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Locke Tapped for Commerce Secretary Post
Aired February 25, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR, NEWSROOM: Hello again everyone. I'm Tony Harris in the CNN NEWSROOM and here are the headlines from CNN for this Wednesday, the 25th day of February. President Obama's speech on the financial crisis and his message of hope, we will gauge reaction from here and around the world.
The soaring cost of a college education. Is the price tag worth it during a deep recession?
And a plane crashes in a muddy field while landing in Amsterdam. Dozens of passengers walk away from the disaster. Some weren't so fortunate.
Commerce secretary announcement take three, in the last hour, President Obama introduced his latest pick to head the department. He chose former Washington Governor Gary Locke after the first two nominees dropped out. White House correspondent Dan Lothian joins us live now with details. And Dan, we don't know what kind of Commerce Secretary Gary Locke will be if confirmed. But his family's immigrant story is really compelling stuff.
DAN LOTHIAN, CNN CORRESPONDENT: That's right. He laid out - the president talked about that and Mr. Locke did the same thing, talking about how his grandfather came to the United States with no money in his pocket, 100 years ago, worked as he called it a house boy in someone's home in exchange for getting English lessons. So it is, as the president pointed out, an American story. There's a lot the two- term former governor of the state of Washington also was the first Chinese-American governor of any state and the president pointed out today that it is the third time, third try on this position, but he thinks that Mr. Locke is the right man for the job.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Today I am filling out my economic team with a man who shares that vision and will play a key role in carrying out as my secretary of Commerce, Governor Gary Locke. Now I'm sure it's not lost on anyone that we have tried this a couple of times, but I'm a big believer in keeping at something until you get it right and Gary is the right man for this job.
(END VIDEO CLIP)
LOTHIAN: One of the things, Tony, that makes Mr. Locke ideal for this position is that he comes from a western state, a coastal state, a lot of trade issues in that state, home to Microsoft, Boeing, apple and wheat growers and so that's one of the things that made him attractive to this administration. Now the White House today, the day after that big speech to Congress and the American people, feeling pretty good about the president's remarks, saying that he was able to lay out the challenges facing this country in terms of the economy, but also was able to show the path going forward. There's been a lot of criticism about the president being too somber, too dark, using terms like dire and catastrophic that he needed to be more upbeat. Last night he was able to balance some of the difficult situations in terms of the economy, but was also optimistic. Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: The impact of this recession is real and it is everywhere. But while our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this. We will rebuild. We will recover and the United States of America will emerge stronger than before.
(END VIDEO CLIP)
LOTHIAN: And as part of the recovery during that speech last night, the president points out that health care reform, education reform, also taking a look at new energy as well. These are all aspects of what the administration says is the economic agenda here and those need to be reformed and strengthened in order to take part in turning the economy around, Tony. And today, president meeting with Democratic leaders here at the White House and also Timothy Geithner from the Treasury Department. The focus of course is strengthening the financial sector and looking for ways to turn the economy around Tony.
HARRIS: Our White House correspondent Dan Lothian, Dan, thank you.
The GOP response to the president took aim at the $787 billion stimulus package, Speaking for the Republicans, Louisiana Governor Bobby Jindal called the plan irresponsible, but Jindal also urged fellow Republicans to cooperate with the president when possible because Americans are hurting.
(BEGIN VIDEO CLIP)
GOV. BOBBY JINDAL (R) LOUISIANA: We are now in a time of challenge. Many of you listening tonight have lost jobs. Others have seen your college and your retirement savings dwindle. Many of you are worried about losing your health care and your homes. You are looking to your elected leaders in Washington for solutions. Republicans are ready to work with the new president to provide these solutions.
(END VIDEO CLIP)
HARRIS: Our Josh Levs has been going over the president's speech and the Republican response. He will be along in a couple of minutes to do a little fact check on what they had to say.
Vice President Joe Biden says the $787 billion stimulus program is designed to drop kick the economy out of its recession. Biden met with top members of the cabinet today to discuss getting the money into the economy as soon as possible. He says the goal is to make sure the money is properly spent.
(BEGIN VIDEO CLIP)
VICE PRESIDENT JOE BIDEN: Maybe it's because I'm a little too blunt because I told the governors and told the mayors who I think have the best intentions in the world. They know how badly it's needed. Republican governors and Democratic governors, but we may sometimes not have the legal authority once we cut the check to do much about it, but I tell you what, the (INAUDIBLE) of this office will be used. If the money's not being out there spent, I'm going to go on television and say, we gave so-and-so X amount of dollars and nothing's happening.
(END VIDEO CLIP)
HARRIS: Administration officials say they'll urge each state to name a watch dog to oversee spending.
It has been a roller coaster week on Wall Street. The Dow Jones industrial average tumbled 250 points on Monday only to gain most of it back on Tuesday and today it is down again. Susan Lisovicz is at the New York Stock Exchange helping us track it all. Susan, what's dragging the marketing down today? Is it that housing report we talked about last hour?
SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. We opened weaker and then that housing report where we were expecting an uptick Tony really accelerated the sell off. That came about 30 minutes after the opening bell. Existing home sales, the broadest part of the housing market fell 5.3 percent in January to a 12-year low. Sales, prices meanwhile fell nearly 15 percent. So you're just seeing more stress in the housing market and that just brings us to stress tests in the financial sector.
The Treasury Department today beginning those stress tests on the nation's biggest banks to determine how they fare if the recession deepened. Ben Bernanke is making an encore performance on Capitol Hill today and he said specifically that the government doesn't plan to nationalize Citigroup. There's been a lot of concern about that (INAUDIBLE) particular but that Uncle Sam could end up with a bigger stake in the banks, it depends on the stress test. Citigroup and Bank of America shares are higher, but overall you're looking at double digit losses. The Dow right now down 135 points or about 2 percent, the NASDAQ and the S&P 500 down 2 percent as well. Tony.
HARRIS: OK, Susan, thank you.
LISOVICZ: You're welcome. HARRIS: And happening this hour at the State Department, Secretary of State Hillary Clinton delivers a report on human rights practices around the world. The report is delivered annually by law and is submitted to both the House and the Senate. We will monitor Clinton's remarks and keep you posted.
More U.S. troops may be coming home from Iraq soon. Several Pentagon officials tell CNN President Obama is expected to approve a plan to withdraw most combat troops, most within 19 months. We understand a residual force of as many as 50,000 will remain largely in a training or advisory role. This information has not been announced officially and the White House insists the president has made no final decisions about Iraq policy.
A terrifying prospect, losing your home, we'll be talking with some folks who are facing that reality and find out what they're doing about it.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I noticed a different tone in the address. Actually, there's a difference in tone, I think, in both the speech and the audience. I found it kind of interesting that I noticed the president took a more informal approach to this address from his usual speech patterns as well as the typical state of the union like address that presidents have made in the past to Congress.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
HARRIS: At least nine people are dead after a 737 crashed in a muddy field near Amsterdam's airport and broke apart. Amazingly, many people walked away with just minor injuries. CNN senior international correspondent Jim Bittermann is on the line with us now. And Jim, I'm curious. Were there witnesses to the crash? And if so, what are they telling us about what they saw?
JIM BITTERMANN, CNN CORRESPONDENT: Well not too many witnesses, one witness however said that he did see the plane pitch up. The nose went up just seconds before it struck the ground. The plane was on a final approach. It was Turkish airways flight 1951. It was on its way from Istanbul to Amsterdam and was on the final approach in the last few seconds of flight when it came down about 500 yards short of the runway here at Schiphol airport and there's a lot of questions being asked of exactly what happened to cause that.
The Turkish Airways say it was one of their more experienced pilots that was flying the plane. There were two other pilots on board. The plane itself had just undergone maintenance on December 22nd, just two months ago. It was a fairly new plane built in 2002, so a lot of questions. There are investigators from the National Transportation Safety Board in the United States on their way here, including technicians from Boeing and General Electric, the makers of the plane and the engine to sort of see what they can see about what might have gone wrong and caused this crash. HARRIS: All right, Jim Bittermann for us, Jim, appreciate it, thank you for the update.
(BEGIN VIDEO CLIP)
OBAMA: Speaking of our auto industry, everyone recognizes that years of bad decision making and a global recession have pushed our auto makers to the brink. We should not and will not protect them from their own bad practices, but we are committed the goal of a retooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it and I believe the nation that invented the automobile cannot walk away from it.
(END VIDEO CLIP)
HARRIS: So quite an applause line at the president's speech last night. But is it accurate? Our Josh Levs is here to fact check some of the assertions from the president and the Republican response. I guess you're here because there were some inaccuracies.
JOSH LEVS, CNN CORRESPONDENT: I don't think he meant to be referring to Germany when he said the nation that invented the automobile should not walk away from it. Let's zoom in on the board. I can show you what we're talking about. I was struck when he said that last night. I was also watching on facebook, and people like, did he just say that? The Library of Congress, who invented the automobile? They're going with Karl Benz, who was German. I'll scroll down quickly just so you can see. There were a lot of steps toward the creation of what we know to be the automobile. They list a lot of them. There had been patents in the United States. But the answer that most people go with by far is Karl Benz, as we know the name well, Mercedes-Benz and he is credited in general Tony with being the inventor, so technically in that sense it was invented in Germany, not the U.S.
HARRIS: So what other assertions, oh Josh, from the president are going under the fact check microscope for you today?
LEVS: You know what happens in the days after a speech, we keep talking about everything more and more.
HARRIS: ... over and over again.
LEVS: Exactly. Let's show you a couple. Let's zoom in here because the "Washington Post" fact checkers were at it during his speech last night. They point out this one. He said we have known for decades that our survival depends on finding new sources of energy, yet we import more oil today than ever before. Technically we don't. In recent years, the amount of imported oil has been going down a bit. Also President Obama said this.
(BEGIN VIDEO CLIP)
OBAMA: Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and refinance their mortgages. It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford. But it will help millions of Americans who are struggling with declining home values.
(END VIDEO CLIP)
LEVS: And Tony, this one is perplexing a lot of us today. The plan that the administration has put toward would help people who bought houses that they could not afford. You can see what the Associated Press said here in their headline about this, fact check, Obama's words on home aid ring hollow. And they put it pretty well. They said if the administration has come up with a way to ensure money only goes to those who got in honest trouble, it certainly hasn't said so. We haven't heard that from the administration, so that was at least surprising and there's nothing so far to back that up.
HARRIS: And what about from Governor Jindal in the response from Republicans last night, anything there to fact check?
LEVS: There is one that's particularly interesting. Let's take a look at that.
(BEGIN VIDEO CLIP)
JINDAL: $8 billion for high-speed rail projects such as the magnetic levitation line from Las Vegas to Disneyland.
(END VIDEO CLIP)
LEVS: He was saying that that is an instance of pork in the stimulus bill, but factcheck.org, one of my favorite fact check sites has looked at this before. They're calling it one of the GOP myths about the bill. Last time we'll zoom in on the board. I'll show you what they said. They call it a widely repeated claim. They say that in fact the total is for unspecified high-speed rail projects. Some may or may not end up going to what he was talking to, this train connecting Anaheim, California with Las Vegas. We don't have any reason to believe that it necessarily will. There's some competition for that, so that one isn't really backed up by the facts right now either Tony.
HARRIS: Awesome, thank you Josh. The for sale sign is still there, sales of existing homes stay in the basement in January, tumbling 5.3 percent. The National Association of Realtors says many would-be buyers staying on the sidelines. The group blames uncertainties surrounding the stimulus package. The realtors predict a boost in February numbers however thanks to an $8,000 tax credit for first-time home buyers.
You are about to meet two people who are struggling to fend off foreclosure. What was in the president's speech for them? Penny Saldivar's house in Houston was hit by hurricane Ike last summer leading to unexpected repair bills and also in New York, Chrishan Trojian who recently lost her job. She currently writes the blog, diary of a displaced worker. Good to see you both. Thank you your time. Let's dive in here, a couple of things I want to get to with each of you. Chrishan, let me start with you first, your husband, I understand was laid off this month as well? Is that correct?
CHRISHAN TROJIAN, NEW JERSEY HOMEOWNER: My husband was laid off actually in January, six days before I was notified that I was going to be laid off.
HARRIS: OK. So what we're talking about is a huge double shock to your family's financial story. Describe the emotional ride your family is on right now.
TROJIAN: It's an emotional roller coaster. It varies from day to day. We're trying to deal with raising our two children and the mammoth amount of debt. Our house is under water in terms of negative equity and so even if I try to sell it for what I paid for it two years ago, it's impossible. And then I have another house where I used to live in Albany. We moved to New Jersey two years ago, I have tried to sell it on the market. I'm not sure, you know, whether or not it's going to sell. It's just -- it's just a tough situation.
HARRIS: So you've got two mortgages now?
TROJIAN: Yes.
HARRIS: Oh, brother. Penny, question for you. My understanding is you are at risk of losing your home right now. Tell us about your circumstance. How many months behind on your mortgage are you right now?
PENNY SALDIVAR, HOUSTON HOMEOWNER: I'm four months behind.
HARRIS: You're four months behind?
Four months behind. I mean, I've made a payment, but it's not even half, part to cover what I owe. But we're just waiting for any foreclosure letters.
HARRIS: Penny and Chrishan, I wonder if you heard anything in the president's speech last night that indicated to you that help was on the way. Penny, let me start with you.
SALDIVAR: I heard that he was passing the act to help homeowners...
HARRIS: Yeah.
SALDIVAR: ... refinance their homes. But I'm worried about what he said that he said responsible homeowners. And I'm like, OK, who qualifies as a responsible homeowner? Most of us are in a hole, were responsible, but just things happen and we got over our heads. But at the time of the loan, we actually were able to get the loan.
HARRIS: And Chrishan, you on your blog say you believe the president hit it out of the park last night. Tell me why.
TROJIAN: Oh, absolutely, I think that it's still in its early stages, this administration, but I believe that this economic crisis is not a singular one. It occurred in a multitude of levels and a multitude of fronts and it's embedded in a multitude of sectors. And so it's going to take time for us to heal as a nation and it's going to take a multitude of ideas to try and move this country forward and we need to give it time. And so for that, I think that he has my 100 percent faith.
HARRIS: And you also write on your blog, I sit here unemployed, my husband unemployed. We have two children, two mortgages, two cars and a ridiculous amount of debt. But I still believe that the best is yet to come. Tell me why.
TROJIAN: I am an optimist. And while my situation and my circumstances are certainly challenging and I don't know how it's going to turn out day by day or even minute by minute, I'm hopeful that as long as I project that prosperity is going to be just around the corner, I'm going to be receptive and open to whatever comes my way.
HARRIS: I want you both to listen to this outburst from a financial reporter on one of the other cable networks last week, I'm sure you heard it already. I'm going to play it for you again. And then I've got a question for you, because I'm curious as to whether you think this was directed to you. Have a listen.
(BEGIN VIDEO CLIP)
RICK SANTELLI, CNBC: This is America, how many of you people want to pay for your neighbor's mortgage that has an extra bathroom and can't pay their bills? Raise their hand. President Obama, are you listening?
UNIDENTIFIED MALE: How about we all stop paying our mortgage. It's a moral hazard?
SANTELLI: These guys are pretty straight forward and my guess is, a pretty good statistical cross section of America, the silent majority.
(END VIDEO CLIP)
HARRIS: Penny, let me start with you, did you feel as though that reporter was talking about you? You know, you're worried now that you may not be deemed a responsible homeowner.
SALDIVAR: The point is, we're not asking for you to pay our mortgages. We're asking for you to make the banks responsible for what they have done to us. We're not asking for our mortgages to be forgiven and say I have a free home. We just need some help to get back on our feet to get back to where we're supposed to be. I mean we pay our taxes too, just like everybody else.
HARRIS: Were you offended by that?
SALDIVAR: Yes, I was. Because like I said, we're not asking for a handout. We're asking for help. And if we can't count on our government to help us, who can we count on?
HARRIS: Chrishan very quickly, what are your thoughts on that?
TROJIAN: I think that the piece that you just played really insulted my sensibilities. The reality of the situation is, in my block in South Orange, I have two houses right now that are on the market. If my house goes into foreclosure, it brings the property values down of everyone on my block. Needless to say the majority of people on my block right now as a result of this economic crisis and this hemorrhage of the market have lost their jobs so it is everyone's problem.
HARRIS: Chrishan, thank you, Penny thank you and the best to both of you.
Parts of the great lakes facing a blast of winter. Chad Myers with details on the winter storm warning straight ahead.
(COMMERCIAL BREAK)
HARRIS: Still heavy snow expected across the great lakes. There's the man, Chad Myers down at the weather center with details. Good to see you, Chad.
(WEATHER REPORT)
HARRIS: You used the word spring. We've got it on tape.
CHAD MYERS, CNN METEOROLOGIST: It's coming dude. I think Punxsutawney Phil is out to lunch.
HARRIS: All right, thank you.
Race relations, a topic on practically everyone's lips these days. As part of my class in session here, I spoke to Georgia Tech students about whether they think racism is becoming less of an issue with young people.
(BEGIN VIDEO CLIP)
HARRIS: Are your views and attitudes on race in line with your parents? Let's dive into the generational divide here, worlds apart from your parents?
LAURA STILTZ: It's not my parents generation, it's my grandparents generation. My grandfather was a racist. There were plenty of things that we were not allowed to see like with him because there were African-Americans in it. And because of my grandfather's attitude, my mother's attitude was very different and both she and my father instilled in me this tolerance.
(END VIDEO CLIP)
HARRIS: Boy, a lot of honest reactions from these students. Check of more from my class in session series this Friday at 12:00 p.m. Eastern as we explore race in America.
President Obama mentioned it in his speech last night, but do you know what cap and trade means?
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The impact of this recession is real and it is everywhere. But while our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this -- we will rebuild, we will recover and the United States of America will emerge stronger than before.
(END VIDEO CLIP)
TONY HARRIS, CNN ANCHOR: Words of optimism from President Obama for Americans reeling from the recession. The president addressed the joint session of Congress last night. He outlined an agenda that includes creating jobs, stabilizing the banking system, improving schools and reforming health care.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN, (R) ARIZONA: It was an excellent speech. I think the president laid out the challenges that we face and yet gave, in his speech, Americans a sense of strength and optimism that we will get through this. And we will get through it.
I'm still having trouble doing the math here. He said he was against earmarks and yet on the floor tomorrow and the next day in the Senate will be a bill with 9,427 pork barrel items. $2 million to promotes astronomy in Hawaii. I mean the spending is going completely nuts here.
(END VIDEO CLIP)
HARRIS: Former rival John McCain weighing in on President Obama's speech last night. And as you heard, McCain gave the president high marks on the speech itself, but he is sounding the alarm about the government spending in those pet projects known as earmarks. Senator McCain calls it nuts, but today the House is taking up that massive $410 billion spending bill.
It includes a 21 percent boost for a popular program that feeds infants, children and poor women. Also in the bill, a 10 percent hike for Section 8 housing vouchers for the poor. Then there's the $22 million for an addition to the John F. Kennedy Presidential Library. And $250,000 for a new emergency siren for St. Paul, Minnesota.
It's the earmarks that anger most people and they add up pretty fast. CNN congressional correspondent Dana Bash joining us live now from Capitol Hill.
And, Dana, for today at least, you're on pork patrol.
DANA BASH, CNN CORRESPONDENT: That's right. Well, you know, I think it's really interesting. I just came from a press conference with Senator Majority Leader Harry Reid and other Democrats. And what he said is, he understands that President Obama, in his words, "is going to look for every place he can to save money." But he was very up-front about the fact that from the perspective of Democrats in Congress, he said, "we're going to have to spend money to get out of this hole." And from the point of view of not just Democratic leaders, but also Republicans here in Congress, that includes billions of dollars in pork barrel projects to send back home.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: The gentlemen from North Carolina.
BASH, (voice over0: Democratic Congressman Heath Shuler bucked his party and voted against the president's stimulus bill because of too much excess spending. But now he's poised to spend $870,000 taxpayer dollars for a red wolf breeding center in his North Carolina district. It's an earmark Shuler spokesman calls critical to project an endangered species. But congressional watchdog groups call that and other pet projects now moving through Congress business as usual.
RYAN ALEXANDER, PRESIDENT, TAXPAYERS FOR COMMON SENSE: Members of Congress heard -- you know, may have heard the call for change, but they also heard the call to make sure that they delivered projects to their districts and to their campaign contributors.
BASH: In fact, tucked inside a $410 billion package to fund the government for the rest of this year, 8,570 earmarks, totaling $7.7 billion. And bringing home that bacon is bipartisan. Even Republican Senator Lindsey Graham, who campaigned alongside John McCain as he railed against earmarks, is getting $950,000 for a convention center in Myrtle Beach in his home state of South Carolina. Democrat Jerry Nadler has $381,000 for jazz education at Lincoln Center.
Compared to previous years, Congress is cutting back on its earmarks, but some say the process is still distorted.
ALEXANDER: The general problem with earmarks is that the decisions are made on the basis of political muscle.
BASH: For example, Senate Majority Leader Harry Reid of Nevada is securing $951,500 to make Las Vegas more environmentally friendly.
SEN. HARRY REID, (D) MAJORITY LEADER: Congressionally mandated spending is part of our job. That's what we do. We shouldn't depend on bureaucrats downtown to take care of our individual states.
BASH: And while the Senate Republican leader blasted the price tag of the spending bill . . .
SEN. MITCH MCCONNELL, (R) MINORITY LEADER: It strikes us that we're on a spending spree of gargantuan propositions here.
BASH: He would not disevow (ph) pet projects his home state of Kentucky will get millions of dollars.
(END VIDEOTAPE) BASH: Now President Obama demanded that there be no earmarks in the $787 billion stimulus package. In fact, when he signed it, Tony, he boasted about the fact that there was no pork barrel spending. And the White House has not yet said what it will do -- what the president will do when they get this spending bill, making its way through Congress, it's going to end up on his desk soon and it will have those earmarks in it.
HARRIS: I can't wait for this debate. All right, Dana Bash on Capitol Hill for us.
Dana, thank you.
Fed Chairman Ben Bernanke testifying again today on Capitol Hill. Yesterday he told lawmakers that the recession could end this year. That assessment could help boost consumer and investor confidence. Bernanke also said he doesn't believe any of the major banks are close to collapse, but some may need another federal infusion. We have an eye on Bernanke's testimony today and we will keep you updated.
Let's take you now to the big board on the small box. Full screen now. As you can see, just past three hours into the trading day. The Dow was down 144 points. We've been in negative territory for most of the session so far. The Nasdaq down 32. We will keep an eye on the numbers right here in the NEWSROOM.
Amazingly most of the people on board a Turkish airliner that crashed near Amsterdam's airport this morning walked away with just minor injuries. The plane in route from Istanbul went down in a muddy field just 500 yards from the runway and broke into three pieces. At least nine people died, 55 others were hurt, but dozens of others literally walked out of the broken plane.
In the immediate wake of the crash, Twitter helped people get the word out quickly. In fact, it is how CNN first learned about the crash. Our Josh Levs is here to explain.
Can't wait to hear how this worked out, Josh.
JOSH LEVS, CNN CORRESPONDENT: Tony, people all over the world are talking about Twitter and the role that it played in the wake of this crash today. Let's zoom in on the board. I just want to show you, first of all, it's one of our most popular stories on CNN today. The fact that Twitter played this role. First, it published the dramatic crash pictures.
For those of you who are not very familiar with Twitter, people are able to post all sorts of things -- information, links to photos or some photos they've taken themselves. I'm just looking at some pictures of the crash that some Twitters have been posting or linking to today.
And, Tony, actually on CNN, early this morning, on International, we spoke with some -- a witness who was able to sort of see the crash outside his building, but got his information from Twitter.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We ran up to the 19th floor, which is the top floor over our office building, but it's really misty, so it's hard to see. So that's why I turned on Twitter. And on Twitter there was people that's driving by near the crash and they were posting pictures of it. So that's basically what I saw.
(END VIDEO CLIP)
LEVS: Now for those of you who are not familiar with Twitter, it is a -- you can think of it as another type of social networking site. And it does have millions of followers, although not as many as what we've been talking about, FaceBook. A lot of information right here, twitter.com. And you can see, if you just type in the name of the airport or other key words about the crash today, you can see all sorts of things that people are posting. Hundreds by the hour, Tony.
HARRIS: All right, Josh, thank you.
LEVS: You got it. Thanks.
(BEGIN VIDEO CLIP)
STEVIE WONDER, (singing): When you've done everything you can.
(END VIDEO CLIP)
HARRIS: Stevie Wonder will be honored with a Library of Congress Gershwin Award. But coming up at 1:00 p.m., our Kyra Phillips will be talking with Stevie about this honor. It's an interview you don't want to miss.
You know, the last time they got together, Stevie did his thing. He performed. What will happen today? Kyra and Stevie, 1:00 p.m. Eastern, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: In his first address to Congress last night, President Obama made energy as one of three areas absolutely critical to America's economic future, laying out a bold agenda for energy reform. Cnnmoney.com's Poppy Harlow has more in today's "Energy Fix."
Good to see you, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, Tony. Good to see you too.
Yes, the president made it very clear he believes -- we already knew this, but that America's economic recovery is linked to clean energy innovation, mainly because it creates millions and millions of jobs. Jobs that he calls long lasting and pretty well paying. Now he says the time to invest in this is right now or, he says, the United States will be left in the dark. Take a listen.
(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet it is China that has launched the largest effort in history to make their economy energy efficient. It is time for America to lead again. We will double this nation's supply of renewable energy in the next three years.
(END VIDEO CLIP)
HARLOW: All right. That is a very lofty goal. Right now, just so you know, take a look at that chart there. Renewables make up only about 7 percent of total U.S. energy consumption and less than half of that comes from wind and solar power. Last night the president reiterated his promise also to spend $15 billion a year on clean energy development. And he didn't really spell out exactly how that money would be spent. But you should know that that comes on top of the billions already allocated within the stimulus plan for renewable energy.
In that stimulus plan, roughly $50 billion is allocated towards green energy production, half for conservation and half in the form of tax incentives for renewables like, as you see there, wind turbines and solar power. Now you want to know and keep in mind that we could even see a government mandate, Tony, to reach that goal. Something that would require utility companies to tap renewables for a certain portion of their energy production every year. An actual mandate, not just an incentive.
HARRIS: Yes. Yes. Can I tell you something, Poppy? Last night the president called for a cap on carbon dioxide emissions.
HARLOW: He did, yes.
HARRIS: We talked about it this morning in our meeting. And I've got to tell you, half of our team could explain cap and trade. I was in the other half. So would you explain it to all of us.
HARLOW: Sure. You know, a lot of people talk about carbon emissions. They talk about what is known as, as you said, as a cap and trade system. Let's explain it quickly what this is. The government allows companies the right to emit only a certain amount of greenhouse gasses every year. They auction off credits for that. If a company exceeds that limit, if they emit more, it has to buy credits from other companies that pollute less. So it provides money for the government and for companies that pollute less than they are allowed to technically.
Here is why President Obama says that is necessary.
(BEGIN VIDEO CLIP)
OBAMA: But to truly transform our economy, to protect our security and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy. The profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.
(END VIDEO CLIP)
HARLOW: All right. In that one sentence, the president said something that is very controversial and it will be very hard to get anything passed. Opponents argue it is too expensive for companies, especially in the midst of this recession, and they insist that it will mean higher energy prices for everyone else. Environmentalists -- some environmentalists, Tony, even argue that cap and trade could be a bureaucratic nightmare. They say there are some better ways to cut carbon emissions. But the president made it clear in that one sentence, but it was a critical sentence.
Tony.
HARRIS: Poppy, appreciate it. Thank you.
HARLOW: You're welcome.
HARRIS: When money is tight, does it make sense to spend on college education. We will weigh the pros and cons of higher learning when loans may not be available.
(COMMERCIAL BREAK)
HARRIS: You know, the cost of college is surging. A recent report says tuition and fees are up an incredible 439 percent since 1982. So here's the question, does college make financial sense in this economic environment? Here's CNN's Alina Cho in New York.
Hey, Tony.
You know, if you're struggling financially, you have to be resourceful to go to college. You apply for scholarships. You hope for grants. And often times you get a six figure loan. The idea being college is expensive, but it will pay for itself some day. Not so fast. In this economy, jobs are scarce, college grads are drowning in debt. And when you start to do the math, you wonder, is college really worth it?
(BEGIN VIDEOTAPE)
CHO, (voice over): Ask Michelle Destruge the cost of college and she'll tell you, six figures.
Staggering.
MICHELLE DESTRUGE, COLLEGE GRADUATE: Yes, it is.
CHO: Her four-year education at Fordham University has saddled her with $119,000 in student loans.
DESTRUGE: When you think about it, it's a large sum, you start to feel -- I don't know, you start to feel hopeless.
CHO: The 25-year-old works as an administrative assistant making about $40,000 a year, but more than half her salary goes towards paying down her college debt.
You must lose sleep over this.
DESTRUGE: I did for a little while. I did lose sleep. And then when you start not paying your loans as well as you should, the companies make sure you lose sleep on it.
CHO: According to the college board, two-thrids of four year college grands have student debt, more than $22,000 on average. And salaries are not keeping pace. After adjusting for inflation, those with bachelor's degrees are actually making less than they were in the year 2000, leaving many with debt they'll be paying off for decades. So is college worth the expense?
BEN KAUFMAN, BUSINESS OWNER: I learn more a day out of the classroom working in my business than I could learn in an entire semester.
CHO: Ben Kaufman dropped out of college after one semester to start his own business selling iPod accessories. The 22-year-old is now starting a second business with no regrets. Yet experts say college is still a good investment.
LAUREN ASHER, INSTITUTE FOR COLLEGE ACCESS AND SUCCESS: College is more important than ever for getting into and staying in the middle class in this country. In some ways it's replaced the high school degree, even for entry level jobs.
CHO: Destruge admits she probably could have gotten her job with an associates degree. She's living with her parents again, hoping to pay off her debt in 10 years. Her dreams like buying a home, starting a business, even marriage are all on hold.
Was it worth it?
DESTRUGE: I have to say, yes.
CHO: What do you really feel, though?
DESTRUGE: I feel that it was a mistake to leverage myself, but I have to say it was worth it in the end.
(END VIDEOTAPE)
CHO: Experts say now, more than ever, it's important to shop around when you're looking for a college. Apply to a range of schools. And then once you've gotten your financial aid offer, compare it to the others and then make a decision. Michelle Destruge says if she could do it all over, she would take a year off. Looking back, she says she probably could have started at a community college, worked her way through and then transferred to a four-year institution. Tony, she says she still would have gotten a great education, but with far less debt.
Tony.
HARRIS: Absolutely the case. Alino, appreciate it. Thank you.
A warning for travelers heading south of the border for spring break.
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HARRIS: You know, if you're planning a trip to Mexico, beware. Our Brian Todd reports on new warning for Americans traveling to the vacation hot spot.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT, (voice over): Running gun battles in broad daylight, even at shopping centers, bodies left in the open with threatening notes, hallmarks of horrific turf battles in Mexico between rival drug cartels and between drug gangs and Mexican authorities. Violence that left more than 5,000 people dead last year. There's no letup this year. And from the State Department to private travel security experts, there are new warnings for Americans.
MAYER NUDELL, TRAVEL SECURITY EXPERT: I would say that anybody that's going for recreational purposes to Mexico would be advised to just stay away from the border towns for now.
TODD: An updated State Department alert warns travelers of a major spike in violence in border cities like Tijuana, Nogales, Ciudao Juarez, Chihuaha City, Nuevo Laredo and Matamoros. A University of Arizona official tells us, for the first time, the school is warning students not to go to Mexico for spring break. Arizona state is considering a similar warning. Officials say it's not just the level of violence that's alarming, but the sophistication of those perpetrating it.
CHIEF DAVID DENLINGER, ARIZONA DEPARTMENT OF PUBLIC SAFETY: These are flat out organized crime groups, like we think of any other organized crime. They're not a small gang on the corner. These are large organizations.
TODD: Drug cartels that officials say often dress in police uniforms on both sides of the border to carry out hits and kidnappings. Americans can be targets, but often find themselves simply in the wrong place at the wrong time. More than 200 Americans have been reported killed in Mexico since 2004 and dozens remain missing. The advice, if you do go . . .
NUDELL: Just avoid the ATMs. Get their money before they go and avoid that one potential pitfall. Basically, not be too conspicuous. Don't wear jewelry. Going in groups. Not being caught anywhere by yourself.
TODD: Staying in tourist areas is also recommended, but officials point out violence has reached those places as well.
Mexican officials stress their country is a safe vacation spot. They also say that most violence associated with drug trafficking is isolated to cities that are far away from tourist destinations. They also point out about 18 million Americans visited Mexico last year. A significant rise from 2007.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
HARRIS: CNN NEWSROOM continues right now with Kyra Phillips.
