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American Morning
Rush Limbaugh Representing for the GOP; Gov. Sebelius Under Fire From Religious Right; Billions More for AIG: Winter Blast; Children of Foreclosure; Teens React to Rihanna News
Aired March 02, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Welcome. If you live on the East Coast, it's certainly a snowy Monday for you. It's March 2nd, but it feels more like the midst of January, doesn't it?
JOHN ROBERTS, CNN ANCHOR: Came in like the veritable lion this morning, didn't it?
CHETRY: Yes, it did.
ROBERTS: Oh, lots to talk about this morning and a lot to cover. Here's what we're breaking down for you in the next 15 minutes. Here's what's on the agenda.
Dangerous winter snowstorm paralyzing traffic and closing schools in businesses from Alabama all the way up into Maine. We're live in the big cities including New York, where winter storm warnings are in effect. It's unclear how much snow the city is going to get, but the forecast is anywhere from six to ten inches.
We'll check in with Susan Candiotti there. She is live in the middle of it. A lot of kids got snow days today including my daughter who gets to sleep in this morning.
Breaking economic news. And right now, insurance giant, AIG, expecting to report a $60 billion loss in the fourth quarter of last year. That would be the biggest quarterly loss in history. And now, billions more of your money at stake to save the struggling business. Christine Romans is here in the studio to explain this breaking story.
And breaking political developments. In just a few hours, President Obama will announce that he has chosen Kansas Governor Kathleen Sebelius as his nominee for health and human services secretary. Will she have the pull to get the elusive health care deal done?
Suzanne Malveaux live at the White House for us this morning. And those are the stories that we're going to breaking down for you in the next 15 minutes.
CHETRY: Well, to breaking new again. March roaring in like a lion. Right now, a major winter storm pounding the East Coast. There is a snow emergency that is in effect in Boston. Heavy snow, near- blizzard conditions expected there with up to 14 inches of snow. It's going to be very rough and slow going in the morning commute. The mayor urging everyone to use public transportation if you're heading to work. And at the airport, passengers are being hit with lengthy delays and cancellations. We'll have all of those for you throughout the morning.
CNN is on the ground with weather and travel information that you need to know. We have Susan Candiotti who's live in Central Park for us this morning. Elaine Quijano live in Washington. We have Reynolds Wolf in Atlanta.
And we're going to start with Susan Candiotti. You know I was laughing when I was on my way this morning. It did not seem like a snowplow. It touched the streets of New York City. What gives?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, we're seeing a few more out here this morning. We're out the southwest and the Central Park. And as you take a look around, probably you will not see it more quiet than this this time of day, aside from occasionally seeing people walking their dogs out here. It's been very, very quiet.
And if you look out here in the Columbus Circle, we have seen plows occasionally going across here. You can see the street there, it's not too bad all things considered. But usually, you're seeing a line of taxi cabs out there. Obviously, you're not seeing very many at all.
They are expecting snow accumulations of up to 14 inches, from the city out through Long Island. And at the various airports, they are experiencing massive cancellations. American Airlines so far telling us about 90 flights or so from here all the way up to Boston. Delta Airlines, telling us as an example, massive cancellations, but they don't have any numbers for us as of yet.
And you are hearing the mayor urging everyone to use public transportation because the roads are going to be a mess. They've got 300 plows out here. They've got 6,000 tons of sand and salt that they're using throughout the area. Will that be enough? We'll have to see because this storm is going to last at least through the end of the day. Back to you, Kiran.
CHETRY: All right. Take it slow if you're coming in this morning. And thank goodness that we do have good public transportation here in the city because boy, it's tough going. Thanks, Suzanne.
Also there's a snow emergency in the nation's capital. Nearly a foot of snow is expected.
Elaine Quijano is live on the National Mall in Washington. That's where -- that's the area where I grew up, Elaine, and it doesn't go as smoothly when you get that much snow, let's just put it that way, in Washington, D.C.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes, that's exactly right. You know, and President Obama even talked about, kind of joked about that a little bit. Take a look at what we're dealing with here on the National Mall. A couple of inches of snow actually on the ground, but really the story at the moment is this heavy, wet, blowing snow that you're seeing. Obviously not ideal conditions at all for a morning commute.
The roads coming in, very slick. But I have to tell you that our crews driving in from Maryland, reported no problems. We have seen those plows out on the streets of D.C. and certainly some slick conditions to be sure. Schools across the area, we should tell you, are closed. Many of them are opening late because of this weather. We're waiting to find out what the impact will be on the area's airports.
So things are bad here in D.C., Kiran, the bottom line. But not that enough interestingly to shut down the federal government. Federal employees are actually being allowed to come in a couple of hours late, or take unscheduled leave. So we'll wait to see as the morning carries on here just how severe this snowstorm is going to be for Washington.
But right at this moment, as I look around, I can see wet pavement out on the street. The plows again have been out there in force, and we'll see how this will affect the airports over the next couple of hours or so -- Kiran.
CHETRY: Yes. It actually looks like it's coming down worse where you are, than up here in New York, at this particular moment. Federal employees allowed to I guess take advantage of that liberal leave policy if they don't think they can make it in safely.
QUIJANO: That's right.
CHETRY: Elaine Quijano for us on the National Mall. Thank you.
ROBERTS: Well, CNN's intrepid iReporters are out in about in the snow. They're not used to seeing this stuff in the deep south. IReporter Cindy (ph) Williams showing a surge (ph) snow-covered backyard in Phoenix City, Alabama. Take a look at that.
Things won't look anywhere near as bad there later on today. It's supposed to get up into the upper 40s by this afternoon, so all of that lovely snow there should probably melt away.
Snow also a rare sight in Georgia. The storm making for treacherous driving in the Atlanta area. Hundreds of flights were grounded on Sunday, and travelers can expect more delays today. Here's iReporter Andrew Foster.
(BEGIN VIDEO CLIP)
ANDREW FOSTER, IREPORTER: Coming to you from Atlanta, Georgia. I have to say that this is probably the most snow that I've seen since I moved from Michigan about five years ago. It's actually accumulating out here, as you can see. Probably you see my breath on the screen.
(END VIDEO CLIP)
ROBERTS: And we want to hear from you this morning. Go to our Web site, CNN.com/am, and send us an e-mail or an iReport. Love that iReport. Thanks very much for sending that one.
And CNN's Reynolds Wolf is tracking the massive storm for us this morning. He's live in Centennial Olympic Park in downtown Atlanta just outside the CNN Center. And it doesn't look like there's a whole lot of accumulation where you are this morning, Reynolds.
REYNOLDS WOLF, AMS METEOROLOGIST: That four inches of snow just due west of Atlanta, in a town called Douglasville, I will tell you that yesterday afternoon when the snow really began to pick up, temperatures were in the upper to mid 30s. The snow really began to melt rather quickly.
Now the issue with that is you have a lot of areas where the snow melted and then froze as temperatures began to draw up with that on many of the surrounding areas. Out on the streets you've got black ice, so that is a big, big worry for a lot of people.
The Georgia Department of Transportation is urging drivers not to be on the road until at least after sunup, to give this ice a chance to melt. There have been reports of widespread accidents. There also have been some reports here and there of some tree damage.
I can tell you (INAUDIBLE) our sound tech this morning who was going to come in, Kevin Temecula (ph), a tree from all the snow cracked on his car and his car is totaled. So that's one issue we've had this morning.
I will tell you the biggest issue is really going to develop for parts of the mid-Atlantic states and then back into New York, even Boston. It's going to get socked by the storm system. Let's turn right to the weather maps if we can and as we get started, you're going to notice again some of the snowfall totals in parts of the southeast, very impressive. Tennessee, Missouri, getting over a foot in some locations and some other spots. Well, what we can anticipate is the snow really will continue to pile up, especially through mid- Atlantic states and back into New England.
Now New York, as Susan Candiotti was talking parts of say, Long Island, you could easily see up to 14 inches of snowfall. I know you're going to have a lot of problems on a lot of the city streets. A lot of the side streets as well. When you have that much snow falling at that rapid pace, well, it's going to cause some major issues.
Now in terms of your forecast, here's what you can expect. The storm system is going to be pulling its way out. You're going to have some delays in spots like say, Washington, D.C., you're going to have delays also, obviously, in Boston, New York. It's going to be one of those days you're really going to have to try your patience.
You've got the combination of the wind. You've got the poor visibility due to the snow not just, of course, for air travelers but on the surface streets it's going to be a tremendous issue for you. And once the storm system moves out in the Atlantic, it's going to bring a bit more drier air. Now we can expect warmer temperatures by midweek and certainly by Thursday and Friday.
Guys, that's the story. Let's send it right back to you in New York.
ROBERTS: Reynolds Wolf outside the CNN Center in Centennial Olympic Park this morning on the telephone, because our audio person couldn't get in. Hopefully we get that rectified.
We should point out, too, Reynolds, that you go to the FAA Web site, it says delays at the major airports in New York and Boston are less than 15 minutes. You know, we got to say, boy, is that going to change.
Reynolds, thanks. We'll check back with you -- Kiran.
CHETRY: All right. Also breaking this morning, the insurance giant, AIG, deemed too big to fail, you may remember. This morning, is expected to announce a record $60 billion forth-quarter loss. It would be the largest in corporate history, working out to be about $460,000 a minute. And also news that may have taxpayers seeing this morning. Word is that the government is revamping the aid package to AIG providing $30 billion more.
Christine Romans joins us now with the details, the ins and outs. What's going on here with AIG?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: This is the fourth revamp of its bailout now, $30 billion more of taxpayer money for AIG to try to prop up this company, to stabilize it. The treasury, the Fed, they say stabilizing AIG is critical for stabilizing the financial systems, so they're going to have some more lenient terms on all that taxpayer money and loans and lines of credit that you and I have given AIG, this huge insurance company.
Kiran, you're absolutely right. The government is essentially saying this company is too big to fail, and it will not allow it. So $30 billion more to prop it up.
There was a big board meeting yesterday. I'm telling you, a lot of nail-biting over the future of AIG because today, they're going to report their quarterly earnings and they won't be earnings. It's likely going to be a loss of some $60 billion.
We have never seen a company lose $60 billion in three months. It's just unheard of. It shows you that the value of the assets that this company has, the things that they own, invest in, or they insure, those assets are getting cheaper every single day. The market is working against this company every single day, so they need more taxpayer money.
ROBERTS: So we see how bad the fourth quarter was. We saw the acceleration and decline in GDP. We wonder where all this is going and we got a little bit of an inkling of that, a little bit of a forecast, from none other than Warren Buffett over the weekend. What's he saying?
ROMANS: He says the economy, John, is in a shambles and there's no way out of it in the very near term. I mean, his word, shambles. And he had a very tough -- the toughest, the toughest year for him for Berkshire Hathaway in 44 years of doing business.
ROBERTS: That is $10.9 billion.
ROMANS: He's known for common sense. You know, when somebody is known for common sense and not making mistakes and being really careful, comes out and says that the economy is in tough shape and he said, you know, the economy is in shambles in 2009, and probably well beyond, he said.
CHETRY: He also said we made mistakes, right? We shouldn't have invested heavily, was it oil?
ROMANS: That's right. And he took -- and he has kind of derivatives (ph) contracts that he was upset about but he said he took -- he had some blame around there, some unnamed CEOs who he was blaming. But also he took responsibility for making some investments that he said were not good.
ROBERTS: Yes, he bought at the high. It was Conoco-Phillips, I think is what it was.
ROMANS: Yes, oops.
ROBERTS: Oops, yes. If Warren Buffett can oops, what's in store for the rest of us?
ROMANS: I mean, it tells you how bad the economy is when he can't, you know, I mean, he still made money but he didn't make much.
CHETRY: All right. We're following AIG developments all morning.
ROMANS: That's right.
CHETRY: We'll check in with you when we find out more about again their record, record multibillion-dollar loss for the fourth quarter likely.
ROMANS: That's right.
CHETRY: Thank you, Christine.
ROBERTS: President Obama set to nominate his new health and human services secretary. Why are conservatives lining up against Kansas Governor Kathleen Sebelius? We're live at the White House to find out.
JIM ACOSTA, CNN CORRESPONDENT: I'm Jim Acosta in Washington. So who called Rush Limbaugh the intellectual force and energy behind the Republican Party? The answer coming up on the Most News in the Morning. (COMMERCIAL BREAK)
ROBERTS: A live look at the Capitol building this morning with the snow coming down. It's a sea of white. Welcome back to the Most News in the Morning.
Day 42 for President Obama. He's set to announce that Kansas Governor Kathleen Sebelius is his new nominee for health and human services secretary. Tax issues force the president's first choice, former Senator Tom Daschle, to withdraw. It could be a rocky road to Sebelius' confirmation.
Suzanne Malveaux is live at the White House for us this morning. I thought you've had your mufflers and a parka on or the very least two for God's sake. Good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Do you love this? It's amazing out here. Absolutely amazing.
Well, listen, John, obviously the big challenge for Barack Obama is going to be health care reform and that is what is he talking about this week. There's going to be a big health care summit at the White House.
He's going to be talking about the need to put aside some $634 billion in reserve form, or fund rather, to help bring comprehensive health care to all Americans. He's going to talk about the need for senior citizens, those wealthier seniors to contribute more to their prescription drugs and also to modernize health care records. All this to save money. But the big message, John, is that he knows he's got his critics. He is ready for them, and he says he is determined to get the job done. Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I know that the insurance industry won't like the idea that they'll have to bid competitively, to continue offering Medicare coverage. But that's how we'll help preserve and protect Medicare and lower health care costs for American families.
I know these steps won't sit well with the special interests and lobbyists who are invested in the old ways of doing business. And I know they're gearing up for a fight as we speak. My message to them is this, so am I.
(END VIDEO CLIP)
MALVEAUX: So, obviously, a challenge there, John. And the woman to lead the charge, that is going to be Kansas Governor Kathleen Sebelius. He asked her to be the secretary of health and human services on Saturday. She accepted. Of course, it is just a nomination, as she brought up the point. The confirmation process is next, so we'll see how she gets through that. But it's certainly is the first step -- John.
ROBERTS: Suzanne Malveaux live for us at the White House this morning. Suzanne, thanks so much.
President Obama will formally announce Governor Sebelius' nomination at 1:00 this afternoon from the White House. You can see it live on CNN at CNN.com if you're not near a television set.
And coming in about half an hour's time, we'll be talking with David Brody from the Christian Broadcasting Network. He'll be giving us more details on where all of this opposition to that nomination is coming from -- Kiran.
CHETRY: Well, we're going to fast forward now, take a look at the stories that will be making news later today.
10:45 Eastern, First Lady Michelle Obama will be at the Library of Congress, to kick off the National Education Association's Read Across America Day. The event is in honor of famed children's book author, Dr. Seuss, and celebrates his 105th birthday.
At 11:30 Eastern, House Speaker Nancy Pelosi will attend a youth rally on climate change, energy and the economy. She'll offer the keynote address there. Afterwards, participants in the rally are expected to testify before Congress.
Also at 11:30 Eastern today, jury selection begins in the trial for home run king, Barry Bonds. Bonds charged with making false statements to a jury, a grand jury about whether or not he knowingly took performance-enhancing substances. And that's what we're following for you this morning.
Seventeen minutes past the hour.
(COMMERCIAL BREAK)
CHETRY: It's 20 minutes past the hour. Welcome back to the Most News in the Morning.
And politics and talk radio. Rush Limbaugh defending his stance that he wants President Obama to fail. He gave a long speech at a conservative political conference in D.C. over the weekend, and it has some Republicans concerned.
Jim Acosta has been working the story for us. He's live in Washington. And the interesting thing about this is that the CPAC, Rush Limbaugh was the star. I mean, he was the --
JIM ACOSTA, CNN CORRESPONDENT: He was.
CHETRY: He was the -- he was the one that people were cheering loudest for.
ACOSTA: He was offering up more red meat than Sam the butcher, Kiran. Just at a time when the Republican Party needed a message to rally around, Rush Limbaugh is proving once again, he is still the life of the Grand Old Party.
(BEGIN VIDEOTAPE) RUSH LIMBAUGH, CONSERVATIVE RADIO HOST: President Obama, your agenda is not new. It's not change, and it's not hopeful.
ACOSTA (voice-over): Dressed in black at a conservative political conference, talk radio giant, Rush Limbaugh, made no apologies for four words.
LIMBAUGH: I hope he fails.
ACOSTA: That have ignited a fiery debate over the future of the Republican Party.
LIMBAUGH: I want Barack Obama to fail if his mission is to restructure and reform this country so that capitalism and individual liberty are not its foundation. Why would I want that to succeed?
ACOSTA: The standing ovations may explain why some GOP leaders are being cautious when they differ with Limbaugh.
REP. ERIC CANTOR, MINORITY WHIP (R), VIRGINIA: I don't think anyone wants anything to fail right now. We have such challenges.
ACOSTA: Consider Georgia Congressman Phil Gingrey who recently blasted Limbaugh and other conservatives who he says stand back and throw bricks. Flooded with angry phone calls, Gingrey apologized on Limbaugh's show.
REP. PHIL GINGREY (R), GEORGIA: I regret those stupid comments.
LIMBAUGH: Well, look, I appreciate that.
ACOSTA: Some Republican strategists see danger ahead.
UNIDENTIFIED MALE: If we don't modernize conservatism, we're going to have a party of 25 percent of the vote. Going to Limbaugh rallies who join every applause line, ripping the furniture up, we're going to be in permanent minority status.
ACOSTA: Democrats have pounced. From the White House chief of staff...
RAHM EMANUEL, WHITE HOUSE CHIEF OF STAFF: He is the voice and the intellectual force and energy behind the Republican Party. And he has been up front about what he views and hasn't stepped back from that, which is he hopes for failure.
ACOSTA: To this ad aired by labor groups, accusing Republicans of doing Limbaugh's bidding.
UNIDENTIFIED MALE: No.
SEN. HARRY REID (D), MAJORITY LEADER: No.
UNIDENTIFIED MALE: No.
NARRATOR: So who are Republican leaders listening to? LIMBAUGH: I want him to fail.
ACOSTA: The Limbaugh debate comes as Republicans are searching for a new face. A straw poll held at that conservative conference was nearly a five-way tie.
(END VIDEOTAPE)
ACOSTA: And the man who won that straw poll, former Massachusetts Governor Mitt Romney, seemed to distance himself from Limbaugh, telling the crowd at that conference, we want our country to succeed, no matter who's in power but he did not call out Limbaugh by name -- Kiran.
CHETRY: You know, and the other interesting thing is that, you know, don't we see this oftentimes after a big drubbing, which is what happened to the GOP, sort of searching for somebody that they feel is willing to say it like it is, or willing to sort of capitalize on what they're feeling and sort of express that. I mean, that's Limbaugh. He's a talk radio host.
ACOSTA: That's right. The Republicans are out in the wilderness right now, and Rush Limbaugh is their shepherd for the moment.
But, you know, there was criticism last week for Limbaugh, after he came out and said that Bobby Jindal had done a very good job after that speech by the president at the joint session of Congress. And at that point, there were some Republicans who stepped back and said, now, wait a minute. We're not necessarily big fans of that speech by Bobby Jindal. And so, Limbaugh may have done himself some damage there.
But make no mistake about it. That reaction that Limbaugh got at the CPAC convention over the weekend, that was a reaction that topped any other reaction for any other Republican who went in front of that crowd over the weekend, Kiran.
CHETRY: And so, what are the political implications for the GOP? We're going to talk a little bit later with Tony Blankley, as well as Tina Brown about that issue.
Jim Acosta for us this morning, thank you.
ACOSTA: You bet.
ROBERTS: Looking forward to all of that.
Kathleen -- Governor Kathleen Sebelius is the president's new choice for health and human services secretary. But will the religious right be able to block her nomination?
David Brody joins us coming up live. It wasn't a half an hour from what I said it was. It's only a few minutes. Good to see you there, David.
It's 24 minutes after the hour. (COMMERCIAL BREAK)
ROBERTS: We're back with the Most News in the Morning.
Today, President Obama will announce his new choice for health and human services secretary, Kansas Governor Kathleen Sebelius. His first pick, former Senate majority leader Tom Daschle pulled out over tax issues. Now, it appears conservative groups have a major issue with the Sebelius nomination.
CNN contributor David Brody covers the White House for the Christian Broadcasting Network, and he joins us now live from Washington.
So, David, what is it about the governor that conservative religious groups don't like?
DAVID BRODY, SR. CORRESP., CHRISTIAN BROADCASTING NETWORK: Well, it's the abortion issue, John. I mean, what else is new, right? I mean, they're talking about her relationship in the past with this late-term abortionist, a self-proclaimed late-term abortionist, George Tiller. So there's some issues with him about exactly what her relationship was and certain campaign donations and all of that. And then a veto on the ban on late-term abortions in Kansas and exactly how that would have gone down.
So, I mean, there's a lot of different elements to this. But I can tell you, the pro-life groups have an itchy trigger finger on this. The inbox full even before Sebelius was nominated, John. So, I mean, they're ready for a fight. But look, John, as you mentioned in the last segment, Republicans are out in the wilderness. Conservatives are out in the wilderness. Whether or not they'll actually have any footprint on this remains to be seen.
ROBERTS: And we just got this morning a letter from Kansas Senator Sam Brownback, a staunch conservative, who's now voicing his support for the governor saying, "We look forward to working with her on issues important to the state." Is that going to take a lot of fuel away from this anti-Sebelius movement?
BRODY: It's a problem for groups like Concerned Women for America and Family Research Council. Sam Brownback has pretty much been in long step with them on the abortion issue. Sure, that's a setback for them. So it's going to be interesting to see.
But let's look at the Senate Finance Committee as they go forward. They'll be the ones that will vet Sebelius first, and John Cornyn is on that committee, so let's wait to see what Cornyn has to say as these groups move forward.
ROBERTS: At the same time, the Catholic League called Sebelius "an enemy of the unborn." The senator's stance on abortion is "off the charts."
Bill Donohue, the president of the Catholic League said, "We had the specter of another pro-abortion Catholic stiffing the Catholic Church. This is setting up a confrontation that pro-life Catholics will not walk away from." I guess referring back to John Kerry in 2004. But is there anything that the Catholic League can really do particularly if Sam Brownback is on board?
BRODY: Well, it's going to be tough. I mean, once again, I think this is going to come down to, in the end, John, votes in the Senate. And look, Olympia Snowe and Susan Collins and a lot of the GOP pro-choice folks, you know, are probably pretty much on board with the Sebelius nomination. So, really, it's going to be up to pro-life politicians in the Senate if they're going to stop this once and for all.
But I got to tell you, though, John, there's a bigger issue here with Barack Obama and the Obama administration. Do they want to be sucked in, if you will, to a fight, over abortion? Or do they want to leave that for a summer battle over a Supreme Court nominee potentially?
ROBERTS: Yes.
BRODY: So, I mean, I think that's the danger here for the Obama administration, to be a distraction.
ROBERTS: Those are difficult battles to win on either side, but there's an intriguing aspect to this. You suggest, David, that this may ignite a new war between religious conservatives and moderates. How so?
BRODY: Yes, I mean, in essence you can call this somewhat of a proxy war, maybe kind of a warm-up for the big act in the summer for the Supreme Court, because, I mean, look, you have Catholics United, a moderate to progressive Catholic group. And then, of course, the Catholic groups that you just siding there along with the pro-life group.
So, I mean, this is that whole thing we talk about in the campaign between the the conservative evangelicals and the moderate evangelicals, and then trying to find this common ground. Or at least talk about the abortion issue and the marriage issue, and other issues as it relates to evangelicals. They're fighting this at a different level. You're going to see dueling press conferences here in the next week or so, a couple weeks. It will be interesting to see how it plays out.
ROBERTS: It certainly will. And we're glad that we got you with us, David, following every moment of it. Appreciate it. David, good to see you this morning.
BRODY: All the best, John.
ROBERTS: Thanks.
CHETRY: 6:30 here in New York. We're following breaking news just in to CNN. News that could impact your money and the markets this morning. Insurance giant, AIG, reporting a record $61.7 billion loss this morning. That's for the quarter. And it's the largest quarter loss in history. Now, the news that might have taxpayers even more steamed. Word is, the government is now revamping the aid package to AIG, providing $30 billion more. AIG is the largest recipient of the chunk of the bailout money, deemed too big to fail.
The economy keeping more people up at night, according to a new study out today. 27 percent of Americans saying they're losing sleep over their financing. It's translating into big business for the makers of sleep aids. Health officials say that prescriptions for sleep medication like Ambien and Lunesta were up seven percent last year.
And you might want to double check the fine print that goes along with your credit cards. A new survey finds that 66 percent of people were unaware of changes if any that they agreed to. As a result of the financial crisis, a lot of banks were now reducing card limits. They're closing inactive accounts. And they're tightening standards for new credit.
We're turning now to breaking news. The powerful winter storm right now making its way up the East Coast. It's blanketing the big cities like New York, Philadelphia and Boston, with up to a foot of snow in some places. And the result, major delays, of course, as you can expect at airports. And also, a morning commute that's very dangerous.
CNN's Reynolds Wolf is live in Centennial Park in Atlanta this morning.
Hi, Reynolds.
WOLF: Hi, Kiran. You're talking about a major storm system that's going to affect millions of Americans this morning. Right now in Atlanta, I can tell you that most of the snow is gone. There's still plenty of black ice on the major roadways. So we're expecting some issues with the traffic here. The wind still continues to roar. Something else that's roaring is the storm system up the eastern seaboard. Parts of Washington, D.C., back into New York. And of course, Boston, going to get rocked by this. Some very heavy snowfall has already fallen. We're expecting more, of course, in parts of the northeast.
Let's go very quickly to our snowfall totals. Give our viewers an idea of how much snow fell in parts of the country. Here in the southeast, it was very impressive. And in the south, here in Missouri, we had over 16 inches of snowfall in some locations. The official total 16 in parts of southeast Missouri. Tennessee had over a foot. New York area -- hey, you've had some places close to a foot of snow. More is on the way forward this afternoon, tonight, and they should be facing up by tomorrow. La Guardia, 5.9 inches of snow.
Now, Kiran, you were talking about the delays. Well, you would expect with this storm system, it certainly is going to affect all your New York airports. Certainly Boston. D.C. area, absolutely. You're going to have some delays at Reagan. I would recommend being patient, best you can.
Right now, if you take a look at radar, your radar in the D.C. area shows that snow continuing to pile up. And it's not just the snow. It's also that wind. So visibility is going to be very poor for those who plan on getting out on the roadways. Same deal out of Boston, New York. Radar there showing again that moisture coming in from the Atlantic. That cold air, coming in. That layer with the moisture falling right through it. That's causing the snow to develop. And that's going to be a big problem.
However, as we make our way to the nighttime hours and tomorrow, most of this will move out to the Atlantic. But still, you're going to be cleaning up quite a bit of snow for some time to come.
Kiran, best advice to give to people that if you don't have to go out, if you don't have to travel, this is one of those days you really want to take it easy. And if you can, hey, just show up at maybe an hour until or so late to work. I'm sure the bosses won't mind.
Let's send it back to you.
CHETRY: All right, there you go. Reynolds Wolf, giving everyone permission who is watching. Show up late or perhaps not at all. All in the name of safety, of course.
Reynolds, thank you.
ROBERTS: Well, Wall Street could be in for a rough start this morning. Asian markets plunged overnight. Both Japan's Nikkei Index and Hong Kong's Hang Seng, fell nearly four percent. Dow futures are trading in negative territory this morning.
The House this week takes up a voting rights bill, which could finally give Washington, D.C. taxation with representation. The Senate passed a similar measure last week. It would give D.C. residents a full vote in Congress. President Obama has said he will pass a final bill. Opponents, though, say it should be done through the constitutional amendment process.
And California's Supreme Court hears arguments later this week on whether Proposition 8, the state's voter-approved ban on same-sex marriage should stand or fall. The passage of Prop 8 in November changed the state constitution to prohibit gay marriage and trumped the high court's decision a few months earlier, which legalized them.
Millions of Americans are hurting from the foreclosure crisis. But kids are the hidden victims suffering in schools because they are losing their homes. We're looking at that for you this morning. 35 minutes now after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. All our monitors showing the snow up and down the East Coast. More on that in a minute. But meanwhile, there's the youngest victims of the foreclosure crisis. Now CNN's Dan Simon tells us children in families that are losing their homes can pay a price in the classroom.
DAN SIMON, CNN CORRESPONDENT: John and Kiran, we are in Modesto, California, a community that has been hit especially hard by foreclosures. The crisis, of course, has not only taken its toll on the economy here and everywhere else. But something you may not have heard as much about is how it's affecting our schools and children.
(BEGIN VIDEOTAPE)
SIMON (voice-over): Eunice is only 9 years old, but already knows about mortgages, bills and foreclosures.
EUNICE, FOURTH GRADER: The payments on our house that I'm living, my dad -- we didn't have enough money to pay them.
SIMON: She's a fourth grader at Fairview Elementary in Modesto, California. She says her family has had to move twice in the past year. Her story is all-too common in Fairview and other schools in Modesto. Drive around the neighborhood. And you'll see lots of for sale signs and homes that have been foreclosed.
HEATHER SHARP, PRINCIPAL, FAIRVIEW ELEMENTARY SCHOOL: What we've seen in the last two months has been what you can call a revolving door as far as getting 50 students in in two months and 50 students out.
SIMON: Nationally, the statistics are grim. At least an estimated 2 million kids will lose their homes because of the mortgage crisis. And studies showed those children may be suffering more in school. One found that kids who moved twice in one year are half as likely to be proficient in reading, and have a higher chance of being held back a grade. Excessive mobility, the study concludes, can also reduce chances that a student will graduate from high school by more than 50 percent.
Suzelle Tougas is Eunice's fourth grade teacher. She says it's hard to teach with so many kids constantly coming and going.
SUZELLE TOUGAS, TEACHER, FAIRVIEW ELEMENTARY SCHOOL: And just having to start over and start over is really hard on a child. It takes six weeks for a child to just adjust with a move.
SIMON: Already this year, the class has gotten ten new kids. But eight of those kids have already left. The principal says when children leave the school, more often than not their parents haven't even given notice.
HEATHER SHARP, PRINCIPAL, FAIRVIEW ELEMENTARY SCHOOL: We had our community aide going out to houses. And they were boarded up. Windows boarded, yard, ground. She ended up having to go to neighbors to find out where the kids were.
TOUGAS: The kids -- they might say something to their friends. But they don't want to say anything to the whole class because they don't want to feel sad. You know, that's mainly what it is. They don't want to have to say goodbye.
(END VIDEOTAPE)
SIMON: Foreclosures also mean less money in property taxes, which are used to fund schools. At Fairview Elementary, the PTA is trying to come up with ways to raise money, so the kids don't suffer more than they already have.
John and Kiran, back to you.
(END VIDEOTAPE)
ROBERTS: Dan Simon reporting for us this morning. Dan, thanks so much.
Right now, a sprawling snowstorm roaring up the Eastern Seaboard, making for a tough and messy commute this morning. Roads are covered. Many airports at a virtual standstill. We're live in Boston today where the conditions are getting worse as we speak.
It's 41 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: A look at the snow this morning outside of the CNN headquarters here in New York City. That's Columbus Circle. A decent amount of snow on the ground there. It's making travel in and around the New York City area very difficult this morning.
We're tracking breaking news of the winter surge that's now barreling across the Northeast. More than a foot of snow, in fact, expected to fall in some places and it's having a ripple effect, as you can imagine, nationwide. Passengers being hit with flight delays and, of course, cancellations.
Shiri Spear from our affiliate WWLP joins us now live from Springfield, Massachusetts.
And I'm glad to see Shiri that you're appropriately dressed this morning. You've got your weather coat on. You've got your touk on. You're looking warm out there despite the snow.
SHIRI SPEAR, WWLP CORRESPONDENT: We've got all of the gear on this morning. Let me tell you, I don't think my toes are thanking me, even with these boots on. It is freezing out here. And you can see the wind just whipping around every which direction. Of course, the wind is going, the snow is going.
Let's take a look. We have already six inches of snow on the ground here. Now most of this fell in just like say the past four hours. The snowfall rate's now between one and two inches of snow per hour. And for those kids, a lot of closings and cancellations this morning. But for the kids who wanted to go outside and play, look at that snow. Light, fluffy stuff. No, snowman-making or snowball fights during the day today. And early commuters, not any kind of treat on the roads. They're not wet this morning. They are white, so slow going. We have a couple major accidents here on the interstate, but for the most part, it's just a whole lot of spinouts. I mean, road cruisers trying to keep up with it. That snow is really coming down.
And of course, in the Springfield area, sometimes we tend to think that we get less snow than areas north or in the Berkshire Mountains. But today, I think the jackpot is right here in Springfield. And we really can't discount the late-season storms. They should sit on the sidelines. A day like today is a great point to say this could be one of the major players in our snow totals for the season. This storm system is actually going to push us into the above-average snowfall range for the season.
I'm live in Springfield. Meteorologist Shiri Spear.
John and Kiran, back to you.
ROBERTS: Hey, Shiri, any idea what's going on at Logan Airport this morning.
SPEAR: Logan Airport, I'm not sure, but I can tell you that Bradley International Airport, just down the road in Connecticut, 75 percent to 80 percent of the flights this morning have been canceled. They're down to one runway. So, check with carriers and flights, in and out of that area.
ROBERTS: And one other question -- who's Ed Leahy?
SPEAR: Ed Leahy?
ROBERTS: His name was on your ruler. I was just curious.
SPEAR: Oh, you know what? I'm not sure. It's kind of been cast down from our weather station. We're not quite sure, but it's like our -- it's our team ruler (INAUDIBLE).
ROBERTS: All right. Glad to see that Ed put his name on it. Shiri Spear for us this morning. Shiri, thanks so much.
SPEAR: No problem.
ROBERTS: You put your name on a ruler and they still steal it from you.
CHETRY: You know what? It does happen to us with staplers. How do you spell Leahy, by the way?
ROBERTS: L-e-a-h-y.
CHETRY: L-e-a-h-y. Huh. We'll find out in a minute. All I have right now is a regional sales manager from the Greater Boston area.
ROBERTS: What would a regional sales manager be doing with a good ole wooden ruler?
CHETRY: And especially the TV station. I guess we'll find out, coming up.
ROBERTS: This morning's mystery. We'll try to solve it for you.
CHETRY: Well, teens speaking out on stars and domestic violence. After the shocking Rihanna/Chris Brown abuse allegation. We're going to hear what the younger kids who look up to a lot of these stars have to say about it.
Also, new details on the racist e-mail showing watermelons on the White House lawn and the mayor who sent it resigned. Was it enough? The community reaction -- ahead.
It's 47 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
There were guilty pleasures for many celebrity tell-alls. Well, now, one theater is turning the wisdom of the rich and famous into an art form. It's taking New York by storm.
Here's Lola Ogunnaike.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Who do you love? Who do you love?
LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT (voice over): Every Monday night in Manhattan, a merry band of actors and comics...
WILL FORTE, PERFORMER, "CELEBRITY AUTOBIOGRAPHY": The chick was Heather Locklear and the guy who introduced us was my accountant, Chuck Shapiro.
OGUNNAIKE: ...takes to the stage of a local cabaret to read from the autobiographies of celebrities.
EUGENE PACK, CREATOR, "CELEBRITY AUTOBIOGRAPHY": What inspired this evening of comedy was actually grabbing the book "Vanna Speaks" by Vanna White. When I looked at the material, I thought, wait a minute, what if we actually read this out loud to an audience.
OGUNNAIKE: Since then, books by Star Jones, Elizabeth Taylor and Mr. T have left crowds in stitches.
(on camera): The man with the gold.
PACK: Right.
OGUNNAIKE: Pity the Fool.
PACK: Exactly. OGUNNAIKE (voice over): "The View's" Sherri Shepherd dives into Madonna's book "Sex" with a bright-eyed innocence.
SHERRI SHEPHERD, PERFORMER, "CELEBRITY AUTOBIOGRAPHY": One day, his parents kicked him out of his apartment and he wanted to know if he could spend the night at my house.
OGUNNAIKE (on camera): So, clearly, Madonna was having a lot of fun.
SHEPHERD: Madonna was having a lot of sex.
OGUNNAIKE (voice over): Apparently, Madonna wasn't the only one. Here's Suzanne Somers' steamy poetry.
KRISTEN WIIG, PERFORMER, 'CELEBRITY AUTOBIOGRAPHY": We were making wild and crazy love before ice had settled in our drinks. It was only two weeks. But we loved. God, how we loved.
OGUNNAIKE: So, how do you go about channeling Suzanne Somers?
WIIG: I don't think she's channelible. I think -- no, I mean, I think, you know, we just try to read it pretty straightforward, because sometimes that's where the humor comes out.
OGUNNAIKE: I didn't strike the right note when I tried to tackle Vanna White's epic memoir.
(on camera): Of course, as you know, my main job is turning the letters.
PACK: Just turn some imaginary letters in your head and look over to a corner, imagine Pat Sajak is there.
OGUNNAIKE (voice over): Pack insists he and his buddies aren't making fun of the material.
PACK: We look at this as great literature material.
OGUNNAIKE (on camera): Oh, please. Don't try to get high-brow on me. This is not a Yale English lecture. Literature?
PACK: Well, we like to put it in that way.
OGUNNAIKE: Are you more inclined or less inclined to write an autobiography?
WIIG: I don't think anyone would really care about it. I don't know. I would never write one.
OGUNNAIKE: Oh, come on. You know there are some "SNL" scandals back then.
WIIG: No, I take those to the grave.
(END VIDEOTAPE) OGUNNAIKE: Most of the comedians I spoke with said that now that they have read all of these autobiographies, that they refuse to write one of their own because they don't want any of their peers getting up on stage and reading up their work.
CHETRY: So funny. I'm embarrassed to say it. I've read a few of the ones that you highlighted. You know what? They were a quarter at a yard's sale when we were younger, you know. So, we just picked them up. Geraldos, Vanna Whites. Interesting stuff.
OGUNNAIKE: Some things are better left unsaid. I have to say, I'm looking forward to reading Mr. T's autobiography because I was a huge "A Team" fan and "Pity the Fool."
CHETRY: See that. All right. Let me know how it goes and then we, like, take it to stage.
OGUNNAIKE: Let's do it. That's a date, Kiran, that's a date.
CHETRY: Lola, thanks. It's 53 minutes after the hour.
ROBERTS: Slam, the massive northeastern that's only just begun. Live team coverage of the largest storm of the season. Airports are shut down. Roads are closed. Where is this monster headed next?
Plus, after the alleged abuse, how teens we talked to see the Rihanna-Chris Brown situation now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If he was brought up watching his father abused his mother, then mostly likely - some of the time, he's going to do the same to his wife.
ROBERTS (voice-over): Tough questions for young fans.
UNIDENTIFIED FEMALE: Do you think there's a reason or a justification?
(END VIDEO CLIP)
ROBERTS: You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Well, millions of teens watched a pop music fairy tale turn into a tragedy. The shocking Rihanna-Chris Brown situation shining a bright spotlight on the issue of domestic violence. Both stars hugely popular. So, how do their young fans feel?
Alina Cho joins us now.
ALINA CHO, CNN GENERAL ASSIGNMENT CORRESPONDENT: And so many teens relate to them, you know. They're celebrities. They're all over the magazines, Kiran. You know, you can't open up the magazines these days without seeing news about Chris Brown and Rihanna. Just this past Friday, "People Magazine" reported they're back together. And who can forget that TMZ photo showing what appears to be a badly- beaten Rihanna, allegedly by Brown.
Now that has undoubtedly sparked lots of conversations among teens about abuse in relationships, and they're talking about it, not just on the blogs, but in the classroom, too.
(BEGIN VIDEOTAPE)
CHO (voice over): To the outside world, Rihanna has it all. So, what happens when a beautiful, young singer who looks like this, suddenly looks like this in this TMZ photo, beaten allegedly by her famous boyfriend, Chris Brown?
JESSICA VALORIS, TEACHER: Because they're celebrities, because they're people that people are invested in that it opens up the conversation.
CHO: So much so, the Brooklyn Community Arts and Media High School in New York is making the incident part of the lesson plan.
UNIDENTIFIED MALE: We have a couple of edits from the verses that you guys have written so far about violence, domestic violence.
CHO: Rapping about it and talking about it, too.
UNIDENTIFIED MALE: I was, like, Chris Brown. And you wouldn't expect Chris Brown to do that because of his music and how he acts.
UNIDENTIFIED FEMALE: Do you guys think that there's ever a reason or a justification for abuse in relationships?
UNIDENTIFIED FEMALE: If he was brought up watching his father abused his mother, then mostly likely - some of the time, he's going to do the same to his wife.
UNIDENTIFIED FEMALE: I think abuse is abuse. And if you feel like you have anger management problems, then you need to go seek help.
CHO: Some of the girls made excuses. And many were quick to take sides.
UNIDENTIFIED MALE: I agree with Rihanna's side. Even if a girl does something to a boy, a man is not supposed to hit a girl. Like I wouldn't hit a girl.
UNIDENTIFIED FEMALE: It's sad, but that I'm going to continue to support Chris Brown always and forever because people make mistakes.
UNIDENTIFIED FEMALE: Let's take the situation outside of celebrities. What impact do you think this has on people who do deal with domestic violence?
UNIDENTIFIED FEMALE: It might send a message to females in a relationship that it's OK if your man beats you, especially if he has status or money or something like that.
CHO (on camera): Are you surprised by anything you've heard today? Is this about what you expected?
CHARLENE FRAVIEN, GUIDANCE COUNSELOR: I'm really surprised that it just seems like it's still that repetitive blaming the victim, blaming the victim.
CHO: While these teachers say this won't be the last time they talk about this.
UNIDENTIFIED FEMALE: My words are (INAUDIBLE). This message is powerful. A couple acts up. The results are dramatical.
UNIDENTIFIED MALE: Great.
(END VIDEOTAPE)
CHO: They are rapping about it, too. Now, the director of counseling at this Brooklyn high school told me that blaming the victim is not uncommon. That is consistent with what the experts say. And she added it's even more common when there's a celebrity involved, and especially common if that celebrity is a person of color.
Now one expert we talked to said that this is really a teachable moment. That teens really don't know what constitutes a healthy relationship. They're too young to, if you think about it. So, the questions are: Is it too much to text 100 times a day? Should you be reading your partner's text messages? Should you want to know where your partner is at all times?
And, Kiran, of course, as adults, we know the answer to those questions. They're, no. But a lot of young kids do not. And so, this incident really has sparked a lot of conversation. And as you saw, you know, a lot of lively debate in the classroom.
CHETRY: Yes. And you mentioned the thing -- a teachable moment. When we were probably going to school, teachers wouldn't even touch that.
CHO: That's right. That was a big deal.
CHETRY: Right. It's all the more difficult with the reports, if they're true, that they're actually back together.
CHO: Right. And when we were in the classroom, you know, a lot of those students said that they would not be surprised if they got back together and that, you know, they wouldn't blame them if they got back together. But again, this is all part of this whole psyche of them blaming the victim.
CHETRY: Right.
CHO: And again, this is a common thing. And remember, this is also a common thing. One in ten teens have been victims of domestic abuse in relationships, so this is really something that's important. And, you know, you've got to commend these classrooms and these people to get involved and talk about this.
CHETRY: Right. All right. Alina Cho, thank you.
CHO: You bet.
