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CNN Saturday Morning News
President Obama Fighting For His Budget Plan; 13 Bodies Found in New Mexico; Republicans Looking For New Leadership and Ahead to 2012; Doctors Performing Surgery to Separate Conjoined Twins in Saudi Arabia; Some Mayors Saying They Won't Accept Parts of the Stimulus Package
Aired February 28, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN HOST: Hello there everybody, from the CNN Center in Atlanta, Georgia. This is CNN SATURDAY MORNING, 6:00 a.m. on the East Coast, 3:00 for you folks coming in from the club out there on the West Coast.
BETTY NGUYEN, CNN HOST: Early.
HOLMES: Hello to you all. I'm T.J. Holmes.
NGUYEN: Good morning, everybody. I'm Betty Nguyen. Thank you for starting your day with us.
You know, we do have a whole lot in store for you this morning. Listen to this. As we know, people all over the world are experiencing economic times, difficult ones. We're going to introduce you to a man who lost everything, his job, his house, his wife, and his kids. He is forced to live in that tiny room the size of a closet.
HOLMES: Tough for him, but the tough time taking a toll on another man who is essentially known as a well respected businessman, a church deacon, a husband, a father of four, also a soccer coach. That was him you just saw there. Also being accused of being something else, a bank robber, and folks. We'll tell you what led him to this desperate move.
NGUYEN: And millions are unemployed. We are trying to help you this morning. In fact, we have a career builder expert on hand. So send a resume to Weekends@CNN.com. In our 9:00 Eastern hour he is going to take look at several and call you live on the air so you can get some free advice.
HOLMES: All right. Of course, President Obama just had that huge battle that he won over his stimulus bill. That one now is the law of the land. That might have been easy compared to his next big fight, the budget plan that is coming up. He'll be fighting some from his own side of the aisle, and the Republicans, of course, with a huge $3 plus trillion budget. The president said the big part of the change he promised out there on the campaign trail, but he knows it has plenty of hurdles.
Also this story coming to us out of Albuquerque, New Mexico, the bodies of 13 people, including a fetus, has been found in shallow graves at a construction site west of Albuquerque. Police have identified two as prostitutes reported missing in 2004. The bodies were likely buried by a single person.
Another story we are keeping an eye on, out of Saudi Arabia where a surgery is going on right now. Doctors performing a surgery to separate a care of conjoined twins, the boys are from Egypt. They've been in Rihad since about February 10th. The hospital where the operation is already taking place already famous for separation surgeries. We'll be getting an update and talking live with the doctor who has been in that operating room, this morning.
NGUYEN: Let's talk politics right now. Because President Obama is making sweeping changes after a month in office. Yesterday he announced the end date for the U.S. combat mission in Iraq. The majority of those troops will leave by August of next year. We're going to have more on that in just a minute.
Do you remember this on Thursday? The president then unveiled a bold ten-year budget plan. It would impact break for those making more than $250,000 a year while giving tax cuts to everyone else. Now, the president also promises to reduce the massive deficit in half by 2013. Earlier in the week he met with governors during the annual meeting and heard what the states want from their stimulus plan.
Let's get more now on the president's plans for Iraq. He announced the withdrawal timetable yesterday. Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Let me say this as plainly as I can. By August 31st, 2010, our combat mission in Iraq will end.
(END VIDEO CLIP)
NGUYEN: But here's the twist. Some top Democrats are taking issue with the president's withdrawal plan. Many are unhappy with his decision to leave 50,000 troops behind to help finish training the Iraqi military. Republicans say they're reasonably satisfied with the plan. In case you missed it when the president officially announced an end to the war in Iraq, you can catch part of the president's speech right here in CNN about 30 minutes from now, at 6:30 Eastern.
HOLMES: President Obama's proposed budget a bit of a break from the ideas of the past 30 years. Of course, creating a storm on both sides of the aisle.
Our senior political correspondent Candy Crowley looks at the winners and the losers.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice over): This is not a book of numbers. It's a sea change.
ROBERT REICH, FORMER LABOR SECRETARY: This is a transformational budget. This is the first budget I have seen since the Reagan era, since Reagan's first budget that really made a fundamental statement, we are going in a different direction, folks.
CROWLEY: A leading Republican voice actually agrees with the analysis with considerably less enthusiasm.
NEWT GINGRICH (R), FORMER HOUSE SPEAKER: I think it is the boldest effort to create a European socialist model. I think it's quite clear what his values and his attitude is.
CROWLEY: Losers include upper income seniors who will pay more for prescription drugs; farmers with sales over $500,000 who will lose their subsidies, households making over $250,000 will get a tax increase. One person with taxable income of $200,000 will pay on average $6,000 more. A family of four with a $500,000 income will see their taxes go up, on average $11,300.
Also hitting the upper bracket, a tax increase on capital gains and limits on deductions, including mortgage interest and charitable contributions.
KEN BERGER, PRES. CEO, CHARITY NAVIGATOR: I think it's a horrible idea, really horrible idea.
CROWLEY: The Obama administration says people will give any way, but charitable organizations squeezed by higher demand and fewer contributions worry they can't take another hit.
BERGER: Discouraging the wealthiest from giving in this way could be devastating for some charities. We've already gotten estimates that a couple hundred thousand charities may close their doors as it is because of the economy. Then you add stuff like this and it becomes all the more frightening.
CROWLEY: Winners, middle and lower class taxpayers and the poor. According to the Office of Management and Budget, on average a family of four making $76,000 would see their taxes lowered by $800. The same family making $35,000 would see taxes reduced by $1200. They would also benefit from huge spending increases in education, energy, and, most of all, new health care plans, as yet unspecified.
REICH: This country is no longer taking this road. Call it, for want of a better term, the right road. We're taking more of a left of center road, but it's a road that we have to take because the big problems in front of us.
CROWLEY: It is the end of Reaganomics and the beginning of Obamanomics.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
HOLMES: The president will be talking Obamaomics coming up in his weekly radio address today. We'll have that for you in the next hour.
NGUYEN: All right. This weekend, I know you're excited about getting out and about, but there is some wicked weather in parts of the nation.
Let's get to that with CNN's Reynolds Wolf. Reynolds what do you have?
REYNOLDS WOLF, CNN METEOROLOGIST: I don't know what it is. Seems like in the weekends things intensify in terms of the rough weather. That is going to be the case this morning. We do have strong showers and storms forming across parts of the southeast of the United States. The biggest issue we are going to have is the possibility of flash flooding.
Yes, there's a chance we could get tornadoes. Right now your big threat again is going to be the heavy rain that is pounding through parts of the Tennessee Valley, into central Alabama, south and southwest of Birmingham right now. We get particularly very heavy cells.
As this moves through areas that have already been soaked with rain, additional moisture is going to cause some runoff that runoff is where you could be dealing with some flooding. As we pull away a little bit something else we're going to see later on today is a chance of severe weather not just in Alabama but possibly back over into Georgia. Eventually later on today into the Carolinas. This morning, coming in from Baton Rouge or parts of St. Lafayette, Louisiana, you're going to hear that rumble of thunder for the day.
Farther to the north a different issue all together, there's a chance you may be dealing with scattered snow showers across much of the Great Lakes. In terms of your daytime high temperatures, chilly as you would expect in places like Chicago.
No delays expected at the airports, 29 degrees the high for the day. Boston, New York, mainly, into the 40s. Plenty of sunshine for you here today in New York today. However, tonight, there will be a chance of light dusting of snowfall. That may stick around into Sunday as well, 51 your high in Denver, 71 in Las Vegas, 86 in Phoenix, and 66 in Houston.
That is a quick check on your forecast. We will have a lot more coming up through out the day. Let's send it back to you at the news desk.
NGUYEN: All right. So 62 today in Atlanta. But maybe by tomorrow snow?
WOLF: There's a very slight chance. Mainly to the northern half of the state. Now, if you step outside tomorrow you might see a snowflake or two but it looks like we're not going to be building snow men by tomorrow.
NGUYEN: Don't let the temperatures fool you. It is still February.
WOLF: Yes, it is indeed.
NGUYEN: So you have heard the Republican criticism. President Obama's tax plan will hurt small businesses. That's what we're hearing.
HOLMES: We heard that on the campaign trail as well. Another criticism we're going to be hearing a lot about is his housing plan rewards those who bought homes that they couldn't afford. What exactly is the truth about this, so what else do we give you? You need a reality check. It is coming your way stay tuned.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I lost my job three months ago. I gave up shopping, driving, pretty much everything just to save money. I'm just afraid. I try not to drive much. I try to walk so I don't have to spend money on gas. But I have -- I get unemployment but it pays the rent, the cable, the phone, and then grocery shopping. So pretty much, I have nothing left.
(END VIDEO CLIP)
HOLMES: That's heartbreaking to hear that. A lot of folks are going through that right about now in this country. A lot of debate about the budget, a lot of debate about the stimulus package and just how we're going to move forward. There's been a let of debate we saw up there up there on the campaign trail, arguments about how to handle the economy. Probably just a matter of time before we saw the old arguments coming right back.
NGUYEN: Well, in fact it is happening right now, as some Republicans say President Obama's economic plan will hurt small businesses. CNN broke this down during the election and now our Josh Levs is here with a "reality check." What are you finding?
JOSH LEVS, CNN CORRESPONDENT: When you talk about hurting small businesses, you guys get a little deja vu? It's amazing how it comes back. Check it out. This is what the truth squad did. Would Obama hike taxes on small businesses? Several Republican lawmakers have been making this argument about the president's tax plan.
I'll give you one example from this week.
(BEGIN VIDEO CLIP)
SEN. JUDD GREGG (R), NEW HAMPSHIRE: If you go to a restaurant where you have a small business, software company that's growing or you have a garage or you've got an automobile dealership or you're a realtor, you're a social appropriate or and you're getting hit now with a tax rate that's going to jump from 35 percent up to 41 percent. Where do you pay for that? You lay people off.
(END VIDEO CLIP)
LEVS: All right. Here's the idea. Let's get this in fact here. President Obama is not proposing raising business taxes. What he does is he says he will raise income taxes on couples making more than $250,000 a year. Let's go to this summary from the "Associated Press." They sum it up. Would Obama raise taxes on small business most job- producing small businesses would not feel that pinch? Most would get Obama tax break for the middle class.
Here are a few important facts about this. You've got 6 million businesses in the U.S. that have employed about 20 million don't. The tax policies estimated, there are about 660,000 taxpayers who report business income and fall into this tax brackets whose rates would go up. Many of them have no employees. The short version here, we're talking about a small fraction of small business owners who might see their taxes go up under this plan. And guys most will probably get a tax cut.
NGUYEN: Later this morning you're going to be breaking down a claim, another claim, in fact that the president made this week.
LEVS: Yeah. We are. You referred to earlier about the housing plan. He said something that was off base and caught a lot of people off guard and surprised some people. We are going to break that down for you in the 8:00 hour.
NGUYEN: Looking forward to that. Thank you Josh.
All right. So folks, try this one on for size.
HOLMES: All right.
NGUYEN: President Palin. How does that sound?
HOLMES: Some people like the sound of it.
NGUYEN: What about President Mike Huckabee? President Mitt Romney? We are looking ahead to 2012.
HOLMES: Sounds like you're looking back to 2008, these are familiar faces.
Also, take a look. A live picture that is an operating room in Riyadh, Saudi Arabia. A live picture we can show you. What is happening here, conjoined twins are being separated in a 15-hour surgery, an eight-phase surgery, and we're told it is, about three hours ahead of schedule. We will be talking to one of the surgeons, the head surgeon in that room right now. He will be joining us live. You don't want to miss it.
(COMMERCIAL BREAK)
NGUYEN: Republicans are looking for leadership after losing the White House and Congress last election. 2012 is a long ways off, but a new poll shows most Republicans might turn to some familiar faces in the next presidential race.
Our senior political analyst Bill Schneider sizes up the current top choices.
(BEGIN VIDEOTAPE) WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Republicans are ready to cast their next movie, 2012, the sequel. They've got a script.
GINGRICH: Listen carefully to the president's speech that night. I think it is the boldest effort to create a European socialist model we have seen.
SCHNEIDER: But who's the lead? George W. Bush, Dick Cheney, John McCain? Their last pictures bombed. John Boehner, Mitch McConnell, they are minority leaders, bit players. The CNN poll conducted by the Opinion Research Corporation asked Republicans who they liked best for their party's 2012 nomination. There's no clear front-runner among the three best known contenders. Sarah Palin's whose debut was a little bumpy.
GOV. SARAH PALIN (R), ALASKA: You travel this road in life and as you turn a corner there may be something there, circumstancing change and you call an audible and decide to shift gears, take another direction, I'm always open for that.
SCHNEIDER: Mike Huckabee who's got some good lines.
MIKE HUCKABEE (R), FORMER PRESIDENTIAL CANDIDATE: 1100-page bill that nobody read actually did have a title, its name of a movie, "Confessions of a Shopaholic."
SCHNEIDER: And Mitt Romney who looks like a leading man.
MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: I'm going to do my very best to help the Republicans across the nation re-establish a balance of power in Washington.
SCHNEIDER: How about casting a minority? Governor Bobby Jindal of Louisiana. Whoops, his screen test didn't go so well.
GOV. BOBBY JINDAL (R), LOUISIANA: Our party is determined to we regain your trust.
SCHNEIDER: Some Democrats already know who they want to cast as the Republican's leading man. He's featured in a new ad being run by "Americans United for Change."
Can a picture do well even if it doesn't have a well-known star in the lead? Maybe. "Slumdog Millionaire" just won the academy award.
Bill Schneider, CNN, Los Angeles.
(END VIDEOTAPE)
NGUYEN: I said "Slumdog Millionaire."
HOLMES: Yes, you can.
Speaking of yes, you can, President Obama is leading no doubt now on what he plans to do with U.S. troops abroad. (BEGIN VIDEO CLIP)
OBAMA: Let me say this as plainly as I can. By August 31st, 2010, our combat mission in Iraq will end.
(END VIDEO CLIP)
NGUYEN: Talking about that and this, a remarkable surgery under way right now to separate conjoined twins. These are live pictures inside the operating room. You don't want to miss this.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
STEVIE WONDER, SINGER/SONGWRITER: Signed, sealed, delivered, I'm yours
(END VIDEO CLIP)
NGUYEN: Yes, it was signed, sealed and delivered, we are talking about the Library of Congress Gershwin Prize to a composer or performer given a life time contribution to the art and of course that being Stevie Wonder.
HOLMES: He's made a pretty good contribution to all of our lives pretty much especially the president. The president did give that award to Stevie Wonder and the president credits Stevie Wonder and his music for hooking up he and Michelle. He said he probably would not have dated and then married Michelle Obama had she not -- had he not been a Stevie Wonder fan.
NGUYEN: Stevie Wonder's wife, if we got that video back, hooked up Michelle with that lovely green dress that she was wearing because his wife is a designer. And so, of course, the First Lady being seen out and about in a lot of lovely designs. She is one to watch. That's a great advertisement if you can get any.
HOLMES: Perks of the job. Everyone wants to give you clothes. I can't even get a tie from somebody.
NGUYEN: Exactly. We got nothing here. Lovely performance. Really well-deserved honor there.
We do want to welcome you back on this Saturday morning. Hello everybody, I'm Betty Nguyen.
HOLMES: Good morning to you all, I'm T.J. Holmes. Glad you could be right here with us.
NGUYEN: All right. Passing the budget. That's what President Obama is focusing on during this weekends radio address. The bold plan he unveiled this week could cut taxes for most Americans and slash the deficit. Now, the president knows it won't pass without a fight but he says he is ready for it. So it's going to be a while before the Barry Bond's perjury trial makes to it court. Federal prosecutors are delaying the trial while they appeal a rule that puts key evidence in the case off limits. Jury selection was supposed to start Monday. As you know, Bonds was charged with lying to a federal grand jury investigating the use of banned performance enhancers.
HOLMES: And Reynolds Wolf is visiting us up here at the desk. That graphic tells the story. It's always something on the weekend.
WOLF: You have that theme music that goes with it. Some people have a trumpet fanfare; we've got the drums of doom.
NGUYEN: It does. It makes you kind of feel like something ominous is coming your way.
WOLF: It really does. And to put things in perspective, things could be kind of ominous in parts of the southeast. This morning we have a chance of some strong storms, maybe a few scattered showers, possibly flooding in a few places. Another thing that's interesting is what may happen not today but tomorrow. You guys mentioned the "s" word, four letters.
HOLMES: Which one.
NGUYEN: No.
WOLF: Yeah.
HOLMES: He said four letters.
NGUYEN: Where is your mind?
HOLMES: He set me up.
WOLF: I did. Cast it out there and reeled it in. You're right. We are talking about snow. Although we may see an inch or less in Atlanta. Big deal in New York or in the northern plains, huge deal here.
NGUYEN: But it has been in the 60s here.
WOLF: It really has.
NGUYEN: Snow tomorrow is kind of jarring.
WOLF: I know. It is a little bit crazy.
(WEATHER REPORT)
HOLMES: All right. We are coming up on the six-year anniversary of the start of the war in Iraq. Here we are six years later, 4,000 Americans who have died in that war. Of course, we knew president bush was adamant he would not set a time line for pulling out troops in Iraq.
NGUYEN: Right.
HOLMES: Well, we got something that's as close to a time line as we're going to get from President Obama yesterday. He finally put an end in sight to the combat mission in Iraq.
NGUYEN: Yes, he did. In fact, he gave the details yesterday during his first visit to a military base as president.
(BEGIN VIDEOTAPE)
OBAMA: Let me say this as plainly as I can, by August 31st, 2010, our combat mission in Iraq will end. As we carry out this drawdown, my highest priority will be the safety and security of our troops and civilians in Iraq.
So we will proceed carefully, and I will consult closely with my military commanders on the ground and with the Iraqi government. There will surely be difficult periods and tactical adjustments. But our enemy should be left with no doubt, this plan gives our military the forces and flexibility they need to support our Iraqi partners and to succeed.
The drawdown of our military should send a clear signal that Iraq's future is now its own responsibility. The long-term success of the Iraqi nation will depend on decisions made by Iraq's leaders and the fortitude of the Iraq people. Iraq is a sovereign country with legitimate institutions. America cannot, and should not, take their place.
There will be more danger in the months ahead. We will face new tests and unforeseen trials, but thanks to the sacrifices of those who have served, we have forged hard-earned progress. We are leaving Iraq to its people and we have begun the work of ending this war. Next month will mark the sixth anniversary of the war in Iraq. By any measure, this has already been a long war. For the men and women of America's armed forces, and for your families, the war has been one of the most extraordinary chapters of service in the history of our nation.
Many of you have endured tour after, tour after, tour of duty. You have known the dangers of combat and the lonely distance from loved ones. You have fought against tyranny and disorder. You have bled for your best friends and for unknown Iraqis. And you have born an enormous burden for your fellow citizens, while extending a precious opportunity to the people of Iraq.
Let there be no doubt, Iraq is not yet secure and there will be difficult days ahead. Violence will continue to be a part of life in Iraq. Too many fundamental political questions about Iraq's future remain unresolved. Too many Iraqis are still displaced or destitute.
Declining oil revenues will put an added strain on a government that has difficulty delivering basic service. Not all of Iraq's neighbors are contributing to its security. Some are working, at times, to undermine it. And even as Iraq's government is on a sure footing, it is not yet a full partner, politically and economically, in the region or with the international community.
In short, today there is a renewed cause for hope in Iraq, but that hope is resting on an emerging foundation. We will not let the pursuit of the perfect stand in the way of achievable goals. We cannot rid Iraq of every single individual who opposes America or sympathizes with our adversaries. We cannot police Iraq's streets indefinitely until they are completely safe, nor can we stay until Iraq's union is perfect. We cannot sustain indefinitely a commitment that has put a strain on our military and will cost the American people nearly a trillion dollars.
America's men and women in uniform, so many of you, have fought block by block, province by province, year after year, to give the Iraqis this chance to choose a better future. Now we must ask the Iraqi people to seize it.
As candidate for president, I made clear my support for a timeline of 16 months to carry out this drawdown, while pledging to consult closely with our military commanders upon taking office, to ensure that we preserve the gains we have made and to protect our troops. These consultations are now complete. I have chosen a time line that will remove our combat brigades over the next 18 months.
Let me say this as plainly as I can. By August 31st, 2010, our combat mission in Iraq will end. We will retain a transitional force to carry out three distinct functions, training, equipping, and advising Iraqi security forces as long as they remain nonsectarian, conducting targeted counter-terrorism missions, and protecting our ongoing civilian and military efforts within Iraq.
So to the Iraqi people, let me be clear about America's intentions. The United States pursues no claim on your territory or your resources. We respect your sovereignty and the tremendous sacrifices you have made for your country. We seek a full transition to Iraqi responsibility for the security of your country. And going forward, we can build a lasting relationship founded upon mutual interest and mutual respect, as Iraq takes its rightful place in the community of nations.
(END VIDEOTAPE)
NGUYEN: All right. So just because the combat mission will end doesn't mean every soldier is coming home.
HOLMES: Yes. Several of them, tens of thousands will have to stick around to back up Iraqi forces. Our Pentagon Correspondent Chris Lawrence shows us where they're still needed.
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Betty, T.J., they've been called support troops, enablers, but when the president calls them non-combat troops that can be a little bit misleading. First of all, let's give you a little bit of a historical perspective.
Back at the height of the surge, you can see where the U.S. was operating in and around Baghdad, a lot of bases there. Gradually, over time, they have pared back, mostly to the perimeter of the city, with the obvious exception of the green zone right there. The troops that will remain after this major drawdown will mostly be operating at major bases outside the major cities, like Ballad.
We're talking about surveillance, and intelligence personnel, and all their related equipment, which could include some unmanned aircraft. These troops are going to have three major missions. One, to continue to train and equip the Iraqi police and army; that means they're going to be embedded with them, which means they could also be in the line of fire. They're going to be going on certain missions with them.
Two, protecting civilians: That means protecting U.S. assets, protecting some of the rebuilding projects that are going on. Again, protecting means defending, which means they could also be in the line of fire.
Finally, conducting some limited counter-terrorism operations. In a nutshell, that means they're going to be going after the bad guys, which again, puts them at risk. We're told those missions will be done primarily with the Iraqi forces in the lead, with the Americans assisting. But again, any way you slice this, they are still going to be operating in a war zone, Betty, T.J.
NGUYEN: All right, so there you have it. Not all of them coming out by August of 2010.
HOLMES: Still many are going to be left over there until the end of 2011. We are wanting you to participate in our newscast this morning. We are asking you for your comments about the president's Iraq war plan. I know it's early, just 6:40. Some people are up and they are paying attention and watching. Betty and I both have Facebook pages. You can find those pretty easily with a Google search.
NGUYEN: Yes, just type in our names, you'll find it.
HOLMES: You'll find it there.
NGUYEN: We have the question of the day, what do you think about the president's plan to pull U.S. troops out of Iraq by 2010? We've already gotten some pretty good responses.
HOLMES: Here's one, from Mark Jones, just came in to us less than three minutes ago.
Says, "This will free up some needed funds. There have been many dollars spent fighting a threat that was not there."
We have a few coming in so far. Again, it's early. But we're letting you know, please, we want you to participate in our newscast. We will be using your comments. We like your comments. What do you think about the president's Iraq plan? Any facet of it, please, give us your opinion at Facebook pages, also weekends@ cnn.com. We will take them there as well.
NGUYEN: Let your voice be heard.
OK, as you know, we're in a global recession. It's not just a problem right here in the U.S.
HOLMES: Yes. And you're about to meet a man in Tokyo who has everything, for a while he was even living in a closet. Said to be living in a closet, folks, this man lost just about everything he had. His story is coming up. Stay here.
(COMMERCIAL BREAK)
HOLMES: From swanky hotel rooms to the backseat of a car? I know you're wondering where I'm going with this thing, here, Betty.
NGUYEN: Yes.
HOLMES: Just about everybody is cutting back. Cheating spouses no exception. Now you see where I'm going with this thing.
NGUYEN: Uh-oh.
HOLMES: Here's what a private investigator told our Randi Kaye.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There were no heads in the front seat anymore. I'm working with a guy, and I said, Mark did you miss that? Did they leave? No, no, no. I said, Well, let's just sit here for a second. The next thing, two feet come right up on to the windshield.
(END VIDEO CLIP)
NGUYEN: Oh, my goodness.
HOLMES: Did he have to be so descriptive?
NGUYEN: I have a bad visual image right now.
HOLMES: OK. All right, folks. Well, it's definitely easier to catch the cheater. However, the investigator says business these days is down about 75 percent. Stay with us.
(COMMERCIAL BREAK)
HOLMES: The global recession costing people not just their jobs, not just their homes, in some cases costing them even their families. CNN's Kyung Lah has one man's story from Tokyo.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT (voice over): This was home for Ito Fumieto (ph), the size of a closet that had what he needed most, an internet hook-up and computer to job search. Ito rented this net room for around 20 U.S. dollars a day after he lost his art gallery director job, his expensive home and went bankrupt. And his wife and three children left him.
Six months later, life has improved.
UNIDENTIFIED MALE: (Speaking Japanese)
LAH: Ito (ph) has a tiny apartment with his own kitchen and bath. But more importantly, a job. It's not glamorous, but it's saving him from a life on the streets. Ironically, the same economic downturn that caused Ito (ph) his upper-class lifestyle landed him this job. Su Casa (ph), a company that created the net room is seeing a boom in demand for its cheap daily rooms.
"Occupancy is always 100 percent," says Su Casa's general manager. The company is constructing more buildings but can't keep up with the demand. Su Casa is growing beyond expectations, hired Ito a few months ago.
"This is today's Japan," says Ito. "It's a reality of the country. There's no safety net. We don't know our lives tomorrow."
You can hear that same warning again and again in Tokyo's tent cities. This is a once unthinkable scene in a country where lifetime employment was a rule just a decade ago, after the change of labor laws, temporary workers now make up a third of Japan's workforce. They make less, have few employment rights compared to full-time workers, and are being fired en masse in Japan's recession.
"They're the working poor and they're the ones losing their jobs," says the Young Worker's Union Makoto Kawazowai (ph). "It's not true anymore that Japan is a stable, rich country."
Kawazowai (ph) says there's not enough unemployment insurance for these workers and not enough jobs. The fired have no way out.
(On camera): Compounding the problem, Tokyo is one of the world's most expensive cities. So the line between comfortably middle class to suddenly homeless, is in some cases very thin.
It was for Ito, who still grieves for what he once had. But he's trying to focus on rebuilding a life.
"Step by step," he says, a process that is painfully slow, unlike how quickly you can loose it all in this economy.
Kyung Lah, CNN, Tokyo.
(END VIDEO CLIP)
HOLMES: That was in Tokyo, but losing a job is difficult no matter where you are, no matter where you live. We are trying to help our viewers find work. You can send your resume to us at weekend@cnn.com. Then at 9:00 Eastern, we're going to have a Career Builder expert, who is going to be here with us, looking at a lot of resumes and possibly be giving you a call with some advice. Going to maybe advise you on maybe you need to get a new skill, maybe need to switch professions, maybe just need to dust off that resume ...
NGUYEN: Or maybe you need to move to where the jobs are. There's a lot of information out there. It's just a matter for those looking for jobs being able to get their hands on that, so they can be at the right place at the right time and become employed again.
HOLMES: So, looking forward to those conversations we're going to have today.
NGUYEN: Right. In the meantime, though, most of us, you know, the thought of separating conjoined twins is just remarkable.
HOLMES: Yeah. But this team here, it's a live picture. This surgery is happening right now. For them, it's kind of becoming routine. The lead surgeon you see standing there is going to join us live to give us an update on this 15-hour marathon surgery that is happening right now to separate conjoined Egyptian twins. Stay with us.
(COMMERCIAL BREAK)
NGUYEN: All right. We have heard some really desperate acts. But a deacon being held on a million bucks bail because he is accused of robbing a bank? Can you believe this story? He is charged with armed robbery, folks. Two counts of kidnapping and weapons charges. The family says recent financial problems led him to act out of character.
But here's what is so shocking. Not only is he a deacon at the church, he's also a real estate company, a kids' soccer coach and also the father of four. He surrendered after an hour-long standoff with police on Thursday.
HOLMES: They say he's never been in trouble with the law before.
NGUYEN: Desperate times.
HOLMES: For everybody.
NGUYEN: Obviously, that is not the answer because every time it happens they get busted.
HOLMES: It says a lot for somebody to get to that point. All right.
We got this -- I've been waiting to see this picture. I didn't want to see it earlier.
NGUYEN: Me neither. I didn't want to see it either. I want to be frightened on my own.
HOLMES: Yeah, all right.
NGUYEN: OK, let's zoom in. Can we get a better shot of this? Because this is --oh, where is -- my goodness. This, folks, is a cat.
HOLMES: Oh!
NGUYEN: It's named ugly for good reason. It's apparently the talk of New Hampshire. He's drawing a whole lot of attention at the town's veterinarian hospital. Because clients can't seem to take their eyes off of him. HOLMES: They actually call it -- it has a full name, Ugly Bat Boy, is the name they give it.
NGUYEN: Oh, my goodness.
HOLMES: But the cat, otherwise, is in good health. Had another, like a sister, in the litter that looked just like this, so the doctor says the cat is just fine.
NGUYEN: The hair is --what little hair it has looks matted. And you like cats.
HOLMES: You know I like cats.
NGUYEN: You're not taking that one home?
HOLMES: We can get this one down, all right, folks.
Let's go on to much more pleasant looking things.
NGUYEN: Something pretty.
HOLMES: Here it is, folks. The official portrait of the first lady, Michelle Obama. The official portrait taken in the Blue Room. It was just released on Friday. Of course, this is a tradition of all the other presidents and the first ladies have their portraits done and they're hanging somewhere in the Library of Congress, around the White House, somewhere at least. This is hers officially. Not sure where it's going to be hanging. She looks good.
NGUYEN: Yes, wearing a black sleeveless dress and white pearls, taken of course, by the White House photographer. What a gorgeous shot there of First Lady Michelle Obama.
HOLMES: All right. We are going go back to those live pictures right now. And then talk to that doctor, again, this is a surgery happening in Riyadh, Saudi Arabia, right now. It's a 15-hour surgery to separate conjoined twins. We will be talking to the doctor who is heading up that team right after the break.
(COMMERCIAL BREAK)
HOLMES: All right. As we've been reporting this morning, showing you live pictures out of Riyadh, Saudi Arabia, the actual operating room where doctors there are working in a 15-hour -it was scheduled to be, at least -- a 15-hour surgery to separate conjoined Egyptian twins. Joining me now is the minister of health for Saudi Arabia, Doctor Abdullah Al-Rabeeah. He is head of that surgical team and he has done several of these before actually.
Sir, just give us the update on these two, on these brothers, how is this operation going so far?
DR. ABDULLAH AL-RABEEAH, MINISTER OF HEALTH, SAUDI ARABIA: Well, this operation is going very well. We started on with seven hours ago. The twins are stable. We haven't incurred any major problems. Their vital organs are also very stable. We have separated successfully the joined bowel. We have also managed now to separate a good part of the urinary system, their kidneys, their bladders.
And now we're working on the genital structure separation. To follow that we will be separating also their pelvic organs and hopefully will be splitting them within the coming three hours, or so. And then we have to reconstruct their organs after that.
HOLMES: Sir, you all -- your surgical team, and you personally, have been a part of several of these now. Tell me, how is this one -- I guess, each one would be unique -- but is this one offering some different challenges from so many others you've done before that maybe make this one more challenging, or even less challenging than some of the others?
AL-RABEEAH: Well, I think conjoined twins, each one has its own challenges. This particular case, because of joined, single external genital organs, and the complexity of those organs makes it more challenging. And also this case has been subjected to surgery before, which makes it more challenging because of the bowel are stuck to each other.
Apart from that, it's like any other conjoined twins. It's complex. It needs a lot of team effort. But we are confident that it will end successfully.
HOLMES: All right. Finally here, sir, again, you all have done several of these. You personally have been a part of several now that have gotten so much international attention. I guess it's certainly rewarding to be able to do this type of surgery.
But what do you want the greater and the broader world to see outside of the fact that you're just able to do this, but what other message are you maybe trying to get out there about Saudi Arabia, about the medical expertise you have there? And just the outpouring of, I guess, to just good will -- essentially that you are offering up this kind of surgery and allowing something like this to happen in your country?
AL-RABEEAH: I think, first of all, this is case number 21 in this center. There is a lot of messages in this program. First of all, it has involved many patients from almost 13 countries, from four continents, from different religions, from different nationalities. We are telling the people that we are in one world. Saudi Arabia is part of an international society. I think our aim is peace and love and care.
And we believe when we talk about health, there is no boundaries. And I think it's a signal that Saudi Arabia is looking for the well being of the mankind regardless of the color and ethnic group, and also the country, and the religion.
HOLMES: All right. Well, again, Dr. Abdullah al-Rabeeah, again, leading that surgery today. Sir, thank you for allowing us in. Thank you for taking the time out, and good luck to you. And again, it is -- it is a time when all eyes are on the kingdom and see some of the good work, and certainly, the good doctors you all have right there on staff.
Sir, thank you so much for taking the time. Good luck.
AL-RABEEAH: Thank you very much.
NGUYEN: And the next hour of CNN SATURDAY MORNING starts right now.
HOLMES: From the CNN Center, this is CNN SATURDAY MORNING. Saturday, the last day of February. Hello to you all, I'm T.J. Holmes. And I understand --
NGUYEN: Yes, the microphone is a little fuzzy there. That's all right. I'm Betty Nguyen. Good morning, everybody.
HOLMES: I didn't have much to say anyways. Yes.
NGUYEN: Thanks for starting your day with us. All right. It looks like we got it all worked out.
HOLMES: Oh, yes.
NGUYEN: Well, you know, times are hard. Business is down -- even the business of cheating.
(BEGIN VIDEO CLIP)
JOHN DINITALE, PRIVATE INVESTIGATOR: There were no heads in the front seat anymore. I'm working with a guy and I said, "Mark, did you -- did you miss that? Did they leave?" No, no, no. I said, "Well, let's just sit here for a second." And the next thing, two feet come right up on to the windshield.
(END VIDEO CLIP)
HOLMES: We usually like to get your attention right at the start of our ...
NGUYEN: There's a visual for you.
HOLMES: ... right at the start of our show. We just like to draw you in.
Yes. No money out there for any fancy hotels. You know what? This car is going to have to do just fine. On the economy, it's changing the infidelity scene.
NGUYEN: And millions are unemployed. We're trying to help you this morning. We have a career builder expert on hand.
So, send your resume to Weekends@CNN.com. We're going to take a look and actually call some of you live on the air so you can get some free advice on where the jobs are and how to best position yourself for those jobs.
HOLMES: Also, Betty, I know you were down talking to the mayor of Miami, Manny Diaz.
NGUYEN: Manny Diaz.
HOLMES: And he's a -- he's a little worked up these days.
NGUYEN: Yes. In fact, he is fired up, taking on governors vowing to refuse the stimulus funding. Why he is taking this fight straight to the White House.
HOLMES: All right. Speaking of the White House, the president is unveiling his budget for fiscal year 2010 this week and it's about $3.6 trillion. Are you still keeping up with all these numbers, folks, all the billions and the trillions? Well, this plan will create a $634 billion reserve fund to pay for reforms in our healthcare system. That will be paid for over 10 years -- in part, by limiting deductions high-income taxpayers may take.
After criticizing what he calls dishonest accounting in the past, the president is putting the cost of the wars in Iraq and Afghanistan into that main budget. That's something that President Bush did not do. His plan includes $533 billion with the Defense Department in 2010; plus, $75.5 billion in spending on Iraq and Afghanistan for the remainder of this year. Also, $130 billion for the two wars over the next year as well.
Well, President Obama is wasting no time in his efforts to sell his budget plans to the nation. He talked about spending and the economy on his weekly radio address and Web cast this morning. And our deputy political director, Paul Steinhauser, was listening and listening closely now.
Good morning, kind sir. Joining us this morning from Washington -- always good to have you with us. What did he have to say this morning? You know he had a couple of options of big topics to take on. This one, he's taking on the budget.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL EDITOR: He did. Well, you're right. He could have gone with Iraq, but no, he went with budget this morning, T.J. And he said, "Listen, the budget is basically part of a long journey I began two years ago," he said, "when I first started announcing that I was running for president."
He said, part of that plan, T.J., is to change Washington so Washington doesn't serve the powerful, the wealthy, the lobbyists, the corporations, but rather, the middle-class. And he says, "That's what this budget is all about."
Take a listen from his speech.
(BEGIN VIDEO CLIP)
OBAMA: The system we have now might work for the powerful and well-connected interests that have run Washington for far too long, but I don't. I worked for the American people. I didn't come here to do the same thing we've been doing or to take small steps forward. I came to provide the sweeping change that this country demanded when it went to the polls in November.
That is the change this budget starts to make. And that is the change I'll be fighting for in the weeks ahead -- change that will grow our economy, expand our middle-class, and keep the "American Dream" alive for all those men and women who have believed in this journey from the day it began.
(END VIDEO CLIP)
STEINHAUSER: T.J., he also said the Americans voted for that change in November and he said that's what his budget blueprint does. Now, of course, we'll see much more of this budget, better details, bigger details, kind of the fine print come April. And remember that fight over the stimulus, that bitter partisan battle? I think you're going to see something pretty similar in Congress over the budget as well, T.J.
HOLMES: And you said, it's going to be my follow-up to you there, you say something similar. Is there any chance there's going to be any different in that -- it still might be partisan, but maybe he picks up a little Republican support, maybe he picks up a little Democrat opposition?
STEINHAUSER: Exactly. And you know, when we saw, there was a vote over the current year budget just in the last couple of days. Sixteen Republicans in the House actually did vote in favor of that Democratic-sponsored budget. So, we may see some more Republicans come over.
As you mentioned, some conservative Democrats or some very liberal Democrats may have problems with this budget. We've already heard from concerns voiced, T.J.
HOLMES: Oh, we thought we were done fighting, huh?
(LAUGHTER)
HOLMES: We are just getting started. All right. Paul Steinhauser, always good to see you. We'll be talking to you again this morning. Thanks, buddy.
STEINHAUSER: Thanks.
NGUYEN: And welcome (ph), it's good to see you. Reynolds Wolf as well, what he's about to tell us may not be such a welcome news.
Good morning, Reynolds.
WOLF: Well, it's great to see you guys, too. What a refreshing welcome! It just feels fantastic. You know, it's not going to be ...
NGUYEN: Well, only if you had good news.
WOLF: Oh, yes, exactly. I mean, it's not going to be refreshing for people in the parts of the southeast, I mean, just imagine someone who moved here into Atlanta and they were hoping to get away from the snowfall.
NGUYEN: Right.
WOLF: Well, snow maybe chasing them. We have a chance of seeing some of that in parts of the southeast by tomorrow. Right now though, primarily a rain event. And we're talking some heavy stuff into Alabama, into Georgia, eventually into the Carolinas. We're not just talking rain; we're talking about the potential for flooding, where many locations have just been saturated by the heavy rain.
We could see some runoff south of Birmingham and Chilton County getting hit especially hard at this hour. We're going to see a lot of this track off to the east. And as it does so, that means more rain for many people, especially into the Carolinas about later in the day. Into the afternoon, there's a chance of some severe thunderstorms, maybe a tornado or two.
But another big issue we're going to see is the transformation in terms of temperatures. You got on one side, a fairly mild air with high temperatures, in Atlanta today, going to 62 degrees. But when that frontal boundary goes from west to east and moves on through, it's going to allow a pocket of cold air to move through. So, Atlanta is going to go from 62 degrees to 39 degrees; 44 in Nashville; 29 will be the high on Sunday for, say, Chicago; 64 in Denver; 56 in Atlanta.
As that cold air comes through, that's where you could see that snowfall, especially in the mountains of north Georgia and into the central Appalachians, as far north as part of much of the eastern seaboard -- on the coast, right on the coast range, and all in the highest spots is where you're going to see that snowfall.
Very mild conditions for much of Texas to Central Plains. Southern California is getting another chance of some rain maybe later in the day. But for central and northern California, certainly, you're going to see some scattered snow showers and rain showers along the coast, and snow in the highest elevations as we make our way into Sunday.
That is a look at your forecast. I got it all wrapped up with a pretty bow on it for you. Let's send it back to you at the desk.
NGUYEN: That's the way we like it. OK. Thank you, Reynolds.
WOLF: Good deal.
HOLMES: Thanks, Reynolds.
NGUYEN: OK. So, we have been talking to mayors all across the country on our show, trying to gauge what they're doing for the cities in these tough economic times.
HOLMES: And coming up next, now, you were down in Miami this past week, sitting down with that man. Mayor Manny Diaz of Miami says he can't understand why some governors may refuse money from the big stimulus package. This has been a big fight and a big debate.
NGUYEN: A heated battle, yes.
HOLMES: And guys like this in cities, mayors from across the country, they're like -- give us the cash.
NGUYEN: Right.
HOLMES: They have to wait on the governors to dole out that money.
NGUYEN: In fact, he also heads the U.S. Conference of Mayors. And he is taking that fight straight to the White House, and we'll show you why.
(COMMERCIAL BREAK)
HOLMES: All right. A note from some economic experts and some advice I heard from a couple of guys in my family. It's cheaper to keep her. It's a story ...
NGUYEN: Oh, stop it.
(LAUGHTER)
HOLMES: ... men pass that advice down ...
NGUYEN: Apparently so.
HOLMES: ... to the young men in their families.
NGUYEN: It's cheaper to keep her.
HOLMES: It's cheaper to keep her. You don't want to miss this story.
NGUYEN: Yes.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
ROBIN SAVAGE, IREPORTER: The "American Dream" is really at stake here. And for people to be leaving their homes, their jobs, and to see communities being torn apart and just -- you just feel that people have no hope in their eyes. You just -- you see it everywhere you go now.
(END VIDEO CLIP)
NGUYEN: All right. From the economy to the war in Iraq, and the latest developments there. Our e-mail question this morning is this: what do you think about President Obama's plan to pull U.S. troops out of Iraq by 2010? We've been asking this on our Facebook pages. This morning, we've gotten some really good responses.
Let's take a look at my Facebook page. Tony Sisneros writes, "I fully support the president's plan to exit." Oh, well, here we go. I'm having a little problem with this mouse here -- "to exit Iraq. Hopefully they won't go to Afghanistan. Maybe there's a way that we can give them a housing credit or incentive to stimulate their return."
And other answers on our Facebook pages. And we're getting some really good ones from you. This one from John, it says, "As long as they can safely do it, I'm all for it." But then he goes on to say, "that the other issue to worry about is if there will enough jobs here to absorb the increase in workforce as the reservists come back."
And that's been a big issue with pulling a lot of these troops out of Iraq. As the president does plan on doing so, what is going to happen with them? Will some of them go to Afghanistan? Will some of them be, you know, stuck in this recession that we're all facing and left to find ways of income out there to support their families once they come home?
HOLMES: Got to come back, got to look for work.
NGUYEN: Right.
HOLMES: Many of them are going to have to be retrained before they go to Afghanistan. Certainly a different mission, different terrain. Seventeen thousand -- he's already announced -- are going to be going to Afghanistan. So, a lot of questions still about it, but a lot of people, nice to hear, at least there's an end in sight.
NGUYEN: Right, exactly. And keep them coming this morning. Again, the question is: What do you think about the president's plan to pull U.S. troops out of Iraq by 2010? Go to our Facebook pages. We have it up there, and post your responses. We'll read them on the air.
In the meantime, though, money from the stimulus package will soon begin trickling down to cash-strapped states. But some governors are saying, "No thanks."
This six-week -- this week, six governors announced they won't accept parts of the stimulus package. And more governors have been hinting at it. Now, they could be turning away billions of dollars. Republican Governor Bobby Jindal of Louisiana is taking some heat for it, but stands by his decision.
(BEGIN VIDEO CLIP)
JINDAL: We're going to look at every provision, see what's good for the state, see what's not, see what strings are attached. But the reality is the bigger philosophical point is this, I just have a fundamental disagreement with this package.
(END VIDEO CLIP)
NGUYEN: Well, some of the mayors in the states are just fired up because they want the money. Manny Diaz of Miami heads the conference of mayors. And he sent a letter this week to President Obama, criticizing governors who say they'll refuse the funding. I was there when he drafted that letter. And here's what he told me.
(BEGIN VIDEO CLIP)
NGUYEN: Why draft a letter to the president airing your concerns about governors who threaten not to take the government up on this stimulus money?
MAYOR MANNY DIAZ, (I) MIAMI: Well, it defeats the whole purpose of the stimulus plan. And particularly the mayors in the states that whose governors, South Carolina, Louisiana, Texas -- some of those governors have given the impression that they're not going to accept the money or that they're going to cherry-pick, whether they want education money, whether they want unemployment benefits, those mayors are very concerned.
Because, again, they're on the ground floor, they're seeing the pain and the suffering of their residents, and they want to make sure that there is some kind of a vehicle in place that will, not withstanding the governor's rejections, make sure that that money gets down to help the people who need it the most.
NGUYEN: In your letter, you say, "We cannot allow our citizens and communities to needlessly suffer." It goes on to say that "We ask you and your administration to devise a mechanism that will allow cities and residents to have full access to all programs." What kind of mechanism are you hoping for?
DIAZ: Well, for example, there's something in the legislation now that if the governor says no, the legislature can, in essence, override and choose to accept, despite the governor's objection. But it could also be that the legislature might not want it. So, these mayors, in particular, are asking for, you know, if everything else fails, there has to be some way for the direct funding either to cities, but more particularly, to residents in those cities who are going to benefit from these direct -- these programs that will provide -- put money in their pockets directly.
NGUYEN: Should it be illegal for those governors not to take this funding?
DIAZ: Well, I don't know if it's illegal. I mean, obviously, there are state's rights and issues like that. But, again, these are times where people are struggling, people are suffering. This is a stimulus package that should not be subject to political ideology, but we should all be focused on making sure it works and making sure that the money is getting into the hands and the pockets of the people who are struggling today, who need this kind of help today.
NGUYEN: Are you claiming that they're playing politics with the stimulus package?
(END VIDEO CLIP)
NGUYEN: And so, that was the question. Are they, indeed, playing politics with it? Well, we hear what the mayor has to say when he talks about that right after this break. (COMMERCIAL BREAK)
NGUYEN: Well, the governors of some states say they won't take funding from the massive economic stimulus package. And just before the break, I asked Miami's mayor: are these governors playing politics with people's livelihoods at stake?
Take a listen.
(BEGIN VIDEO CLIP)
DIAZ: I think there's a lot of ideology that's involved here. I think there's some leftover partisanship and some of what we saw in the Congress that -- you know, again, this bill may not be 100 percent to everyone's liking, but I think they did a fairly good job at trying to get as possible consensus.
NGUYEN: Do you expect to hear from these governors who have decided that they don't want this funding?
DIAZ: Well, we have been hearing from them. And, clearly, especially the mayors of those states, the large cities in those states, have been in communication with them and trying to convince them that they shouldn't stand in the way of this very necessary aid and assistance for the people of their state. The people of the state are also the people of the city. And so, the mayor also has an obligation, a moral obligation, really in this case, to fight as hard as possible to make sure that this funding is going to go to its residents.
NGUYEN: The time is running out because March 5th, we're going to see more details of this plan and those monies are going to be starting to trickle down to the different states and to the different cities.
DIAZ: Time is short. And perhaps, one of the things that has to happen is that the residents of those states really need to put pressure by calling their governors, writing their governors, e- mailing their governors, making their voices heard, and making them understand from the state capital that this is something that's very, very important to them and that if they're losing their homes or they've lost their jobs, this is a time when they want government to help them.
And you need to put your political perspective aside and what you think is the proper role of government. This is not a traditional time. This is a time when we're in a serious economic crisis and it begs -- the times are calling for government to reach out, to lend a hand to people in need.
(END VIDEO CLIP)
NGUYEN: Now, I also talked to the mayor about the housing crisis in Miami. And next week, we are going to hear more from Mayor Manny Diaz. Find out how to get -- listen to this -- a new home for the price of what it would have cost you five years ago. It's really incredible how these housing prices have seriously dropped and the market is wide open.
HOLMES: Yes, another sign of the times there. We got another one to show you here. The fallout about the economy you probably really didn't think about.
NGUYEN: Oh, yes. And if you did, you may have more problems than just money on your hands -- the recession and infidelity.
(COMMERCIAL BREAK)
(MUSIC)
HOLMES: All right.
NGUYEN: Perfect music.
HOLMES: (INAUDIBLE) this morning. Unfortunately, you know, people have to stop cheating in this recession. But given the recession, people are being forced to improvise a little bit more as they're looking for a little variety out there in their lives.
NGUYEN: That could get a little tricky, and so we hear. And as you will see, CNN's Randi Kaye is dishing the dirt.
(BEGIN VIDEOTAPE)
RANDI KAYE, CNN CORRESPONDENT (voice-over): This private investigator for Massachusetts has been tailing cheating spouses since he was 16, when his father first taught him the business. But today, John Dinitale says business ain't what it used to be.
JOHN DINITALE, PRIVATE INVESTIGATOR: Surveillance cases, especially domestic surveillance cases, you could see just falling off the chart.
KAYE: In the last year, Dinitale has seen a 75 percent drop in infidelity cases.
DINITALE: We'd seen some what we would consider good size surveillances that would keep us busy for a week at a time just kind of go by the wayside. And I don't think there's any question that that was the result of people not being able to afford it.
KAYE: In a slumping economy, even hanky-panky takes a hit. A full day of surveillance work will set you back about $2,500; a full week, $15,000. So, some spouses are doing their own snooping.
DINITALE: It's not unusual now where a client will call and say, "Look, I've already done all the legwork. I've been checking his BlackBerry, I've been looking at his text messages, I've been downloading his cell phone bills.
I think I've got about three or four witnesses down there tomorrow.
KAYE: Dinitale still gets some surveillance work, but this new recession style-cheating looks different. With corporate America tightening its belt, gone are the fancy dinners out billed to the expense account. Now, cheating couples cook at home it.
DINITALE: It has to be the economy and people are just not spending money the way they used to.
KAYE (on camera): John Dinitale says cheating spouses are cheating with a little less style these days. Instead of booking rooms at high-end hotels like the Ritz or the Four Seasons, he says they're choosing what he calls the "no-tell motels," like this one.
(voice-over): Or in some cases, they're skipping the hotel expense completely and just using the car. Dinitale trailed one couple with his partner and will never forget how it ended.
DINITALE: There were no heads in the front seat anymore. I'm working with a guy and I said, "Mark, did you -- did you miss that? Did they leave?" No, no, no. I said, "Well, let's just sit here for a second." And the next thing, two feet come right up on to the windshield. Mark looks at me and says, "Now I know what they're doing."
KAYE: Not all couples are doing that. Some are just hanging out at the park. It's free.
DINITALE: We'll be scrambling around trying to pick up a good spot where we can set up the video and this will be a typical spot.
KAYE: The economic slump has put a damper on divorce, too. The American Academy of Matrimonial Lawyers say 37 percent of attorneys polled reported fewer divorces during an economic downturn. Divorce lawyers say more couples are sticking it out, not because they want to, but because they have to.
DINITALE: They're staying together because they can't afford to get their own place.
KAYE: As the saying goes in this business, it is cheaper to keep her.
Randi Kaye, CNN, Austin, Massachusetts.
(END VIDEOTAPE)
NGUYEN: That is just trifling.
HOLMES: Why are you grinning?
NGUYEN: I'm just shocked by it all.
HOLMES: The recession affects everybody, and it affects everything. Well, it's amazing to think, can't stand you, don't want to be with you, but -- can't afford to leave you.
(LAUGHTER)
NGUYEN: Yes, it's hard to get rid of you.
HOLMES: OK.
NGUYEN: All right. Well, we're going to talk about your health, and Dr. Sanjay Gupta has that coming up.
HOLMES: Dr. Sanjay Gupta, "HOUSE CALL" as always, coming up right now. But, of course, Betty and I will be back at the top of the hour, 8:00 a.m. Eastern Time, with the news of the day. We'll see you in just a minute.
