Return to Transcripts main page
American Morning
Obama Promises Better Days in Address to Nation; Jindal Blasts Stimulus; Obama's African-American Outreach
Aired February 25, 2009 - 07:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: That's right. Fifty-nine minutes past the hour.
We do have breaking news and the latest video from Amsterdam. A Turkish Airlines flight carrying 134 people slammed into a field while attempting to land. The plane broke into three pieces.
Officials in Amsterdam now telling us, and this is a dramatic change from what we were first hearing, that at least nine people now are killed, and 50 others hurt. The airline had previously said everyone survived. It was a Boeing 737. It was traveling from Istanbul, Turkey. Investigators are saying they're still not sure what caused the plane to go down.
Right now, world markets staging a bit of a rally after a rough start to the week. Tuesday's gains on Wall Street and also word from Fed chief Ben Bernanke that there are no plans to nationalize U.S. banks kick-started things across Asia. That momentum then sweeping west with the main markets across Europe also seeing green arrows this morning.
And just in this morning, less of your paycheck is going into your gas tank. AAA is reporting that the price of a regular, gallon of regular is now $1.89. That's down nearly a penny from yesterday.
JOHN ROBERTS, CNN ANCHOR: The hope is back. President Obama addressing an uneasy nation saying that we will recover. And quoting an eighth grader from Dillon, South Carolina, saying, we're not a nation of quitters. In his first speech to a joint session of Congress, the president called for shared sacrifice to bring back the economy. He also said it's going to take more, a lot more, and we've already spent trillions.
This morning, it's all about you. We're going to your iReports for instant reaction.
(BEGIN VIDEO CLIP)
DAVID KRONMILLER, IREPORTER: I was inspired by Obama reminding all these politicians in this room that they are not just politicians, that they are people who earn a job of service to this country.
SIE DOUGHJER, IREPORTER: 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 -- this address from his usual speech patterns as well as the typical State of the Union-like addresses that presidents have made in the past to Congress.
WILLIAM BERNSTEIN JR., IREPORTER: The expressions were during the majority of the State of the Nation speech tonight, they weren't too thrilled. John McCain, especially, who barely wanted to stand up when everybody else was standing up and applauding for the most part.
DAVID WHITE, IREPORTER: This GOP Congress to me, by and large, has shown it self-evident that they have no intention of bipartisanship. In fact, the American people have a better chance of hearing the Pope preach sermon on the benefits of shoplifting before they'll get bipartisanship out of this particular Congress.
Nonetheless, I must say that I am overwhelmingly pleased with what I've heard tonight, because it sounds to me that there is real leadership, someone that's able to have people in place that will notify him immediately what needs to be done. He can take and weigh those concerns with his own thoughts and reach some type of consistence in his own mind as to how to move the American people forward.
(END VIDEO CLIP)
ROBERTS: Some rather descriptive commentary from our iReporters there.
And some new CNN/Opinion Research Corporation polls taking the pulse of the people this morning. Sixty-eight percent say they had a very positive reaction to the president's message, and 85 percent say the speech made them feel more optimistic. Some big numbers attached to huge expectations as the president moves forward with his plan.
CHETRY: And President Obama touching on three major themes in his speech last night before the joint session of Congress. He started with the economy, saying that the day of reckoning has arrived. He also discussed the urgency and dire need for health care reform and ending the wars in Iraq and Afghanistan, while giving our troops a pay raise. So, here's the president in his own words, reminding us how the economy reached its current recession.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford, from banks and lenders who pushed those bad loans anyway, and all the while, critical debates and difficult decisions were put off for some other time, on some other day.
Well, that day of reckoning has arrived, and the time to take charge of our future is here. Nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and our conscience long enough. So let there be no doubt, health care reform cannot wait. It must not wait, and it will not wait another year. I am committed to restoring a sense of honesty and accountability to our budget. That is why this budget looks ahead ten years and accounts for spending that was left out under the old rules. And for the first time, that includes the full cost of fighting in Iraq and Afghanistan. For seven years we've been a nation at war. No longer will we hide its price.
I'm now carefully reviewing our policies in both wars, and I will soon announce a way forward in Iraq that leaves Iraq to its people and responsibly ends this war. And to keep our sacred trust with those who serve, we will raise their pay and give our veterans the expanded health care and benefits that they have earned.
(END VIDEO CLIP)
CHETRY: All right. So, we get reaction now from Suzanne Malveaux. She joins us here in studio, dialed into her sources in Washington. Also Christine Romans and the CNN Money Team are ready to go as well. And our senior political correspondent Candy Crowley standing by for us in Washington as well. And also, some of the best economic minds around are up early and live in our studio as well. Let me start with you, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Sure.
CHETRY: We talked about the fact that a lot of these addresses don't necessarily give explicit details, and at this point as you've said, it's sort of trying to solve a moving problem, because the whole financial crisis seems to be changing in size and scope and shape of what's wrong. What did you hear that you like yesterday from the president?
ROMANS: I heard him talking about restoring confidence. I heard him saying that I have the short-term issues -- I know what they are and we're trying to grapple with them. And -- I don't know if he said it explicitly, but that we could make mistakes, but that we're going to be really looking at the short-term problems and we're going to fix this financial crisis. It's going to take time, but we're on the road.
I also heard him addressing the long-term problems. And I heard him taking this specific crisis now as a time -- a time and an opportunity to fix some other things, some big things -- education, energy, health care. Other things that we keep pushing on and pushing off, and kicking the can down the road, I think, is what some of his advisers have been saying. But this president does not want to kick the can down the road anymore, and using the now and America's attention to this crisis to say, we've got some problems, this is how we're going to fix them.
ROBERTS: How much goodwill does the president need to do all this because it seemed that a lot of last night's speech was -- we got to hold our nose and we don't like the people that we're helping out here, but if you don't, it's not going to help out you.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know what I heard was really the return of this idea the audacity of hope. Obviously, there was a balance that he had to strike between hope and fear. And a lot of the criticism is that people really are not getting that sense of inspiration and motivation that they got from Barack Obama during the campaign as a leader. They want someone to lead them.
So, I think this really walking a fine line. On the one hand, it was very pragmatic. He even acknowledged at some point that he thought that there would be more money that was necessary to go to the banks, to bail out these banks, that is something that we had not necessarily heard before, but acknowledging that, and also the sacrifice that he was talking about people having to make.
One of the things that I thought was interesting in the speech was that he mentioned the word economy or economic 30 times. Now, if you take -- it was about 60 minutes or so, a little bit less, so, you know, so once every two minutes, he's talking about the economy. At least "New York Times" counted up the numbers. I didn't do it myself, but I watched the speech.
This is really defining his legacy and his presidency. He is putting it all on the line, using his political capital saying, you know, this is what we are facing now, and this is our primary concern, this is what I'm dealing with.
CHETRY: The other interesting thing. A lot of support, it seemed, from people that we polled here at CNN and Opinion Research about overall did they feel more confident.
But the interesting thing is where people seemed the least happy was the talk of foreclosure help. And the president actually addressed that, and he said, you may be wondering why we're rewarding or it may seem like we're rewarding people. But you have to understand that if we don't help the people that are being foreclosed upon, you also will be affected.
The interesting thing was that before where everyone was saying where is the foreclosure help, where is the foreclosure help. Why don't they like it?
ROMANS: You know what? This has been so difficult to try to figure out how to fix the foreclosure problem without rewarding people who made terrible mistakes and without actually giving incentives for people to jump in and start flipping and buying foreclosed properties, which doesn't really help the people who are being foreclosed upon. It is such a difficult problem to get your head around and figure out a solution for.
A lot of very, very smart people have come up with plans that haven't worked and we just haven't found the right mix yet. And, you're right, people who are sitting in their home, who didn't trade up to compete with the Joneses, don't really like the idea of spending hundreds of billions of dollars or even $100 billion, which is chump change these days, right, to try to fix the problem if it's going to the wrong people. MALVEAUX: And one of the reasons why he's actually emphasizing fiscal responsibility, accountability, is think about the big-ticket items, the things that he talked about he was going to deal with later on down the road -- reforming social security, health care reform, education, energy. Those are the kind of things that he needs Republicans to be on board with. I mean, he is going to have to make this point early on.
ROMANS: The foreclosure crisis, I will add, it affects everybody. I mean, if you're sitting in your house and you didn't make any mistakes, the foreclosure crisis is still hurting you. I mean, let's be realistic.
(CROSSTALK)
ROMANS: Absolutely, absolutely.
ROBERTS: Well, the man dubbed by many to be the new hope for the Republican Party delivered his response to the president's address last night. Louisiana Governor Bobby Jindal echoed many complaints the Republican leaders on Capitol Hill, too much spending, too few tax cuts. Earlier on AMERICAN MORNING, I also spoke to the party's last presidential nominee, Senator John McCain, about the address.
(BEGIN VIDEO CLIP)
ROBERTS: I saw you last night. You described the speech as being a good speech, the right tone and delivery. So, where do the differences lie?
SEN. JOHN MCCAIN (R), ARIZONA: I thought 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. When he said he was against earmarks and yet on the floor tomorrow, the next day of the Senate will be a bill with 9,427 pork barrel items.
(END VIDEO CLIP)
ROBERTS: Senior political correspondent Candy Crowley joins us now live from Washington.
Candy, you watched Governor Jindal's response last night. What did you think of it?
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, I thought he did on paper what he set out to do and that is to say we want to work with this president, isn't this quite a moment to see the first African-American president address Congress. Now -- and we want to work with him and we extend our hand, and we -- he mentioned all of the subjects that the president mentioned, health care, education, energy, transparency in government said the Republicans are all for this.
And then went ahead to list all the reasons why Republicans and Democrats are different, saying the stimulus bill is about big government. Republicans are about smaller government. It's spends frivolously. We're about cutting government spending. So, it was a -- an attempt by the Republicans to make that first step toward rehabilitation. But it's going to take a lot more than a speech from the governor of Louisiana to turn the party around.
ROBERTS: Let me just come back here, Candy. You said on paper his response did this. What about live and in person?
CROWLEY: Well, I mean, I think it was difficult. I mean, look, there's no comparison to the president of the United States and when you -- you know, somebody brings him in and says "The president of the United States" and there's gavels and there's all these cheering people who get up and down during the whole speech.
He's in one of the most magnificent forums in the world really to speak from, and then the governor of Louisiana comes into the hallway of the mansion and delivers a speech. He is very young. He has not talked to a national audience before. It was not the most polished performance. But he said what he needed to say. And there's just -- there's just now way, no speaker that has given a response to a president's first speech at least has ever done all that well by comparison.
ROBERTS: True. It's a tough bar to leap over. And you got to wonder if the governor was happy in the end that he was the one to come out of the box and do it.
Candy Crowley for us this morning. Candy, thanks so much.
CHETRY: Can I ask a dumb question? Why can't they give him an audience, too? Or the responders an audience? It's very weird. You know, you're almost talking in a box.
ROBERTS: You are. I mean, I've never seen it happen before. You know, typically, they're in an office speaking.
CHETRY: Right.
ROBERTS: He was in the hallway of the governor's mansion. I guess they could have put him in Jackson Square or something like that with a friendly Republican audience but --
CHETRY: Right.
ROMANS: That's a good idea, too.
CHETRY: All right, maybe it wasn't such a dumb question. We'll see.
ROBERTS: The future in choreographing these things.
CHETRY: All he had was a teleprompter and a bright light.
UNIDENTIFIED FEMALE: Poor guy.
(CROSSTALK)
UNIDENTIFIED FEMALE: There you go. There you go.
CHETRY: That would be a happy audience.
MALVEAUX: There you go.
CHETRY: All right, well, hope and a little love in the room. There was a tender moment between the first couple in the House chamber last night. Check it out.
(BEGIN VIDEO CLIP)
OBAMA: Madam Speaker, Mr. Vice President, members of Congress, the First Lady of the United States. She's around here somewhere.
(APPLAUSE)
(END VIDEO CLIP)
CHETRY: And a little "I Love You." The First Lady blew a kiss to the president. And, of course, Republicans also clapping as well. Bipartisan moment of love, how about it? Right?
ROBERTS: You got to get them every once in a while, you know?
CHETRY: Few and far between.
ROBERTS: Lots of love.
CHETRY: Well, in recognition of black history month, CNN is again looking at what it's like to be black in America. Just ahead, our Soledad O'Brien is examining the relationship between the African- American community and America's first black president. She's going to join us live in just a minute.
Also, America's most fired-up mayor. You may have remembered him the last time he called into our show. He was fired up. And he wants the stimulus to save his town. He watched the speech last night. And now Michigan's mayor is back, and he's got plenty to say. It's 14 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
ROBIN SAVAGE, IREPORTER: The American dream is really at stake here, and for people to be losing their homes, their jobs and see communities being torn apart, and you just feel that people have no hope in their eyes. You just -- you see it everywhere you go now.
(END VIDEO CLIP)
ROBERTS: Welcome back to the "Most News in the Morning." That view from one of our iReporters underscores America's economic crisis. This morning, we're hearing what Main Street thinks of the president's recovery plan. And we're talking with some of the sharpest economic minds in the country about what it means to you and your financial future.
Economist Diane Swonk joins us this morning from Chicago, and here in New York investment adviser Ryan Mack and Jackie Zehner, founding partner of the Circle Financial Group.
We welcome you, Jackie, for the very first time.
JACKIE ZEHNER, FOUND PARTNER, CIRCLE FINANCIAL GROUP: Thank you. Thank you.
ROBERTS: Let's go to you, first. And let me preface this by highlighting here a comment that was sent in to us by a viewer. Dave in Omaha, Nebraska, writes to us this morning and says, "Although the meat of the speech was very hopeful, I felt it was more like a pep rally. The only thing missing was the band and the cheerleaders. I still want to know how we will pay off this debt, how is this administration putting people back to work, and why do I have to help someone pay -- why do I have to help pay else's mortgage? I feel this was not addressed."
These are questions, Jackie, a lot of people are asking today.
ZEHNER: Those are really good questions. I mean, I actually think Nancy Pelosi was their cheerleading. I think all that was missing was the pompoms. But those are all my questions. I mean, it was a very -- it was a pep rally. I like talking about hope and possibility, and I think the world needed that message and the markets responding. He said, I'm in control. I'm going to do something, but what's the something?
And actually, I thought he missed a big opportunity to talk about investing in America and a broader basis than just talking about Wall Street and the negatives of Wall Street. I think there's a much broader conversation that we can have about small business, about female entrepreneurship, about financial literacy, about a broad-based conversation about investment. And that was really missing.
ROBERTS: What do you think about all of that, Diane, because typically these addresses whether they be just to a joint session of Congress or whether they be actually titled a State of the Union Address, which is next one will be, are usually about grand themes and broad brush strokes. The details come later.
DIANE SWONK, ECONOMIST: Exactly. I think actually what impressed me was the one-two punch. Ben Bernanke was on his "A" game yesterday. And he really dealt with a lot of these issues earlier in the day in great detail. It was actually one of the most insightful, which doesn't say a lot.
Q&A sessions that Congress has ever had with Ben Bernanke. But these senators actually finally got it. And I think that laid the groundwork. One of the comments that Ben Bernanke gave in response to that very issue on foreclosures, he said, you know, you could punish your next-door neighbor for smoking in bed by, you know, not calling the fire department when his home caught on fire, but if it burned down the whole neighborhood, how much does it help you?
And I think that analogy is very important. And that's what the president has got to bring, is that analogy that we're on the same boat, and unless we're all in the same boat with our oars in the water rowing towards the same destination, we're all going to sink the boat.
ROBERTS: Ryan, let's turn this one toward you. Carolina, in *, Florida writes this this morning and says, quote, "After Obama's speech, I feel confident that he will bring us out of this economic mess. I was happy to hear some positive comments rather than all the doom and gloom that the American people are constantly being bombarded with. Thank God we have a new administration."
Was it an appropriate amount of optimism that the president exceeded last night?
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: I think it was great optimism. I think that his direction was very -- very optimistic and very happy about what tomorrow actually holds.
One of the striking things he said, we are also suffering a deficit of trust. I think that in previous administrations, a lot of individuals had lost trust with an administration, so that actually leads to a lack of confidence in the leadership of this country. And him coming in and actually going back and talking about things about the GI bill, sent a generation of college students made the largest middle-class in history.
So I want to have by 20-20 had the highest proportion of college graduates in this country. But then the devil is in the details. I'm going to put $31 billion in college affordability and Pell Grants and tax credits to make sure that individuals are going to school. And he also said, you know, enough of this not graduating from high school, you know? It's on you. We have to graduate from high school and make sure we're getting our...
(CROSSTALK)
ROBERTS: That's an interesting part of the speech. But, Jackie, just in terms of this optimism, just saying it doesn't necessarily make it so. He's got a lot of work to do to actually get these programs into practice.
ZEHNER: Absolutely. But we also have a lot of work to do. I mean, I love the messages about personal responsibility because at the end of the day, and this is my favorite quote, which I repeat again and again, do what you can with what you have where you are.
And I think he has to empower people to be part of the solution, not wait for government to solve all our problems because they can't. And he said that, but I really wanted the exclamation marks behind that. I really did, because those are the conversations I'm having. People need to get together, share their problems, share solutions.
Ryan and I spoke a lot about financial literacy, doing financial preparedness. You can't have your head in the sand about this anymore. It's not going to get better overnight, but it is about people coming together, talking through problems, offering each other solutions, supporting one another in business, helping out.
You can't -- we can't walk around like this for the government. It's just not going to happen. There's not enough money and we're selling our children's future.
Jackie, thanks for joining us this morning.
ZEHNER: Thank you.
ROBERTS: Great to have you here for the first time.
ZEHNER: Thank you.
ROBERTS: We'll get you back as well as Ryan.
ZEHNER: Thank you. Thank you very much.
ROBERTS: Ryan and Diane, of course, you're always welcome back anytime. Thanks so much for joining us this morning.
SWONK: Thank you.
ROBERTS: Kiran?
CHETRY: Well, Barack Obama won the White House with huge support from African-Americans. But as times turn tough, does America's black community feel that the first black president is doing enough for them?
We'll take a look at 22 minutes past the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
Twenty-four minutes past the hour. Here's a live look right now at the white house. It's 26 degrees right now, partly cloudy in the nation's capital, but it's going up to a high of 49 degrees. Not too shabby for the end of February. So, enjoy.
And across the country, people are waking up with the same financial worries that they had before President Obama's big speech. And African-Americans are among the hardest hit during the recession. In the black community, we've seen unemployment rates higher than the national average. So, does the nation's black community feel that the first black president is doing enough for them?
For more, I'm joined by our Soledad O'Brien this morning.
Good to see you.
SOLEDAD O'BRIEN, CNN SPECIAL CORRESPONDENT: I think it's important. Good morning to you, Kiran. Historically, the moment of the inauguration was a great historic first. But after that, Barack Obama has got to be president for everybody -- black people, white people, all people. So, people who are affected by any issue, whether it's the jobless rate, whether it's opportunity, whether it's failing schools, all Americans have those same issues, and blacks obviously a subset of those same issues.
But when you talk about the jobless rate, for example, January figures, 12.6 percent of African-Americans are out of work. That's compared to 7.6 for the general population, so feeling those job issues more acutely. And I think what Barack Obama was trying to do in his speech, because he started off this way by saying, listen, I need to connect all of us together.
It does matter to you that the banks are failing, whether you're on Wall Street or in Main Street. It does matter that Americans who are struggling to pay their mortgages have to pay those mortgages. We are affected by it. Students have to be able to afford school whether you have kids or not. It matters to the country.
He had this interesting moment where he talked about a student who he had met in Dillon, South Carolina, named Ty'Sheoma Bethea. Let's listen to what he said.
(BEGIN VIDEO CLIP)
OBAMA: I think about Ty'Sheoma Bethea, the young girl from that school I visited in Dillon, South Carolina -- a place where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom.
She had been told that her school is hopeless, but the other day after class she went to the public library and typed up a letter to the people sitting in this room. She even asked her principal for the money to buy a stamp. The letter asks us for help, and says, "We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world. We are not quitters." That's what she said. We are not quitters.
(APPLAUSE)
(END VIDEO CLIP)
O'BRIEN: Spend to watch her -- watching herself a little bit on some of those monitors. But the truth is, for many kids like this young lady, in inner city schools, the dropout rate is staggering. If you look at African-American boys, they have a graduation rate in some schools around 30 percent.
Now, that's unacceptable, and I think the point he was trying to make and the point that consistently has been made, and we've certainly seen is it matters to you and me that this young woman in Dillon, South Carolina, is in a failing school. It's easy to say, well, why do I care about her school. My kids don't go there. It matters to us. And you pointed out, you got to look at China, you got to look at Germany, you got to look at Japan. You got to look at all these countries that the president mentioned, because that's who we, Americans, all Americans, black Americans, all Americans are competing with. So Ty'Sheoma needs to be on our team and we need to fix her schools is kind of I think the point. And so...
CHETRY: And he highlighted that bold goal by 2020. We'd have more college graduates than any other industrialized nation.
O'BRIEN: So I think certainly when you see, African-Americans see a young woman like this who is clearly a hard worker trying to make a difference in a school that is failing her, you know, I think that touches, not just African-Americans, it touches everybody, and everybody should care about it.
CHETRY: Absolutely. Well, thanks for joining us this morning, Soledad. And you can join Soledad again tonight in honor of black history month. CNN is going to air an encore presentation of our groundbreaking documentary, "BLACK IN AMERICA." It's tonight and Thursday at 8:00 p.m. Eastern, only on CNN - John.
ROBERTS: He had plenty to say about the auto bailout and the economic stimulus plan, so what did the feisty mayor of Lansing, Michigan, think of President Obama's speech last night? We'll ask him when he joins us live.
It's 28-1/2 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Thirty minutes after the hour. We've got breaking news that we're following this morning.
Dutch officials confirm that at least nine people are dead and dozens injured after a Turkish Airline 737 slammed into the ground in Amsterdam. We've got the latest video for you in to CNN from the crash site. It was a Boeing 737, carrying 134 people. It broke into three pieces as it crashed near the Dutch capital's main airport of Schipol.
Originally, we had reports from the airline itself that everyone on board survived. Those reports, though, have been assessed downward and downward quite dramatically. At last word, nine people dead, 50 injured, 25 of them seriously. We'll continue to follow the story for you this morning. Kiran?
KIRAN CHETRY, CNN ANCHOR: All right. We're getting all kinds of responses, a lot of them positive, but some negative as well. To President Obama's speech to Congress on the economy. And we're reading emails, we're looking at poll numbers. Our iReporters are also weighing in this morning.
(BEGIN VIDEO CLIP)
MARK HOOPRICH, IREPORTER: I thought he hit it out of the park. I thought it was the best speech that he's given to date. Very confident. He laid out a very ambitious agenda with items that are going to be contained in his upcoming budget. He highlighted the three areas of education, health care, and energy.
And I - I think that the Republicans in Congress really are at a critical juncture where they're going to have to decide whether they want to continue to oppose this very popular president who's probably going to be even more popular after tonight's speech. I think it's going to be received very warmly by the American public. Or do they want to start working in somewhat of a bipartisan manner.
(END VIDEO CLIP)
CHETRY: Well, what do some of the nation's mayors think? Lansing, Michigan, is a city that we've highlighted before. Home to about 114,000 people. The average home price, $110,000, that's well below the national average.
Unemployment extremely high and climbing as the auto industry keeps laying off workers. And always a lively guest, Lansing Mayor Virg Bernero joins us again. Thanks for being with us, Mr. Mayor. You know, we got a great response the last time you were here. You were fired up by some of the things that Ali Velshi and Christine Romans were saying and we welcome you back.
MAYOR VIRG BERNERO, LANSING, MICHIGAN: Happy to be here, Kiran.
CHETRY: What did you think of the president's speech last night in terms of what you wanted to hear to be able to restore confidence in your constituents and the people within your city, that things are going to get better?
BERNERO: It was a great speech in both style and substance. And when I heard him talk about the American auto industry, that we invented automobiles and that we're not going to let the automobile industry fall by the wayside, I stood up and cheered. This is great news for towns like Lansing, Michigan, and automotive towns across this country, as you know, we are talking about over three million jobs. People around the auto industry. And you know, they've been kicked around, they've been thrown under the bus. So to hear the President talk about the importance of this industry was music to our ears. He understands the health care...
CHETRY: I just want to...
BERNERO: I just want to say that...
CHETRY: Go ahead.
BERNERO: The health care, he was going to address the health care. He understands the importance of the health care crisis that we're in and that health care crisis which, of course, stands on its own, is also intricately linked to the automotive industry. Because one of the reasons that the auto industry have a tough time competing on an international basis is because about 1500 hours per car is money that the auto industry spends on the health care of their workers. And I hear them beaten up.
It really gets to me when I hear the auto industry beaten up because of the benefits that they provide, and of course, they're providing health care which in other countries is provided by the government instead of the automotive companies that we have to compete with. So I'm delighted that the federal government, President Obama is going to address it head-on. We need to have a health insurance for everybody that is not a competitive disadvantage to our industry.
CHETRY: It's interesting. One of the things you said you were tired of the auto industry getting beaten up. It wasn't all praise from the president last night either. Let's listen in and I'd like to get your reaction to what he said.
(BEGIN VIDEO CLIP)
OBAMA: Everyone recognizes the years of bad decision making and a global recession has pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a retool, reimagined auto industry that can compete and win.
(END VIDEO CLIP)
CHETRY: What is he talking about when he talks about their own bad practices and bad decision making on the part of the automakers if you're leading up the legacy costs you were referring to?
BERNERO: Well, I think the biggest thing they're guilty of, of course, is providing a decent standard of living and staying in this country at a time when other companies went overseas. You know, this government incentivized the unholy alliance between Wall Street and Washington, essentially incentivized people leaving this country, the thousands, the hundreds, the millions of jobs that have left this country in industry after industry, in steel, in furniture, in textiles, you name it, electronics.
Look, we've outsourced the standard of living in this country. It's outrageous what has happened. And President Obama addressed that later on when he talked about making an incentive for companies to build in America. So yes, they've made mistakes, the American auto - like any company they've made mistakes, but their biggest mistake was remaining patriotic and building in this country.
And I don't think it was a mistake. I praise them for that. As far as the cars that they made, they made cars that people want. You know, we make the Cadillac CTS, last year's Motor Trend car of the year, right here in Lansing, Michigan. So don't tell me they're not making cars that people want. This is an industry that's in transition and has been in transition.
They were dealt a walloping blow by Wall Street, that's what really killed them. And that's why I was delighted to hear the president also address the credit crunch.
CHETRY: Right. BERNERO: He wants to make sure that when they give loans to the banks that those loans trickle down to real people, to small businesses which is where the growth happens in the economy and, of course...
CHETRY: Let me ask you about this, Mr. Mayor...
BERNERO: ... if they want to buy a car.
CHETRY: This is the interesting thing because two-thirds of our economy is run by, or is infused by consumer spending and it's the that you know president is also talking about the fact that everybody needs to take a realistic assessment to what they can afford and live within their means. And doesn't that in some ways translate into not making big-ticket purchases like autos?
BERNERO: You know, it's a very interesting thing. I think what the president said without saying it is that we've got to get back to, you know - and he did talk about responsibility and values. But one of those values in America is working people. People that make things. You know, the best stimulus is the stimulating job?
That's what the American people want. And if you really want to instill confidence, which the president certainly tried to do, and I thought did a great job, but if you really want to instill confidence in people, you know, one of the things that makes people make a buying decision is their own - their own financial condition.
And so people understand, they want a good job. We have productive people. And the president talked about the productivity, the imagination, the capability of the American people. Of course, he's right on. We have a very productive people and they want to make things. A country is judged not just by what they buy, but why what they make. This country has always made some of the greatest products in the world.
So, we can't just survive as a consumer country. We have to be a country which makes things, which means we have to ultimately address the trade situation. We must address the unleveled playing field. Now, the health care situation that will go a long way, because that's one of the things that makes us, that puts us at a competitive disadvantage.
But there are other issues. The president again talked about going line by line through the budget. Again, I appeal to the president and Congress to go line by line through these trade agreements that put our industries at a competitive disadvantage. We've got countries out there, we're competing against countries, not just companies.
CHETRY: Right. I hear you, Mr. Mayor.
BERNERO: They got currency manipulation and I look forward to those issues being addressed so that our industry, the auto industry and other industries can be competitive and keep Americans employed in good jobs. CHETRY: You need your own show, I got to tell you. Because we're out of time. You bring up a lot of good issues, and it's great to talk to you this morning. Mayor of Lansing, Michigan, Virg Bernero, and good luck with everything. Thanks for being with us.
BERNERO: Thank you so much.
ROBERTS: A bloody, drug-filled T4 (ph) spilling over the border from Mexico moving closer to your town, some of the acts of violence will rattle you. We'll talk to the reporter that saw it up close.
It's 38 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Those gunshots happened during a recent report by ITN's Bill Neilly (ph) on assignment in Tijuana. Little kids caught in a cross fire in a turf war fueled by drugs and dirty money in Mexico. Now there is fear that it's spreading north of the border and you don't have to live in a border state to be in the line of fire.
Joining us now is Laura Ling. She's the vice president of the Vanguard Journalism Unit at Current TV. She has been covering the narco wars from both sides of the U.S.-Mexico border, her documentary "Narco War Next Door" premieres tonight on Current TV at 10:00 p.m. And it's must-watch as far as I'm concerned.
Laura, it's great to see you. You know, this is just starting to resonate in the American consciousness here. What's going on in Mexico. You spent months looking into this, investigating what don't we know about what's happening?
LAURA LING, VICE PRES. VANGUARD JOURNALISM UNIT, CURRENT TV: Well, you're right, John. I think more and more people need to know about this issue. In 2008, there were around 6,000 drug-related killings in Mexico. That's more than the number of people killed in Afghanistan in the same year.
And, you know, Mexico is right on our border. They're our next- door neighbor. We need to be aware of what's going on here. These killings are increasing. It's believed that 2009 may get even worse, and the methods of killings are becoming even more and more gruesome.
ROBERTS: You know, we saw all those videotapes coming to us from Iraq, terrorist groups, Al Qaeda there, you know, beheading people. I mean, that's what these guys do on a daily basis.
LING: It is not uncommon for - to, you know, for people to be beheaded, mass executions. When I was in Juarez over the course of four hours, we were at the site of three different murders, where a total of five people were killed. That day, 11 people total were killed, and that wasn't even a bad day. There it is not uncommon to have, you know, a couple dozen - a dozen people killed.
ROBERTS: It's just incredible. Now, how much of this is spreading over into the United States? Because we should point out that these Mexican cartels have tentacles deep into the United States. I mean even as far north as Boston and Seattle.
LING: Absolutely. I mean, the drug cartels are fighting for control of the routes into the United States. Let's not forget that, you know, it's the demand for drugs that is fueling this violence. And, you know, there's been a spike in kidnappings in Phoenix, Arizona. I think 300-some last year.
But, you know, it's difficult to say. El Paso, Texas, which is right on the border of Juarez, it so remains one of the safest cities in the United States. So, it's hard to say just how widespread this is becoming.
ROBERTS: Then there are some universities now in these border states that are cautioning, warning students. Spring break is coming up, do not travel to Mexico. Are there particular parts of Mexico that need to be avoided? Christine Romans was just in Nueva Vallarta last week and she said that in her particular hotel room there were armed guards stationed on every floor.
LING: Right, well, you know, there are 40,000-some-odd troops patrolling different cities in Mexico. You know, coming from California, I - I love traveling to Mexico. I've been there several times on vacation. I was there last year. It's important to know that these - these attacks are targeted attacks, between the cartels and against the government.
But -- but people should be cautious. Innocent people are caught in the cross fire, and it's important to check with the State Department when thinking about traveling to Mexico.
ROBERTS: Laura Ling, it's great to see you this morning. Thanks so much for joining us. Look forward to watching this.
LING: Thanks so much, John.
ROBERTS: Appreciate it.
CHETRY: Well, you heard what the president had to say about the state of the economy and also the republican response. Now, we're going to hear what our viewers on Facebook thought as they watched the president, live.
It's 45 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BARBARA WALTERS, TV SHOW HOST: Give me a one-word answer, are things going to get better or worse?
ALI VELSHI, CNN HOST: They may get a little bit worse first, but ultimately they will get better.
UNIDENTIFIED FEMALE: How long?
VELSHI: I think you are looking at a year before you see things will improve substantially.
UNIDENTIFIED FEMALE: You have a crystal ball.
VELSHI: Call me back regularly and ask.
WALTER: We'd love to have you, because you do make us understand. We also have about stimulus packages -
(END VIDEO CLIP)
CHETRY: Finally the ladies of "The View" met their match. Rob Marciano joins us right now. You saw Ali there. First of all, Barbara Walters said, "give me a one-word answer." Ali, one-word answer?
(WEATHER REPORT)
ROBERTS: Well, what did CNN viewers on Facebook think of the President's speech. We teamed up with Facebook to gauge viewers instant reaction? So we'll bring those to you.
It's 10 minutes now to the top of the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
OBAMA: While the cost of action will be great, I can assure you that the cost of inaction will be far greater. For it could result in an economy that sputters along for not months or years but perhaps a decade. That would be worse for our deficit, worse for business, worse for you, and worse for the next generation. And I refuse to let that happen.
MANNY DORADO, IREPORTER: That speech was amazing. It was something that we didn't even hear on the campaign trail. It was a different Obama, and I think what made it different is that he stood up there with so much hope and looked us right in the eye and said to not be afraid.
(END VIDEO CLIP)
ROBERTS: Welcome back to the Most News in the Morning.
We are hearing all kinds of reaction from our iReporters about President Obama's speech last night. And breaking new ground, CNN also teaming up with Facebook to get instant user feedback online.
Our Jason Carroll joins us now with that. Hearing a lot of interesting comments today.
JASON CARROLL, CNN CORRESPONDENT: Yes, a lot of people buzzing about this, posting their opinions. CNN partnered up with the social networking site, Facebook, for special online coverage of the President's speech. More than 100,000 Facebook users logged on to cnn.com and their Facebook profile to post a comment. Most wanted to hear the President address issues like job security, the housing crisis, health care, and the rising cost of education. The president's goal convinced the country and Congress his economic plan will pull the nation out of a recession.
Some Facebook users were sold on Obama's confidence. Malcolm Dotson from East Bay, California, wrote, I've never seen a newly elected president so often, so soon with answers. While Michael Finley from Dallas, Texas writes in saying I'm very optimistic and as I listened to the speech, he is hitting the nail on the head. But others in the Facebook community were not so thrilled with Obama's budget proposals.
Kay Carpenter Basar wrote instead of trickle down economics this is trickle-up poverty. Facebook says some 100,000 users from all over the world logged on during the president's address.
(BEGIN VIDEO CLIP)
RANDI ZUCKERBERG, FACEBOOK.COM: I actually think this is the wave of the future. I think that when people see how powerful it is to watch this incredible coverage and comment with their friends at the same time, I think that we're entering a generation where you can never watch content without it being social again.
(END VIDEO CLIP)
CARROLL: Facebook also conducted a pulse survey on key issues. One question asked does the President's foreclosure plan reward irresponsible behavior. Forty-five percent said, yes; 29 percent said it would help stabilize the economy; while 26 percent said it wouldn't do anything.
And when Facebook users were asked it they were concerned if their children will have it worst. Fifty-nine percent said, yes; 41 percent said, no. Facebook tells us the amount of people using the term hopeful in their Facebook status has increased diabetically(ph) over the past couple of months.
So maybe that's some sort of indication some people are feeling a little bit better but it still looks like based on some of these survey here that, Obama still has a little bit of work to do, at least with the Facebook community.
ROBERTS: It was such a wealth of information out there to be mined these days, isn't not?
CARROLL: And not only that. But just a wealth of ways to voice your opinion. Just a few years ago you weren't able to. So, this brings a lot more people out, you know, into the public, able to say this is what I think and they can do it so immediately.
CHETRY: That's right. It's a good thing. It's a good thing and sometimes a bad thing.
CARROLL: And sometimes a bad thing, yes.
CHETRY: But right. You're absolutely right. It's certainly changing the way we all communicate for sure.
ROBERTS: And, you know, some of the more interesting communications on twitter last night came from - from Congressman Blumenthal of Oregon who suggested it was great not to see Vice President Cheney up there for a change. And also came out in a twit saying he thought that Governor Jindal was downright weird in the response. So, maybe some of this stuff is happening, like, in too much of real-time.
CHETRY: Right. The stream of consciousness, there's editors for a reason.
ROBERTS: There need to be a bit of a filter between here and here on some occasions.
All right.
CHETRY: Jason still trying to...
CARROLL Oh. Yes. Right.
CHETRY: Thanks, Jason.
CARROLL: Thank you.
CHETRY: And thanks so much for joining us on this AMERICAN MORNING.
ROBERTS: Coming up next, "NEWSROOM" with Heidi Collins. We'll see you again tomorrow.
