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American Morning
Dow Rebounds; Secretary of State Clinton Issues Warning on Iranian Threat; New Administration Deals With Same Pork Problems; Former First Lady Barbara Bush Recovering From Heart Surgery; President Obama to Hold Health Care Summit in the White House; Baby Bottles with BPA Banned
Aired March 05, 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: 7:00 Eastern, crossing the top of the hour, and here's what's on the news agenda. The top stories affecting you that we'll be running down for you in the next 15 minutes here in the "Most News in the Morning," issue number one, the economy.
Market whiplash on Wall Street, this time with green arrows. The Dow has gained nearly 2.25 percent. The Nasdaq rallying almost 2.5 percent. But so far today, markets across the globe are down.
The CNN money today is looking ahead with Christine Romans seeing what this morning's opening bell could bring here in the United States.
Doctors for former first lady Barbara Bush say she is recovering nicely from heart surgery at a Houston area hospital. A Bush family spokesman says Mrs. Bush was up and talking after the two and a half operation to replace her aortic valve. Our chief medical correspondent, Dr. Sanjay Gupta, is with us this morning with the very latest on her recovery.
And strong words from Secretary of State Hillary Clinton warning that Iran is a threat to Europe and Russia and is trying to fund terrorist organizations like Hamas and Hezbollah. Our foreign affairs correspondent Jill Dougherty is with the secretary of state. She'll have more on Clinton's biting words for us.
But we begin the hour with green arrows on Wall Street. The closing bell never sounded so good. The Dow rallying 150 points, snapping a five-day skid yesterday.
The Nasdaq, meanwhile, bounced up 33 points, but markets across the globe this morning now pointing south. They were mixed earlier today.
What can we expect at today's opening bell here in New York City? Christine Romans "Minding Your Business" this morning, and it looks like the rally might have been short-lived.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, but after five days of being lower, people really -- you said that closing bell never sounded so good, we really needed that because a lot of people were very concerned about a Dow which yesterday closed at 6875. It's been a devastating year for savers and investors in this country. You've seen your retirement savings. You've seen your savings really, really decimated, and so people are trying to figure out where we go from here. That little bit of a rally felt good.
Today, we're watching GM. The company in its annual report saying that there is substantial doubt according to its auditors that it can continue as a going concern. The problem in the auto industry is not over, and we're going to be hearing more about this.
The company in that annual report said it hopes to receive an additional $7.7 billion in federal aid. We know Ford's auto sales were down sharply, GM's were down. I mean, everyone is really suffering here in terms of how many people are buying cars, buying everything.
We're also going to get same-store sales today. This is going to show us just how weak the consumer has been and the same-store sales actually has been a harbinger. Some of these companies have to close a lot of stores. Some companies are falling into bankruptcy, the retailers, so a lot more on this we'll be watching today.
ROBERTS: All right. As Lakshman Achuthan was saying last hour, a lot of people retrenching and there may be a lot of pent-up demand in some months to come.
ROMANS: That's right. When will that pent-up demand come out of the gates?
ROBERTS: That's the big question. Thanks, Christine.
ROMANS: I wish I knew.
ROBERTS: All of CNN's resources tracking issue number one for you today. Our chief business correspondent, Ali Velshi, is going to join Anderson Cooper this Friday for an "AC 360" special, "The CNN Money Summit." That's at 11:00 p.m. Eastern only here on CNN.
KIRAN CHETRY, CNN ANCHOR: And turning now to a developing story, Secretary of State Hillary Clinton using very serious language to lay out the threat from Iran. She's accusing Tehran of posing a threat to Europe and Russia, and says that Iran is intent on interfering in the Middle East.
Our foreign affairs correspondent, Jill Dougherty, is traveling with Secretary Clinton and joins us on the line now from Geneva.
And, Jill, quoting the secretary here it is clear Iran intends to interfere in the internal affairs of the Mideast region and try to continue their efforts to fund terrorism, whether it's Hezbollah or Hamas or other proxies. So some strong words coming from the secretary regarding Iran.
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Right, Kiran. And, you know, essentially what she's saying is that the Iranians are trying to split the Palestinian leadership and remember, secretary Clinton was in the region just yesterday. There are two factions. There's Hamas and there's the Palestinian Authority, and they are really, although they talked about a unity government, they're really kind of locked in a power struggle. The U.S. supports the Palestinian Authority, and its president, Mahmoud Abbas, and in fact, Secretary Clinton yesterday met with him in Ramallah in the West Bank. But recent comments by Iran's supreme leader about Israel and then also praising Hamas, that second faction, were very strong as well. And one of the problems is Hamas is considered by the United States a terrorist organization and remember, Hamas is a group that Israel was fighting in Gaza recently.
CHETRY: Yes, absolutely. So clearly, still a challenge there as that power struggle continues in the Palestinian territories.
Meanwhile, the secretary also saying about Poland and the Czech Republic they recognize there's a real potential future threat. They understand that missiles could very well be in the hands of a regime like Iran's, which we know will use whatever advantage they have to intimidate as far as they think their voice can reach. And, of course, this goes back to the missile defense controversy about whether or not we can have one in Europe and whether or not countries like Russia who strongly oppose it are going to soften their stance at all.
DOUGHERTY: Right. Well, you know, the Obama administration is really trying to figure out exactly what it wants to do with missile defense. But one of the key problems is, they want to try to convince the Russians that this missile defense that would go into Poland and the Czech Republic is not aimed at Russia, because Russia has been saying that.
Now, the Obama administration is saying, no, it's not aimed at Russia and Secretary Clinton said maybe they're beginning to come around. Maybe they're seeing the point of the United States, that this is really all about Iran. And the other part of this, Kiran, is that they would like the Russians to participate, if the system even goes forward, and that is a very big if.
CHETRY: All right. Jill Dougherty for us traveling with Secretary Clinton, joining us by phone this morning, thank you.
ROBERTS: And also developing this morning, former first lady Barbara Bush is recovering after open heart surgery to replace her aortic valve. The surgery said to be a precaution after doctors found some hardening on part of her aorta. One of her doctors spoke with CNN's Larry King last night.
(BEGIN VIDEO CLIP)
LARRY KING, HOST, "LARRY KING LIVE": Would you say that barring any unforeseen complications she should do right well?
VOICE OF DR. GERALD LAWRIE, BARBARA BUSH'S HEART SURGEON: Yes, she really should. She's a remarkable woman as you know, and tremendous strength of mindset 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)
ROBERTS: Let's bring in our chief medical correspondent, Dr. Sanjay Gupta. He's on the phone now from San Diego. First of all, what's the prognosis for Mrs. Bush? How is she doing and is she expected to recover fully?
VOICE OF DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: You know, we already heard from the hospital this morning, so they've given us a report saying that she's doing well. She's still in the intensive care unit. I mean, this is a big operation certainly for anybody, particularly on someone who's in her 80s, as the former first lady is.
My guess is that she's probably under a lot of pain medications. This operation opening the chest is a painful one, and probably has some tubes in and around her chest, so that her lungs can expand and deflate easily, but those things will change over the next few days. Her medications will be weaned down and she should be able to be moved from the ICU in a couple of days would be my guess.
ROBERTS: Right. Obviously, it's a serious condition that led to the surgery. You don't want to perform open heart surgery on somebody in their 80s unless you absolutely need to. In terms of her recovery, though, we understand, Sanjay, that they put a pig valve in her heart. That's pretty routine, isn't it?
GUPTA: Yes. In fact, you know, it's one of those things, tens of thousands of these types of operations are performed every year in the United States and typically, they're in people of this age group because they're the people who develop this problem, which is hardening of the aortic valve, calcium deposits on this major outflow valve from the heart. And as you point out, it is a pig valve in this case, a biologic valve and what happens is that when the valve becomes hardened, it can either open fully nor close fully.
So the heart has a much harder time pushing blood out of the heart that can cause the heart failure down the road. It can cause the blood building up in the lungs that can cause a shortness of breath, which it sounds like she had.
You know, prognosis it's sort of in three phases. Immediately she's got to recover from this operation and the more long-term near long-term she's got to see if this valve is doing the job it was intended to do. So her shortness of breath goes away, her tightness in the chest starts to go away and in the longer term, you know, you're on new medications. Sometimes you need blood thinners, maybe less blood thinners if it's a biologic valve as opposed to a mechanic valve, but, you know, she has to make sure she can tolerate those medications well. So, you know, it's going to be awhile before we know exactly how she's done overall from this.
ROBERTS: All right. Sanjay Gupta for us this morning. Doc, thanks so much. Good to hear from you GUPTA: Thank you, sir.
CHETRY: Well, no administration has attempted health care reform in at least 15 years. This morning, though, President Barack Obama embarks on a campaign promise to make health care available and affordable for all of us.
Ahead, Melody Barnes, the president's point person on policy joins us from the White House. We're going to ask her how the president plans to pay for it.
JASON CARROLL, CNN CORRESPONDENT: And I'm Jason Carroll. President Obama is promising to cut the fat and save your tax dollars, but some critics say before you cut the fat you have to stop creating it. I'll explain coming up when AMERICAN MORNING continues.
(COMMERCIAL BREAK)
ROBERTS: Twelve minutes after the hour. A lot going on this morning. Let's fast forward to stories that will be making news in the next few hours.
You're already into the company for $160 billion and at 10:00 a.m. Eastern, the Senate Banking Committee will hold a hearing to examine just what went wrong with insurance giant AIG. Witnesses will testify on what led to the downfall of the biggest name in the risk business.
At 11:00 a.m. Eastern, Michael Jackson's big announcement. He's expected to hold a news conference to reveal his plans for a new series of comeback concerts in London. The reclusive star has not performed in a large venue since 2001.
At noon Eastern, the California State Supreme Court will begin hearing arguments in a challenge to the state's ban on same-sex marriage. Voters passed Proposition 8 during elections in November which halted same-sex weddings in the state. Up to 18,000 same-sex marriages could be declared invalid if the court decides to uphold the ban.
And at 3:30 in the afternoon Eastern, Brad Pitt sits down with Speaker of the House Nancy Pelosi to discuss his Make It Right Project. Pitt founded the project in 2007 to build houses for families in New Orleans Lower Ninth Ward, people who lost their homes during Hurricane Katrina.
And that's what we're following this morning. And remember, if you're away from your television set, you can always watch the news streaming life at your desk or on your laptop at CNN.com.
CHETRY: And every new administration brings the same promise to cut back on wasteful government spending, and President Obama is no exception. Just like those before him, many of Mr. Obama's critics say that he's not keeping that promise.
Jason Carroll is following your tax dollars this morning. He joins us right now with a little bit more on what people are saying about earmarks, and, you know, pork. And it's funny because when you get a chance to talk to some of the senators, they say (ph) that's right. I do have earmarks, but I can defend every single one of them.
CARROLL: That's right. They're out there.
CHETRY: It's not wasteful spending. It's needed in my town or my state.
CARROLL: It's needed in my state.
CHETRY: Right.
CARROLL: I need this money for this expense, what some people are going to say is outrageous. You know, yesterday, the president made very clear his administration would change the way government contracts are awarded. It's part of the president's plan to save taxpayers' billions, but some still say he's spending too much in the wrong places.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): One might think Democrats and Republicans don't have much in common, but they do, a shared history of wasteful government spending. Remember the '80s and those military contracts that had the government shelling out $435 for a hammer, $640 for a toilet seat? That type of spending stopped but over the years, the waste has not.
BRIAN RIEDL, THE HERITAGE FOUNDATION: Every president since Ronald Reagan has promised his own crackdown on waste, fraud and abuse, and none have been particularly successful.
CARROLL: True, promises have been made.
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: So let us work together to reform the budget process and cut the number and costs of earmarks at least in half.
CARROLL: Presidents have tried to carve the fat. When they found it...
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: There was a million dollars to study stress in plants and $12 million for a tick removal program that didn't work.
CARROLL: Now, it's President Obama's turn.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The American people's money must be spent to advance their priorities, not to line the pockets of contractors or to maintain projects that don't work.
CARROLL: Even as the president has promised to save taxpayers $40 billion a year, a stop gap spending bill currently making its way through Congress has come under attack for having the same type of wasteful spending Obama wants to eliminate. According to the citizens watchdog group Taxpayers for Common Sense, it includes nearly $1.8 million for pig odor research in Iowa? Another $1 million for cricket control in Utah.
Obama says his plan will save taxpayers money by not outsourcing services the government can do, ending no bid contracts that have led to abuses in the past, and strengthening oversight to help maximize accountability. But still some consumer groups and critics question what incentive there is in Obama's plan for lawmakers to change their old ways.
TOM SCHATZ, CITIZENS AGAINST GOVT. WASTE: It's a full time job requiring the attention of every secretary and every appointee and every agency, because the individuals that are involved in those systems don't always have an incentive to change them.
(END VIDEOTAPE)
CARROLL: And some critics say some lawmakers -- for some lawmakers fighting wasteful spending doesn't provide enough political gain to make it worth their time so they focus on bringing back the pork to their states. Instead, what it ultimately comes down to is basically the people in the public have to hold lawmakers accountable. They have to say we want you to be fiscally responsible. We don't want you bringing back this type of wasteful spending to our states, instead we want you to focus on saving.
CHETRY: Yes. But at the same time, there are people who say, you know, the varying lobbyist groups for these various programs say it is needed.
CARROLL: Yes.
CHETRY: And so we don't consider it waste. We consider it very important for our community.
CARROLL: Yes, but come on, you saw some of the examples there. Some of these examples, I mean, are going to be sort of hard to defend.
ROBERTS: You know, Tom Harkin said that controlling pig odor in Iowa is a very, very important issue.
CARROLL: Yes, use an air freshener. You know what I mean. It's cheap.
CHETRY: We're sending Jason to Iowa. He's going to (INAUDIBLE)
(LAUGHTER)
(CROSSTALK)
CARROLL: You are going to kill me for that.
ROBERTS: You are going to get e-mails from Iowans.
CHETRY: Yes. He's heading to Iowa with a can of Febreze and a lot of hope. All right. Thanks, Jason.
CARROLL: All right.
ROBERTS: Oh, Jason, you're in trouble.
Seventeen minutes after the hour. Here's what we're following for you this morning.
The head of Homeland Security, Janet Napolitano, and HUD Secretary Shaun Donovan taking a look at hurricane recovery efforts this afternoon. They're touring the Gulf Coast area hit hard by Hurricanes Katrina and Rita back in 2005. The president's pick to run FEMA, Craig Fugate, will also be joining them today.
CNN has learned that seven former executives at financial firm Merrill Lynch have been subpoenaed by New York's attorney general, Andrew Cuomo. A source close to the investigation says the move stems from $3.6 billion in bonuses that the men got from Merrill just before the company was picked up by Bank of America last year.
And the co-pilot of the so-called Hudson miracle flight is headed back to the skies by the end of this month. First Officer Jeffrey Skiles says he'll spend time in a simulator before returning to a real cockpit. Skiles also says that he did have some post-traumatic shock symptoms, but he says he got over it pretty fast.
It's 18 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Top videos right now on CNN.com, the most popular. Take a look at this, amazing video out of Turkey.
A container truck pulls on to the tracks and gets slammed by an oncoming train taking out a man in the process. You can see him lying on the ground. Look at that. There he is right there. He survived, believe it or not, with only minor injuries.
Wow, is he lucky.
And bullet-proof BMWs, police in Canada seized luxury cars which they say gangs turned into James Bond style tanks with bullet proof glass, bomb resistant reinforcements and secret compartments for guns. The cars weigh more than 8,000 pounds, double the weight of a normal BMW.
Also, things are popping down in Sac City, Iowa. Residents there are trying to make it into the "Guinness Book of World Records" by building the largest ball of popcorn ever created. Right now, the gigantic snack bar weighs in at 5,000 pounds.
And those are the most popular videos right now on CNN.com.
CHETRY: All right. Well, it's all about your health today and we're getting new details on a health care summit that President Obama will be hosting today. And the aim is to cover the estimated 46 million Americans without health insurance. President Obama's first budget will seek $634 billion over ten years as a down payment on the health care system and health care reform.
And joining us live from the White House this morning is Melody Barnes. She is the director of the president's Domestic Policy Council. She'll be playing a key role in getting health care reforms enacted.
Good to have you with us this morning, Melody. Thanks for being -- thanks for being here.
MELODY BARNES, DIR., WHITE HOUSE DOMESTIC POLICY COUNCIL: It's a pleasure, Kiran, thank you.
CHETRY: When we talked about this down payment, experts say it could actually total $1 trillion over ten years when all is said and done. In these tough economic times, how do you guys plan to pay for it?
BARNES: Well, Kiran, we believe that we have to get health care reform done if we're going to get our economic ship or state steady and moving in the right direction. This isn't a luxury, this is a necessity.
Health care costs are exploding. Everyone sitting around their kitchen table notice that. Many people are bringing in less income every month and seeing their premiums go up at the same time.
It's affecting the bottom line and businesses. It's also affecting the fiscal well-being of our country. So this is something we have to do, because of the tough economic times, and we feel like we've learned lessons from the past that are going to help us get health care reform on the president's desk for his signature this year.
CHETRY: And one of President Obama's proposals to help pay for it was to limit deductions for families making $250,000 or more deductions on things like mortgage interest and charitable donations. But he is getting some pushback from senators in his own party. And yesterday, Treasury Secretary Geithner appeared to suggest that maybe they might modify that proposal. If they do, where would the money come from?
BARNES: Well, the president when he put his budget on the table, said here's a first important step towards getting this done. But I want to talk to members of Congress. In fact, that's what we're going to be doing today, Republicans and Democrats, doctors and nurses and others, to figure out how to make sure we have the money necessary to get health care reform this year and also to make sure that we've got the policy done, but we're doing it in a bipartisan basis.
So we're going to work together. The president is being very pragmatic about this. He's open to listening, and that's the way we're going to accomplish this goal.
CHETRY: And there's a perception among some that lobbyists and pharmaceutical companies really control the health care industry in this country, that they shape policy. What will the Obama administration do to guarantee that this influence isn't actually setting the agenda?
BARNES: Well, Kiran, that's a great question. What the president said during the campaign holds true today. He said, look, everybody can have a seat at the table but no one can own the table. So that's why we're bringing in the doctors, the nurses, hospitals, people who fought health care reform tooth and nail 15 years ago to have this conversation with the president and members of Congress, but at the same time, while we're listening to their voices, we also want to make sure that we get the best deal for the American people.
Those are the people that we're concerned about. We're concerned about their exploding health care costs. We're going to make sure that that gets taken care of.
CHETRY: There are some critics who say that the very large amount of money that the administration is going to be spending on reforming the health care system may suggest that the government will essentially be taking over this system in a way. How involved will the government be in the day-to-day management and the delivery of care?
BARNES: Well, Kiran, that's absolutely not true. That's an old argument that people use to try and scare Americans when we get close to the point of getting health care reform done. What we're taught saying to people is, look, if you've got a plan that you like, if you like your health care, you're fine. You can keep that. But at the same time, we know that people are not necessarily pleased with the fact that their costs are exploding, so we're going to do everything we can to bring that down. We're going to do what is necessary to make sure we've got affordable, accessible health care for everyone, that's also going to bring costs down. So, the American people have nothing to worry about there. We're just going to fix what's broken.
CHETRY: Well, it was great to talk to you this morning. Melody Barnes, the director of the White House Domestic Policy Council, thanks for being with us this morning.
BARNES: Thanks so much, Kiran. It's a pleasure.
CHETRY: And the president is also kicking off today's health care reform summit at 1:00 Eastern time, and you can see it live here on CNN as well as CNN.com -- John.
ROBERTS: Baby bottle ban, we'll tell you where they might soon stop selling plastic baby bottles and sippy cups containing a potentially harmful chemical and whether your town could be next.
JIM ACOSTA, CNN CORRESPONDENT: I'm Jim Acosta in Washington. Is the White House housing plan a bailout or a helping hand? That story coming up on the Most News in the Morning.
(COMMERCIAL BREAK) CHETRY: Welcome back to the Most News in the Morning. You know, many parents use them but the sale of baby bottles and sippy cups made with the chemical BPA may soon be outlawed in one New York county. Some studies suggest that BPA can be harmful to young children so will your community be next?
Senior medical correspondent Elizabeth Cohen is here now to talk more about the concerns over BPA in baby bottles. It's something that we talked about last year as well, that, you know, it really was a push from the consumers, from concerned parents out there to just at least have more information and more labeling about these certain plastics and chemicals used in baby bottles.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: And, Kiran, I have to tell you, I've been really amazed at how quickly companies have moved towards making BPA products. I asked my producer to go out and find these babies bottles with BPA, she couldn't find any at Wal- Mart. They all were BPA-free. However, we did find some baby products that do still appear to contain BPA.
For example, the pacifiers that you see here, bottles, sippy cups, these do not say BPA-free on them. Now, you might be wondering what the heck is BPA? BPA is a chemical found in many plastics and here are the concerns that have come out in the scientific literature.
There are concerns that BPA might be related to brain development problems in children, to reproduction problems later in life, and to some cancers. And as I have said, it is actually getting harder and harder to find baby feeding products that have BPA in them -- Kiran.
CHETRY: It's what makes the plastic clear and see-through, right? Is that the -- because I noticed that some of the new bottles that I have for my 10-month old, they say on them pretty prominently they're made with polypropylene instead, and they're actually almost like a more milky color to them.
COHEN: Right, the color might be a little bit different, and then the way that you'll really know that something is BPA-free is that it will brag, it will say on the label there, "BPA-free." But I want to get to a little bit of a scientific point. Not everyone is convinced that BPA is problematic.
For example, a panel at the NIH looked at it, and they said there were some concerns about these products. They didn't say they were serious concerns, and let's hear from the American Chemistry Council. They're the folks who make plastics. This is what they had to say in a recent press release.
They said, "Suffolk county's actions to ban BPA products is unwarranted and will unnecessarily alarm the public. And it's also inconsistent with many expert regulatory agencies from around the world." So again, to say, there is some disagreements among scientists about just how dangerous BPA is or is not.
CHETRY: Right. And you know as well as I do that's one place that you don't necessarily want to take chances, right, with your kids. And so -
COHEN: Right.
CHETRY: If you think for a second, there is a small little chance you might just take the extra step.
COHEN: And you know, Kiran, it's interesting. Because in the beginning when these concerns came up BPA-free products were much more expensive (INAUDIBLE) aisle.
CHETRY: Oh, yes.
COHEN: And now they're pretty much the same. So you have to wonder why would a parent choose a product with BPA when they can get one without for about the same price.
CHETRY: Right. I did back in the day buy a $16 sippy cup.
COHEN: There you go.
CHETRY: All right. Elizabeth Cohen, thanks.
COHEN: Thanks.
ROBERTS: It's coming up now at 32 minutes after the hour, and here are this morning's top stories. Developing right now, two of former President Bush's top aides will be questioned by Congress. Former adviser Karl Rove and counsel Harriet Myers will be deposed by investigators from the House Judiciary Committee.
Critics accused they may be using improper influence on the Justice Department and in the firings of federal prosecutors. The Bush administration had said that Rove and Myers were protected by executive privilege from discussing the issue.
Happening right now. A car bomb has exploded near a busy livestock market in Iraq. It occurred in Hamza, a small Shia town about 75 miles south of Baghdad. Police there say at least 10 people are dead and dozens more were injured.
And a developing story in Washington. Two Senate democrats now urging President Obama to veto an emergency $410 billion omnibus spending bill. Russ Feingold of Wisconsin and Evan Bayh of Indiana say they are voting against it this week. They say it's too expensive and it has too many earmarks.
Well, Rush Limbaugh is throwing down the gauntlet, challenging President Obama to debate him head to head.
(BEGIN VIDEO CLIP)
RUSH LIMBAUGH, RADIO TALK-SHOW HOST: So let's have the debate. I am offering President Obama to come on this program without staffers, without a teleprompter, without note cards to debate me on the issues.
(END VIDEO CLIP)
ROBERTS: Limbaugh is responding to claims from the left that he is now the head of the Republican Party. Here with his take on that, former New York City Mayor Rudy Giuliani. Mr. Mayor, great to see you this morning.
So he has said some kind things about you. He has said some unkind things about you as well. What do you think of Rush Limbaugh becoming the de facto leader of the Republican Party?
RUDY GIULIANI, FMR. NEW YORK CITY MAYOR: I should first say that Rush is a personal friend, so -- for a long, long time, over -- it must be almost 20 years. So, I really - I get along with him very well. I think he's doing what he does. I mean, he is doing essentially what he did, you know, for years. He has a set of viewpoints. You couldn't possibly ignite his thinking and emotion more than what things that President Obama is doing.
This is from Rush's point of view on how to control spending, adding up the deficit to numbers that have never existed before. So, he's, I mean, he's doing his thing. He's pointing out his fiscal discipline approach in his unique Rush Limbaugh style.
ROBERTS: But is he, in fact, do you believe, the de facto leader of the Republican Party?
GIULIANI: Of course not.
ROBERTS: But then why are Republican leaders like Michael Steele and Governor Sanford and Phil Gingrey out of Georgia paying, like, unflinching fealty to Rush Limbaugh? He's not...
GIULIANI: Well, I mean, I don't know. I think first of all because he has a big audience. He's got a big group of people that we all, I mean, that are part of the base in the Republican Party. So they don't want to offend them. There are principled agreements on this, and this is getting down into like a little bit of a game, "Who runs the Republican Party?" Well Rush obviously doesn't run the Republican Party. He has a mind...
ROBERTS: No but if the head of the RNC says, oh sorry, I didn't mean to say that, that wasn't what I was thinking, I mean, obviously he commands some measure of respect that is over and above the Republican leadership.
GIULIANI: You could - legitimately you could say he has one of the most influential voices in the Republican Party, that a large group of Republicans are very much in agreement with him, follow his lead. That is true.
ROBERTS: But they're kissing the ring, Mr. Mayor.
GIULIANI: I don't know if they're doing that. I mean, I think what they're doing is, they are not wanting to irritate his audience, and Rush is making the most of this. I mean, this is like a dream for a radio talk-show host... ROBERTS: Oh, you can imagine, yes.
GIULIANI: ... or a television talk-show host. The president of the United States and his administration are engaging with him.
ROBERTS: But here's the question, is it the best thing for the party that he is seen as such a figurehead? Here's what David Frum said. Quote, he says, "If you're a talk-radio host, and you have five million who listen, and there are 50 million who hate you, you make a very nice living. If you're a Republican Party, you're marginalized."
And we had Ron Paul on, on Monday, who says that Rush Limbaugh does not expand the base of the Republican Party, and that if you hope to gain back control of Congress and win back the White House in 2012, you have to do that.
GIULIANI: Right.
ROBERTS: So is he in essence in some ways bad for the party?
GIULIANI: I think he's a combination of two things. You have to contain or keep the base of the Republican Party, and you have to expand it. And to the extent that Rush Limbaugh energizes the base of the Republican Party, he's a very valuable and important voice, which is what I think you see reflected in the language of some of these leaders.
ROBERTS: But is he a divisive enough voice, though, that he turns off moderates? So you need (INAUDIBLE).
GIULIANI: Other people are going to have to be included in the party and have to be allowed to speak to moderates. The Republican Party is not one voice. It's not Rush Limbaugh. Michael Steele technically runs the Republican Party, but Michael would tell you he's not the only voice of the Republican Party, either.
ROBERTS: So, Governor Mark Sanford responded to what Rush Limbaugh said that about he hopes that President Obama fails if his goal is to create this sort of socialistic society in terms of getting the economy back in shape. Governor Sanford said you have to be an idiot to wish that he fails because if he does, we're all in trouble. So, is it right for him, is it prudent for him to say he hopes he fails?
GIULIANI: This is semantics. The reality is...
ROBERTS: Do you hope he fails?
GIULIANI: I hope the president succeeds in every respect. He's the president of the United States. We want him to succeed. We want him to succeed in foreign policy. We want him to succeed in domestic policy. If he were to ask my advice, I would tell him he is following the wrong game plan to succeed in domestic policy.
Certainly with the economy, I ran an economy that was in deep trouble, a budget that was in deep trouble. In my opinion, respectfully, the president is doing all the wrong things. Now, are they going to work? I hope so. My experience tells me you don't add tremendous spending, which is out of control, without discipline tied to -- the spending has to be tied to recognizable revenues. Eight thousand earmarks in this bill? I mean, this is not change that we can recognize as any kind of change.
ROBERTS: But bottom line, Mr. Mayor, on the stimulus package, we got you on the record as saying regardless of what you think about it, you do not hope he fails.
GIULIANI: Of course not. I hope he succeeds. I've been wrong before. My philosophy works sometimes. Sometimes it doesn't. Let's hope the president is right. Let's hope he changes course or whatever, but we have to hope that the president succeeds. Everybody loses if he doesn't.
ROBERTS: Mr. Mayor, it's always fun to have you in. Thanks for coming by.
GIULIANI: Thank you.
ROBERTS: Appreciate it.
Thirty-eight minutes now after the hour.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Housing rescue backlash.
UNIDENTIFIED MALE: Stop spending money we don't have.
ROBERTS: When struggling homeowners get targeted.
UNIDENTIFIED MALE: The people most upset about are very (INAUDIBLE) people.
ROBERTS: Mom under attack over her mortgage mess. Is this fair? Ahead on the Most News in the Morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: Well, we now know the president's plan is to help as many as nine million Americans stay in their homes and today the backlash. The administration admits that the plan isn't meant to save everyone struggling to pay their mortgages and there are a lot of hard-working Americans who say people don't deserve it. People who bought more house than they could afford. Jim Acosta joins us now with one particular woman who, you know, has unfortunately become the poster child for this...
ACOSTA: Yes.
CHETRY: And she's frankly very surprised by it. ACOSTA: That's right, Kiran. We have to be careful about throwing stones in glass mansions but you're right. A few weeks ago we profiled a school bus driver facing foreclosure on her $800,000 house. After our story aired, the home owner, Minta Garcia, found herself on the receiving end of America's bailout outrage.
(BEGIN VIDEOTAPE)
MINTA GARCIA, HOMEOWNER: We're going to be losing the house. We're going to lose everything.
ACOSTA: You think you're going to lose everything?
GARCIA: Yes.
ACOSTA: When we introduced you to school bus driver Minta Garcia, she told us her bank was threatening to foreclose on her $800,000 home in suburban Washington. She could no longer afford the house which is now worth less than her mortgage. How much was the house when you bought it?
GARCIA: Eight hundred.
ACOSTA: $800,000. And how much is the house worth?
GARCIA: Right now, it's like 675 on the market.
ACOSTA: Since then, she's become the target of bloggers who say she's the poster child of America's housing crisis. You feel attacked?
GARCIA: Yes, of course. I never thought they're going to write those nasty comments.
UNIDENTIFIED MALE: Craig from Jackson on 1390 AM.
ACOSTA: Her story spread to talk radio on west Tennessee's 1390 AM. Callers showed no mercy, blaming Garcia and her bank almost equally.
UNIDENTIFIED MALE: We should not have to bail that kind of irresponsibility out. I mean that's not our job.
MIKE SLATER, TALK RADIO HOST: The people who are most upset about these are very self-reliant people and they don't automatically turn to the government to help them get out of their problem.
ACOSTA: Talk radio hosts are staging Boston tea party-style rallies across the country, protesting the nation's bailouts, for banks and homeowners.
UNIDENTIFIED FEMALE: You're spending money we don't have on social programs we don't need.
ACOSTA: Garcia says she and her husband, a construction worker, simply want their bank to lower the interest rate on their mortgage so they can try to make their payments. So if people say oh Minta, you were irresponsible.
GARCIA: They say that because they don't know. I never asked for people to pay my mortgage or pay, you know, my vehicle or something.
TIMOTHY GEITHNER, TREASURY SECRETARY: This plan will help homeowners meet their mortgage obligations.
GARCIA: She's waiting to find out if she qualifies for the president's housing plan.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: And I know it's frustrating but boy, at the end of the day you know, you got to think how are we going to dig out of this -
ACOSTA: CNN personal finance guru Gerri Willis cautions allowing troubled homeowners to go down in flames could leave everybody burned.
WILLIS: You know how this is, you get one foreclosure in a neighborhood and all the prices near that property start going down. You get two, the prices go down further, faster, it affects us all.
(END VIDEOTAPE)
ACOSTA: The White House insists its housing plan does not bail out irresponsible home buyers. In order to get help, homeowners have to meet certain requirements to show they can afford to stay in their houses, a process Minta Garcia will have to begin right away -- Kiran.
CHETRY: You know, it's so interesting, the mixed feelings about this. We have our own polling, this Quinnipiac poll says two thirds of people think the plan is unfair to people who pay their mortgages on time. Yet those same people, 57 percent say they still approve of the package.
ACOSTA: Yes, it's a black and white issue, Kiran. For some people, it is not really, when you look at this carefully. I've talked to a lot of people who are in this mess right now, and I have to tell you, there's a lot of gray in this.
CHETRY: Very true. Jim Acosta for us this morning, thanks.
ACOSTA: You bet.
ROBERTS: George Clooney fighting for years to bring attention to the carnage in Darfur. Now, someone may finally pay for it. The actor and activist reacts to war charges against Sudan's president. It's 45 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Forty-eight minutes after the hour. Still dealing with quite a bit of a chill here in the Northeast, but perhaps some good weather ahead. Let's check in with Reynolds Wolf. He is in for Rob this morning, checking the weather across the country. Good morning to you, sir. (WEATHER REPORT)
CHETRY: All right. Here's what coming up in the next 15 minutes, the president's $75 billion fix for the mortgage crisis. What does it really mean to you? Our personal finance editor Gerri Willis is going to be breaking it down for us.
Also, California's battle over same-sex marriage continues. It's headed to the State Supreme Court today. San Francisco's mayor is against the marriage ban, and he'll be here to tell us why.
(COMMERCIAL BREAK)
CHETRY: For the first time ever, an arrest warrant has been issued by the International Criminal Court for a sitting head of state, Sudanese President Omar al-Bashir. The United Nations estimates that 300,000 people have been killed, and more than 2.5 million others have been forced to flee their homes because of the conflict in Sudan's Darfur region. The war crimes charges against al- Bashir include murder, extermination, rape and torture.
Actor and activist George Clooney made Darfur a focus of his, and recently he met with President Obama to discuss the crisis again. CNN's Anderson Cooper talked with Clooney and asked him what he thought this arrest warrant may mean.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR, "ANDERSON COOPER 360": Does it really change the situation? I mean, it hasn't been served. He is not going to be apprehended any time soon.
GEORGE CLOONEY, ACTOR, ACTIVIST: There are mixed feelings about these things, you know. What you found is this has been a long on going cycle of negotiations and deal making and promises. And nothing has happened. Literally, nothing has happened and these things continue on.
This seems to be a step at the direction to, at the very least hold the people who do business with the government of Sudan, the government of Khartoum. Hold them responsible for doing business with someone who is indicted for war crimes and that I think might be the most effective part of this.
COOPER: The fact that agencies have been kicked out. I mean, it's yet another sign of just the true nature of this regime in Sudan.
CLOONEY: It's not as if they had it very easy while they were there anyway. You know, I was there with U.N. peacekeepers last year. And they are understaffed and through no real fault of their own, the mandate they have been given has been so watered down they are not really allowed to protect anybody.
When you go out to these refugee camps and way out in the far out refugee camps that are - that have virtually nothing, they don't have television. They see us pull up every once in a while and we've all done it with our trucks and we take pictures and then we leave, and they go this time, it will be better, you know you'll tell the world and they don't really know that the world hears it and not much really changes.
(END VIDEO CLIP)
CHETRY: All right. Al-Bashir who is yet to be taken into custody spoke to his reporters today denouncing the United States and its western allies. Sudan has rejected the accusations, calling the ICC a white man's tribunal and they called the arrest warrant an insult. You know, as Clooney alluded to, whether or not this changes anything remains to be seen, but this crisis of course still continues and each day that goes by, more and more people are dying.
ROBERTS: It would seem, because the United Nations doesn't have any kind of an enforcement force or police force they can swoop in there and get him. The only way that they would be able to get him in custody is if he ever leaves the country. So he may at the very least find himself a prisoner in Sudan. Whether that would help the situation, doubt it, but maybe he'll leave one day.
CHETRY: Yes, maybe.
All right. Well, we'll continue to follow this for sure. It's 55 minutes after the hour.
(BEGIN VIDEOTAPE)
CHETRY (voice-over): Today, D-Day for California's same-sex marriage ban.
Who will prevail? San Francisco's mayor is with us live to make his case.
Plus, their brother still lost at sea.
UNIDENTIFIED FEMALE: He wouldn't give up, so I feel that we can't give up.
CHETRY: New search plan for the NFL stars. You're watching the Most News in the Morning.
(END VIDEOTAPE)
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