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General Motors Running Out of Gas; Who's Hiring?; Mortgage Modification: How Does it Work?; Dancing in Defiance; The Proposition 8 Debate

Aired March 05, 2009 - 10:59   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Thursday, March 5th, and here are the top stories for you this hour in the CNN NEWSROOM.

The president's plan to overhaul the health care system. We preview today's White House summit on coverage and costs.

Activists rally ahead of arguments before California's Supreme Court next hour. They want a voter ban on same-sex marriage overturned.

Oh, he's going to be starting something this hour. A big announcement from Michael Jackson, live from London. Can a fallen icon rise again?

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

So let's start the hour with your money and a stock market check. Ninety minutes into the trading day, and blue chips are in the red again. All kinds of concerns today about the viability of GM. So now we're back in that area where we're talking about the Dow and S&P at 12-year lows.

Dow stocks pulled off a 150-point rally yesterday, but that was yesterday. That rally was only the sixth winning day on the Dow in the last month.

So let's spend a bit more time talking about GM, General Motors. The nation's biggest automaker is raising the specter of that dreaded "B" word, bankruptcy.

Susan Lisovicz is at the New York Stock Exchange with details.

And Susan, you know, this is a big company, but it drills down to individuals who go there every day, and work some 260,000 people who work for GM.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: That's right. I mean, it's the nation's biggest automaker. It has had a proud history. But the fact that it may go bankrupt should not be a surprise to anyone, really, because it became painfully clear when representatives from GM, and Chrysler, for that matter, went to Washington. We all remember that. They flew there on their private jets last November with their hats in their hand and said, we need assistance, and if we don't get it soon, we will not be able to continue operating much longer.

You know, I remember that vividly, because that was the low of the bear market, when it became clear that lawmakers said we need more details, exactly how you're going to do this. The Dow dropped nearly 900 points in two days.

Perhaps what's really shaking up the markets today, Tony, is that its own auditor says that it may not be able to survive much longer. It says it has -- the company, in its annual report, says, "If we fail to obtain sufficient funding for any reason, we would not be able to continue as a going concern, and could potentially be forced to seek relief under the U.S. Bankruptcy Code."

Obviously, GM doesn't want to say it. Its auditors have said it, as well. It's a last resort. It's out there -- Tony.

HARRIS: We know that GM is trying to raise all kinds of capital from the government, from the private sector, as well. You get a statement like that from your auditor, why in the world would anyone invest in GM right now?

LISOVICZ: Well, that's part of the problem. And that's why it really doesn't want to have to go there.

I mean, GM shares right now are down 14.5 percent. The nation's biggest automaker trading under $2 a share.

This was a company that had its stock trading in $90 during the height of the market, or close to the height of the market, in 1909. So it's just had a tremendous collapse.

And part of the problem is when you file for bankruptcy protection, you get in a long line of creditors. Shareholders get at the end of the line.

HARRIS: Right. Right.

LISOVICZ: So it's kind of a self-fulfilling prophecy.

But we have a credit crunch. We have a credit crunch right now. So where does it have to go? It has to go to the government.

And, by the way, consumers aren't buying anything. They're certainly not buying big-ticket items like cars. So it's not only GM that's getting hurt here, it's well-performing companies up until recently, like Honda and Toyota, that have also been terribly victimized by this global recession.

HARRIS: Oh, boy. All right, Susan, we've got more questions on GM. You'll be back with us next hour?

LISOVICZ: I will. Yes, I will. HARRIS: All right, Susan. Thank you.

LISOVICZ: You're welcome.

HARRIS: This week, President Obama seemed to suggest now is a great time to buy stocks for the long term, but one CNN iReporter doesn't see the logic in that.

(BEGIN VIDEO CLIP)

JEAN LINDSAY, IREPORTER: The Obama administration is all for raising the capital gains tax back up to 20 percent. But, of course, that really makes you think twice about buying stocks even if they're down at the bottom of the barrel here or maybe going even going further. Because then you have to say to yourself, how many years do I have to wait to recapture my investment and to make it make sense for me? I mean, we may not live long enough to see it.

(END VIDEO CLIP)

HARRIS: Boy.

The president's budget outline would raise capital gains taxes from 15 percent now to 20 percent.

So live this hour, at the Capitol, your lawmakers are being grilled, and they're doing a little bit of venting. All right?

On the Senate side, the Banking Committee is looking into the collapse of insurance giant AIG. No one from AIG is at the hearing. OK. AIG has dipped into the bailout pot four times now, while losing money at a clip of $460,000 a minute.

On the House side, the treasury secretary is facing lawmakers' questions for a third straight day. Timothy Geithner's answers may be laying the groundwork for another round of bank bailouts. President Obama's 2010 budget outline suggests another $700 billion -- wow -- may be needed.

We will get a clearer picture of the jobless trend tomorrow. Unemployment numbers for February are expected to inch closer to eight percent.

Today we got weekly figures. The number of people lining up for first-time jobless benefits dropped to 639,000. That was a bit of a surprise. Ongoing claims slipped, as well, to 5.1 million, down by 20,000.

Let's go live now to New York's Times Square. CNN Senior Correspondent Allan Chernoff is at a job fair.

And if we talk about a job fair in this environment now, that usually means people lining up out the door.

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: They are, indeed, Tony. This is just a very small group of the more than 3,000 people who are coming today.

Around this entire ballroom area, and then downstairs, out the door, into Times Square, those are the hard facts here. Lots of people coming.

And there are about 1,000 jobs inside, about 90 companies looking to hire. But it's not just about these jobs right here. This is a chance to basically introduce yourself, attach your face to your resume, get people talking about you, make those personal contacts.

We've got more advice with Eric from Monster.com. He is one of the organizers here.

Eric, how do people find a job in this environment?

UNIDENTIFIED MALE: Today's event is about making connections and standing out from the crowd. What you need to do today is make sure, just as you said, shake those hands, get that package. Be able to convey that, you know, I'm excited about your organization, I'm excited about the opportunities that you have, and I have a lot to offer.

Those are really what you're trying to accomplish. How you go about doing that can be as tactical as the firm handshake.

You see from this crowd here that a lot of people put time and energy into how they look this morning, making those impressions. When you come to a live event like this, you're skipping some very important steps in the process, which are, did they even receive my application, did they receive my resume?

You know, this is a chance for you to reflect all of your package in -- without relying only on your resume.

CHERNOFF: And in these days, a lot of people think, oh, well, I can just go to an online service, and I'll land something right away. But that's just a starting point often; right?

UNIDENTIFIED MALE: It's absolutely a starting point. Really, what you're trying to do is make a connection with an employer.

People work for people, and a lot of the employers that have jobs today are in this room. So what you want to do is make sure that they're remembering you. And actually, your goal today is to get an interview, and we've seen people interviewing out in the lobby, but it's also about remembering that, you know, you have taken time with me today, and I should thank you for that time. So sending them a quick "thank you" note keeps you top of mind.

It's really what you want to do, is stand out from the crowd.

CHERNOFF: Eric, thank you very much.

Tony, this is just one step in a process, and hopefully for these folks behind us, it's a process that lands a job.

HARRIS: Yes.

Boy, fingers crossed for all those folks. Allan, appreciate it. Thank you.

You know, if you're one of the thousands of struggling homeowners out there, you may have a few questions about how the president's mortgage modification plan can help you.

Joining us now is CNN Radio host Steve Kastenbaum, who has been following the foreclosure crisis pretty closely.

Steve, good to see you.

You know, if I'm a homeowner right now and I want to get a loan modification, how long will it take? Do we know once I make that initial phone call?

STEVE KASTENBAUM, CNN RADIO: You know, that's a really good question, because there is no uniformity to how these loan modifications have been taking place state to state, city to city. That might change under Obama's plan, under the president's plan. But right now, it really can take anywhere from five to six weeks, to several months, a half a year. I've heard of all different lengths in the process.

HARRIS: OK. So Steve, when I do make that call, I'm just -- I'm in a bad way right now. Does any legal action pending against me regarding sort of back payments or delinquencies filed against me, does all of that stop?

KASTENBAUM: Well, that's the -- that's the intent here. It's to take a breather, to step back and say, "Stop."

In fact, in Philadelphia, they have court-mandated interventions. Judge Annette Rizzo (ph) spoke with me about how it works, and she told me it's her job to say, stop, everybody step back, let's take a look at what's going on here and see if we can work something out. So the legal process is supposed to pause for a moment while they look at each individual mortgage.

Now, they want to save four million mortgages here, Tony. That's a lot. And, you know, I've been talking to folks at the East Side Organizing Project, a community advocacy group in Cleveland, where they do this. They've handled 5,500 homes throughout Ohio since 2006.

In Philadelphia, they have handled about 600 homes they've saved from foreclosure. In this court-mandated program since June, they have another 1,400 in the pipeline right now. So you can see, it's going to take a long time before they get to that four million mark.

HARRIS: Yes.

And Steve, I get this question a lot -- If I'm able to pay my mortgage -- say I'm on a 30-year fixed -- and is there anything in this legislation, in this law, in this plan from the president -- let's call it what it is. It's a plan. KASTENBAUM: Right.

HARRIS: Can I qualify for a modification and get a lower interest rate?

KASTENBAUM: Look, the plan isn't designed to help people who have been doing well. It's not out there to help you...

(CROSSTALK)

HARRIS: Yes. Yes. But you see what I'm driving at. It's the idea...

KASTENBAUM: Yes.

HARRIS: Steve, you see what I'm driving at. I mean, these mortgage rates are at unbelievable lows right now, four or five percent.

KASTENBAUM: Right.

HARRIS: If I could re-fi into one of those lower rates, I could get a little -- peel off a little cash here and maybe do a little spending, and that would stimulate the economy.

KASTENBAUM: Exactly. Right.

Now, there is some leeway in this plan, in this idea, to modify loans that will help people who have been playing by the rules. For instance, if your mortgage is backed by Fannie Mae or Freddie Mac, the government is telling them you must modify all of those mortgages, and modify them to today's interest rate.

HARRIS: There you go.

KASTENBAUM: So in that regard, you will get some savings.

If you're struggling, if you're not in foreclosure, if any warning letters have not come to your house yet, but you're really struggling to make those payments, and you're coming close and you're living really above your means...

HARRIS: Yes.

KASTENBAUM: ... you will get some help through this. The idea is to get your monthly payments down to 31 percent of your monthly gross income.

HARRIS: Right.

KASTENBAUM: So in some respect, it will. But, you know, for the people who have been playing by the rules, if you've got good credit right now, go out there and refinance.

HARRIS: Yes.

KASTENBAUM: You can save yourself $500, $600, $700 a month.

HARRIS: Good point.

Steve, good to see you. Thank you, sir.

KASTENBAUM: My pleasure. Thanks, Tony.

HARRIS: All right. You are looking now -- let's roll in some live pictures. London, OK?

Michael Jackson -- is that his -- I can't tell. Is that his entourage? Oh, it's his bus? Are you telling me they have a chopper in the air following Michael Jackson's bus?

OK. So Michael Jackson's bus is heading now to the O2 Arena. The King of Pop, you know, having some financial troubles. But ready, apparently, to get back on the stage.

Josh Levs is hearing from you about Michael Jackson.

And his possible return, huh?

JOSH LEVS, CNN CORRESPONDENT: Yes. Well, you know, we were talking about it in the morning meeting today, he's a massive icon all over the world.

HARRIS: It dominated the meeting. It was like 20 minutes of the meeting. Are you kidding me?

LEVS: I know. OK. I will admit that.

HARRIS: It's insane.

LEVS: But it's true. Hey, something different to talk about, right, than the daily economy is so tough?

HARRIS: Yes.

LEVS:. Plus, there's economy angles going on with this.

I'll tell you, as you know, every day we have some questions for you. You're weighing in by e-mail or by Facebook. Usually it's very structural economy things. Today, were going where the icon is.

We know a lot of people have a lot of feelings about this. We're reading some of your views on Michael Jackson.

This is at my Facebook page, Josh Levs CNN, which is brand new, Tony. I woke up this morning, the Josh Levs CNN page was gone, but there's a brand new one. It's part of their whole new redesign.

I just want to show you something quickly.

HARRIS: OK.

LEVS: I just announced this a few minutes ago. Check this out, people weighing in like crazy.

Everything you're seeing here is pretty much positive. Over here, there is one person who says, "Michael Jackson, yuck".

So let's quickly show the graphic. If you're not on Facebook, you can e-mail us, cnnnewsroom@cnn.com. Or do the Facebook thing.

And Tony, I'm telling you, a lot of people have a lot to say.

HARRIS: Oh yes.

LEVS: Especially with this newser. We'll pop back in with the responses.

HARRIS: All right. We've got to go. We're so long in this segment. Thank you, Josh.

We're back in the NEWSROOM in just a minute.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: So Michael Jackson is on his way to -- what is it, the O2 Center in London now? OK, the O2 Arena. I guess I should be absolutely correct here -- the O2 Arena in London.

And that is the bus and vehicle caravan for the gloved one, Michael Jackson. He's holding a news conference -- I can't even remember the last time we saw him in public -- we believe to announce that he is going to launch a tour, maybe as many as 20 tour dates.

He is terribly in debt. His Neverland ranch is about to be auctioned off, and other items, as well.

So we'll watch this. Maybe we'll squeeze the picture and -- you know, you remember Jackson's gloves mentioned just a moment ago? You could actually own one or more if you have the bucks. About 2,000 items from Jackson's southern California Neverland ranch are going on the auction block.

Our Ted Rowlands has details.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Crowns and capes, even a throne. The King of Pop is holding the ultimate garage sale with items from his Neverland ranch. Even the gates are up for auction.

DARREN JULIEN, PRESIDENT, JULIEN'S AUCTIONS: I have to say, he has the most eccentric and eclectic taste of anybody we have seen.

ROWLANDS: Darren Julien, CEO of Julien's Auctions, is running the sale. There are about 2,000 items, each with an estimated value that doesn't factor in Jackson's ownership.

The gates, for example, are valued at $20,000 to $30,000, but will most likely sell for more. This marble fireplace is one of several large items. This statue is the most expensive, at $250,000. There is plenty of artwork, much of it featuring Jackson, including this doozie, with everyone wearing glasses and one glove.

As for gloves, there is a signature white jewel-covered classic, or this set of five, each a different color. The rhinestone socks are also for sale. And you can have your pick of several vehicles, ranging from this golf cart to a custom Rolls-Royce designed by Jackson.

JULIEN: The inside looks like something like a prince or a king should ride in. But he designed it, and the interior is gold. It's a phenomenal car.

ROWLANDS: Other items range from the jacket Jackson war at his Hollywood Walk of Fame ceremony to a Neverland cappuccino maker.

(on camera): Is he broke?

JULIEN: We have not been let into that. He has very much in control of a lot of the property. He has actually been very good to work with from the standpoint that, you know, he communicates very clearly.

ROWLANDS (voice-over): Some of the stranger items include this robotic Michael Jackson head from the 1988 film "Moonwalker," a life- size Superman statute, and these were the movie "Edward Scissorhands."

(on camera): If you're interested in buying any of the items, you can pre-register now. The auction will take place next month in Beverly Hills.

Ted Rowlands, CNN, Los Angeles.

(END VIDEOTAPE)

HARRIS: All right. We want to take you back to London now.

Do we have the pictures?

Michael Jackson's bus and vehicle convoy heading now to the O2 Arena for the press conference coming up in just minutes, we understand. Well, I don't know how long it will take the bus to get from where they are to the O2 complex arena.

But when Jackson gets there, we'll give you a bit of the flavor of the news conference. And we understand there will be a three- minute video that will be played. There are about 200 or so fans, if I was hearing Atika Shubert collectly. We'll talk to Atika in just a couple of minutes.

But there you go, Michael Jackson on his way to a press conference to, we believe, announce some tour dates in Europe. So many questions about the president's plan to keep more people in their homes. Personal Finance Editor Gerri Willis, as we get the show back on the rails again, is answering your e-mails next.

(COMMERCIAL BREAK)

HARRIS: You know, homeowners are trying to get their arms around the president's new mortgage modification program today. You have e- mailed us your questions, and Personal Finance Editor Gerri Willis is here with answers.

Gerri, good to see you. Are you ready for the first question?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Tony. Let's go.

HARRIS: All right. Let's go.

"Does participating in this program inadvertently ruin one's credit?"

WILLIS: That's a great question. You know, if you do a re-fi, Tina, this shouldn't affect your score at all.

However, if you are current on your payments and you get a loan modification under this program, this could negatively impact your score. This is what the Treasury Department tells us.

Talk to your lender if you're worried about this. But, you know, keep in mind that most folks who qualify for the loan mods are already delinquent on their mortgage payments, so if you can do a loan modification and avoid foreclosure, you're better off in the long run, despite what happens to your score.

HARRIS: Interesting.

The next e-mail comes from -- I believe it's Karenine. I may be wrong on that.

"I would like to know, where can a person find out if she is qualified for the mortgage program stating that if someone is behind on their mortgage for about 60 days, they can be eligible to pay $500 a month in order to catch up?"

WILLIS: You know, you're really referring to a program we talked about earlier this week.

HARRIS: That's right.

WILLIS: And it's from Citi Mortgage. They say if you lost your job within the last six months, or you're 60 days behind on your mortgage payments, on your Citi Mortgage, you may qualify to pay 500 bucks a month for three months.

However, you can only play if Citi Mortgage is your mortgage holder. Their number is 800-283-7918. However, having said that, you better be off in the government's program called Making Home Affordable. Go to hud.gov to see if you qualify for a modification that can cut your mortgage rate for five years. It's a little longer-term program.

HARRIS: And Gerri, time for one more?

WILLIS: Sure.

HARRIS: Jo in Seattle has a question for you.

"We are just over the conventional mortgage limit, which makes our loan a jumbo loan. Will they refinance us now, even though ours is a jumbo loan?"

WILLIS: Jo, Jo, Jo. The answer is no.

HARRIS: Wow.

WILLIS: But, you know what? You may not know what the jumbo limit is, because it's changed.

Way back when, it was $417,000. Today it's $729,750. So it's changed.

It's a moving target for a lot of people. They don't understand it.

You need to talk to your lender and see what the jumbo limits are in your area, and just explain more broadly. There are typically different rates of interest for loans that are called conventional, which are smaller, and the jumbo loans, which tend to be more expensive. So it's a great idea to talk to your lender, get the details, because maybe you will qualify.

HARRIS: Hey, Gerri, give us a bit of a heads-up, a preview of "YOUR BOTTOM LINE" this weekend.

WILLIS: Well, happy to do it. "YOUR BOTTOM LINE," it's 9:30 a.m., Saturdays on CNN. And this week, we're going to be telling you where the jobs are and how you can get one. All the details coming up this Saturday.

And I think Tony will be watching too.

HARRIS: Always. Come on. All day, every day.

All right, Gerri. Good to see you. Thank you.

WILLIS: My pleasure.

HARRIS: Bankruptcies, as you know, are on the rise. Read more and find out how to avoid it at CNNMoney.com. Check out our special report, "America's Money Crisis." Again, that's at CNNMoney.com.

(BEGIN VIDEO CLIP) MAYOR GAVIN NEWSOM, SAN FRANCISCO: I believe in full equality for everybody, and I'm very, very concerned that if the will of a majority, a simple majority, can take the rights at any time in place of a minority, then there is nothing to stop a subsequent majority to take away your rights or my rights or someone else's rights, based upon religious or ethnic or any other construct, not just the issue of sexual orientation. So there is a profoundly important question here. We're a constitutional democracy, not a pure democracy, and wherein does the Constitution lie in this debate?

(END VIDEO CLIP)

HARRIS: San Francisco Mayor Gavin Newsom there weighing in on the legal showdown over same-sex marriage. Newsom is a proponent of gay marriage. The California Supreme Court hears arguments in the case next hour.

At issue is California's ban on gay marriage. Is it constitutional? And what about the 18,000 gay couples who married before the ban?

At the center of the fight, Proposition 8. The ballot initiative bans same-sex marriages. Voters approved the constitutional amendment in November; it passed with about 52 percent of the vote.

The hearing on the gay marriage ban drawing a lot of interest. A crowd has been gathering outside of the state Supreme Court building in San Francisco, as you can see here.

Dan Simon is there and he joins us live.

Dan, if you would, set the scene for us today.

DAN SIMON, CNN CORRESPONDENT: Well, hi, Tony.

The proceedings are going to get under way in about 30 minutes, but as you mentioned, already a very lively atmosphere outside of the courthouse. A lot of protesters behind me.

As a matter of fact, I'll get out of the way, and you can see all the people who have lined up. And when I say protesters, I'm talking about people on both sides of the same-sex marriage issue.

Let's talk about what exactly is at stake here.

Will the Supreme Court uphold the ban on same-sex marriage here in California? And that ban was the result of a California proposition, Proposition 8, which was narrowly approved, as you said, Tony, by voters here in California by a 52-48 percent margin.

As you may recall, when that took place, there were a wave of protests throughout the country. As you can imagine, gay rights groups very vocal about this issue. But we should note that it was only six months ago that the Supreme Court in California ruled in favor of same-sex marriage, only to see it invalidated by Prop 8 just a few months later. I want you to listen now to CNN legal analyst Jeffrey Toobin who, I think, framed the issue in a very profound way. Take a look.

(BEGIN VIDE CLIP)

JEFFREY TOOBIN, CNN LEGAL ANALYST: This case is really about democracy. Because the voters have spoken. The voters said, no gay marriage. But courts are often supposed to be a check on democracy to protect oppressed groups. So the question is, is the Supreme Court here going to support the democracy of the majority, or protects the rights of the minority?

(END VIDEO CLIP)

SIMON: Now, Tony, the Supreme Court is not going to rule today. Instead, they are going to be taking opening arguments. A ruling is expected in about 90 days.

And in terms of the characters here, we have Kenneth Star - everyone remembers Kenneth Star.

HARRIS: Yes. Yes.

SIMON: He's going to be handling against - or rather, in favor of Prop 8, against same-sex marriage. He, of course, is best known for prosecuting Bill Clinton in the Whitewater/Monica Lewinski scandal. So, he's going to be handling for Proposition 8.

HARRIS: Hey, Dan, just very quickly, and I'm wondering what you're hearing from folks who have been watching this case as closely as you have. Does the May ruling by the California Supreme Court foreshadow how the court might decide on this appeal?

SIMON: Well, it's very clear that the California Supreme Court is in favor of same-sex marriage, based upon that May ruling.

What's at issue here is sort of a technical issue. And it's about whether or not Proposition 8 was actually an amendment or a revision. If it was a revision - and, again, this is the legalese - if it was a revision, then it would be invalidated, because revisions require legislative approval in California. And there was no legislative approval in this case. As a matter of fact, the legislature would not approve of Prop 8, because they have already spoken out in favor of same-sex marriage in terms of the votes that have been taking over the last several months, and this week - Tony.

HARRIS: All right, Dan Simon for us. Appreciate it, Dan, thank you.

And, you know, Michael Jackson is about to speak. He's on his way - is he there yet? Do we know whether he's there yet? Anyone? We don't know.

All right. We've been showing you pictures of the bus and the entourage escorting Michael Jackson to the QE20156 Arena in London, where the press conference will take place. When the press conference begins, we'll give you a bit of a flavor of right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Health care in critical condition. Costs are rising, millions are uninsured. The Obama administration looking for the right prescription for change. The president convenes a health care summit in about two hours. The focus is on reducing cost and expanding coverage.

White House correspondent Suzanne Malveaux joins us.

And Suzanne, we know the health care debate has been a debate on the federal level for a long time. But it's also been carried out in town halls all over the country. I'm just sort of curious as to whether some of the conclusions from some of those meetings around the country will be a part of this larger debate.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Actually, Tony, they are going to be a part of the larger debate. They've been holding kind of health care summits since the point of transition. And they've gotten a lot of information from folks about what it is they're most concerned about, whether or not they have insurance, or whether or not their families are going to get sick. That is going to be a part of dialogue.

And obviously, they're going to be talking with a number of critics, lawmakers, who are looking at that figure, $634 billion, in the health care reform fund to see where that money is going to go. The administration arguing it's going to help some 46 million Americans who don't have health care coverage to actually get that insurance.

Now, one of the things, the big question that I have, a lot of people do, is how is this going to be any different than what we saw 15 years ago when Hillary Clinton tried to tackle this? Well, it is something that I asked the domestic policy director, Melody Barnes, about earlier today. She is at the forefront of this. And here's how she explained it.

(BEGIN VIDEO CLIP)

MELODY BARNES, DIRECTOR, DOMESTIC POLICY COUNCIL: Everyone who has a stake in this to have a conversation with the president puts their cards on the table and talk about how we're going to move forward. We also know it has to be transparent. The American people have to see what we're doing so they understand where we're going. Those are two of the most important things. That's what's going to happen inside the White House today.

(END VIDEO CLIP)

MALVEAUX: And also what's going to happen as well, the president is going to be making the case here that health care and the fact that so many people are not covered, that this is related to the economic crisis, to the housing crisis. That this is all interconnected in some way and that's what makes health care reform so important. The president, we have learned, is going to say that the cost of health care now causes a bankruptcy in America every 30 seconds. By the end of the year, it could cause 1.5 million Americans to lose their home.

So obviously, Tony, trying to connect all of the dots here, saying this is all related. You need to pay attention to this, as well - Tony.

HARRIS: And Suzanne, I know you have some additional information about these - you mentioned just a moment ago, these regional health care summits.

MALVEAUX: This is something the administration is going to continue. He's going to lay out the health care agenda, but then they're going to take it on the road. The president, not necessarily participating in those. But top-level officials from the administration is going to be hosted by governors of various states. The schedule here, starting on March 12th. That is when Michigan - Michigan's governor is actually going to be hosting one of these regional summits. It's going to go to Vermont the next week, Iowa, North Carolina, and then California. April 6th, that's when Governor Schwarzenegger is going to host one of these regional health care summits. Really kind of like a town hall meeting. Talking about what are you worried about, what do you like about the plan, what do you not like about the plan. This is really a way of getting the message out, getting feedback from the American people, and also selling the plan, what they have on the table so far - Tony.

HARRIS: Sounds like the president is holding summits on everything. I mean, he is certainly looking for input from everywhere.

All right, our White House correspondent, Suzanne Malveaux, for us. Suzanne, thank you.

We know you have questions, and we have answers. Email us questions on health insurance, Medicare, the president's reform plans. Just send those emails to this address: CNNnewsroom@CNN.com, and we will read as many as we can on the air and get you some answers.

President Obama makes opening remarks at the health care summit in about an hour and a half, and we will have live coverage of his comments at 1:00 p.m. Eastern time right here in the NEWSROOM.

Doctors say she is up, alert and talking today. Barbara Bush is recovering from open heart surgery in Houston. Doctors replaced a worn out a aortic valve with one from a pig. The former first lady, she is 83 now, is expected to be in the hospital a week to ten days.

Her surgeon talked with CNN's Larry King.

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LARRY KING, CNN HOST, "LARRY KING LIVE": Would you say that barring any unforeseen complications, she should do right well?

DR. GERALD LAWRIE, BARBARA BUSH SURGEON: Yes, she really should. She is a remarkable woman, as you know, tremendous strength of mind- set. And she woke up from the surgery joking with us, you know, I mean, that's not that common.

KING: Yes, that's her.

(END VIDEO CLIP)

HARRIS: A family spokesman says, Mrs. Bush wanted to keep the surgery quiet. She apparently feels everybody made too much of a fuss after she had abdominal surgery a few months ago.

ANNOUNCER: You're watching CNN, your Severe Weather Headquarters.

HARRIS: And I was waiting for that. Let's get to the Severe Weather Center, now. Reynolds Wolf is there.

(WEATHER REPORT)

HARRIS: Hundreds of thousands of refugees living with little housing, little food, and no television. Now, one president faces criminal charges, but will it help this dire situation?

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HARRIS: One day after a warrant was issued for his arrest, Sudan's president dances in the streets. A defiant Omar al-Bashir lashed out at the West today in an address to a huge crowd of supporters. The international criminal court accuses Bashir of war crimes and crimes against humanity for atrocities in Darfur. The president reacting by kicking ten international aid groups out of Sudan.

Robin Kerno now following the developments from Johannesburg, South Africa.

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ROBIN KERNO, CNN CORRESPONDENT (voice-over): Victim's justice for the 300,000 killed and more than 2.5 million people displaced in Darfur. Sudan's leader, Omar al-Bashir, still smiling and defiant, named in an arrest warrant issued by the world's highest criminal court.

UNIDENTIFIED FEMALE: Five counts of crimes against humanity. Murder, Article VII, paragraph 1a; extermination, Article VII-1b; forcible transfer, Article VII-1d; Torture, Article VII-1f; and rape, Article VII-1g.

KERNO: A ghastly litany of alleged misdeeds for a sitting president to face, accused of masterminding war crimes and crimes against humanity against the citizens of Darfur.

For now, he has been let off a genocide charge, but that might change, says the World Court. UNIDENTIFIED FEMALE: Omar al-Bashir's official capacity as a sitting head of state, does not exclude his criminal responsibility. Nor does it grant him immunity.

KERNO: The court's action touched off sympathetic demonstrations in Brussels, London and Rome. While pro-Bashir rallies were held in Sudan's capital, Khartoum. The Sudanese government says it considers the arrest warrant unlawful.

ABDALMAHMOOD ABDALHALEEM, SUDANESE PERMANENT REPRESENTATIVE TO U.N.: It is like pouring oil on fire. In the Sudan today, it is a day of national outrage. A day of national anger. And we repeat with (INAUDIBLE) that all (INAUDIBLE) of Arabia will not clear this debt created by the ICC against our leadership.

KERNO: No one expects to see al-Bashir in the dark at the Hague anytime soon. The international criminal court has no police force. It says it expects United Nations member states to arrest the Sudanese president when and if he leaves the country's borders or for Sudan to give up its leader to face international justice, something the Sudanese say they have no intention of doing.

Robin Kerno, CNN, Johannesburg, South Africa.

(END VIDEOTAPE)

HARRIS: And actor/activist George Clooney has been a leading advocate for the desperate people of Darfur. He talked to our Anderson Cooper about the aid effort.

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ANDERSON COOPER, CNN HOST, "ANDERSON COOPER 360": The fact that aid agencies have been kicked out is, I mean, it's yet another sign of just the true nature of this regime in Sudan.

GEORGE CLOONEY, ACTOR/ACTIVIST: It's not as if they had it very easy while they were there, anyway. You know, I was there with U.N. peace keepers last year, and they're understaffed, and through no real fault of their own. The mandate they've been given has been so watered down, that they're not really allowed to protect anybody.

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HARRIS: Once a king of pop, Michael Jackson's now broke. He's in London to announce a concert tour. Would you pay good money to see him?

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HARRIS: Not sure where to go here. I've got Michael Jackson - any moment now, Michael Jackson to hold a news conference in London, where we understand he's planning to announce a series of ten shows in July in London. His first major concert since 2001. The 50-year-old, self-proclaimed, "King of Pop" made the tour announcement within the last hour. And joining us on the phone now is our Atika Shubert.

Atika, good to talk to you. What are we expecting from - to hear from Michael Jackson today? Perhaps the unexpected.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, Tony, the rumors are that he will announce a series of concerts here in London over the summer. Other musicians, like Prince, have done it last year. Now it looks like Michael Jackson may be set to announce to do the same. But we don't know for sure.

What we do know there will be a three-minute video, which organizers say will show never before seen footage of Michael Jackson, and there will be an appearance by Michael Jackson himself. We don't know whether he will actually be performing a song or not, but we've got about 500 fans here waiting for him, hopeful that he will do something.

HARRIS: And Atika, is he also going to show - did you mention that he's going to show a video of never before seen video?

SHUBERT: Exactly. Now, we don't know exactly what that is, but there's some speculation that this may be an attempt at a comeback by the "King of Pop." We'll have to wait and see.

HARRIS: All right. OK, Atika Shubert for us, following developments with Michael Jackson in London.

And you know, we asked you earlier for your thoughts about this, whether or not you would pay good money to see a Michael Jackson concert. Josh Levs has been - well, you've been inundated with emails about Michael Jackson, haven't you, Josh?

JOSH LEVS, CNN CORRESPONDENT: Yes, you know, we knew in the morning meeting today, a lot of people have a lot to say about this. Some are actually linking this to the economy. So we took a different spin today in our question to you, and this is up at Facebook right now. I posted it a little while ago. You can see it here, "Josh Levs CNN, we're inviting you to weigh in..."

Let me just show you a few responses, Tony. Alex Bonilla, "ALL HAIL THE KING OF POP!"

Down here, Beco, "Michael Jackson set the bar into the stratosphere with 'Thriller.' I still play it up to today. However, he is an aged entertainer whose moves aren't crisp anymore. He's not worth anybody's money."

Got time for a couple more. Jaz wrote this, "What keeps him from coming here and helping out our country? Time to be a real man, Mikey. For as much as he's worth, that could prove to be a pretty good stimulus in itself."

We've got one more here from Glenn, who says, basically, that back in the "Thriller" days, he was a big fan. But you know what, now, "I wouldn't waste money to see a concert by 'Wacko.'" You can weigh in the Facebook stop, brand new page today. Woke up, brand new page. Josh Levs CNN, or email CNNnewsroom@CNN.com. We know how many of you want to weigh in on Michael Jackson so keep it coming. And Tony, I'll come back next hour with more.

HARRIS: Thank you, Josh.

The president's housing plan. Why it is causing some outrage and how it affects you right here next hour in the CNN NEWSROOM.

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HARRIS: Looking to move but can't get the bank to let loose of that iron grip? Try swapping homes. Perhaps this house in San Clemente, California. Great view, four bedrooms, four baths. My house, for yours. Dave Dessecker - I think that's close - is an exchange broker. This is his house and he's put it on the website goswap.com. He says home swapping is becoming more popular.

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DAVE DESSECKER, HOUSE TRADER: It's getting a little easier now because the people are more motivated. From - for a while there, it was very difficult because people felt the market was going to bounce back real quick. Well, it's not happening and we don't see that happening for several more years. So right now the only way to really make things happen is to do exchanges or trades.

(END VIDEO CLIP)

HARRIS: And so far he has had two homeowners actually contact him.

And turning wind into power. Mead, Washington now, Robert Krepsick's (ph) turbine cost him $87,000, but he'll get some of that back. He qualifies for a new tax incentive for energy to the tune of $27,000. The state is also is giving him a tax break. The homeowner says he was paying up to $600 a month for electricity and hopes to cut that to zero. Affiliate KREM says, Krepsick (ph) is only the third person in the country to install a backyard turbine.