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American Morning

Countdown On for U.S. Troops Coming Home; Breaking Down Obama's Budget; Friar's Underground Marketing; Congress Texts and Twitters

Aired February 27, 2009 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: And good morning. Thanks very much for being with us on this AMERICAN MORNING. It's a Friday, which is always great. It's the 27th of February. Just about to kiss this month goodbye too.

KIRAN CHETRY, CNN ANCHOR: That's right. A short month, of course, because it is February but we have a lot to cover this morning and here's what we're breaking down for you in the next 15 minutes.

Getting out of Iraq, we have breaking details of the president's plan to bring troops home and why parts of this plan are actually upsetting some Democrats.

Suzanne Malveaux is live at the White House with the answer for us. Also breaking overnight, word that the government is taking a bigger share in the banking giant Citigroup. Now you may remember we talked about this last week on AMERICAN MORNING, what is the difference between this and nationalization and what impact could it have on the markets and your money? Christine Romans is here in the studio and she's going to breaking down that story for us.

Also, we have brand-new surveillance video. This is the first time we're seeing inside one of the hotels in Mumbai, India, as terrorists attack. We have it and you will see it here on CNN. We're going to tap into the global resources of CNN and be live with Paula Newton in London as she has more details on that story.

ROBERTS: Well, but first, we begin with the breaking news and details of President Obama's strategy for Iraq. The countdown now on to bring U.S. troops home from the war zone. But if you think that means all the troops, you're going to be disappointed.

Our White House team has got the inside scoop for you. CNN's Suzanne Malveaux is the only reporter live at the White House this early in the morning. And this brings out a lot of the troops, Suzanne, but not all of them?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely right, John.

Two senior administration officials are telling us this morning that the goal for the Obama administration is withdraw all U.S. combat forces but to leave a contingency force on the ground. We're talking about 35,000 to 50,000 U.S. troops essentially with a new mission. They are obviously going to be supporting some efforts there. There's about training as well as equipping the Iraqi forces, supporting some civilian operations, as well as targeted counterterrorism operations.

Now, the rest -- the combat forces would be out by August of 2010. Everybody out is the goal to be out by the next year. That is the end of 2011. But, John, I have to tell you this really comes after a series of meetings, the president as well as civilian and military leaders, getting together and realizing one senior administration official saying, it was a sober assessment of the situation in Iraq and this is ultimately is the best that they can do, John.

ROBERTS: This is something that Democrats have been clamoring for the last few years, yet not all of them are happy with this plan. Why not?

MALVEAUX: Absolutely not. Well, you heard the campaign pledge. Barack Obama is saying that he would get all of these combat forces out in 16 months. Well, this is now 19 months, it's three months after his initial goal. But that's really not the problem with some of the Democrats.

He met late last night with the Democratic leadership, Speaker Pelosi specifically not pleased with this because they looked at those numbers. They said 35,000 to 50,000 still on the ground? What's going to happen to those troops? They're not combat forces per se, but they could be in harm's way.

She actually said she thought perhaps it could be a third that number. So they're not really happy with how many forces are going to stay on the ground. They think it could also perhaps spill into mission creep, but the president is going to outline this when he goes to Camp Lejeune before the military and say, look, this is the best we can do. We think that this is the wisest course of action now, John.

ROBERTS: Yes. There are many people, Suzanne, who believe there's no such thing as a non-combat role for an American troop in a place like Iraq.

Suzanne Malveaux for us this morning. Suzanne, thanks so much.

You can see the president's remarks live from Camp Lejeune in North Carolina this morning. By the way, it's 11:45 Eastern right here on CNN or on CNN.com/live.

CHETRY: We have another story breaking this morning that could have a big impact on your money. The Obama administration is reportedly close to a deal that would significantly increase its ownership in Citigroup from less than eight percent now to 40 percent. An official announcement is expected sometime today. The troubled banking giant has already received $45 billion in bailout money.

Christine Romans is here to bring us more detail. And when we say how it affects your money, why should the average person care how much of a stake the U.S. government has in Citigroup?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Because this is the third time that the government has had to go back and try to figure out how to help Citigroup out and how to shore it up. So what it tells you is that your government is playing an even bigger and more important role, you know, every few months in these banks.

How it affects your money in terms of your money if you bank with Citigroup or you bank at other banks, remember, your money is FDIC insured in these banks. So it's not your savings or your money that it's in these banks that is at stake here. This is about your money and the economy, really. It's also about your taxpayer money, your money in terms of helping these banks.

Now, this will not require if this goes through as we expected to, it will not require any new money. This is a conversion of the original or the current investment into Citigroup and making it a little bit different. But it is a bigger stake. The government taking a bigger stake in Citi.

Numerous reports say this is going to happen today. There's numerous reports saying that, indeed, this was still being negotiated late last night so that we don't know exactly what the details are. We could find out later today. But this is the third time. The third time they've had to go back.

How many times have they gone back and they've been trying to renegotiate the AIG deal? What it tells you is that this new administration, the Obama administration is still trying to find its way in shoring up these banks and making sure that they have enough reserves and enough solidity really to weather a worsening recession, which is what we are seeing.

CHETRY: All right. More details on that as they become available today.

ROMANS: Sure.

CHETRY: Christine, thanks so much.

And turning now to President Obama's budget. We're breaking down the back-and-forth on this $3.6 trillion spending plan. It is a staggering figure. So here are just a few of the big programs that would benefit.

Health care, one of the most talked about, will receive $634 billion. Big chunks of money would be spent on covering the uninsured also on cancer research. And on the education front, a big increase in the Pell Grant program for college tuition and more government lending to students.

On energy, the president wants to raise billions by charging companies for their greenhouse gas emissions. So who pays for this?

Well, in large part it is increased taxes on the oil and gas industry, hedge fund managers and American households earning more than $250,000 a year. All of this, of course, being hotly debated in D.C.

Here's CNN's Candy Crowley. (BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): There are 134 pages in the budget book, with eye-popping numbers. The bottom line is this -- $3.5 trillion in spending for the next fiscal year. It includes enormous amounts of new spending for education, energy, and a ten-year, $634 billion investment in health care.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Because of crushing health care costs, and the fact that they drag down our economy, bankrupt our families and represent the fastest-growing part of our budget, we must make it a priority to give every single American quality, affordable health care.

CROWLEY: The ten-year budget outlook pays for new spending with surcharges on polluters, program cuts and tax hikes on households making more than $250,000. Republicans say the country has passed this way before.

REP. JOHN BOEHNER (R), MINORITY LEADER: The American people know that we can't tax and spend our way to prosperity. It's just the formula that appears that the president's budget is relying on. The era of big government is back, and Democrats are asking you to pay for it.

CROWLEY: The deficit spending is jaw-dropping. Red ink this fiscal year is expected to be $1.75 trillion.

OBAMA: While we must add to our deficits in the short-term to provide immediate relief to families and get our economy moving, it is only by restoring fiscal discipline over the long run that we can produce the same growth and shared prosperity.

CROWLEY: The president says he can cut the deficit in half by the end of his term. Republicans believe he'll have to do more than raise taxes to get there.

SEN. JUDD GREGG (R), NEW HAMPSHIRE: There is no fiscal restraint in this budget. There is no attempt to address the spending side of the ledger in any aggressive way.

CROWLEY: This book is only a blueprint, more political than it is really about numbers. Congress can do whatever it wants. But in the end, a president with an approval rating over 60 percent is likely to get much of what he wants.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

ROBERTS: As Washington debates the massive national budget, a lot of Americans are trying to cope with a shrinking personal one. We're asking you, our iReporters, to tell us how you're dealing with these tough times and what you're willing to sacrifice to make ends meet. Send us a video. Go tour Web site at CNN.com/am.

Here's what iReporter Kyle Aevermann sent to us.

(BEGIN VIDEO CLIP)

KYLE AEVERMANN, ITASCA, ILLINOIS: What am I cutting from my budget? Something I'm sad about. My car. I'm trying to sell it for a couple of reasons.

One, I can't find a new job. So I can't afford the car payments any more. I'm going green. So I'm thinking about this in a positive manner because in going green I'm helping the environment because I won't be driving a car and I'll be saving some green. Yes.

(END VIDEO CLIP)

ROBERTS: Kyle Aevermann there saying that he's got to give up his car because he doesn't have a job to pay for it. And, Christine, a lot of people are giving a lot of things. President Obama looks like he's going to give up his helicopters.

ROMANS: That's right. And Kyle, looking at the bright side trying to find, you know, OK, I'm going to go green if I can't afford my car. But the bottom line is, he can't afford his car.

You're right. A lot of people are finding new ways to get along. And I hope that he can sell his car and I hope that he can find a job. But it's very difficult out there. And when you look at anything related to the consumer and the economy, you can see that consumers are pulling back. That's why they're pulling back first.

We know that the car sales are down so sharply. I mean, it's incredible. We look at housing, housing sales. I mean it's like, we've never seen so few sales of homes every month. You know, in modern memory. So people are choosing a lot of different big-ticket items that they're pulling back on.

But then also, you know, the small things, the hotel and restaurant industry also reporting that it's tough out there. If you're living on tips...

ROBERTS: Yes.

ROMANS: ... if you're living on anything that's related to the consumer, you know that when other people are pulling back, that's hurting you, too. And when confidence returns, a little bit of this will start to improve but that's just not happening yet.

CHETRY: It's interesting, though, because all the personal finance editors will say to you that's the right thing to do. I mean, if you're trying to figure out what's right for your household, you should pull back.

ROMANS: Right.

CHETRY: Unfortunately, it's not good for the economy as a whole.

ROMANS: Ben Stein, the economist and author, Ben Stein, and humorous, you know.

CHETRY: And my alma mater Montgomery...

ROMANS: Oh, really? He was on Anderson Cooper recently. He said look, you know, too many people who can't afford to spend aren't. He said the confidence problem has hit people who shouldn't have a confidence problem, and that is a problem for the economy. He was telling people, if you have a solid job, you've got money or you're high-income, he said go out and spend. I want you to spend. So there you go.

ROBERTS: There you go. Spend it if you've got it.

ROMANS: Spend it if you've got it.

ROBERTS: Christine, thanks.

This morning for the first time, we're seeing inside that terrorist attack that gripped Mumbai for days. We have the chilling video. We're going to show it to you.

We've got all the angles covered using the global resources to CNN this morning. We're going to go live to our Paula Newton in London.

It's 10 minutes now after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SARA SIDNER, CNN CORRESPONDENT: Well, you guys, let's go. Just start rolling.

(END VIDEO CLIP)

ROBERTS: An image of the terror attacks in Mumbai unfolding before our eyes right here on AMERICAN MORNING. For three days in November, we witnessed a city held hostage. But this morning, chilling new video takes us inside one of the hotels where the gunman open fired. The video appears to show the gunman walking through the lobby of the Oberoi Trident Hotel.

CNN's international security correspondent Paula Newton has been reviewing the tape. She's live in London for us this morning.

What else did they show us, Paula?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: It's incredibly disturbing about this is how well-armed they are, and also, just their mannerisms. And, John, they looked like robots, essentially, that were out on the kill.

(BEGIN VIDEOTAPE)

NEWTON (voice-over): The just-released CCTV footage appears to show the lobby of the Trident hotel seemingly empty, and then two gunmen enter. The sheer firepower and determination of the attackers chillingly on display. They take out communications at reception, blowing away computers and then moving on.

The surveillance camera footage was released by police to CNN's Indian affiliate, CNN IBN. CNN has been unable to authenticate the video. It may give more insight into the calculated, almost robotic movements of the gunmen, bristling with weapons and ammunition, stalking targets from room to room, at will.

Some three months after the Mumbai terror attacks, Indian police are still trying to piece together exactly who ordered such an attack, and why. More than 160 people died during the three-day siege. The sole surviving suspect, Pakistani national Mohammed Ajmal Kasab (ph), was this week charged with murder and waging war against India. He could face the death penalty, if found guilty.

But the Mumbai terror attack has aggravated already-tense relations between Pakistan and India. India says the other nine attackers who died were also Pakistani. Pakistan recently acknowledged its territory was used to plot the attack and several suspects have been charged.

While the footage here appears to show the deliberation of the attackers, why they were hunting down Indians and tourists that night is still far from clear.

(END VIDEOTAPE)

NEWTON: What is so interesting here, really, is the fact that -- and I've spoken to eyewitnesses here, John -- who say they showed little emotion, those attackers. It was as if they were basically robots, zombies on a mission. And key here, John, taking their orders from a mastermind. India says that was in Pakistan -- John.

ROBERTS: And security on the ground there in Mumbai, are they using these tapes now to try to improve security, to try to prevent something like this from happening in the future?

NEWTON: Absolutely, John. And, of course, you remember the criticisms that you know, basically the authorities didn't arrive on time. And then when they did, they were outmanned and outgunned by the attackers. I mean, outmanned didn't turn out to be true. But certainly in terms of the kind of weapons these attackers had, an incredible amount.

But let's keep one thing in mind, John, even security experts in the United States have said since we must be vigilant about this. There isn't really any way to protect 100 percent, something like a luxury hotel in the middle of Manhattan.

ROBERTS: Right. Disturbing video this morning.

Paula Newton for us in London this morning. Paula, thanks so much for that. CHETRY: Still ahead, it's one small step for the Senate, one giant leap for residents of Washington, D.C. We're going to tell you why taxation without representation in the nation's capital could soon be history.

It's 16 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: It's 19 minutes past the hour. Time to fast forward to some of the stories you'll be hearing about on CNN today.

Another big city newspaper is no more. "The Rocky Mountain News" putting out its final print edition today. The news launched back in 1859 and has won four Pulitzer prizes in the last decade. The Scripps Company put the paper up for sale in December but could not find a buyer.

In Philadelphia, Vice President Joe Biden convenes the first meeting of the administration's middle-class task force. President Obama tapped Biden to lead it. The task force will look at creating green jobs and generally help middle-class Americans handle economic hardships.

And Secretary of State Hillary Clinton right now finalizing details of her next trip overseas. Officials say she'll visit Egypt, Israeli and the West Bank next week to discuss what they're calling a new path in the Middle East. She's certainly been busy as secretary of state so far.

ROBERTS: Oh, yes. A big trip coming up, too. A lot of eyes will be on that one. Thanks, Kiran.

It's taking two centuries but Washington, D.C. may finally get something it's never had before -- full voting rights in the House. You've seen those license plates, taxation without representation.

CNN's Brianna Keilar is following that story for us from the nation's capital this morning.

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: John and Kiran, Washington, D.C. is one step closer to having a vote in Congress.

(BEGIN VIDEOTAPE)

KEILAR (voice-over): Taxation without representation. In the nation's capital, every license plate is a protest, a daily reminder that Washington, D.C residents still don't have a voting representative in Congress.

EUGENE DEWITT KINLOW, VOTING RIGHTS ACTIVIST: Our citizens fight and die in wars. We serve on juries, we pay taxes. We want to be treated like every other American.

KEILAR: Eugene Dewitt Kinlow is an activist for Washington, D.C. voting rights, as was his father, seen here in a 1966 newspaper clipping, reenacting the Boston Tea Party. Kinlow is one of roughly 600,000 people living in D.C., almost the same as Alaska or North Dakota. Residents here pay more than $3.5 billion in federal taxes each year, but they have no vote in Congress on how that money is spent.

ELEANOR HOLMES NORTON (D), DISTRICT OF COLUMBIA DELEGATE: Everybody else gets to vote on the D.C. budget, except the person who represents the District of Columbia. This thing is full of such outrageous ironies that we got to pull it apart and do something about it.

KEILAR: Eleanor Holmes Norton is D.C.'s nonvoting delegate to the House of Representatives. She's pushing a bill that would give the district a voting seat in the House. Since D.C. is staunchly Democratic, there's a sweetener for Republicans -- another seat for Utah, a solid red state.

Similar efforts have failed before. This time, though, Democrats firmly control Congress and President Obama is on board. With the change poised to become law, conservative opponents say it's unconstitutional. The district is not a state, and only states get a vote in Congress.

HANS VON SPAKOVSKY, HERITAGE FOUNDATION: That the founders wanted the district to be a unique place, a neutral meeting ground for lawmakers from around the state. And I think actually the founders would be upset over the idea that Congress believes that through a piece of legislation, it can make the District of Columbia the equivalent of a state.

(END VIDEOTAPE)

KEILAR: Those who are for D.C. voting rights say the constitution gives Congress sole jurisdiction over the district. And that includes, they say, giving D.C. this vote. Bottom line -- this issue is expected to be settled in court, maybe even by the Supreme Court -- John and Kiran.

CHETRY: Brianna Keilar for us. Thanks.

And right now, the battle lines are being drawn over the president's ambitious budget. It tackles everything from the environment to education. But can the president really get it all done and at what cost to you, the taxpayer?

We've got some great economic minds here in the studio. We'll talk to them just ahead.

REYNOLDS WOLF, AMS METEOROLOGIST: I'm coming to you from Hancock (ph) and Berkshires, the Jiminy Peak Mountain Resort. And you know, at first glance, this could be any ski resort in America. I mean, you've got the skiers, you have the snow, you've got the trees, you have the ski lifts. But you know, there is one big thing that does set this place apart from any other ski resort in America. Take a look.

(BEGIN VIDEOTAPE)

WOLF (voice-over): Meet Zephyr, a turban named after the Greek god of wind. It's taller that the Statue of Liberty, standing more than 250 feet high, and it generates power for the mountain.

BRIAN FAIRBANK, PRES. AND CEO, JIMINY PEAK RESORT: We have been trying to do everything we could to conserve on energy. And somebody suggested, take advantage of the wind.

WOLF (on camera): Not exactly Everest, but still, man, let me tell you, this is pretty intense. Latching on.

(voice-over): Zephyr's blades produce a third of the resort's electricity and when demand is low, it helps power local homes and businesses. But not everyone is a fan of the $4 million turbine.

FAIRBANK: We've had some people in the community that said, I don't want to look at that.

WOLF: And studies show turbines can be deadly for migrating bats. But something to benefit far outweighs the costs.

UNIDENTIFIED MALE: This is the sign of the future. If it helps us have less dependence on foreign oil, it's a wonderful thing.

FAIRBANK: That thing is going to keep giving us power every year.

WOLF: Reynolds Wolf, CNN, Hancock, Massachusetts.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

CHETRY: All right. Welcome back to the Most News in the Morning.

You recognize that body anywhere, right? That is Gisele Bundchen, and today, she's a Mrs. -- Mrs. Brady, in fact. She tied the knot with New England Patriots quarterback Tom Brady, Thursday in Santa Monica, California. The two had been dating since 2006, but he knocked down rumors, though, that they were recently engaged. But there are reports they were married in a small sunset ceremony. The new Mrs. Brady's wore Dolce & Gabbana and Brady's 1 1/2-year-old son with his ex-girlfriend, actress Bridget Moynihan, also attended that ceremony.

Twenty-seven minutes after the hour. Just in to CNN.

The price of gas going in the other direction this morning. According to AAA, the average is now $1.88. That's a slight increase that ends 11 straight days of declines, though. Right now, just eight states have regular gas prices averaging $2 or more a gallon.

And the Senate is reportedly set to investigate the CIA's alleged use of torture during the Bush administration. The "Los Angeles Times" said an intelligence review is aimed at uncovering information on the use of waterboarding and other harsh interrogation techniques that took place inside of secret CIA prisons.

This morning the Obama administration reversing course on a sensitive issue, lifting the ban on news coverage of America's fallen heroes returning to Dover Air Force Base. Defense Secretary Robert Gates announced that photographs of flag-draped coffins will be permitted but only if the families of the deceased service members agree. That ban was established in 1991. It was upheld by both Republican and Democratic administrations -- John.

ROBERTS: Well, now to another story with huge ramifications for all Americans, the battle over President Obama's budget. $3.6 trillion, a staggering number to comprehend. It includes a long list of spending priorities. Republicans already on the attack over some of them.

So what does the plan mean for you and your money? Joining me now is Deborah Wright. She's the CEO of Carver Bancorp, one of the largest minority-led financial institutions in the United States. Financial adviser Sherri Williams, and with us from Westchester, Pennsylvania this morning, leading economist, Mark Zandi of Moody's Economy.com.

The centerpiece of the budget here is a move towards universal health care, shifting the energy economy away from oil and gas, boosting the federal commitment to education.

Deborah, start us off here this morning. Can he get this all done?

DEBORAH WRIGHT, FMR. PRES & CEO OF UPPER MANHATTAN EMPOWERMENT ZONE: I think it's bold. He's going to get it done is right now.

ROBERTS: Right.

Sherri, I mean, just one of these things would typically be a lot to try to chew on over the next year. But he's got so much in this budget.

SHERRI WILLIAMS, FINANCIAL ADVISER TO MIDSIZE COMPANIES: I would agree, there's a lot going on in the budget. Having said that, with health care for example, there aren't a lot of details and I think that's on purpose. I think that's to give the president and Congress some time to define those details. There's going to have to be a lot of details here. The devil is going to be in the details. It's like running a large company ten times that size.

ROBERTS: You know, Mark, I've covered a lot of these budget releases and I have never seen a figure like $1.75 trillion in terms of the annual debt. And looking at the tables going forward, President Obama will grow the debt by $5 trillion by the time his first term in office is over. Are these sustainable numbers?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ECONOMY.COM: Well, I think they're necessary in the near-term. I think the government has to be very aggressive to fight the crisis, the economic and financial crisis. And so that's costly, that stimulus. That's help for the banking system. That's foreclosure mitigation. So that all is very costly.

I think if the president sticks to the script that he laid out in the budget and while that's going to be tough, I think it's reasonably doable. Then we'll be headed in the right direction by the end of his term. But in the very near-term, in the next couple three years, I think he has no choice. He's going to have to be very aggressive.

ROBERTS: And which he's taking on a lot of special interests in this budget, Debbie. Agri-business, banks, wealthy Americans as well, raising taxes on people making more than $250,000 a year. In "The New York Times," Robert Greenstein from the Center on Budget and Policy Priority said he takes on one vested interest after another. And that will require all of the president's skills to get through Congress. Can he do it? Does he have the political capital?

WRIGHT: I think he does. I mean, Americans voted for changed. And he's the first one to admit that all of these issues are interrelated. So the health care problem is something that we care about on the streets in terms of care and getting it to everybody that we can. But it's also very expensive and inefficient. So they all connect. And I think poor people, working people, middle-class people and wealthy people all know that we have to address these issues right now.

ROBERTS: And this is a real shift for the Bush administration, too, Sherri, where they think really kind of threw it out there to the free market. The president now wants to use the power of the government in terms of taxation and spending, to try to push private enterprise into a different direction. He's getting a lot of blow- back on it from Republicans. Judd Gregg -- we can see why he didn't become Commerce secretary. Now he said where is the restraint on spending. Are we back to tax and spend ways?

WILLIAMS: I think it's a different era. I think this budget proposal is consistent with Obama's platform. I think our country needs a new economic direction. I think the push for health care, energy and education, is going to be critical as we go forward. Not just for the five -- next five years, but for the next 20 to 50 years for this country. And we need to continue to push on those platforms, even around the financial crisis. We can't wait with clean energy, and new ways to diversify the country away from oil.

ROBERTS: And you know, Mark, we were talking about all of the big numbers here, $1.75 trillion in debt this year. A total of $5 trillion over the next five years. And some people are wondering if the math adds up, can all of this be paid for. There are some people who think that the assumptions on economic growth are just too rosy in this budget -- 3.9 percent growth by 2010, and then four percent in the next three years.

A lot of people surveyed. Economists surveyed said that, hey, we might get 2.9 percent growth over the next four years. Do you think that these numbers are too optimistic? These assumptions in economic growth?

ZANDI: Yes, they're optimistic. Particularly in 2009 and 2010. I think they're expecting the economy to come back quickly, more quickly than I would expect. And I think the consensus would expect. I think a bit further out, once we get out into the out years of the forecast, I think it's reasonable. The projections are on the optimistic side, but they're doable. But in the very near-term, I think they're on the optimistic side.

ROBERTS: So does that mean he cannot pay for what he wants to do?

ZANDI: It's going to be more difficult. You know, I think what's important, though, is that once we get out towards into this term past, hopefully this economic crisis, even if he doesn't hit his $500 billion number in fiscal year 2013, if the trend lines are good, if it appears that the deficits are headed in the right direction, I think that will be an achievement. In the context of all the things that we're going through right now.

ROBERTS: All right. A lot of this is all theory. Mark Zandi for us this morning from Westchester, Pennsylvania. Debbie Wright and Sherri Williams, good to see you this morning, folks.

WRIGHT: Thank you.

ROBERTS: Thanks for coming in.

WILLIAMS: Thank you.

ROBERTS: Kiran?

CHETRY: Well, she's the youngest Miss America in history. Her platform, eating disorders. She joins us with her thoughts on the sometimes cruel scrutiny of stars who gain weight, like Jessica Simpson.

It's 33 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: She made history as the youngest winner in Miss America's history. Now Kirsten Haglund is hoping to break new barriers in a brand new campaign that she light on an issue that many often keep secret, eating disorders. And she joins me now, along with her mother, Iora.

Great to have both of you with us. Thanks so much.

KIRSTEN HAGLUND, MISS AMERICA 2008: Thank you.

CHETRY: The youngest Miss America. By the way, your reign is just ending, right? Three weeks ago.

K. HAGLUND: Yes, absolutely. Right, and I'm 20.

CHETRY: And also you made -- you were the first to make eating disorder awareness your platform. Tell us about your personal story with that. K. HAGLUND: Well, I -- actually, that was the real reason that I wanted to be Miss America. I thought how wonderful would it be to have a national platform, a voice to really speak about this, especially in the fashion and beauty industry.

I chose this as my platform, because I personally struggled with anorexia, I struggled on my first diet. It sounds like a common word, we know, when I was about 12 years old. And it was mostly because of ballet. But I was also genetically predisposed to the illness. And then when I was about 15 turning 16 years old, my mom stepped in and saw that I needed help and took me to the doctor.

It is from there that I got professional help. I was able to see a treatment team of doctors, including a psychologist and nutritionist in order to get better. But it was because I didn't know what the disease was. My family didn't. No one talked about it, especially in the ballet world.

CHETRY: You're right. And, you know, it's so -- and Iora, I want to ask you this. As a parent, you think your first job is to protect your children. You don't want anything to happen to them. You certainly don't want to need outsider to do anything to your child. And then, what do you do when you discover that it's your own child that may be harming themselves? I mean, how do you come to grips with that and begin to deal with it?

IORA HAGLUND, KIRSTEN'S MOTHER: Right, absolutely. Well, my first thought was no, not my child. But then, because I am a nurse, my husband as we said, oh, my gosh, this is terrible. We realized what it could do to our body. And we said we have to get her help. So we just persevered and pushed through it. She was in denial. But we knew it was part of the illness, and so we just kept on pushing to get her the help she needed.

CHETRY: And the other interesting thing is just the pressure. We have a couple of pictures to show. Poor Jessica Simpson...

K. HAGLUND: I know.

CHETRY: ...found herself in the crosshairs. She gained some weight from I guess her quote-unquote "ideal," when she was doing the "Dukes of Hazzard" movie. And it got to the point where I mean even the president was referring to it.

K. HAGLUND: I know.

CHETRY: So, you know, what do young girls do? Also, Jennifer Love Hewitt. She was snapped on the beach in a bikini and people were saying, look at how big she is. Look at how big her thighs are. And these are girls that are probably smaller than most of society.

K. HAGLUND: Right. Well, first of all, it's sensationalism. But the second thing is -- the thing that is good that comes out of it is that it brings it up so we can talk about it. And in general conversation obviously here we can say, that's not right. So that children don't hear that message. But furthermore, what I think is interesting about -- Jessica Simpson is by profession, a singer, an actress. They weren't commenting on her performance. They weren't validating her as a woman based on the things that she did or the person that she was. They were simply validating her existence, really, and her worth on her weight.

CHETRY: Right.

K. HAGLUND: And that's so wrong. So I think it gives us an opportunity to say that we need to value women and men as well, on what they do -- their intelligence, their character, their charisma and the things that they do, and the way that they affect people.

And I'm continuing my work with eating disorders. It really keeps me grounded. I've started my own foundation, The Kirsten Haglund Foundation, to raise money to provide scholarships for treatment for young women seeking, you know, help for this illness.

CHETRY: Well, I am so glad that you're -- that you're an advocate for that. You look great.

K. HAGLUND: Thank you.

CHETRY: And it really is an important issue for young women, especially. Some six, seven million of them are affected by this each year. It was great to talk to you Kirsten, as well as you, Iona.

K. HAGLUND: Thank you.

CHETRY: Thanks so much for being with us.

K. HAGLUND: Yes, of course. And we just want to say if parents want any more information, they can go to renfrew.org. They have a great mom's love campaign that encourages parents to step up and stay vocal about their children's health. So Renfrew.org.

CHETRY: Good stuff.

K. HAGLUND: Right.

CHETRY: Thanks so much, guys.

I. HAGLUND: Thank you.

K. HAGLUND: Thank you.

ROBERTS: Underground marketing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Day shifts, night shifts. How about life shift?

ROBERTS (voice-over): Looking for a few good monks in the New York City subway. Underground marketing.

UNIDENTIFIED MALE: Day shift, night shift, how about a life shift?

(END VIDEO CLIP)

ROBERTS: Looking for a few good monks in the New York City subway. Will the unemployed seek a higher calling?

You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

ROBERTS: The Catholic Church launching a new campaign which inspire young men down on their luck to serve. And they're looking to find recruits and they're looking for them deep underground. And as it turns out, some are answering the call.

CNN's Alina Cho is following the story for us.

You rode the subway, didn't you?

ALINA CHO, CNN GENERAL ASSIGNMENT CORRESPONDENT: You know, I ride the subway almost every day, John Roberts. Good morning, Kiran.

CHETRY: Hi.

CHO: Good morning everybody.

You know, we have all heard the stories about the dwindling number of Catholic priests. Well, the same thing is happening with Franciscan friars, who are also part of the Catholic Church. So the friars are actually doing what many people have found a bit startling. They're actively recruiting by taking their pitch underground.

(BEGIN VIDEOTAPE)

CHO (voice over): The Franciscan friars need a few good men. And they're going to the front lines to find them -- the New York City subway.

UNIDENTIFIED MALE: Day shift, night shift, how about a life shift?

CHO (on camera): That's great.

(voice over): That's the catch phrase of this unusual ad campaign. Targeting men aged 22 to 38. A new generation of friars badly needed. A thousand posters, 200 in Spanish, plastered all over the subway.

(on camera): We have to say, it's a little out of character.

UNIDENTIFIED MALE: It is. But these days, if you're looking for people, for the Franciscans or anywhere else, you have to be creative. You have to go where people are.

CHO (voice over): The timing couldn't be better. Anecdotally, the bad economy is driving more people to church. People suddenly having deeper thoughts.

Father Bryant Smail (ph) used to work at bank.

CHO (on camera): Do you feel like if we're going to get them, we're going get them now?

UNIDENTIFIED MALE: Absolutely. Or at least, it's a -- it's a very opportune moment. There's a lot of self-reflection going on in our society. People have seen that there are limits to the system.

CHO (voice over): Since the ads debuted in late December, traffic to the friars' website is up 40 percent. And so far, 40 men have called.

UNIDENTIFIED MALE: Some people call and say, what does it pay? What's the salary? And others say, how do I sign up? And then we have to explain it's a little bit more complicated than that.

CHO: For the record, six years of training. And outside of food and shelter, the only pay comes from high above. That has not deterred 29-year-old George Camacho (ph). He recently lost his job, saw the ad on the subway and something about those smiling faces grabbed him.

UNIDENTIFIED MALE: It's not the stereotypical priestly kind of activities. You know, they're not super quiet or super formal or incredibly serious. They're like so outgoing. They make jokes. And they just -- they enjoy their life.

CHO: A brotherhood with a vow to serve.

UNIDENTIFIED MALE: What should I be doing with my life? In service, is a big draw for people now, especially young people. They want to give something back.

(END VIDEOTAPE)

CHO: If you look back on history, tough times have been good for Franciscan friars. Listen to this. After World War II, their numbers actually skyrocketed. Men were coming home from war. They were re- evaluating their lives and signing up.

Well, the same thing seems to be happening today in smaller numbers. The recession has caused a lot of people to say, maybe there's more to life than making money. And maybe it is finally time to give back. And certainly, the friars could use a few good men, because just 30 years ago, there were 1,000 friars on the East Coast of the U.S. Today, there are 357 -- 370 if you count the people who are in training, and so, yes, hardly any.

ROBERTS: So, why are the numbers dwindling? CHO: Well, you know, it's interesting. One reason is there's a focus on materialism in this society today, much more so than say 30, 40 years ago. But also, what's interesting is that Catholic families used to be a lot bigger, you know. So, you know, parents were having four, five, six children. They would say, you know, maybe it would be nice if one would go to the convent, men would go to the friary. Today, a lot of those Catholic families are having two children and they're saying, you know what, I want grandchildren, so I want my children to marry. And so that has been a shift as well.

CHETRY: Very interesting.

ROBERTS: Interesting recruiting program.

CHO: And it's working.

ROBERTS: Thanks for bringing it to us.

CHETRY: Thanks, Alina.

CHO: You bet.

CHETRY: Forty-seven minutes after the hour.

Politicians blogging, Twittering, even starring in their own web videos. But are they all really as tech-savvy as they might think?

You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

CHETRY: And welcome back to the Most News in the Morning.

You know, we've all heard about the members of Congress that were Twittering during the president's State of the Union. We even watched lawmakers star in their own video diaries. But not everyone in Washington has fully mastered modern technology. Here's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): There's a new entry enshrined into the Internet blooper Hall of Fame.

BIDEN: Do you know the Web site number?

MOOS: It escaped Joe Biden's lips when asked on CBS about the government's new Web site for tracking stimulus spending...

UNIDENTIFIED FEMALE: By the way, do you know the Web site?

BIDEN: You know, I'm embarrassed.

Do you know the Web site number?

I -- you know, I...

MOOS: The number?

The number?

What's he think the Web is, a phone book?

By not saying Web address, Vice President Biden committed his second faux pas. Previously, he called Recovery.gov...

BIDEN: Recovery.com.

MOOS: So now the vice president enters the pantheon of politicians caught in a worldwide web, joining the President Bush.

GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: And the Google. Internets.

MOOS: Joining former Senator Ted Stevens, describing the Internet.

TED STEVENS, FORMER SENATOR: It's a series of tubes.

MOOS: Joe Biden's minor goof may give those on the right the right to laugh.

RUSH LIMBAUGH, RADIO TALK SHOW HOST: What is the Web site number?

MOOS: But in his rush to poke fun, Rush Limbaugh called "gov," "org."

LIMBAUGH: It's Recovery.org -- Recovery. -- have you gone to Recovery.org?

MOOS: These days, politicians are leaping onto the Web. Texas Congressman John Culberson was acting like a tour guide, running around the Capitol before the president's big speech...

REP. JOHN CULBERSON (R), TEXAS: Hi, officer. I'm Congressman Culberson. I'm broadcasting on my Internet Web site. Now, who's coming through this door? Oh, the president will come, actually, from the Senate side, I guess, won't he, officer?

MOOS: None of your business, Congressman. He trained his camera on the press.

CULBERSON: Yes, I'm actually broadcasting on qik.com but I'm also sending Tweets from both my BlackBerry and I'll be Twittering throughout the State of the Union address.

MOOS: All the Congressional Twittering has Steven Colbert making up Tweets -- for instance, from 91-year-old Senator Robert Byrd...

STEPHEN COLBERT, HOST "THE COLBERT REPORT: What is this hello, hello, Klondike, 8453, dot, dot, dot, dash, dash, dash, dot, dot, dot?

When he panics, he reverts to Morse code. MOOS: Not Senator John McCain. Remember how he once called himself computer illiterate?

No more.

(on camera): Even John McCain has a new BlackBerry and is sending out Tweets -- which puts him ahead of me. Here's an actual McCain Tweet: "Tomorrow, I am going to Tweet the top 10 porkiest projects."

(voice-over): Maybe I don't want to join this conversation. Twitter, Tweeter, I Tweet, therefore I am. But if you don't want to enter the Twittosphere, your days are numbered.

BIDEN: Do you know the Web site number?

MOOS: Jeanne Moos, CNN...

BIDEN: The Web site number...

MOOS: ...New York.

(END VIDEOTAPE)

ROBERTS: Robin Hood economics.

(BEGIN VIDEO CLIP)

OBAMA: $250,000 a year.

$250,000 a year?

Yes, $250,000 a year.

ROBERTS (voice-over): The president's plan to tax the rich to solve our problems. Whether his gamble could cost you.

Plus, drugs, blood money and guns. War on the border ignites a larger debate about the Second Amendment.

UNIDENTIFIED MALE: Reinstitute the ban on the sale of assault weapons.

(END VIDEO CLIP)

ROBERTS: You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SAMUEL WURZELBACHER, "JOE THE PLUMBER": We depend on the news for all our information. Well, it's a matter of time before people started putting their own opinions in there and then selling these facts and getting you guys to think a certain way. And they've been very successful. So they're not going to stop any time soon. (END VIDEO CLIP)

ROBERTS: It appears that Joe the Plumber's 15 minutes of fame haven't quite run out yet. Earlier this week, he said that he might run for Congress one day. And if elected, well, he might just end up in jail. With a look at that and other stories from inside the beltway this week, we turn to CNN contributor and "Washington Post" columnist Dana Milbank.

Dana, it's good to see you this morning.

DANA MILBANK, CNN CONTRIBUTOR: Good morning, John.

ROBERTS: So Joe the Plumber addressed C-Pac. He also was at a luncheon for American's for tax reform in which he said, which he said that he might run for Congress, but added, quote, "I'd probably be in jail more often than I'd be on The Hill for slapping some member. And that's not bull (BLEEP), either."

His 15 minutes -- they just -- they seem to be lasting for 15 months, what's going on?

MILBANK: Oh, at least -- and it's just beginning. I think it's fair to say that he has come out better from this campaign than actually John McCain did. So we've got the media criticism, we've got him as a Mid-East correspondent. He's actually going to write his own tax policy. He's advising the Republican Party. And now, please God, let him run for Congress. Because this would be a great thing for our business.

They don't take too kindly on members of Congress striking each other. You may remember Cindy McKinney hit the Capitol cop with her cell phone. She lost in the primary, but it will be magnificent entertainment.

ROBERTS: You know -- I mean, you don't necessarily have to strike a member. You could, as the vice president did, just sort of upbraid them with colorful language. But do you think that he would fit in? I mean, there's a chance that if he were to run in his district in Ohio, he just might win.

MILBANK: For my experience with the 435 of them that are there right now, I don't think he would be anything out of the ordinary. We've got an awful lot of characters there. The question is, does he really want to do this? This man is the de facto head of the Republican Party right now. I think he's just fine where he is.

ROBERTS: Him and Rush Limbaugh. Hey, something we saw in this year's, what would have been I guess the state of the union address, in any other year, but just the president's address to Congress was, at the same time he was up there at the podium speaking, thumbs were blazing throughout that chamber as people were sending out Tweets on Twitter.

And you had an interesting observation about all of this. She wrote, "President Obama spoke of economic calamity and war, and lawmakers watched him with the dignity Americans have come to expect of their leaders. They whipped out their BlackBerries and began sending text messages like high school kids bored in math class." We certainly never have seen anything like this before.

MILBANK: No, it started gradually with the BlackBerries. But this year, it was -- you could literally see them, you know, getting -- going to have carpal tunnel with all the thumb action that's going on there. One of them was saying Tweeting, that she had just given a big Wahoo when Justice Ginsberg came in. And the other one suggested that people tune in to the Aggies game on ESPN, too, if they don't want to see Pelosi smirk. These are the leaders of our nation.

But, you know, it's getting rather too pervasive I might say. Even found there's an anchor of a certain morning news show that's been on Twitter recently talking about how many beads that he got in New Orleans recently.

ROBERTS: Yes, I got a few. I'm looking forward to your first Tweet on Twitter.

Hey, one other story that kind of went uncovered this week was the raccoon at the White House. What was the deal with that?

MILBANK: A very significant story. You know, the president has said he's going to close down Guantanamo Bay. But he still believes in his practice of extraordinary rendition. They caught the raccoon, live captor, swept him off to an undisclosed location. Possibly the same place Dick Cheney was hanging out all those years. It was a very difficult maneuver. They tried peanut butter. Very smart. The raccoon evidently knew about the recall there. Finally, caught the critter with some salmon.

ROBERTS: All right. And keeping it all under wraps as well. Dana Milbank, it's great to see you. Thanks very much for dropping in. Have a great weekend.

MILBANK: Thanks, John. You, too.

CHETRY: All right. Well, we're coming up right on 7:00 here in New York.