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American Morning
Winter Blast to East Coast Paralyzes Travel, Closes Schools; AIG to Report Billions in Fourth-Quarter Loss; Presidential Obama to Announce Kathleen Sebelius as HHS Pick; Search Continues for Two Missing NFL Players Off Florida Coast; Border Drug Battle Rages On
Aired March 02, 2009 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Crossing the top of the hour, we got a lot to cover for you this morning. And here's what we're breaking down for you.
In the next 15 minutes, a winter blast burying the East Coast right now. The roads are dangerous, the airports at a standstill. Susan Candiotti is live in Central Park for us this morning, where New Yorkers are bracing for the biggest snowstorm of the year.
Developing overnight, billions more in bailout money is needed to keep AIG from going under. The insurer just announced that it lost nearly $62 billion in a single quarter. That is the biggest quarterly loss by any company ever.
Our Christine Romans crunching the numbers this morning to see what another handout to AIG is going to cost you.
And another developing story, President Obama poised to announce Kansas Governor Kathleen Sebelius as his pick for health and human services secretary. It will be her job to reform health care in this country.
Our Suzanne Malveaux live in Washington, where there's already a debate over whether she is the right person for that critical job. These are the stories that we're breaking down for you in the next 15 minutes, so stay with us.
To breaking news now, and March roaring in like a lion. Right now, a major winter snow pounding the East Coast. A snow emergency in effect in Boston.
Heavy snow and near-blizzard conditions expected with up to 14 inches of snow. And New York City schools are closed for the first time since 2004. That's how big this is.
The mayor urging everyone to use public transportation if you have to go to work today. And at the airports, passengers are being hit with lengthy delays and cancellations. You can track the latest conditions in your area on CNN.com. But we should mention that the government Web site, fly.faa.gov, is not reporting any delays at the airports this morning. So definitely check with the airlines.
This morning, CNN is on the ground with the weather and travel information that you need to know. Susan Candiotti live for us in New York City. Elaine Quijano is in Washington today. And Reynolds Wolf is live in Atlanta, where they got some snow yesterday.
Let's start first of all with Susan Candiotti. What's it looking like where you are? A bit of a winter wonderland, there, Susan.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Oh, it is. It's beautiful, but the roads are slick and they are very treacherous. We're talking about at least one fatality that happened and that was overnight on Sunday, when the roads were just starting to slick up.
It's been a virtual whiteout at times, in the overnight hours. This morning, not so bad. But take a look around here.
Columbus Circle. Normally, this place is just filled with people commuting into the city in the morning. But now, as you heard, and those winds are gusting up to 25, 30 miles an hour, it's enough to take your breath away at times. But for the most part, people seem to be using public transportation, or they're simply not getting out at all. We saw one man out here, of course, using his cross-country skis to get around through Central Park.
We're seeing a few cabs, but not nearly as many as you normally do. As you were talking about at the airport, they're experiencing all kinds of delays in the metropolitan area and are expecting, as we said, anywhere of six to 10 inches of snow. Could be up to a foot by the time the day is over with.
In the meantime, they are urging people to use public transportation. You see some cabs around here. We haven't seen that many plows, but the salt trucks are said to be out. And so, it's going to be a very busy and treacherous day, as you try to make your way around the city and metropolitan New York area.
John, back to you.
ROBERTS: Susan Candiotti at the Grand Army Plaza here in New York City. Thanks so much, Susan.
KIRAN CHETRY, CNN ANCHOR: Well, so much as you've been saying, the calendar says March. Feels a lot more like January, with the snowstorm moving up the East Coast. And the nation's capital could get as much as a foot of snow.
Elaine Quijano is on the National Mall in Washington, where really it only takes about seven flakes of snow to cause trouble. And you guys are bracing for a foot. What's going on down there?
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: You're absolutely right, Kiran. Truer words are never spoken.
Well, right now, what we're dealing with, take a look is a couple of inches of snow actually on the ground here at the National Mall. But the story really continues to be this wet, thick, heavy, blowing snow. Quite windy, in fact.
If you try and take a look over my shoulder here, you probably can't even see the Capitol dome, to well behind me, because of all this blowing and drifting snow. Well, you can just imagine what that is doing for people who are out there trying to head in for their morning commute. Not at all ideal conditions. However, snowplows, salt trucks. We have seen them out in force. And, in fact, our crews coming in this morning to help set up for this live shot this morning, said, look, there really wasn't that much in a way the accumulation on the ground coming in from Maryland.
At the same time, though, however, airports obviously affected by this. We've already seen cancellations and delays at the area airports, so people who are planning to head in and out of Washington, D.C. through the airports need to check that ahead of time. We should tell you, though, as well, we did manage to catch up with a hearty soul this morning who was out walking his dog, who said, look, it is bad. But it could definitely be worse.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's not that bad. I'm from New York. And this is -- this is a light dusting from where I come from.
(END VIDEO CLIP)
QUIJANO: So, he was from Syracuse and he decided to go ahead and cut down his daily one-hour walk with his dog to just half an hour. But otherwise, we understand that the area rail system, metro rail is running normally.
Things are bad here in D.C. You've got some schools, of course, many of them closed or opening later. But not so bad, Kiran, that the federal government has shut down. Federal employees are actually being allowed to come in two hours late, so the government has not shut down completely because of the storm -- Kiran.
CHETRY: All right. Boy, it's certainly coming down, though, from your shot there this morning. You're right. Can't see the Capitol building behind you this morning.
Elaine Quijano, thanks so much.
Nothing unusual about a snowstorm in early March, unless you happen to live in the Deep South. Up to five inches of snow hitting parts of Georgia and Alabama. Hundreds of flights into and out of Atlanta canceled.
Reynolds Wolf is in Olympic Park in downtown Atlanta where he's tracking this winter storm as it barrels through the Northeast this morning. You know, for some reason we've had a lot of producers spend the weekend in Miami. They can't get back, true or false?
REYNOLDS WOLF, AMS METEOROLOGIST: That is true. That is true. And you know, our heart really goes out to them. How tough it must be to be there in sunny Miami.
You know, it has been really rough here in Atlanta, especially yesterday afternoon. We had around four to five inches of snowfall around in the Atlanta area. The snow is mostly gone. We still have some ice on the major roadways, especially 285, are in parts of Atlanta. Georgia Department of Transportation is telling people not to go on the roads until well after the sun is up. That happens with the hope that much of that ice will then melt, dissipate, and that roads will be in better shape.
Obviously, much heavier snowfall farther to the north. Take a look at these snowfall totals up in New York. That's the top of the scale right there. 11.7 inches of snowfall, as of 5:00 a.m. In West Milford, New Jersey, 8.8. LaGuardia, you had 5.9. Snow still falling down.
My friend, Susan Candiotti, up here calling the circle. Of course, snow falling there. And you're going to see that continue through the afternoon and to the evening.
Take a look at the delays. Of course, you can't get through the forecast talking about the delays. We will have them.
At New York, all your major airports, the heavy snow, the high winds, poor visibility. We'll also be an issue in Washington, both the Dulles and Reagan and, of course, Boston Logan International, you're going to have the issues with the snow and the high winds.
That is the latest we have in your weather picture you see there right there on the map. That's all your watches, your warnings. Up again in the (INAUDIBLE) the Eastern Seaboard, we're going to have more on your forecast. More on those major delays. That's coming up. Let's send back to you.
CHETRY: Thanks.
ROBERTS: Another big story that we're following this morning, it is day 42 and President Obama has found his point person for health care reform. This afternoon, he will formally announce, Kansas Governor Kathleen Sebelius as his new nominee for health and human services secretary.
Our Suzanne Malveaux is live at the White House for us this morning. Snow accumulations of about a centimeter on Suzanne this morning. Good morning to you.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good morning, John.
Initially, it was a big blow to President Obama. He didn't get his first pick for HHS secretary, Tom Daschle. Daschle, as you know, was a former Senate majority leader, really seen as the guy who could push this through, this complicated, controversial process through Congress. But President Obama wants the American people to know he has launched a new offensive. And to his critics, he is going to get the job done.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): President Barack Obama's next, big challenge, reforming health care. To those who may get in the way, his message heading into this week, bring it on.
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.
MALVEAUX: The woman to lead the charge, Kansas Governor Kathleen Sebelius. Obama offered her the job of health and human services secretary on Saturday. The East Room announcement comes later today.
A fixture early on in the Obama campaign, Sebelius courted female voters, Midwesterners and moderate Republicans.
UNIDENTIFIED FEMALE: Barack Obama is exactly the leader we need to get this country back on track.
MALVEAUX: The two-term Democrat governor served as insurance commissioner in her state for eight years, and oversaw the Medicaid program, successfully increasing health care aid for the poor. But her nomination is just the kickoff of this week's focus of health care reform, and the battle that's expected to ensue.
UNIDENTIFIED MALE: This thing is very low on spending cuts. Very high on phony rhetoric.
MALVEAUX: In the coming days, the president will lay out his agenda at a White House health care summit. Among his goals, to set aside $634 billion in a health care reserve fund over the next ten years, to move the country closer to comprehensive health care, to require seniors making more than $170,000 a year, to pay a greater portion for the prescription drugs, and to modernize and computerize medical records to save money.
(END VIDEOTAPE)
MALVEAUX: And one important note, John, Sebelius is not taking on the role of White House health care czar. That is a position that Daschle created to himself, in addition to the HHS secretary job, essentially to give him more duties as well as more power in dealing with this. That job is going to go to someone else. It allows Sebelius someone who has some backup and some additional help to get this through Congress -- John.
ROBERTS: All right. Suzanne Malveaux for us live at the White House for us. And, Suzanne, because you're reporting on politics and not the weather, you can go inside and do your stories from there. So, go.
MALVEAUX: No, no, no, no. My fellow colleagues, they're going to stick it out, roughing it with the rest of them.
ROBERTS: All right. (INAUDIBLE) everybody. All right. Suzanne for us this morning. Suzanne, thanks.
President Obama will formally announce Governor Sebelius' nomination at 1:00 Eastern from the White House. You can see that live on CNN and CNN.com -- Kiran.
CHETRY: A developing story this morning and we're following the latest details for you. It's a search that's now expanding for two former NFL teammates. They went on a fishing trip on Saturday, outside of Clearwater and disappeared. Search guards, searching an area twice the size of New York City from the air and the sea. Of course, as we know when this type of stuff happens, every second counts. We have a live update on their efforts ahead.
It's 12 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. It's 13 minutes past the hour and we're following breaking news for you.
AIG, the insurance giant, deemed too big to fail, this morning, announcing a record $61.7 billion fourth quarter loss. That's the largest quarterly loss in corporate history.
Christine Romans joins us now to break down what that means. We're also getting word of yet another infusion of taxpayer money to the tune of billions.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right. And just look at all those zeros on the bottom of that screen. All those zeros.
I mean, it's mind-numbing the amount of money this company lost in the fourth quarter. Absolutely mind-numbing. And for the year, it was $99 billion.
I mean, these are the kinds of numbers that you just never had expected to see. It shows you just how terrible the economy is. I mean, this is a company that invests in, owns or insures all kinds of different assets that are losing value by the day.
This company lost hundreds of thousands of dollars a minute in the fourth quarter. And why do you care? Because the United States government is about an 80 percent -- controls about 80 percent of this company. We have pumped $150 billion into the company. And you're right, Kiran, there's another $30 billion that have to go in there.
So these numbers, just stunning, $61.7 billion lost in the quarter. $150 billion in loans overall and now they're going to need another $30 billion. So we're just pumping money.
CHETRY: Right.
ROMANS: And what is our money getting us?
CHETRY: Right.
ROMANS: It's getting us the worst quarter ever for a company.
CHETRY: Well, and as you pointed out, indicative of the times why we're even talking about AIG, AIG existed and probably most people out don't even know what exactly does AIG do, and how will they become a company that can make money again, if ever.
ROMANS: It operates in so many different countries. It works with so many different companies. The government has decided this is too big to fail especially.
Remember when Lehman Brothers was allowed to fail, we learned about something called counterparty risk. What that means is Lehman did business with so many different companies. And when Lehman failed, the domino effect was just horrific.
They're worried about that with AIG. It just insures for so many different other companies, individuals. I mean, it's involved in so many different things around the globe that they can't let it go down, and so we are, we're pumping into it and the company says it is dedicated to try and define stability and that this money from the government is going to help with stability.
You know, we're making the terms of the bailout a little more lenient for this company to help them try to get by. This is, I mean, it's remarkable. It's really a remarkable loss for a company.
CHETRY: All right.
ROMANS: I thought these bailouts were supposed to help, I mean, at least stop the bleeding. But the bailouts have not stopped the bleeding for AIG. I think that's what we know from this. The bailouts have not --
ROBERTS: Need a cork, I think.
ROMANS: Yes.
ROBERTS: Thanks, Christine.
ROMANS: All right.
ROBERTS: One of the GOP's rising stars just fizzled out a little bit. So, who is the leader of the party as it looks to rebound in 2012? Is somebody going to stand up besides this man? Rush Limbaugh. How he fired up the base again over the weekend.
CAROL COSTELLO, CNN CORRESPONDENT: I'm Carol Costello. Two NFL players remain missing off the coast of Florida. We'll have the latest on the investigation and the search for them on the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. Twenty minutes past the hour. Developing story right now off the coast of Florida.
The search is expanding this morning for four people lost at sea, among them two NFL players. Raiders linebacker Marquis Cooper, as well as free agent defensive end Corey Smith, left for a fishing trip Saturday morning in choppy waters.
Carol Costello is live with us this morning with more details on exactly what's going on. Their family members also saying this is the worst nightmare come true. Have you learned anything new this morning?
COSTELLO: Not much, Kiran. You know, the Coast Guard said it would keep looking and it has with a helicopter and planes, but so far, nothing.
These four young men left to go fishing on a beautiful, calm morning, in Clearwater early Saturday. Left at 6:30 a.m., in a 21- foot, center-console boat with a single-engine boat. And then, the weather turned ugly and so did the seas.
On board, four, dear friends. Four men who loved to fish. Detroit Lions' Corey Smith, Oakland Raiders Marquis Cooper. Also on board, Will Bleakley (ph) and Nick Schuyler, two former University of South Florida football players.
Now, the men's family believes they might have gone out 50 miles to fish near an old shipwreck because, you know, there's lot of fishes swimming around the shipwrecks out there. Some investigators say, though, the seas grew rough during the day on Saturday. And 50 miles is a long way out for such a smallish boat.
Friends and family are keeping watch, but it's been a long time now. They say they have hope, but they're realistic.
(BEGIN VIDEO CLIP)
REBEKAH COOPER, MISSING NFL PLAYER'S WIFE: It's my worst nightmare to think of anyone I love, especially my husband, in any situation where, you know, he is struggling to get back and, you know, can't get in touch with us or get the help that he needs. I've been trying to keep my mind away from thinking, you know, too far down that line. I don't think there are any words to express how much I wish that he was here.
UNIDENTIFIED MALE: I'm a nervous wreck. I've been on the street rolling and crying.
(END VIDEO CLIP)
COSTELLO: That's just so sad. Now the Coast Guard received no distress call from the boat, but that doesn't mean one was not sent to them. The weather in Clearwater, not much better today, Kiran. Seas are still rough. Over the weekend, the Coast Guard had to stop using its 87-foot cutter to look for the boaters because of 14-foot seas and 30-mile-per-hour wind gusts. Florida Fish and Wildlife Conservation Commission will join the search later this morning. And, of course, everybody is hoping they find something.
CHETRY: Fifty miles, you're right, a long, long way to go out there in a small boat.
All right. Carol Costello for us, thank you -- John.
ROBERTS: A drug-fueled battle on America's doorstep, so violent and bloody, that we pulled our war correspondent to cover it. Michael Ware takes us to a place that's now considered by some to be the most dangerous city on earth, the place where Americans are now getting caught in the crossfire.
There's Michael. He's joining us in just a moment. Stay with us.
(COMMERCIAL BREAK)
ROBERTS: Imagine gun battles just like that going on on American streets in broad daylight. It could happen. And for that reason, we have been focusing on the drug war on the Mexican border that is getting more and more violent, spilling over on to American soil.
Our Michael Ware joins us now from Mexico City. And we should warn you that some of the video in his report may be disturbing.
Mike, you spend a lot of time in Ciudad Juarez, which is just south of El Paso, Texas, a place that really for many people is ground zero of the drug war there across the border.
MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT: Absolutely, John. I mean, last year alone, 1,600 people were killed in that city, which essentially is a sister city to El Paso, Texas, so close, it's divided by no more than a fence and a river.
So, this is literally on America's doorstep. And this is all being fought in a drug war fueled by American demand for illicit drugs and battled out with American weapons on both sides of this conflict.
(BEGIN VIDEOTAPE)
WARE (voice-over): This is how American Jose Molinar knew his wife was dead. He saw these television pictures of her bullet-riddled car, broadcast from just across the border in Juarez City, Mexico, minutes from his Texas home.
JOSE MOLINAR, WIFE MURDERED: As soon as the image came up, I saw her truck. And I knew what had happened right then and there.
WARE: His wife, Maricella (ph), a U.S. resident and mother of two, was gunned down, doing a last-minute favor, giving a Juarez government lawyer a ride to go shopping.
MOLINAR: Wrong place, wrong time. That's the only way I can describe that.
WARE: This is the carter war in Mexico, a conflict raging on America's doorstep. A conflict in which Juarez police officers, like this one, under attack from a drug gang, are fighting for their lives while the drug cartels are battling throughout the city, the control of a lucrative drug rap into the United States; 1,600 people killed in this city last year. That's three-times more than the most murderous city in America, and 50 of them were police officers.
This year, in just two months, 400 more already murdered. We saw the most recent victims lying in the city's morgue overflowing with bodies. Many unidentified cartel members destined for mass graves. They've been brutally killed by rivals, beheaded, tortured, sprayed with bullets. But now, the cartels are renewing a favorite tactic, intimidating government leaders. This time, they're doing it by killing cops, one by one.
UNIDENTIFIED MALE: They started killing police officers and not while they were doing police work, but when they were coming out of their homes and getting into their cars to go to the police station.
WARE: We rode on patrol with police officers out on the streets. The entire force on high alert. The cartel war grinding on.
(on camera): And it's going to be a long war. With most of the advantages in the cartel's favor. The gunmen outnumber these police and they're better armed. And the body count continues to rise.
(voice-over): Meanwhile, over the past year, the Mexican army has moved into Juarez. Over 2,000 soldiers, sent as part of a huge operation, that has 45,000 troops combating the cartels across Mexico. And though the U.S. this year is giving Mexico about $400 million to combat the cartel, officials on both sides of the border privately agree. The war, as it's fought now, cannot be won, which is something Jose Molinar's wife probably knew before she was gunned down.
This drug war in Juarez robbed you of your mother. I mean, how do you carry that?
UNIDENTIFIED FEMALE: Day by day. Just, I always think she's at work.
WARE: And the unwinnable war that killed her mother, rages on.
(END VIDEOTAPE)
WARE: And it's been another terrible week of bloodshed in Juarez, marked particularly yesterday, by reports of the death of two more police officers, a husband and his pregnant wife, who was also a police officer. And what we hear now is that the Mexican government has sent more than 1,000 extra soldiers from the Mexican army to reinforce those already in this troubled city -- John.
ROBERTS: It's stunning, the level of violence going on in the Mexican border cities, Michael. And government officials in Mexico say a lot of it is to blame on guns flowing from America into Mexico. How much of a problem is that really?
WARE: Well, over the past few years, the American authorities say that they're aware of at least 62,000 weapons that have been trafficked from America to Mexico. And I can tell you, looking at some of the weapons that the police there have seized from the cartels, it's extraordinary. American hand grenades. American assault rifles. And indeed even, American .50 caliber Barrett sniper rifles that can kill a person at about a mile. I've only seen those in the hands of marine and army snipers in Iraq, John.
ROBERTS: Obviously a big problem down there. Michael Ware for us this morning from Mexico City. Thanks very much. As a result of this traffic in weapons between the United States and Mexico, Eric Holder, the attorney general, has been talking about reinstating the assault weapons ban. Coming up in our next hour, we're going to be talking live to the CEO of the National Rifle Association, on his views about the flow of guns going across the border.
CHETRY: Thirty-one minutes past the hour now. Breaking news this morning. Urgent talks under way between North Korean military leaders and the U.S.-led United Nations command. President Obama is sending an envoy to Asia this week to try to calm tensions between the south and the north. There are concerns that the North Koreans are preparing to test a long-range missile that could reach American territories.
Also this morning, U.S. stocks trying to rebound after hitting a 12-year low on Friday. Asian stocks also took a beating overnight. Markets in Japan and South Korea, and all Hong Kong as well, down four percent.
Developing overnight, AIG, the insurance giant, sinking fast and in need of another multibillion-dollar bailout. This morning, the company deemed too big to fail, announced a record $62 billion fourth quarter loss.
Well, opponents are calling him the de facto leader of the GOP. And Rush Limbaugh did bring the party to its feet during a conservative rally in Washington over the weekend at the CPAC conference. He accused President Obama of inspiring fear in Americans to push his agenda. And he also didn't apologize for the comments he made when he said he wanted the president to fail.
(BEGIN VIDEO CLIP)
RUSH LIMBAUGH, RADIO HOST: What is so strange about being honest and saying 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?
(END VIDEO CLIP)
CHETRY: Joining me now to talk more about this here in New York, we have Tina Brown. She's the founder and editor in chief of the dailybeast.com. She's joining us from our newsroom this morning. And in Washington, conservative columnist Tony Blankley, the author of "American Grit." Great to see both of you this morning.
TONY BLANKLEY, AUTHOR "AMERICAN GRIT": Good to see you.
CHETRY: Tony, let me start with you. Rush Limbaugh getting a rousing response at the Conservative Political Action Committee meeting. So what's going on right now in your opinion, with the republican party? Rush Limbaugh is getting this type of response. He's clearly saying what conservatives want to hear at this point. In fact, conservative republican veteran strategist Mike Murphy said that if the GOP doesn't modernize conservatism, basically republicans are going to be in the permanent minority status, 25 percent cheering on Rush Limbaugh.
BLANKLEY: Well, it depends on what Mike means by modernize. I mean, if the republican party has to come out for big tax increases, for health system that ends up in sort of single pair rationing with energy costs that are going to will go through the roof, which is on energy, why Obama's secretary of education - energy Dr. Chu, calls for. He says our energy costs are anomalously low.
I can't imagine a Republican Party who wants to agree to those policies. So if the country does want to go in that direction, the republican party would be in the minority for a while. I don't think the country really wants to go there. And if they get a dose of it, they're going to want the alternative. What Rush is doing is, he's standing for the principles of a smaller government, which are the principles that most republicans and I think the majority of Americans traditionally wanted. So I think he's doing exactly the right thing.
I don't think the congressmen and the senators who are trying to sound like they agree with Obama, are going down a path that they can sustain. Because Obama's -- I admire President Obama for having his policies that he wants to accomplish. I disagree with him. I'm speaking out and writing against them. I can be respectful of the man and the office and disagree with the policies.
That's I think where the party needs to be.
CHETRY: And Tina, you know, Republicans are arguing also that Rush Limbaugh has always been out there. He's always certainly been vocal. And he's also certainly staked his claim and not afraid to share his opinion. But they are saying sort of the left wants to make Rush Limbaugh and also Alaska Governor Sarah Palin the de facto head, because they're very polarizing political figures. But in fact, the results of a straw poll taken at CPAC, Mitt Romney was the one who came out ahead at 20 percent, as he won in 2012, running for president. So do you think it's sort of a little bit of a concoction by the left?
TINA BROWN, DAILYBEAST.COM: Of course, it's wonderful for the democratic party to have Rush Limbaugh out there, as this big, fat, wrecking ball, who has absolutely nothing to offer, except a negative position. And, you know, for the republicans to wind up simply as the party of absolutely not, you know, doesn't really do anything for the republican party, as we've seen in the polls. The approval rating for the president is through the roof. They just let Rush Limbaugh own this rhetoric because there really is nobody else. It's a great thing that they're now beginning to look again at Mitt Romney because frankly he is the only sort of sane choice, right now, amongst the line up that they have, which is frankly, such a thin bench.
Bobby Jindal went down in flames after the post address the other night. He was just widely ridiculed for being such a kind of lame figure. So to go again to Mitt Romney is in fact a very smart move because Romney knows about the economy. He's extremely personable. He's smart. He is probably the best choice for them right now to get behind.
But Rush just owns this debate right now. He is the one who is out there. His big, you know, huge, kind of bellowing, bellicose, ugly, rhetoric, is still, for most people, the face of the republican party. So, they can say that they don't feel that way about him. But the fact is, he's the guy, who, right now, is fanning for them.
CHETRY: I want to ask you, guys, one quick question before we go, about the budget. It's, of course, getting a lot of people very unhappy. Outrage from conservatives, especially on the issue of not only rolling back President Bush's tax cuts, former President Bush but also asking wealthy Americans to pay for health care reform.
And Tony, you write in your column, "he offers fiscal responsibility, claiming to reduce the deficit, he just created it by taxing the crap out of business and anyone left with a decently paying job. That's the ticket. Promise to raise taxes on any person, any business, that still produces anything, while promising to give yet more hundreds of billions of people who are already burdens on working Americans."
Clearly, a difference of opinion as to whether or not that is the way to go. I quickly like both of your responses to whether or not you think that's going to work.
BLANKLEY: Well, I mean, Obama inherited a deficit of about $700 billion. He's introduced a budget with $1.7 billion. He's added about $1 trillion to the deficit in a month. And as far as taxes, the idea that he's now going to reduce the deduction for charitable deductions and for property taxes, is I think is going to bite hard into an awful lot of liberal institutions. New Yorkers, Californians, people who pay high taxes, contribute a lot to charity. All the philanthropic groups are going to be hurt by that.
I'm not sure the democratic party on the Hill is going to stand by the president on that.
CHETRY: And, Tina, the last word.
BROWN: Well, I do think that's a disaster, that charity measure. I think that it's a tragedy in a sense that this has suddenly got into the bill here. It's not a good idea to do that. It is going to greatly hurt charities. I do think that Obama has got to watch out that the populism that's been unleashed now against anyone with money, is going to in a way rebound. Because it's going to hurt the economy tremendously, if people simply just paralyzed from spending or feel so embarrassed about having money to spend, that they don't actually want to be seen doing it.
CHETRY: Right.
BROWN: That's not a great idea.
CHETRY: Well, Tina Brown and Tony Blankley, always great to get your opinions. Thanks so much.
BLANKLEY: Thank you.
CHETRY: Coming up at 7:54 Eastern time, we're going to be speaking with Congressman Ron Paul live. He is considered to be one of the frontrunners Republican in 2012. So what does he say about another run? We'll ask him. We'll also see what he says about Rush Limbaugh's role in the GOP.
ROBERTS: Yes, tied for third with Sarah Palin in that straw poll at CPAC.
A winter storm barring the east coast right now. Airport delays. Flight cancellations. Big problems on the roads. Reynolds Wolf tracking it all for us this morning. He'll be with us in just a minute. There he is. 39 minutes now after the hour.
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ROBERTS: Forty-two minutes after the hour. Just in to CNN. What happens when lenders get out of the lending business, can't be good? No. Christine Romans "Minding your Business." She joins us this morning.
ROMANS: Yes.
ROBERTS: HSBC today.
ROMANS: That's right. It's going to mean jobs. It's going to mean 6,100 jobs in this country will be lost, for HSBC. It came out with its most recent profit report. And it says the U.S. economy deteriorated severely, John and Kiran, toward the end of 2008. It says the subprime mortgage refinance model no longer operates effectively. Surprise, surprise. And so it's going to be getting out of the consumer lending business, to a great degree in this country. And that's going to mean 6,100 jobs lost.
It doesn't have very uplifting things to say about what expectations are for U.S. businesses for this year, John. So it's getting out some of its business here. 6,100 jobs lost will be the net result. And you will see some branches, most likely, leaving your neighborhood. That is how this recession and this crisis is going to affect your street.
ROBERTS: As you were talking about HSBC, we are also seeing some pictures of AIG. Because we got big news on them this morning.
ROMANS: That's right. AIG, of course, is going to get another $30 billion of taxpayer money to try for the fourth time now that it had to go back and get more money from taxpayers. The problem with AIG, the big insurance company, of course, is that it has just huge reaches all over. All over the globe. And this government has said we're not going to let it fail. Continuing to pump money in there in a very, very huge loss there.
ROBERTS: And they continue to hemorrhage money.
ROMANS: You know, we have pumped money in there. And it's losing hundreds of thousands of dollars a minute in the fourth quarter. I mean it was remarkable for the year last year, it lost $99 billion.
ROBERTS: At $61.7 billion in the fourth quarter.
ROMANS: But it insures 401(k)s. It insures municipalities. It's got 30 million, you know, different insurance claims. It's got reach in over hundreds of different countries. So AIG is something that the government wants to save and we're going to keep putting money in it, to it.
CHETRY: And as you put it to me, there is a plan to try to fix this. But the details would boar the pants off of all of us.
ROMANS: Yes.
CHETRY: All we want to know is we're not pouring billions of dollars into a lost cause.
ROMANS: They're switching gears. They're changing things. They got a lot of - they're trying to get the global divestiture plan. That means they're selling off big chunks of themselves and they're trying to get stability, the government is trying to help them be stable so they can sell pieces of themselves.
ROBERTS: There's a great word to describe what's going on right now. Exsanguination.
ROMANS: Oh, exsanguination. John, I'm going to pretend I know what that means.
CHETRY: Bring out the leeches, I'll tell you later.
The GOP in search of a leader. So is Rush Limbaugh, is he the man the republicans need? We're going to ask Congressman Ron Paul, live.
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CHETRY: It's 47 minutes past the hour. We're tracking breaking news. It's the winter surge that right now is barreling across the northeast, from Virginia to Maine. The snow is falling. The wind is blowing. In fact, more than a foot of snow. This is what a lot of the roadways look like out there this morning. And potential hazards out there as well.
Shiri Spear, from our affiliate WWLP joins us live in Springfield, Massachusetts, this morning. I would say you guys are used to this stuff, right? But you guys are getting quite a wallop.
SHIRI SPEAR, WWLP-TV CORRESPONDENT: I think we're used to it. But the fact that it's now March, that a lot of us are a little disappointed that we're yet again dealing with that snow. And we certainly are dealing with the snow this morning, not just in a vertical fashion. But it seems to be falling almost horizontally at times here.
And just look at these roadways. Absolutely snow-covered. And that's not because road crews aren't trying to clean it up. It's because they can't keep up with how much snow is falling. Take a look at the snow totals. I talked to you about an hour ago but since then we've probably added about three-quarters of an inch to our snow accumulation here in Springfield. And again, it is white, fluffy stuff.
So the kids schools are canceled today. The kids that want to go outside and make those forts, make those snowmen, it's not the sticky stuff, not going to break your back to shovel this. But commuters this morning just have those slippery roads to deal with. We've had some major accidents here on our interstates. And a whole lot of spinouts, too.
And of course, the airports, big delays. Bradley International Airport, out of Windsor, Connecticut, down to one runaway. They have 75 percent to 80 percent of flights canceled this morning. So call your carrier. Also Logan International Airport, hundreds of flights delayed. So stay on top of it if you're traveling in or out of Massachusetts today.
You have to check with your carrier. We certainly are seeing the snow falling. It's going to start to taper off in probably an hour or so. But accumulation will continue through the afternoon. Kiran, back to you.
CHETRY: It's hilarious, the cars behind you don't look like they're the least bit phased. They're just zooming by right behind you there.
SPEAR: Oh, I think we're hearty new Englanders.
CHETRY: How about it. All right. Shiri, thanks so much.
Also, CNN's Reynolds Wolf is tracking the massive storm this morning. He is live in Centennial, an Olympic Park, in downtown Atlanta. I have to laugh because you looked colder before we came to you than poor Shiri up in Boston. What's the temperature there in Atlanta?
REYNOLDS WOLF, CNN METEOROLOGIST: I know. Right now, temperatures in Atlanta is mainly in the 30s. But you have a strong wind that just comes right on through and cuts through pretty badly. We got some wind gusts here I'm guessing about 30 miles an hour or so. It does not make things feel good, that's for sure.
In terms of snowfall, Kiran, we had a roughly four inches of snow. Some five inches around metro Atlanta. All the snow for the most part is gone. There are a few patches here and there where you can have a little but the heavy, heavy accumulation is, most of it, is long gone. However, we're going to have some issues on the roadways, especially on 285, i-20. We're going to have some issues with black ice. So there is a problem there with a lot of the heavy traffic on the roadways and people being in a hurry on a Monday morning.
So there is a huge concern with that. Very quickly to the maps. Let's show you what we have. Up in New York, some of the snowfall totals very impressive the farther north you go. Upton, nearly a foot of snowfall. LaGuardia, about 5.9. Let's take a look at some of the delays we expect. It's no surprise. New York metros heavy snow. The high winds same deal in Washington airports.
And also Boston Logan International, the heavy snow and high winds you could have delays in excess of an hour for many people. So there are going to be a lot of folks out there, no question, will have a case of the Mondays. It's going to be a rough time for a lot of folks. There's a quick look at the map which shows you all your watches and warnings up for most of the eastern seaboard. We're going to have more coming up. Let's send it back to you in the studio.
CHETRY: All right. Reynolds Wolf, thanks so much. And I just saw some people walk by you there. Their heads covered with their jackets, too. So the wind must be pretty biting down there in Atlanta this morning.
WOLF: You bet.
CHETRY: Thanks, Reynolds. John.
ROBERTS: It's interesting too that if you go on the government Web site for flight delays, flight@faa.gov, they are showing no delays anywhere. So what I figure and Christine Romans said this, too, is that the guy who updates the Web site probably couldn't get into work because of the snow.
CHETRY: Exactly.
ROBERTS: So what is it like to be handed $176 in food stamps and to be told that it's got to last you for an entire month. Could you do it? Our Sean Callebs has been trying. He joins us. Sean, how are you making out?
SEAN CALLABS, CNN CORRESPONDENT: 30 days under my belt. Did I make it? What kind of lessons did I learn? Stick around. I'll explain, coming up next on AMERICAN MORNING.
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ROBERTS: In these tough times, more and more Americans are being forced to use food stamps to eat so we wanted to see how far they really go. Can you actually go hungry or can you fill yourself up on it? Our Sean Callebs can tell us that now firsthand. And he is live in New Orleans this morning where he has just completed a full month living on food stamps. There he is in the kitchen along with his guitars and Elvis fridge magnets. Good morning to you, Sean.
CALLEBS: Good morning. Actually those guys probably had more food than me over the last 24 hours. The simple answer, I did it make it and I extended the experiment a couple of extra days because we got a lot of e-mails, saying come on, 28 days? Go the full 30 or 31. But I'm down to this. A couple of canned goods, half a bag of rice, a couple of prepackaged things that I just didn't simply want to eat. I did get through it, yes, but it only provided just a small taste of what 31 million Americans go through every day.
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CALLEBS (voice-over): The crowded aisles at the grocery store never looked more intimidating. 176 dollars. The maximum amount in food stamps one person in Louisiana can receive. OK. I'm going to run out of money.
UNIDENTIFIED FEMALE: Yes.
CALLEBS: I wanted to be as careful and as frugal as possible. Even state leaders in charge of the food stamp program had their doubts. How difficult do you think it would be for me to live on $176 for one month?
SAMMY GUILLORY, DSS OFFICE OF FAMILY SUPPORT: Very difficult if you had no other sources of income or food.
CALLEBS: I started this project on Sunday, February 1st. $6.28 a day to eat. The first shopping trip cost more than $70 so I knew I had to live pretty cheaply. By the second week, I hit my stride, food got better. Baked chicken, potatoes, healthy vegetables and by the final week, I knew I would make it, even though the cupboard got a lot more bare.
The food was heavy on calories and light on taste. Still, I consider myself among the lucky. I made it through the entire month.
Across the country, there are millions of families like the Allens who live near Houma, Louisiana. Their monthly allotment of about $580 for food stamps always runs out before the end of the month.
JIMMY ALLEN, FOOD-STAMP RECIPIENT: If you can't make it or you can't get it our own, you don't need it but that's not always the case whenever I've got a wife and six kids.
CALLEBS: For the Allens and 31 million other Americans on food stamps, pride takes a back seat to feeding hungry mouths. Food banks and churches try to fill in the gaps. But the simple answer is more and more families who never thought they would be turning to food stamps, are asking for government assistance.
(END VIDEOTAPE) CALLEBS: I think a couple of big lessons I learned, John. It's not just the appetite that kind of wears on you. You always have to think what's for the next meal? How much money do I have left? And from a social aspect, you don't realize how many people come up here and say let's grab lunch, you want to get a bite to eat after work and all of that weighs on you.
We had the blog up there this entire month and you can find out more about what I learned from that but it's been a learning experience. There's no question about that.
ROBERTS: I'm sure it has. It's been fascinating for us to watch it all the way along, too. Sean Callebs in New Orleans this morning. Sean, thanks so much. It's 57 minutes now after the hour.
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