY REID (D), MAJORITY LEADER: President Obama's criticism was aimed at the potential use of taxpayer funds for junkets. Now, we give a lot of money to these banks. They shouldn't be taking junkets with any of that money.
(END VIDEOTAPE)
TODD: What riles the mayor is the perception issue, the assumption that all so-called incentive travel to Las Vegas is wasteful. He's asking the president to, in the future, refrain from calling out individual cities or destinations to make his point.
John and Kiran, back to you.
CHETRY: First lady in "Vogue."
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UNIDENTIFIED FEMALE: She looked absolutely beautiful and her arms are wonderful. It's the arms, right?
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CHETRY: Michelle Obama, recessionista?
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ANDRE LEON TALLEY, EDITOR-AT-LARGE, "VOGUE": What they wanted to reflect is that Michelle is not an elitist in the elite club of fashionistas, which she's not.
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CHETRY: What went on during the shoot?
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LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT: What revelations did she share with you, Andre? I know you got some good stuff out of her, so tell me.
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CHETRY: Ahead on the Most News in the Morning.
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CHETRY: Welcome back to the Most News in the Morning. Talk about your charm offensive, first lady Michelle Obama feeling right at home in her new home city. She spoke to business students at Howard University on Wednesday and then told them that balancing work and family is still a struggle for her.
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MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: This issue is something that I have dealt with my whole life, trying to figure out how to juggle work, family balance in the process of getting an education. There isn't a day that goes by, particularly after having kids, that I don't wonder or worry about whether I'm doing the right thing for myself, for my family, for my girls.
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CHETRY: Very candid moment for her as she spoke. She says that while the first -- while the president is focusing on the economy, that she's had a little bit of time on her hands. She's been using it to get familiar with her new hometown and neighbors.
And Michelle Obama certainly making her own mark as the nation's first lady. She is about to grace the cover of "Vogue," just the second ever to do that. And our Lola Ogunnaike talked to "Vogue's" editor and also people on the street about the first lady's photo spread.
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UNIDENTIFIED MALE: It's a beautiful picture. She looks like your everyday woman, but there's still a sense of grace and power and beauty there.
UNIDENTIFIED FEMALE: She looks absolutely beautiful and her arms are wonderful. It's the arms, right?
UNIDENTIFIED MALE: I'd like to wear that color sometime.
OGUNNAIKE: OK, so what was Michelle Obama like when you actually interviewed her?
TALLEY: As natural as a fresh drink of water in a lake (ph) in the country on a spring day.
OGUNNAIKE: You're so descriptive. I love it. But I think the interesting is that a number of the pieces that she's wearing in the magazine actually come from her own closet, is that true?
TALLEY: Of course it's true. The Narciso Rodriguez is from her own closet. Everything she wore was from her own closet, her own choices.
OGUNNAIKE: So was she at all hesitant about it, or was the "Vogue" get all hesitant because some people might think --
TALLEY: Conversations were held to make sure that everything was going to represent the new era of the Obamas and what they stand for. Not only here at "Vogue" but as well as I can imagine with the Obama team. And what they wanted to reflect is that Michelle is not an elitist in the elite club of fashionistas, which she's not.
I mean, Michelle, you saw her going to Camp David the other day. She had on Converse sneakers and jeans.
OGUNNAIKE: Yes.
TALLEY: You know, she will put on a pair of leggings and a white cotton shirt.
OGUNNAIKE: And keep it moving. TALLEY: And keep it moving. What she's done in this role is she's absolutely become an iconic image in the fashion industry that we hope will help support. She is the stimulus package on what one- woman stimulus package for the fashion economy.
OGUNNAIKE: What revelations did she share with you, Andre? I know you got some good stuff out of her, so tell me.
TALLEY: She said, you know, I hope Kennebunkport is Chicago, and I think that they're going to surprise people to go home to Chicago on weekends sometimes, because they love the city.
OGUNNAIKE: So you can take the girl out of the city but you can't take the city out of the girl.
TALLEY: You can take the girl out of the city, but you can take the girl back to the city and she'll go back to the big city and she'll still be the same.
(END VIDEOTAPE)
CHETRY: He's a character. I got to tell you, Lola. She looks beautiful on the cover. What is she wearing?
OGUNNAIKE: She's wearing Jason Wu, actually. Jason Wu is the young 26-year-old Brooklyn-based designer who designed her inaugural gown, the white gown that everybody was talking about obviously. And she seems to really be having fun with fashion but I think the interesting thing that Andre Leon Talley said is that fashion is something that she loves but it's not her obsession. It's not actually her priority. And as you know, she likes to go high and low so on one day she may wear Jason Wu, the next day she's wearing J. Crew, which is what she's wearing actually in one of the spreads in the piece actually.
CHETRY: Yes. In that really pretty orange top here.
OGUNNAIKE: Yes.
CHETRY: She's wearing J. Crew. That's her own.
OGUNNAIKE: J. Crew from head to toe. All of these pieces actually came from her closet. The Narciso Rodriguez dress that she's wearing, the fitted one that shows off her curves and her arm, that is also something from her closet. So, they didn't go out and have this big extravagant spread at all. She decided I'll shop my closet. And is she not a true recessionista for doing that?
CHETRY: Exactly. Exactly. Well, she looks great.
Lola, thanks so much.
OGUNNAIKE: Thank you.
ROBERTS: Well, surprising twists surrounding the investigation into what may be the biggest scam in Wall Street history. Find out what prosecutors say Bernard Madoff's wife was up to just a day before her husband turned himself in.
And bank executives, summoned by Congress to explain where the bailout money went, getting a grilling on Capitol Hill. We'll talk with a financial expert who says the government should let Wall Street fail.
It's 24 minutes after the hour.
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JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": A federal judge has tentatively ordered that California release tens of thousands of prison inmates due to overcrowding; 58,000 inmates are going to be released because of overcrowding here. They say this will be the biggest number of known criminals to hit the streets I guess since closing time at Goldman Sachs yesterday.
(END VIDEO CLIP)
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B. OBAMA: There's the sense of unity that is so much a part of Lincoln's legacy, that despite all that divided us, north and south, black and white, he had an unyielding belief that we were, at heart, one nation and one people. Because of Abraham Lincoln and all who carried on his work in the generations since, that is what we remain today.
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CHETRY: That was President Obama honoring his favorite president, Abraham Lincoln, last night at Ford's Theatre, the star- studded gala celebration of Lincoln's 200th birthday and the renovation of the very theater where Lincoln was assassinated in 1865.
All day today, CNN is going to be celebrating the Lincoln bicentennial. We're live across the country with a day full of coverage from Lincoln to Obama. It all begins at 9:00 Eastern.
Just about half past the hour now. Checking our top stories, the White House says Secretary of State Hillary Clinton may be on the verge of naming a special envoy for North Korea. Former State Department official Steven Bosworth has reportedly been offered the job. Officials expect Secretary Clinton to make the appointment before she leaves Sunday on a trip to Asia. It includes stops in China, Japan, Indonesia and South Korea.
There's a new twist in the Bernard Madoff case. Securities regulators in Massachusetts say the accused swindler's wife, Ruth, withdrew more than $15 million from a brokerage firm co-owned by Madoff just before his arrest in December, including $10 million on the day that their children turned her husband over to authorities.
Prosecutors suspect the Madoffs are trying to hide money that could be used to reimburse burned investors. Bernard Madoff is accused of running a Ponzi scheme that may have bilked investors out of some $50 billion.
And while you were sleeping, gas prices creeping closer to $2 a gallon. According to AAA, the national average is now $1.95 a gallon. It's up more than a penny from yesterday. One reason for the uptick in gas prices despite sliding oil prices, they're citing refineries making less gasoline -- John.
ROBERTS: If CEOs from the nation's biggest banks don't know how unpopular the financial bailout is, they may have a better idea now. Executives from eight major banks shared one big hot seat on Capitol Hill on Wednesday, with lawmakers demanding accountability for the $165 billion of taxpayer money they received. The bosses promised to regain the public trust, but no one was buying it.
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CAPUANO: But basically, you come to us today on your bicycles after buying Girl Scout cookies and helping out Mother Teresa telling us we're sorry, we didn't mean it. We won't do it again. Trust us. America doesn't trust you anymore.
(END VIDEO CLIP)
ROBERTS: So, are bank executives aware of the outrage over this bailout? Joining us now is William Cohan. He is the contributor to dailybeast.com and author of the soon-to-be published book "House of Cards: A Tale of Hubris and Wretched Excess on Wall Street." It's out on March 10th.
William, good to see you this morning.
WILLIAM COHAN, FORMER SENIOR M&A BANKER: Thanks for having me, John.
ROBERTS: So the congressman was saying that they came to Washington in their bicycles after buying Girl Scout cookies and paying a visit to Mother Teresa's tomb. But nobody believes that they did that, but do they get the amount of outrage in this country over what's happened?
COHAN: Well, I think there's some degree of contrition but let's face it, they were the focus of the public flogging yesterday. I think they got that loud and clear. And as I said, there was some contrition but they live in a, you know, different rarified world. I think they realize that there was a major, major problem going on in this country that they caused and that they now have to come to, you know, pay the price for it.
ROBERTS: So when you live in this rarified world and you can be contrite, but do you ever really change your ways or is it just -- are they all thinking OK, this is what we have to do for now, but eventually the economy is going to come back and the good times will roll again, and we, like little piggies, will get down there and roll in the mud, soaking it all up.
COHAN: Well, I think they do hope for that. I mean, I think that's in the sense the American way that they hope that if they make profits again they will be rewarded handsomely again. I mean, it's interesting yesterday they spoke about how they'd taken no salary or $600,000 or $1 million. They forgot to mention and nobody asked that they had made, you know, hundreds of millions of dollars during the previous five years in compensation, when times were good.
I think to some extent they hope that times will be good again and they will return to that kind of compensation.
ROBERTS: And what about this idea, too, of the $3.6 billion in bonuses that Merrill Lynch paid out just before the merger with Bank of America, and they're suggesting that Bank of America was sort of complicit in allowing that to happen?
COHAN: Well, there are contracts for these things and a lot of those things are covered in the contracts. But I think Attorney General Andrew Cuomo is on to something here and let's wait to see what he comes up with. I think that's very interesting.
ROBERTS: You wrote a piece in the "Daily Beast" earlier this week titled "Let Wall Street Fail." In which you said "Consider a much more radical proposition. You had your chance. Dispense with all the insipid government meddling and let the market decide what happens to Wall Street from this point forward. The market is light years ahead of the government problem-solvers in sorting out this mess."
But when you look at the fact that we are still reeling from the collapse of Lehman Brothers, would allowing any more of these big banks to fail be good for the economy?
COHAN: Well, first of all, I'm not a reincarnation of * Freedman here. But on the one hand, there's $700 billion allocated, about $350 billion has been spent. Another $350 billion is left to go. Last time I checked those were big numbers. Let's use that money wisely. Let's prop up the banks that still need to be propped up. Let's let the market begin to trade some of these securities. Let's let the market begin to have its effect here, and then if it doesn't work after another $350 billion, why should we commit trillions more?
It doesn't make any sense. We're not getting a return on what we've already invested, and I'm not so sure necessarily -- a lot of pain was, you know, adjudicated with Lehman's failure, but I'm not so sure it wasn't a good thing for the market.
ROBERTS: Hey, what about Geithner's announcement the other day about the $350 billion on Tuesday, in which he really didn't lay out any plans. He said he wanted to get out there and tell people about it, but then didn't have any plans because he hasn't formulated them yet. (INAUDIBLE) and the Dow dropped 400 points. Was that a mistake?
COHAN: Well, you know, the market didn't like it, obviously. The market wants more certainty. I think we have to give Tim some time to do what needs to be done and to develop a plan, a little more time, not much more time. He's formulating it. He's being cautious. I think it's not a bad thing at this point. ROBERTS: William Cohan, it's good to see you this morning.
COHAN: Thank you.
ROBERTS: We'll get you back for the release of your book, too, "House of Cards: A Tale of Hubris and Wretched Excess on Wall Street."
COHAN: Thank you for having me.
ROBERTS: Great title. Looking forward to it. Thirty-three minutes after the hour.
CHETRY: Will weatherizing homes really generate jobs? The president says yes.
(BEGIN VIDEO CLIP)
B. OBAMA: Don't suggest that somehow that's wasteful spending. That's exactly what this country needs.
(END VIDEO CLIP)
CHETRY: Does everyone agree?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Best case scenario, you know, I may hire 40 people.
(END VIDEO CLIP)
CHETRY: What happens when the stimulus money runs out, ahead on the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Thirty-six minutes past the hour. Time to fast forward to some of the stories we're going to be following for you today. We're awaiting a major ruling by the Department of Justice Special Court that could link Thymerisal, which is a mercury-containing preservative that was in some childhood vaccines to autism. Now when this ruling happens, we're going to break down what it means for the health of your children, whether or not recommendations are changing. And also we're going to talk with thousands of a -- we're going to talk more about the thousands of families who have made similar claims in the past.
Also, weekly jobless claim numbers come out this morning. It's at 8:30 Eastern and they may offer some hope. Economists are predicting that the number of workers filing for unemployment benefits for the first time may have actually fallen by more than 20,000 last week.
It's also a big day for our 16th president, Abraham Lincoln. Today, the nation honor's his 200th birthday. Celebrations kick off at 8:00 Eastern with a national replaying at the Lincoln memorial in Washington. And, of course, stay with CNN as we celebrate the Lincoln bicentennial with day-long coverage, "From Lincoln to Obama." All that gets under way at 9:00 a.m. Eastern -- John.
ROBERTS: Looking forward to all of that this morning.
Developing this morning, the $789 billion economic rescue plan moving forward and getting closer and closer to landing on President Obama's desk by his stated deadline of Monday, President's Day. That bill breaks down to about 35 percent in tax cuts, 65 percent in spending with roughly $5 billion going to weatherize homes. So how will that kick start the economy and create jobs? CNN's Elaine Quijano is looking into that part of the stimulus bill.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: John, Kiran, President Obama believes weatherizing houses can help jump-start the economy.
(BEGIN VIDEOTAPE)
QUIJANO (voice-over): The president wants to spend billions of dollars to weatherize 1 million homes a year, an idea that doesn't exactly wow comedian Jon Stewart.
OBAMA: As a consequence of weatherization, their energy bills go down and we reduce our dependence on foreign oil. What would be a more effective stimulus package than that?
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Yes, we -- (SNORES).
QUIJANO: But the president argues weatherizing can not only save homeowners money on their energy bills, it can also generate jobs. He bristles the critics who dismiss the idea.
OBAMA: Don't suggest that somehow that's wasteful spending. That's exactly what this country needs.
QUIJANO: According to the environmental group, the Natural Resources Defense Council, spending about $3 billion on home weatherizing would create 50,000 jobs at a cost of $60,000 each. Yet one economist asks what happens when the stimulus money runs out?
DAVID KREUTZER, HERITAGE FOUNDATION: These are not real jobs that will be sustained after the stimulus package is over. So it's almost cruel, a mirage to tell them look, we're training you for, giving you skills for jobs of the future.
QUIJANO: That debate is not academic for weatherization companies like House Warmers in Maryland, where President Timothy Kenny hopes to greatly expand his staff of seven.
TIMOTHY KENNY, PRESIDENT, HOUSE WARMERS: Best case scenario, you know, I may hire 40 people.
QUIJANO: Kenny says unemployed construction workers can retrain for weatherization jobs and return to building new houses when the economy picks up again.
KENNY: The ramp up is going to be a tremendous challenge to get qualified technicians on the field to produce these units. But I think we're up to that challenge.
(END VIDEOTAPE)
QUIJANO: Kenny believes on average a skilled construction worker can be re-trained as a weatherization technician in about a month -- John, Kiran.
ROBERTS: Elaine Quijano for us this morning. Elaine, thanks so much.
Her story touched the president and plenty of people watching his town hall meeting on Tuesday brought some people to tears. Now one Florida woman down on her luck is getting a place to stay because of the kindness of a stranger. We'll hear from both of them, live.
And when you hear someone yell "fore" on the golf course, it's usually because a ball is headed your way. Well, what do you say when it's a funnel cloud? We've got unbelievable video that you just got to see from Hawaii. It's 40 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. It's a live look right now at Waterbury, Connecticut. Thanks to our friends at WFSB. Waterbury, Connecticut right now 48 degrees. Only going up a degree for a high today. It looks like rain showers are in the forecast there and many other parts of this area today -- the Tri-state.
Well, they're still picking up the pieces in Oklahoma, where tornadoes caused widespread devastation Tuesday night. Eight people were killed in the storm. It registered as an F4 on the Enhanced Fujita Scale. An F5 the highest rating for a tornado. The most damage occurred in the city of Edmond, where winds were clocked as high as 170 miles per hour.
Also strong winds not making life any easier for people in Kentucky, where they're still trying to recover from last week's crippling ice storm there. Powerful gusts knocking down trees and power lines, blocking roads in Louisville. Some residents experiencing their second power outage in a month.
Also take a look at this incredible video. It was shot yesterday at a golf course near Waikiki in Hawaii. Amateur photographer Matthew Budd captured the shot. Winds were so strong. Actually at one point, a golf pro lifted off the ground, thrown into the glass window. That golf pro was taken to the hospital, where he was treated for whiplash. So, some amazing pictures coming in from our iReporters. Kind of scary, isn't it, Rob, when we see how close the man, Matthew Budd, was to capturing that?
ROB MARCIANO, AMS METEOROLOGIST: You know, you go to paradise just to kind of chill out. CHETRY: Exactly.
MARCIANO: A round of golf. Maybe take in some rays, a little surf, but that certainly is unusual and pretty strong one actually in Hawaii. So, cool video, thanks for getting that. As always, we appreciate the iReports, but stay safe.
(WEATHER REPORT)
CHETRY: Oh, my gosh, I just love koala so much. They are so adorable. You know, I loved them so much when I was little that I asked if I could be a, you know, trainer -- or train them. You know what I mean -- a koala helper. And the guy said they like people that move very slowly because they are very slow and calm animals. So you know, there went that career.
MARCIANO: Yes, I see you roaming around the studio. That is not going to be a profession for you.
CHETRY: No, the koala would certainly not like Kiran.
MARCIANO: But your heart's in the right place.
CHETRY: So cute. Happy Valentine's Day, Sam. All right. Thanks, Rob.
MARCIANO: I'll see you again.
CHETRY: Forty-six minutes after the hour.
ROBERTS: Stump, the senior spaniel, he just won Best in Show. So, clean him up and let the interviews begin.
(BEGIN VIDEO CLIP)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT: Stump doesn't do steps?
UNIDENTIFIED MALE: Yes, he could do the steps. I just thought I'd save him the trip.
(END VIDEO CLIP)
ROBERTS: We have some questions for the old dog.
(BEGIN VIDEO CLIP)
MOOS: He doesn't color his hair, does he?
(END VIDEO CLIP)
ROBERTS: Stump's beauty secrets ahead on the Most News in the Morning.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: It's the 125th Annual Mayflower Kennel Club Dog Show -- 3,000 dogs competing for Best in Show. To think that in some countries these dogs are eaten.
(END VIDEO CLIP)
ROBERTS: Welcome back to the Most News in the Morning. A scene from the movie "Best in Show." The real top dog at Westminster this year has got tongues wagging. Stump, the Sussex spaniel, is 10 years old. That's past retirement age for the canine set. But the Best in Show is not showing his age. Jeanne Moos tagged along as Stump stepped into the spotlight.
(BEGIN VIDEOTAPE)
MOOS (voice-over): He sure doesn't look like a senior citizen spaniel.
(on camera): He doesn't color his hair, does he?
UNIDENTIFIED MALE: Oh, no.
UNIDENTIFIED FEMALE: He has no gray hair.
MOOS (voice-over): But winning Westminster at the dog age of 10, around 70 in people years, he deserves a lift up the stairs.
(on camera): Stump doesn't do steps?
UNIDENTIFIED MALE: Yes, he can do the steps. I just thought I'd save him the trip.
MOOS (voice-over): Hey, an older guy should be allowed to nap during his media tour.
UNIDENTIFIED FEMALE: We're going to catch up with the champion should he awake.
UNIDENTIFIED MALE: You know what, stand him up a little bit so people can see.
UNIDENTIFIED FEMALE: Come here, baby.
MOOS: You stand up. I'm sitting down. Clean his eyes, arrange his ears, wipe his mouth, there was interview after interview via satellite in the "Best in Show" brunch at Grand Central. For awhile his name had us stumped.
UNIDENTIFIED MALE: Stump.
UNIDENTIFIED FEMALE: Stump.
UNIDENTIFIED MALE: Because he's got little stumpy legs.
MOOS: Even the judge rewarded Stump best in show didn't know how old he was. SARI TIETJEN, WESTMINSTER JUDGE: I was floored when I found out afterwards.
MOOS (on camera): Really? Floored?
TIETJEN: Yes. Yes, floored.
MOOS: You can't tell when you -- like I can't tell, he feels silky. I was just touching him and he felt silky and nicey, he felt young to me.
(voice-over): As young as all those other dogs at the brunch.
UNIDENTIFIED MALE: Here's a beautiful, full-size white lab.
MOOS: The place was crawling with dog mannequin centerpieces, tricky to talk through.
(on camera): This is beautiful.
UNIDENTIFIED MALE: This is a full-sized greyhound in a gray wool.
MOOS (voice-over): But they weren't the ones eating celebratory steak in front of a pack of photographers. Stump's age prompted Dr. Ruth Westheimer to paraphrase the old adage.
DR. RUTH WESTHEIMER, PSYCHOSEXUAL THERAPIST: Old dogs can learn new tricks.
MOOS: She also showed Stump a copy of her latest book, "Dr. Ruth's Top 10 Secrets for Great Sex.
(on camera): Now, do you have any advice for the dog? Sex life?
WESTHEIMER: No, I'm not interested in bestiality.
MOOS (voice-over): With age come manners. Unlike his younger rivals, Stump didn't scratch when the judge was watching, nor did he answer nature's call on national TV like the Sadie the Scottish terrier. For a second we thought we stumped Stump's co-owners with our last question.
(on camera): Does he do anything that seems like an older dog?
UNIDENTIFIED FEMALE: Not really.
UNIDENTIFIED FEMALE: Snores.
UNIDENTIFIED FEMALE: Yes, he snores.
MOOS (voice-over): And now talk show host are talking baby talk to an old man.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHETRY: Grilling the bank bosses.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What did you do with the new money?
(END VIDEO CLIP)
CHETRY: Suits in the hot seat.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Start loaning the money that we gave you.
(END VIDEO CLIP)
CHETRY: And America demanding answers.
Plus, her babies, your money? New outrage over the octuplet mom. Who is really paying for baby after baby after baby? You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
HENRIETTA HUGHES, FLORIDA RESIDENT: The housing authority has two-year waiting lists, and we need something more than a vehicle and the parks to go to. We need our own kitchen and our own bathroom. Please help.
B. OBAMA: Well, I -- listen, what's your name? What's your name?
HUGHES: It's Henrietta Hughes.
OBAMA: OK, Ms. Hughes, well, we're going to do everything we can to help you, but there are a lot of people like you. We're going to do everything we can. All right? But I'll have my staff talk to you after this -- after the town hall. All right?
(END VIDEO CLIP)
CHETRY: Well, that was an emotional plea from Tuesday's town hall meeting in Florida. It touched the president and also many of those watching. And now, thanks to the kindness of a stranger, Henrietta Hughes is getting what she desperately needs.
Chene Thompson is the wife of a local congressman, and she's giving Hughes and her son a place to stay until they can get back on their feet. And the two ladies join me this morning live from the home in Labelle, Florida.
Thanks to both of you for being with us. You guys have a great story to share and that's why we're glad you're with us this morning. And Henrietta, I want to start with you. Tell us a little bit about how you even ended up at the event? How did you know that Barack Obama, the president was doing this town hall meeting and how did you and your son get in there?
HUGHES: Well, initially I had, (INAUDIBLE) thinking that I would like to write the president, to let him know of our situation, not being able to find a job for over a year, and therefore, cannot afford a place to live. And everything that was subsidized was a waiting list. So when my son went into public, he looked at the paper, he said "The president is coming to town." I said, well, when? And I said -- well, we don't get a paper because that's extra money, so we went and bought a paper.
And so I had no idea that he was going to be that -- it was Sunday morning, that Sunday evening there was going to be a line-up so as usual, in the park, and I saw all the people going with their chairs and blankets and we went over about 9:00 to find out where they were going and what was going on. And when I asked the police officer, he said that they were in line for tickets to see the president and we just went and got in line.
CHETRY: Yes, you guys went. Everyone wanted to see President Obama. You guys waited in line for about 12 hours, but ended up getting not only admission into it but you actually got to ask your question.
And I want to ask you, Chene, what was it about Henrietta and the question that she asked and her story that pushed you to act so generously that you're letting her live in this home?
CHENE THOMPSON, DONATING USE OF HOME: I think she was sincere and direct and to the point, and she needed help. And it actually touched me, and I started to tear up and I started to cry. From where I was sitting, I could see directly across the room to Ms. Hughes and it just touched me. Sort of broke my heart a little bit.
CHETRY: And how did you come upon this house and explain your situation, and how you and your husband are letting her stay with her son until they can get back on their feet?
THOMPSON: Yes, ma'am. This is actually the first home that I purchased when I graduated from school. And I was living here by myself for awhile for about four or five years and then when I met my husband and we ran for office, unfortunately, this home is not in our district, so we can't live here. My younger sister did live here for about a year and during that time she managed to save up enough money to buy a home of her own.
And when she moved out and the house is vacant and it was on the market, and of course, we're responsible for paying the mortgage, and the property taxes, and the property insurance, and the electricity, just like as if somebody was living there, so with it not being sold and with us still being responsible for it financially, we just thought it was a great opportunity to help Miss Hughes out, as well as you know, help us out. CHETRY: That's wonderful.
THOMPSON: As we all know the longer a house sits -- the longer a house sits vacant the worse condition sometimes it gets in.
CHETRY: And Henrietta --
THOMPSON: So it's good for us.
CHETRY: Yes, absolutely. Henrietta, you weren't expecting this at all, were you? What was your reaction when you had a chance to talk to Chene and then when you had a chance to see the house this morning?
HUGHES: Well, overwhelmingly gratitude, because no one would do that.
THOMPSON: Oh, yes they would. Yes they would, definitely.
HUGHES: But someone like her -- someone like her, she --
THOMPSON: Definitely. I was just in the right place at the right time.
HUGHES: Yes. So, I'm sorry.
THOMPSON: We're just very grateful that we got together.
HUGHES: Yes.
THOMPSON: Very grateful.
CHETRY: You can certainly see the bond between the two of you even standing there right now. You're right, the right place at the right time. But also you have a good heart, Chene, because not everybody would do that.
And Henrietta, you really have become in a way the face of the recession. I mean, the reason that President Obama was in Fort Myers, it's the foreclosure capital of the country right now. What do you think people need to realize, as we try to come to grips with how to get the economy out of this situation, and how to help people that are struggling all across the country?
HUGHES: Well, there is that stimulus that's for housing, low- income as the director of Lee County housing authority, Mr. Marcus Goodson (ph), he's on his way to Washington this morning, if that was passed, that would help many other hundreds and thousands of low income persons to receive housing.
THOMPSON: And if I may...
CHETRY: Go ahead, Chene.
THOMPSON: You know, you don't have to be a politician to put forward the stimulus package. I mean, this is our own little mini stimulus package just for a friend and a person who was a stranger, but now is a friend. Anybody can help anybody at any time. You don't need to -- it doesn't need to be something that comes from Washington. It can come from your own home and from your heart, even if it's for a little bit.
CHETRY: Well, it's wonderful, and I'm glad the two of you came to share your stories.
Henrietta, good luck. I know your son is looking for a job right now, and hoping that you guys are going to be able to make it on your own soon. But I want to thank both of you. Chene Thompson, you did a great thing as well. Thank you for being with us this morning.
THOMPSON: Thank you.
HUGHES: Thank you so much.
ROBERTS: Oh, sweet ladies, both of them.
