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Obama Says Tax Relief in Paychecks by April 1/Chandra Levy Murder Case May Be Solved/CNN Hero Roy Foster Works for Veterans; Where Does Stimulus Money Come From & How Does it Get to You; A Leading Expert Answers Questions About the Obama Stimulus Plan; A Look at the Upcoming Academy Awards; Even Pawn Brokers for the Elite See a Slowing in Sales

Aired February 21, 2009 - 17:00   ET

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


DON LEMON, CNN ANCHOR: D.C. murder mystery, a cold case for years, now back in the news, a suspect named in the infamous Chandra Levy case. Remember that? Who is it? We'll find out.

More money for you, less taxes withheld. When will the new stimulus plan reach your paycheck, and really, how much?

Lifestyles of the not so rich and famous. A recession has hit hard the land of swimming pools and movie stars. Beverly Hills 90210 not so exclusive anymore. And while we're there, we're going to preview the Oscars for you.

All the news starting right now.

All right, if you work and you draw a paycheck, President Barack Obama is giving you a raise, or more to the point, the federal government won't withhold as much from your check. Sounds like good news, doesn't it. Let's go now to our Kate Bolduan. She's here to tell us when you should start seeing the extra cash and how much will it be. Do you know, Kate?

KATE BOLDUAN, CNN CORRESPONDENT: I do, Don.

(LAUGHTER)

BOLDUAN: I wouldn't be here if I didn't! No, during his weekly address, President Obama basically said -- reassuring Americans that help from the stimulus package is coming, and coming soon. Americans, he says, can expect results from at least part of the stimulus, the part having to do with an individual tax cut, as soon as April 1st. Listen here.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I'm pleased to announce that this morning the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks, meaning that by April 1st, a typical family will begin taking home at least $65 more every month.

(END VIDEO CLIP) BOLDUAN: The president -- it was in the same address -- quickly shifting focus to look at more long-term economic issues. Monday, the presidents's meeting with Democratic and Republican governors who are in town for their annual meeting. You can guess that the economy will be the topic of conversation. Tuesday, the president is going to be addressing a joint session of Congress. Also, Monday afternoon, the president's holding a "fiscal responsibility summit," as they're calling it, to take on issues like controlling the deficit.

Later in the week, the president will be unveiling his first budget, the 2010 budget, and Republicans say they're going to be watching that very closely. Listen here to Republican congressman Dave Camp.

(BEGIN VIDEO CLIP)

REP. DAVE CAMP (R), MICHIGAN: Republicans genuinely want to work with the president to solve these problems in a responsible way that does not burden our children and grandchildren with a mountain of debt. The summit next week is an important step, as is the budget outline the president will release at the end of the week. If he is serious about dealing with the tough issues and getting spending under control, his budget will show it.

(END VIDEO CLIP)

BOLDUAN: During his weekly address, President Obama said he will be releasing the budget, and it will be, in his words, "sober in its assessment, honest in accounting." I'll be watching close for that one, Don.

LEMON: All right, Kate. We appreciate it. Thank you very much for that.

BOLDUAN: Of course.

LEMON: Well, the tax cut comes on the heels of the president's plan to save more home owners from foreclosure. What does it mean for the value of your home? Even I want to know that. We'll talk with John Adams in just a little bit. He is the host of "Money Talks." That's coming up at the bottom of the hour for you, some useful information.

Well, President Barack Obama addresses Congress Tuesday night at 9:00 Eastern. And of course, you'll see him live right here on CNN, followed by Anderson Cooper and the best political team on television. And then at midnight, we'll have a special edition of "LARRY KING LIVE." Remember, you can watch along with your FaceBook friends at CNN.com live. We'll have all of that for you.

Turning now to other news, police may finally be close to solving an 8-year-old murder mystery that captured national attention. The mother of congressional (SIC) intern Chandra Levy says police have told her an arrest is imminent in the 2001 killing of her daughter. Susan Levy says police did not tell her the identity of the suspect, but a source close to the investigation confirms that the Salvadoran immigrant -- his name Ingmar Guandique -- he's already serving 10 years in prison for two assaults in Washington's Rock Creek Park, and that's where Chandra Levy's remains were found. "The Washington Post" reports he's denied any involvement in Levy's death.

You'll remember the case gained national attention -- that was back in 2001 -- when the Washington intern disappeared. D.C. police looked for her for months and months and months. Her body was found a year later. Well, much of the publicity resulted from Levy's affair with then California congressman Gary Condit. He was questioned several times but was never named as a suspect. Still, the case ended his political career.

Well, Gary Condit now lives in Arizona. He is -- here's part of a statement I want to show from him, where he gave to our station, our affiliate -- it's WJLA in Washington. Here's what he says. He says, "It is unfortunate that an insatiable appetite for sensationalism blocked so many from searching for the real answers for so long. I had always hoped to have the opportunity to tell my side of this story, but too many were not prepared to listen. Now I plan to do so. But I will have no further comment on this story at this time."

So Gary Condit may be speaking out once an arrest is made in this. We'll keep you updated.

I want to bring in now CNN law enforcement analyst Mike Brooks. He joins on the phone. You know Mike. He's always on. OK, Mike, so we're hearing about this suspect, who's already in jail -- already in prison, I should say -- committed some murders in Rock Creek Park during the same time of the Levy case. But police are not saying when they're going to arrest him. What do you know about this?

MIKE BROOKS, FORMER D.C. POLICE, CNN LAW ENFORCEMENT ANALYST: Well, actually, Don, they weren't murders. These -- there were two assaults very similar to the assault on Chandra Levy. (INAUDIBLE) Chandra Levy was found murdered and her remains found a year later. But the two assaults occurred in the same general area. One was woman attacked in the middle of May 2001 and the other in July of 2001.

Now, he's doing time in a federal (INAUDIBLE) for these (INAUDIBLE) In fact, he comes up for parole in 2011. So that's why I think that they've kind of expedited this again. I'm hearing from sources there is a going to, a federal grand jury in Washington. You know, Washington is very unique because it's a federal city and it's U.S. attorneys who do the prosecuting there. But there is a grand jury. You have new investigators that have put fresh eyes on this.

And in fact, I spoke with a spokesperson for Metropolitan Police today, and they're not really saying much. They're holding it very close to the vest. In fact, Chief of Police Cathy Lanier -- this is what she had to say. She said, "The Metropolitan Police Department has no information available for release in this ongoing investigation. This case generated numerous bits of information which we continue to follow up on."

But sources are telling me that this guy, Guandique, who has been in jail -- they have been looking for him for quite some time. I know the one FBI agent who is a good friend of mine who had worked this case before he retired -- he had said all along -- he and I discussed this numerous times, and he himself thought that Guandique was a suspect, but they just had no more -- no physical evidence, Don.

LEMON: Yes.

BROOKS: And we're hearing also that they have submitted some of his DNA evidence for evaluation.

LEMON: Hey, Mike, I'm waiting around -- Susan Levy's going to join us in a little bit, but -- I want to tell our viewers that. But I have one more quick question for you. This is all coming from someone in prison. Isn't this, apparently, him spouting his mouth off to someone in prison who's saying that he confessed to this murder of Chandra Levy?

BROOKS: That's what the new information is and -- apparently coming from.

LEMON: OK.

BROOKS. And you know what a lot of people say. Well, you know, he's a criminal. He's going to try to get off. Well, what they'll do is, they'll go back and talk to him. And if he has certain information, if Guandique said, I was at this (INAUDIBLE) certain time, I did -- I killed her by -- in this manner, here's what I used, this will all come into play. And the investigators can go back and vet the information...

LEMON: OK.

BROOKS: ... from this informant.

LEMON: All right. Mike Brooks, we have to run. Thank you very much for this, Mike. We'll be talking to you soon, I'm sure, because this is still unraveling. This case is -- the new developments are coming in at every minute now. And I'm sure Susan Levy, Chandra Levy's mother, has been getting bombarded from police and from phone calls. We expect to hear from her, the mother of Chandra Levy, a little bit later on in this hour. She will join us from Modesto, California. We'll update you on every single development on this story as we get it.

Another shocking story to tell you, this one out of western Pennsylvania. Adult homicide charges have been filed against an 11- year-old boy. He's accused in the shotgun slaying of his dad's girlfriend, who was eight months pregnant. She had two other children. Police have offered no motive in this case, and the boy is jailed on charges of criminal homicide and criminal homicide of an unborn child. The woman's body was found by her 4-year-old daughter in their rural home. The boy has been arraigned and is in a county jail tonight -- an 11-year-old boy. Wow.

Now to an eerily similar story and a new development in this story, as well. Remember that 9-year-old Arizona boy who was charged with fatally shooting his father and another man? Well, he has now pleaded guilty to one count of negligent homicide under a plea agreement that places him on intensive probation -- intensive probation. No jail time, apparently. Two counts of murder were dropped against the little boy.

Two 19-year-old men are now in custody in those arsons that have plagued the city of Coatesville, Pennsylvania. Mark Gilliam -- Gilliam is his name -- of West Chester was arrested Thursday on a federal charge of attempted arson, and police describe him as a wannabe firefighter. Prosecutors say police found accelerants, firefighting equipment and a newspaper article about the fires in Gilliam's home. Gilliam's former vocational school classmate, Roger Barlow, is also under arrest. The string of fires this year and last terrorized the area. One woman was killed, an elderly woman.

Well, in a couple of hours, we'll talk live to Senator Bob Casey of Pennsylvania. He recent toured the arson damage in Coatesville, and he is pushing for more federal help, more federal money. We'll talk to him about exactly what the area needs and what they're doing to help these folks out. That's at 7:00 PM Eastern live right here on CNN.

We want to know what's on your minds now. We want you to be part of our community. Make sure you log onto Twitter, FaceBook, MySpace or iReport.com. Tell us what you're thinking. We'll get responses on the air. Remember, you can talk back to us, be a part of our show, just a click away.

Financial help on its way for troubled home owners, but how does it get to you?

Plus, the gowns, the crowds and little gold guy all of Hollywood is clamoring for.

(COMMERCIAL BREAK)

LEMON: Secretary of State Hillary Clinton is in China this weekend. This is her first trip overseas as the top American diplomat. China is the final stop of her week-long visit to Asia. Now, here she is today -- there she is with Hu Jintao. Unlike recent discussions between the two countries, human rights was not a prominent topic. Secretary Clinton made clear the top priority right now was resolving the global economic crisis. China has already bought up billions in U.S. debt, and the U.S. is hoping it'll buy more. She said cordial relations between the U.S. and China were in everyone's interest.

(BEGIN VIDEO CLIP)

HILLARY RODHAM CLINTON, SECRETARY OF STATE: There is no doubt that world events have given us a full and formidable agenda. And as we tackle it, the United States is committed to pursuing a positive, cooperative relationship with China, one that we believe is important for the future peace, progress and prosperity for both countries and for the world.

(END VIDEO CLIP) LEMON: And part of Secretary Clinton's official itinerary today was a visit to a power plant to highlight the two countries' renewed emphasis on reducing greenhouse emissions.

Well, she is a long way from Capitol Hill -- House Speaker Nancy Pelosi, that is. And she met with Afghan president Hamid Karzai in Kabul. Her office says Pelosi pressed Karzai to fight growing police corruption and the resurgence of the Taliban. Pelosi emphasized the U.S. is fully committed to rebuilding the war-torn country.

Memorials held today for two of the victims of that plane crash outside of Buffalo, New York, one for Beverly Eckert, who was a September 11 widow and who had devoted her life to helping other survivors of family members.

Also, this solemn memorial was held for Vietnam vet Douglas Wielinski. He was inside his house when the commuter plane crashed into it earlier this month, bursting into flames. Wielinski's wife and daughter were also there but survived with minor injuries.

Leave no man behind -- that is the goal of veteran Roy Foster. He's a man on a mission today, and CNN is very proud that he's one of our "Heroes."

(BEGIN VIDEOTAPE)

ANNOUNCER: This is "CNN Heroes."

ROY FOSTER, STAND DOWN HOUSE: I actually joined the Army right out of high school. I became introduced to alcohol once I was out. It was just simply drinking and drugging. And I would then stay in the streets. I was looking for a safe haven. The places I was introduced to were no better than on the streets. It was humiliating. That's when the commitment in my heart was born.

FOSTER: How can I turn my back and walk away and leave you right here?

UNIDENTIFIED MALE: You can't.

FOSTER: I can't.

Nationwide, veterans are neglected, homeless -- unacceptable.

What branch of service?

UNIDENTIFIED MALE: Army.

FOSTER: Army. So was I.

We are still brothers in arms, so no man left behind. My name is Roy Foster, and my mission is to help and empower homeless veterans. If you're going to work for sobriety, you got to change. Stand Down House provides services for veterans only, a safe, clean place to live, all the meals, and to help services due the camaraderie. It is that internal glue. UNIDENTIFIED MALE: When I got back from Iraq, it was difficult for me. So I met Mr. Foster, who helped me.

FOSTER: Tell him one of his brothers in arms came out looking for him, and let him know, yes, we will be back.

They are the best and they deserve the best. What I do, I love. I love it.

ANNOUNCER: Tell us about your hero at CNN.com/heroes.

(END VIDEOTAPE)

LEMON: Roy Foster. What a story. What a hero. We're going to hear much, much more from Roy Foster. He'll join us live in the 7:00 PM Eastern hour. I really want to hear from him.

The politicians say the money's coming for hurting home owners. That means a lot of you, a lot of people watching. But how do you get your piece of the pie?

We want to tell you that Susan Levy -- there's some new developments in the Chandra Levy case. Susan Levy, the mother of Chandra Levy -- we're going to talk to next after the break. We're back just seconds away.

(COMMERCIAL BREAK)

LEMON: This is a story we have been following for years. It's been out of the headlines for a bit, but now there is some new movement on it. It's been a cold case, as they call it, but finally, there may be justice for Chandra Levy, a White House (SIC) intern who was murdered eight years ago in Washington, D.C.

We have just learned that there may be an arrest in the case, and it may happen pretty quickly. CNN has learned that the suspect is a Salvadoran immigrant who's already serving time for two assaults in a Washington park, Rock Creek Park, where Chandra Levy's remains were found. You may remember this was just before 9/11. This case was all over the news with congressman -- California congressman -- then, I should say, California congressman Gary Condit. He was questioned about it. They had been having an affair, the two.

Chandra Levy's mother, Susan, joins us by telephone now. We appreciate you joining us today, Susan Levy.

SUSAN LEVY, CHANDRA'S MOTHER: Yes.

LEMON: How are you doing?

LEVY: It's hard.

LEMON: It's hard. I know it's hard. What can you tell us about what you know and what police have told you?

LEVY: I got a call last night from (INAUDIBLE) from "The Washington Post" -- I mean, excuse me, the Washington police department and from Chief Lanier, just to give me a heads-up that there is a warrant out for an arrest. And they had not told me who it was or anything.

LEMON: So you don't know anything about this Salvadoran suspect or anything?

LEVY: No.

LEMON: They haven't said anything.

LEVY: They just -- they haven't said anything.

LEMON: OK.

LEVY: Just said that there's a warrant out for an arrest and that they have substantial and probably convictional -- enough evidence to convict somebody.

LEMON: This Ingmar Guandique -- he's no stranger to you because this came up during the time because of the assaults that he had committed in the park.

LEVY: Yes. I am aware of that.

LEMON: Yes. Did you think all along that he should have been questioned more in this case?

LEVY: I have no comments at this point.

LEMON: Yes. What are you hoping to get from this? I know that, you know, it's tough because your daughter...

LEVY: I want justice. No matter what, it's a bittersweet situation for me as a family member -- a mother of a daughter who's no longer here. But I want justice. I want to know that the person that did it is in jail and will not ever do it to anybody else. It's very poignant.

LEMON: OK. You fought then and have been fighting ever since, even though it may not be on the news every day, as it was...

LEVY: That's right.

LEMON: ... you've been fighting for justice in this case, at least to know what happens.

LEVY: Not only for my case, but for a lot of people, lots of people waiting to find out whatever happens to their loved ones, and you know, certainly for my case, but at the same time, to bring it to people's awareness. There are so many other people out there who don't know what's happening and they have cases pending. And the police department has such a tremendous job across the United States with so much to be done with other victims who are waiting for answers about their cases. LEMON: Ms. Levy, you know, this was -- I hate to bring this up, but this was all part of it, though. It was in the public eye, you know, with Gary Condit. He has released a statement saying, "It's unfortunate that an insatiable appetite for sensationalism blocks so many for searching for the real answers for so long. I'd always hoped to have the opportunity to tell my side of the story, but too many were not prepared to listen. Now I plan to do so. But I will have no further comments on this story at this time."

What do you make of his statement?

LEVY: I have no comment on that statement. However, unfortunately, with all that has happened, especially the murder case, there's always so many wounded people out there, and the ramifications of the woundedness (ph) of a murder case and for what has happened has so many levels to many people that the scab does not heal and it affects a lot of families.

LEMON: Yes. That's...

LEVY: That's how I feel.

LEMON: Before I let you go, I know at the beginning of this interview, you said it was hard. The last eight years for you, since we haven't been seeing a lot of you on the news, can you tell our viewers what you've been doing and what that's been like for you and your family?

LEVY: Well, every day, the elephant's there. Every day, you get a knot in your stomach. It doesn't go away. It's a life sentence for the families and the relatives that miss their loved ones. So we have a life sentence of hurt.

When I have energy, I do work with the Wings of Protection and we are a victims' advocacy program and we are trying to bring awareness to others about things that are happening in the United States concerning families of victims and about the possibility of having a national cold case unit across the U.S.

LEMON: OK.

LEVY: And a few other things.

LEMON: What's the Web site for that, if people want to get involved?

LEVY: Oh, well, Wings of Protection -- we have a Web site. And let me put -- I don't have it right with me.

LEMON: We'll get it. I'll get it. And if you call -- if you could leave it with the producers, I'll get it on before the end of the newscast and I'll also put it on Twitter and FaceBook for you.

LEVY: I mean, I just wasn't prepared today.

LEMON: Yes. I can understand. Susan Levy... LEVY: But we do have a number that they can call and Bonnie Driscoll (ph) is our president. I don't see her here...

LEMON: We'll take care of it.

(CROSSTALK)

LEMON: Give us the Web site, Ms. Levy, and we'll get it on before the end of this newscast, OK? Just hang on and talk to producers after I finish with you. We wish you the best, OK?

LEVY: (INAUDIBLE) our Web site number...

LEMON: We're going to let Susan Levy go. She's trying to get the information. We'll get it on for you at the end of this newscast. Obviously, the last couple of years have been really horrendous for her, and how she's getting really -- it's new information and bringing up old wounds. You can understand that.

Lots of you have been weighing in on this case about Chandra Levy, finally maybe an arrest in the case. WLPerry (ph) says, "It would be nice if someone would finally be charged in the Levy murder case. I hope they get the right person this time.

Here's what CNGarrett (ph) says. "What about renters? Is there any relief for us?" Talking about the economic package as it relates to homes and mortgages and foreclosures. RalphieAverso (ph) says, "Can't believe Republicans are now concerned with the debt. Where was that concern the past eight years?" JaneDoe (ph) says, "Poor Chandra, about time they solved that and put her to rest." Oldworldlimited says, "Oh, wow, a whopping $13 per week? I'm thinking the government should keep it and put it towards the deficit." Can't please everyone, can you.

We want you to be part of our community, part of team here. Make sure you log onto Twitter, FaceBook, MySpace, iReport.com, tell us what you're thinking, just like those. We'll get them on the air for you.

The president's plan to fight the foreclosure crisis has a lot of people asking, What's in it for me? What is in it for me? I'll get some answers to that and much, much more, from a mortgage expert who's walking into the studio now. Very smart guy. You want to hang around.

(COMMERCIAL BREAK)

LEMON: Helping our guest get ready in the studio here. $787 billion for the stimulus. Where will it come from? How exactly will it get to you? The answer man is here. He's been going through some of those steps "Schoolhouse Rock" style.

Can you do -- we need to come up with an answer man or a schoolhouse rock. Do you have anything?

JOSH LEVS, CNN NEWS CORRESPONDENT: I like how you remember the answer-man thing.

LEMON: Seriously, when is it going to get to people's wallets? That's what I want to know. I'm sure lots of people do.

LEVS: Uncle Sam showers dollars on America. They can reach up and catch them. You think? No? Not so much?

LEMON: Come on, Josh.

LEVS: OK, reality. Next screen. I want to show how those dollars are going to get to you and why it means so much debt for America. This is how it works.

The U.S. Treasury right here. The Treasury sells bonds. You know that. you might have bonds. These are the people that buy bonds at auctions, primarily the U.S. public and foreign governments. When you hear we are indebted as a nation to other governments, it's because governments come along and buy these bonds at auction. I want to stay on this for a second because understand that this applies whether talking about spending or tax cuts, even tax cuts. The government has to make up the money. They do it by selling these bonds.

All right, let's go to the next screen. The Treasury then ends up -- they have to sell $887 billion worth. That amount of money they can release and send out to all the agencies around the country.

Now, we randomly chose one state. We're going with Texas. Who doesn't love Texas? We'll go to the next screen to see how that works. Texas, one of the states that receives some money. Here's the Texas Department of Transportation. They take some of that. They send it out to projects. They are financing, for example, this is a group of workers right here working on roads and bridges.

Now, you may be watching and say, wait a second, I'm not one of them. How am I going to benefit from this? Well, that's how we get you to the last screen here. One of the other ways that they send out money all over the country is by letting you keep some extra money inside your paycheck. She's happy. A lot of Americans will get $15 more per paycheck through a tax credit. It comes from the same place, from the bonds at the top. They are basically selling those bonds to raise money so that you can keep your portion of that tax credit right there.

That, in the end, Don, is how it all plays out. You've got all those steps along the way. And keep in mind, it means selling those, and then we're going to pay interest on them, so ultimately, it's a very heavy expense.

LEMON: You know what's interesting? I've been hearing people going, $15, whoo-hoo. But what I hear is that when you get a big lump slump, usually people invest it so it doesn't go back to the economy. When you do something small like that, people go to the movies or dinner or whatever and they actually take the money and they put into the economy. So all of this "whoo-hoo"...

LEVS: If it's big enough for them to notice. But you're right. That is one there as well that maybe in little drops they'll use it.

LEMON: Ultimately, this will cost more than a trillion dollars, this whole thing that we're talking about.

LEVS: It could. And that's an important context. We keep saying $787 billion. That's the plan itself. But when you factor in -- we have to pay interest on the bonds, as I showed you. The Congressional Budget Office says, easily more than a trillion dollars.

LEMON: All right, Josh Levs. Appreciate it answer man. I'm going to make you the answer man.

LEVS: I love that.

LEMON: You owe me for that.

Lots of questions about the president's housing plan. Lots of questions. Let's get answers now from someone in the know. His name is John Adams. He's a leading expert and consultant on homeowner issues.

You host a weekly radio show, a real estate column in the "Atlanta Journal Constitution." How did you find time to do this? Before we get to the $13, $15 dollars thing, thing, is that -- am I correct in that, what I said about, if you get a smaller amount it trickles back because you spend it?

JOHN ADAMS, WEEKLY RADIO SHOW HOST: Not necessarily.

LEMON: OK, I'm wrong.

ADAMS: It's a larger amount and it's reinvested, that hires people and creates jobs. Either way, if it's back in the economy it's good.

LEMON: Either way, that's fine. Let's talk about jobs, about really the housing plan. If people can keep their jobs, that'd be great. But because people are jobs, they're losing their homes as well. What do you think of the plan by the Obama administration?

ADAMS: I'm impressed with parts of it. It's a mixed bag. It can't be everything for everybody. That's what everyone wanted. What it's trying to do is reduce the rates of foreclosures. Very important that we do that right now. And keep people in their homes that can afford to be in their homes. The people who are screaming right now are the one's who, even with help, probably wouldn't be able to stay. And I think this plan is not for them.

LEMON: This discriminates against the more than 92 percent of people who are not in foreclosure, who pay the mortgages on time, that it's discriminatory. Do you agree with that?

ADAMS: No, I don't, because there's a part of the plan that addresses people who have been responsible, who have worked hard to keep payments up. There's incentives for them to go under the plan as well. LEMON: Someone who has paid their mortgage will get something out of this?

ADAMS: Absolutely. And that's a very important part of this plan.

LMEON: I thought you said you couldn't please everyone. I'm happy about that part. So who benefits from this housing plan?

ADAMS: The people who benefit are the ones who either are about to lose their home or are in a situation where they can afford to stay in their home, but need to refinance. This program makes that possible.

LEMON: So this is really to stop the bleeding?

ADAMS: It is. We are hemorrhaging in real estate in the country. We have to stop the bleeding. This may be the first step in that direction. It's going to take more. But as we said earlier, capitalism works, but we have to give it a base. The real estate market has no floor right now. This program works toward building a base under the real estate floor.

LEMON: As I've been listening to this, I'm just going to ask you questions. If you can't answer, you can tell me. It's going to help refinance -- refinance time for everyone?

ADAMS: Yes. Absolutely. Interest rates are right. 30-year fixed rates hit 5 percent this week. Historically, low.

LEMON: We've seen a story of a congresswoman saying, if you're in foreclosure, don't leave your house. Why?

ADAMS: Absolutely. Stay in the house and communicate with the lender at all costs. If you walk out...

LEMON: That's not breaking the law?

ADAMS: Oh, you mean stop making payments?

LEMON: No, no. If you're in trouble and your house is in foreclosure. There's a congresswoman saying stay in your house and squat.

ADAMS: That's won't work. That won't work. The sheriffs will remove you. There's a sheriff in Chicago, who's decided not to remove people, and the lenders are having him recalled from office for dereliction of duty. The sheriff has to carry out the dispossessory act.

LEMON: We're going to move on. I have one more thing to tell you. We were talking about this. You said anywhere outside of the huge real estate bubbles, like New York, California, Florida, now it's deal time? Even in those areas as well.

ADAMS: A tremendous opportunity in the market for people ready to make a purchase. Millions of people are sitting on the fence waiting for the right time. In my opinion, it's the perfect storm. We have a combination of low interest rates, great prices, and a fabulous time to buy.

LEMON: You're amazing. Would you come back and join us?

ADAMS: Would love to.

LEMON: I want to sit here and talk to you. Maybe you can help me out.

ADAMS: OK, thanks, Don.

LEMON: Thank you, sir. Always a pleasure.

Hey, a lot of people are talking about this stories and a lot of stories we've had on the air. Here's one from longnameislong. "$60 a month. Does anybody really think this will fix anybody?"

EileenLeft says, "Sadly, Gary Condit carried out the cloud of suspicion for Levy's death and it destroyed his career and life. He was a great congressman."

We want to know what's on your mind. You can become part of our show, part of our community here. Log on Twitter, Facebook, MySpace or iReport.com and your responses will show up on the air.

You have some questions for John Adams, send them to me. I'll ask him.

Two guys that managed to surprise everybody. The comeback guys, chasing Oscar.

(COMMERCIAL BREAK)

LEMON: Roll out the red carpet. I'm sure that red carpet is already out. Let's see, because it's 24 hours away from the Oscars.

CNN Correspondent Kareen Wynter, she's -- hey, is the red carpet out, Kareen, already?

KAREEN WYNTER, CNN NEWS CORRESPONDENT: You know I have the answer for you. Take a look. Look at it.

LEMON: Covered.

WYNTER: Under here is the red carpet, but it's covered right now.

LEMON: Covered by white. Covered by a little part.

WYNTER: We still have a few hours to go before the big show.

LEMON: So you're talking to us about nominees involving -- what do we call them -- come-back kids? WYNTER: Absolutely. You know them, Mickey Rourke and Robert Downey Jr. These are screen veterans, Don. They've had highs and lows in their career. What a year '08 was for both actors. Take a look at why some people say they could walk away with the gold come Sunday.

(BEGIN VIDEOTAPE)

WYNTER (voice-over): Twenty years ago, they were big stars. Ten years ago, their careers seemed over. But Mickey Rourke and Robert Downey Jr are back. Each could take hone an Academy Award.

ROBERT OSBORNE, OSCAR HISTORIAN: Hollywood likes the comeback. So not just Oscars with Hollywood. It's in a business that so many people have ups and downs and slumps. There's nobody who stays a star forever without downturns.

UNIDENTIFIED MALE: It's lovely to see Mickey Rourke back in the frame.

WYNTER: In "The Wrestler," Rourke, who is nominated for best actor, showed the kind of talent that got him noticed in films like "Diner" and "Nine and a Half Weeks."

GREG KILDAY, HOLLYWOOD REPORTER: Many people thought he too would be one of the most promising actors in the generation. But he drifted away from acting, had a lot of personal problems.

ROBERT DOWNEY JR, ACTOR: I didn't care about repercussions. You pay the price for that, like any profession. I tried to beat the system and it beat the (EXPLETIVE DELETED) out of me.

WYNTER: Already known as being difficult onset, when Rourke decided to try boxing, he left his career in ruins.

DOWNEY: I thought when I left the business I could get into it in two or three years. It took 13 or so. It was a long journey.

WYNTER: A journey that Downey can relate to. He got an Oscar nomination for his 1992 role in "Chaplin." But in the next 10 years, his career would stall as he battled drug addiction and spent a year in jail.

DOWNEY: I've got a shotgun in my mouth. I've got my finger on the trigger and I like the taste of the gun metal.

WYNTER: He says an Oscar nomination for best supporting actor in "Tropic Thunder," is less about his career being back on track than his life being back on track.

DOWNEY: I'm sorry, can we cut? I feel good. This is a by- product of it, you know.

WYNTER: While we thought their careers were over...

DOWNEY: I'm an old broken down piece of meat. WYNTER: This year, Oscar is all about second chances.

DOWNEY: I'm more grateful than surprised, if that makes any sense.

(END VIDEOTAPE)

WYNTER: Don, while we don't know you the presenters are going to be for tomorrow -- that's because the Academy intentionally kept that under wraps. They want to hopefully have more people tune in to see what their favorite starts will be wearing -- I can tell you -- and these are just reports right now -- that Beyonce as well as the Jonas Brothers could be performing tomorrow night. So how about that?

LEMON: Are they going to do the "Single Lady" video with her?

WYNTER: Wouldn't that be something? I don't know. We don't have that much of a scoop. You get what you get.

LEMON: I don't want to drag you in the middle of this, so you can so "no comment." I love Mickey Rourke, but what did he do to his face? He does not look like the same person anymore.

WYNTER: He doesn't. It's Hollywood. We can't predict here. People change sometimes overnight. I did have a chance to ask specifically about the role that he played that's getting so much recognition as a wrestler. I said how did you muscle up for that. He said, "It was really hard. I had an intense trainer. It really taught me to be more disciplined." Because he has a history with his boxing days. But he says muscling up isn't as easy as people may think.

LEMON: Still a fabulous actor. I had to ask. Everyone is asking the same things. You have stars incognito. Over your left shoulder there was a guy that looked like -- let's see, the AT&T guy, I thought that was Russell Crowe. Who are these guys?

WYNTER: Don, I need you out here to help me. Next year, we'll coordinate.

LEMON: What I was asking in a funny way, it seems like people may be dressing the down. The Oscars may be down scaled a little bit because of the economy.

WYNTER: Absolutely, you're going to see that reflected. They want to be sensitive. Some stylists will toss it out the window. We want bling from head to toe. We want the over-the-top grown. But overall, you may see things split down the middle just to reflect the economic times.

LEMON: We shall see. From the Oscars though, we expect glitz and glamour. That's what people want.

WYNTER: Absolutely.

LEMON: Thank you. See you, Kareen Wynter. You can hit the red carpet with CNN tomorrow night with all of your Oscar coverage starting at 7:00 p.m. eastern. There's Kareen Wynter on the right. She's part of the coverage. After the awards, tune in to headline news for all the surprises and all the controversies and all the outfits and everything. The special edition of "Showbiz" starts tonight at 11:00 eastern. "Showbiz Tonight" -- that's what it's called -- starts at 11:00 eastern Sunday night. That's tomorrow night.

OK. Jacqui Jeras, how is the weather going to be out there? Always beautiful usually in sunny California, but not so much for the rest of the nation.

JACQUI JERAS, CNN METEOROLOGIST: Not so sunny in California tomorrow. Might have the humidity going on there on the red carpet.

LEMON: Not a good hair day then.

JERAS: I know. Well, hopefully the rain will hold off. Most of it will be north of there. But maybe a 20 percent chance of a shower or two tomorrow in Hollywood and Los Angeles.

(WEATHER REPORT)

LEMON: Keep your fingers crossed.

Thank you, Jacqui Jeras.

Jacqui was talking about the humidity in California. We're going to take you back to California, Jacqui, because, oh, how the mighty are falling, even the economic elite, they are feeling the pinch. Can you say 9021-oh, no.

(COMMERCIAL BREAK)

LEMON: You know, this recession is hurting everyone. Everyone, even the 90210 crowd. 90210, that's Beverly Hills. Kara Finnstrom has this report for us.

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN NEWS CORRESPONDENT (voice-over): In a discreet office, beyond bulletproof glass, a collateral lender, more commonly known as a pawnshop broker does business with high-brow clientele.

UNIDENTIFIED PAWN BROKER: We can sell you these for $350.

FINNSTROM: This is Beverly Hills.

JORDAN TEBACH-BANK (ph), PAWN BROKER: There's no ceiling to the amount we can loan.

FINNSTROM: Since the 1930s, this Tebach-Bank (ph) family has offered socialites, business people, and celebrities loans for precious jewels and artwork. But owner, Jordan Tebach-Bank (ph), says business has changed.

TEBACH-BANK (ph): Our loans are higher than they've ever been before, doctors, lawyers, accountants. I recently had a hedge fund manager in here getting a large loan on his collection of diamonds.

FINNSTROM: Extreme wealth often cushions cities during recession, but right now in the streets around Rodeo Drive, empty storefronts, deep discounts.

Longtime store owner, Parvin Unani (ph), slashed these shoe's price tag from $1800 to $245.

PARVIN UNANI (ph), STORE OWNER: Still, I couldn't sell it.

FINNSTROM (on camera): And how much did you pay for it?

UNANI (ph): I paid about $800.

FINNSTROM: So you're taking a loss?

UNANI (ph): A loss.

FINNSTROM: Fewer sales mean fewer tax dollars for the city. City officials expect tax revenues to drop some $24 million over the next 16 months. And they say as far as they can tell, that's the greatest blow to the city's budget in Beverly Hills history.

(voice-over): But another longtime store owner says, while business is slow, he is optimistic and not making drastic changes.

UNIDENTIFIED STORE OWNER: It could be very easy for us to go into panic mode. But we haven't done that.

FINNSTROM: UCLA economist, Jerry Nichelsburg says, by measures like home foreclosures, the downturn hasn't been as bleak in 90210 as in other zip codes.

Still, in one crucial way, the recession is striking indiscriminately.

JERRY NICHELSBURG, UCLA ECONOMIST: The collapse and consumption, in September continuing until today, is been based on a fear and based on an uncertainty about the future. Everyone, across the board, has been pulling back and putting money under the mattress and not spending.

FINNSTROM: UCLA's Anderson economic forecast predicts consumer confidence may start improving this summer. That would be good news for Tebach-Bank (ph), who says, while loan are up...

TEBACH-BANK (ph): People really these need us because the bank is not providing credit to anyone.

FINNSTROM: Sales, even his relative bargains, are down.

TEBACH-BANK (ph): This is a very hot watch right now. It retails for over $19,000. We're selling it for $10,000 off of retail.

FINNSTROM: That's Beverly Hills.

Kara Finnstrom for CNN.

(END VIDEOTAPE)

LEMON: I'll just run out and buy that right now. OK. I guess it's all about where you are, where you find yourself.

"The Situation Room" straight ahead.

Wolf Blitzer, what do you have for us?

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": Thanks very much, Don.

We have a lot coming up. A jam-packed hour with Larry Summers, the president's top economic adviser, and the housing secretary, Shaun Donovan. And we'll get Republican reaction from Senator Orrin Hatch. Also, our exclusive interview with the Canadian prime minister, Stephen Harper. All that and a lot more. And Earth, Wind, and Fire at the White House. We'll tell you what's going on right here in "The Situation Room."

Don, back to you.

LEMON: Wolf, we look forward to that.

Maybe Wolf will do some more dancing again.

Strawberries and dark chocolate, they're not only a tasty combo, they're also great for your ticker, in certain quantities, that is. Pay close attention because CNN's chief medical correspondent, Dr. Sanjay Gupta, has tonight's "Fit Nation."

(FIT NATION)

(COMMERCIAL BREAK)

LEMON: You know what, we have been talking about a bunch of stories on the air and you guys are weighing in.

Here's what Bejewel says. "Don't care much about the $13. I'm more interested in how long it will take states in urban areas to get money to fund jobs and programs."

Bahron_kahlief says, "People are complaining about getting an extra $65 a month. Some people are very ungrateful. We're in a recession, people!"

DocMarty says, "Yes, we modified our loan last month prior to the big crisis. We thought we had a good deal. But now we realize it only helped the lender."

Make sure you log on to Twitter, Facebook, MySpace, iReporter.com. Guess what? You too can be on our show. We'll get your comments on. Appreciate it.

A major New York City newspaper is fighting charges of racism tonight. Coming up at 7:00 p.m. eastern, we'll tell you why the NAACP wants the "New York Post" to fire its managing editor and its editorial cartoonist. Was a chimpanzee cartoon legitimate editorial comment? Or was it a racist invitation to assassination? And was the newspaper's apology good enough? You be the judge tonight at 7:00 p.m. eastern right here on CNN.

I'm Don Lemon at the CNN world headquarters. "The Situation Room" with my friend, Wolf Blitzer, begins right now. We'll see you back at 7:00.