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President Obama's First 50 Days; A Game of Political Chicken; Alleged Church Shooter Marked Sunday as 'Death Day'; CitiGroup Helps Bounce Wall Street Back; How's the New Guy Doing? Progress Report on Obama's First 50 Days; Elkhart, Indiana Facing 15 Percent Unemployment; Virginia Asking State Residents How to Spend Stimulus Money

Aired March 10, 2009 - 11:00   ET

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

T.J. HOLMES, CNN ANCHOR: It is Tuesday, March the 10th. This is what we've got going on in the NEWSROOM.

Fifty days into the Obama presidency, it's obvious the president is not a long-distance runner. He's a sprinter, and he is out of the gates with a quick sprint, and Americans are being a little antsy for results from their new president.

Also, Republicans rattle Democrats ahead of a major vote today. They are using a pork-filled bill to make a point.

Also, we'll turn to Virginia. They're in line for billions of stimulus dollars. The state takes a Democratic approach, however, to how they're going to spend all that money.

Well, good morning to you all. I'm T.J. Holmes, sitting in today for my dear friend, Tony Harris. And you are in the CNN NEWSROOM.

All right. President Obama halfway through his first 100 days in office, and he is barreling full steam ahead with a pretty ambitious agenda. Some critics say slow down, Mr. President, you're moving too fast, but there are others, including Americans who are impatient over the economy, who are saying hurry up, maybe you're not moving fast enough, Mr. President.

We're taking a closer look at the president's first 50 days in office. So far, take a look at what he's done.

Of course you remember that massive $780 billion Recovery Act. Also, he has worked out a bailout for the auto industry. Also kicked off plans to overhaul the nation's health care system. And today, in a speech to the U.S. Hispanic Chamber of Commerce, the focus was on education, including the youngest of learners.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I'm issuing a challenge to our states. Develop a cutting-edge plan to raise the quality of your early learning programs. Show us how you'll work to ensure that children are better prepared for success by the time they enter kindergarten. If you do, we will support you with an early learning challenge grant that I call on Congress to enact. That's how we will reward quality and incentivize excellence and make a down payment on the success of the next generation.

(END VIDEO CLIP)

HOLMES: All right. And our White House Correspondent Suzanne Malveaux is live now with more on the president's first 50 days.

Suzanne, we're always used to that first 100-day report card, but we've got some serious stuff going on in this country. It's worth an early report card.

The first 50 days, what's been the reaction, what's been the feedback from this White House?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, sure, T.J.

I'm a long distance runner, but I can appreciate that President Obama is a sprinter. Obviously, there is a lot that's on their plate.

The folks we talk to here, they say, we like to put a lot on the grill, basically. They think that they can actually accomplish a lot of these things, but they're trying to at least acknowledge that it's going to take some time. But, yes, today it's education reform, they're talking about health care reform, energy, ending the Iraq war, all of these things.

At the same time, trying to deal with this economic crisis. It's one of the reasons why the president, T.J., sent his treasury secretary on the Hill late yesterday to meet not with Republicans, but Democrats, to tell them, look, you know, hold on here. Exhibits of patience here, this is going to take some time. We are not ignoring the situation, but we believe that we can tackle more than one thing at a time -- T.J.

HOLMES: Yes. And as if, like you say, this president certainly proving he can walk and chew gum at the same time. But we've got the stimulus, you've got the banks, you've got housing. You've got all of this stuff on the table. Let's throw in some health care reform, and let's throw in some education reform.

Now, what was his message today on education?

MALVEAUX: Well, there are a couple of things.

First, he talked about early childhood education, expanding that. But he also talked about the need for adults, all of us, to retrain and retool, because obviously, this economy is changing drastically. A lot of retraining is going to need to take place for people to actually be able to fit into some of those new jobs that he is talking about creating, and he says some of the old jobs are going to disappear. The other thing, too, kind of controversial on the campaign trail, was this idea of rewarding teachers who perform better, this merit pay system. He wants to expand that to about 150 more school districts. Some teachers' unions not pleased with that. They believe it should be seniority, not necessarily this kind of merit pay system, but he says he wants to hold teachers accountable, as well -- T.J.

HOLMES: All right. The president is a sprinter, we know you are not. We appreciate you getting through that live shot quickly for us, anyway.

Suzanne Malveaux from the White House.

Thank you so much. Always good to see you.

And so how is this president doing so far? We'll have two political insiders going to be joining us for a report card on his first 50 days. We'll be talking to Jeanne Cummings from Politico.com, also BET political analyst Pamela Gentry, are coming up at the half- hour.

Well, this day 50, another busy day, of course, for the president. Here's a look what's on his day planner.

He started out, like we just mentioned, with that speech on education before the U.S. Hispanic Chamber of Commerce. This afternoon, he'll be meeting with members of the New Democratic Coalition. Now, that is actually a group, a coalition of congressional Democrats who are more moderate. Also, later today, the president will be meeting with the United Nation's Secretary-General Ban Ki-moon.

Well, the Fed chairman, Ben Bernanke, he is trying to reassure Americans about the financial crisis. Meanwhile, at the same time, he's bluntly saying there can be no recovery until banks regain solid footing and the regulatory system gets a major overhaul. Take a listen.

(BEGIN VIDEO CLIP)

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: We must have a strategy that regulates the financial system as a whole, in a holistic way, not just at its individual components. In particular, strong and effective regulation and supervision of banking institutions, although necessary for reducing systemic risk, are not sufficient by themselves to achieve this aim.

(END VIDEO CLIP)

HOLMES: And that was the Fed chairman, Ben Bernanke, speaking before the Council on Foreign Relations a little earlier this morning.

Let's turn now to the Senate, where they may finally take a final vote on a spending bill that is just wreaking with pork. Republicans making Democrats squirm a bit ahead of that vote in a game of political chicken. Are you hungry now, Brianna? I'm talking about pork and chicken as I lead up to you.

Brianna Keilar for us at the Capitol this morning.

Brianna, this was supposed to be done a while back. Will it get done today?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Senate Democratic leaders think that they will have the votes to pass this later today, this $410 billion spending bill that would fund the government through this year. But the expectation is it's going to be another squeaker, just barely getting over the 60-vote threshold the Senate needs, and expected to do so with very little Republican support.

One of the things some Republicans hitting on, as you mentioned, T.J., earmarks. There's 8,500 of them in this spending bill. Do note, though, 40 percent of these projects that lawmakers have requested federal funds for, they are Republican earmarks. Because of that, some Democrats say this Republican cry is disingenuous, but Republicans really up in arms against this spending bill.

This is Mitch McConnell, the Senate minority leader, on the floor a short time ago.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: The bill that the Senate will vote on later today represents a missed opportunity. In the midst of a serious economic downturn, the Senate had a chance to show it could impose the same kind of restraint on itself that millions of Americans are being forced to impose on themselves at the moment. The bill costs far too much for a government that should be watching every dime. If the president is looking for a first bill to veto, this is it.

(END VIDEO CLIP)

KEILAR: Now, President Obama is not expected to veto this spending bill, if it passes. What we're seeing today and what we saw yesterday, votes on Republican amendments, proposed changes by Republicans to this spending bill. This is something Democrats had to give Republicans in order to get some of those -- some of that minimal Republican support on this -- T.J.

HOLMES: All right. And we have one senator that's taking up a bit of a cause that could cause some of his colleagues to squirm a bit, if it was, in fact, to come to pass.

Let's take a listen to Senator Vitter now, and I'll ask you about it on the other side.

(BEGIN VIDEO CLIP)

SEN. DAVID VITTER (R), LOUISIANA: Everything has gone to hell in a hand basket, and yet members of Congress get an automatic pay raise virtually every year, and people find that really, really offensive. I've always been an opponent of that system. I think if we want to have to justify any raise, we should talk about it, debate it, and have a direct vote on it for the next Congress.

(END VIDEO CLIP)

HOLMES: All right, Brianna. We see there David Vitter saying he wants to require them to vote on pay raises every year.

How uncomfortable could that get, and could it really happen?

KEILAR: Well, you can see how that is uncomfortable, to have to go on the record and say, you know, I want more money every single year. That's politically very awkward. And that is what David Vitter is proposing to do.

Right now, as he said, Congress, they do get automatic pay raises, these cost of living increases. To give you a sense, the last one was $4,700, bringing a lawmakers salary to $174,000 a year. And Congress, do note, is going to forego their next pay increase. But, yes, they do get these.

So what is going on here? The underlying thing is that Republicans really taking this opportunity to make some -- put some tough votes out there, T.J. As you can see, it would be hard in this economic climate to say no to that. But Democrats don't want to pass any of these Republican amendments, so they find themselves in a bit of a pickle, if you will, because of it.

HOLMES: That would be an interesting pickle to be in, for every year, and a time we're in this economic situation, to see them on the floor every year voting to say, yes, I want a pay raise. So let's see what happens there.

Brianna Keilar for us on Capitol Hill.

As always, thank you so much.

Well, just say the name Warren Buffett, and say that he is speaking, and a lot of people in the financial world are going to sit up and pay attention. Well, he is speaking, and we are paying attention.

He is saying he's still confident that America's best days are ahead. That sounds great, but he is actually using the words "economic Pearl Harbor."

(BEGIN VIDEO CLIP)

WARREN BUFFET, CHAIRMAN, BERKSHIRE HATHAWAY: It's fallen off a cliff. And not only has the economy slowed down a lot, people have really changed their behavior like nothing I've ever seen. (INAUDIBLE) goods and that sort of thing has just sort of stopped, and that's why Wal-Mart is doing well and, you know, I won't name the ones that are doing poorly. But there has been a reset in people's minds. (END VIDEO CLIP)

HOLMES: Well, Buffett says America's leaders need to clear up the confusion to restore confidence and get behind President Obama's attempts to fix things out there.

Well, Dow stocks, they've grabbed -- look at that. Ooh, it just feels good to -- I know it's early, but still, we'll take it. Triple- digit foothold in positive territory this morning, a bit of a celebratory rally, possibly, because Citigroup announced it operated in the black during the first two months of the year.

So you see there, we're up about 230-plus points. We're around 240, almost. The Dow had just five winning days out of the last 20 trading sessions. We will see if that holds.

Well, stay with us here. We have more details. A man accused of killing a pastor, he killed one, according to police, and police now say that he had plans to kill even more. Prosecutors say he marked Sunday as "Death Day" in his planner.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HOLMES: All right. Going to bring you some new details now about the killing of an Illinois pastor during his Sunday sermon. A church official now says the Reverend Fred Winters died doing what he believed passionately, but he was gunned down at the pulpit on Sunday. Two parishioners actually tackled the shooter, stopping him before he could hurt anybody else, even though he did stab a couple of other people.

Now, here's one of those men speaking to CNN's "AMERICAN MORNING.".

(BEGIN VIDEO CLIP)

KEITH MELTON, TACKLED CHURCH SHOOTER: Once he turned to flee from me, and I was able to tackle him, as soon as I looked up, I mean, there were men everywhere. They were blocking the aisles, they were doing everything they could to keep this guy contained.

And immediately, once they had him secured, I ran back to the pastor to see if I could help. But by that time, there were more people there who were better skilled at trying to help him. And it was in that time that I realized I had been stabbed.

(END VIDEO CLIP)

HOLMES: And our Jim Acosta reports now on what happened on Sunday. Also more about that beloved pastor and the alleged shooter.

(BEGIN VIDEOTAPE) JIM ACOSTA, CNN CORRESPONDENT (voice-over): Prosecutors say a day planner found in Terry Sedlacek's home marked Sunday as "Death Day." And investigators now say he came prepared to deliver, carrying enough ammunition to kill 30 people.

He managed to fire four rounds, the first deflected by Pastor Fred Winters' bible, another hitting the man most called "Pastor Fred" in the heart. After that, the gun jammed and Sedlacek was tackled by two men who jumped from the pews.

MELTON: I just ran and got behind the guy. I managed to get my arms around him and pull him off the pastor. That's, you know -- and then the struggle there -- somewhere within that struggle he was able to stab me.

ACOSTA: Investigators think Sedlacek arrived early, parking his jeep closed to the door. Once inside, witnesses say he walked straight down the aisle, right up to the pastor.

MELTON: As we were enjoying our church service, this gentleman just walked in, walked straight down the center aisle of the church, up to our pastor, and our pastor paused to greet him and asked him if he could do anything for him, and he opened fire.

ACOSTA: Investigators still aren't sure if the two knew each other. In an article published last August, Sedlacek's mother told the "St. Louis Post-Dispatch" her son had been diagnosed as mentally ill in high school, and at one point had been taking up to 18 pills a day.

Neighbors say they would sometimes see him running around like a ninja.

UNIDENTIFIED MALE: Well, he'd just do his karate moves and stuff, and yelling and screaming.

ACOSTA: The church says it's keeping Sedlacek in its prayers, even sending a pastor to visit his family.

PASTOR MARK JONES, FIRST BAPTIST CHURCH: We actually pray for him. We pray that he apparently has a second chance.

ACOSTA: On the church's Web site, members have been posting memories of Pastor Fred, part of it with growing the congregation through his almost 22 years there, and whose sermon Sunday was about finding happiness, similar to the one he delivered just a week before his death.

UNIDENTIFIED MALE: Come on, get happy. And we've been talking about keys to happiness in our life.

ACOSTA (on camera): Sedlacek's mother has blamed her son's mental illness on Lyme disease, a link that's the subject of serious debate and that the Centers for Disease Control calls highly unusual. A service for Pastor Fred, who leaves behind a wife and two children, will be held Friday. Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HOLMES: Well, a new weapon to fight the crumbling housing market. Our Personal Finance Editor Gerri Willis has help for homeowners who want to break bad contracts. You've got some options.

(COMMERCIAL BREAK)

HOLMES: Well, a lot of people out there are printing a lot of resumes right about now. And as they know, this can get kind of expensive.

Well, FedEx office helping you out today. They will copy your resume today for free at all of its 1,600 locations. You can get 25 copies in black and white. FedEx Office is the new name for Kinko's coffee (ph) shops.

Well, we will turn to this housing mess now. And a lot of people trying to get out of some of those bad contracts that they have.

Well, Gerri Willis is along with us now.

And Gerri, these are creative ways to get out of those sales contracts. Even your mortgage?

OK. Creative. Legal, as well, right? They're still legal?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, OK. All right, well, what happens when you sign a contract to pay one price for a piece of real estate and the market pushes prices lower before you even move in?

HOLMES: OK. OK.

WILLIS: Well, some condo purchasers are fighting back against these falling prices, trying to break contracts they signed in good faith only weeks or months ago, using the services of companies set up expressly for the purpose of getting them out of the contracts and getting their deposit money back. NoCondos.com was started last year. It's a company staffed by lawyers who currently have about 10 cases in litigation.

Now, how do they overturn one of these contracts? They find legal loopholes.

They maintain there were certain procedures these firms were supposed to follow through on, but failed to do. They render the contract null and void.

I want you to take a look at some of these "gotchas" that the companies look for.

All right. Number one, they failed to file government disclosure forms. That's one of the complaints that these lawyers are pushing for.

They made false or inaccurate statements about when the condo was actually going to be open, or maybe some of the rules around it, making changes to documents. So they play on all those little legal loopholes, and I've got to tell you, T.J., it's not just condo buyers trying to get out of the deal. People who have seen their monthly mortgage payment balloon in cost, they often sue their lender, too, claiming that their mortgage documents were invalued.

Now, here are some of the reasons why, the kind of slipups that happen.

They say that the lender failed to provide a good faith estimate of loan costs. This happens, I've seen it happen. Excessive fees -- you know, document copying fees, fees for walking the documents across the street. You've seen all this.

They create false income for borrowers. You heard about these liars (ph) loans out there. Well, in some cases, the borrowers say that, you know, these were filled in by the lenders.

So these borrowers threatened suit, and they may encourage the lender to modify the loan instead of foreclosing on it -- T.J.

HOLMES: OK. So you're kind of forcing their hand, in a way, to keep from trying to -- for them to keep you from taking legal action, but like you said, some of these loopholes -- and they are legal loopholes, but they might be a little laborious, and maybe you need to read some fine print and do some fine research. But these things are working? These tactics have been successful?

WILLIS: Well, look, it's fairly new doing this. It's really being worked out sort of in Miami on the condo side, Miami and New York.

One expert we talked to said that lenders had been slow to respond to inquiries, but challenging the legality of your mortgage, if you're thinking about this, you're hearing me today and you're thinking, hey, I think I'll do this, too, it shouldn't be your first step. It's much more cost-effective to try to work out a loan modification with your lender. But if you've been denied for any kind of workout, it may be worth it to give your mortgage documents a second look.

Did your lender comply with the law, pay close attention to good- faith estimates? Any modifications or addendums?

If you decide to pursue this route, you can get a forensic loan audit that will cost you about a thousand bucks. And you want to check these folks out with the Better Business Bureau. But going over these fine details, it may bring your lender back to the table to renegotiate your loan.

HOLMES: Forensic loan audit.

WILLIS: I know you want one of those. HOLMES: Yes. It sounds like you get it CSI'd, if you will.

WILLIS: That's right. You look at the fingerprints.

HOLMES: All right.

Gerri Willis for us.

Thank you so much.

WILLIS: My pleasure.

HOLMES: And of course, Gerri Willis and CNNMoney.com has all of the advice and answers you're going to need. You can check out our special report, "America's Money Crisis." Again, that is at CNNMoney.com.

Well, the presidential report card. What grade would you give Mr. President in his first 50 days? A look at what he has done so far, and it's been a lot.

(COMMERCIAL BREAK)

HOLMES: Well, United Technologies Corporation plans to slash 11,600 jobs. This company makes jet engine telecompters (ph), elevators, as well as air-conditioners.

Also, Delta Air Lines may start handing out pink slips. The world's largest carrier says it has to cut its international capacity by an additional 10 percent because of the global recession. Don't know how many jobs lost that might translate into, if any.

We'll turn to Wall Street now. A surprising turn of events at Citigroup.

Stephanie Elam, who made a visit to Atlanta over the weekend, always good to see you, my dear friend. Good to see you again. You've actually got some good news.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: I do. It was good to see you, too. Now you called me out to everyone I didn't call when I was in Atlanta.

HOLMES: Sorry.

ELAM: So thanks for that, T.J.

Yes, but good news is hard to come by these days, so when we get it, the reaction on Wall Street is decisive. Fed Chief Ben Bernanke reiterated that the recession could end this year if the financial markets stabilize. Also, Citigroup shares, get this, they're soaring right now up nearly 27 percent. That's good news. That's helping to lift the Dow off a 12-year low. Right now, the Dow up 274 points, 6821 as you see there. That's a gain of more than 40 percent - I'm sorry, four percent, not 40 percent, that's dreams for me. Nasdaq is better, though, by five percent, and the S&P 500 up close to 4.75 percent.

Now, as for Citigroup, its CEO did send a letter to employees saying the bank posted an operating profit of more than $8 billion in January and February before special charges. Now this is a company that lost $8 billion in the previous quarter, so obviously, saying that they're making money is a really healthy, happy news to a lot of people out there, T.J.

HOLMES: Yes, healthy, happy news. And I swear just behind you I saw a champagne cork fly by and a disco ball came out of the ceiling.

ELAM: You might have heard it, yes.

HOLMES: But really, I know the first quarter isn't over, but still, this means or calls for celebration just in the interim?

ELAM: Making money is a good thing, and it's about showing you have confidence in there. They still do have to get through March, obviously, but the letter is kind of a progress report. It's aimed at letting investors calm down a lit. Citi's not going to release their first full quarter results until - for another month, before we'll see that three-month period together. It could post a loss once taxes and write-downs are factored in. And "The Wall Street Journal" says federal officials are considering what they would need to do if Citigroup took another turn the worse.

But for now, the government isn't expected to make any of that happen. And Citigroup shares are now enjoying this nice run up of more than 30 percent since they dropped below $1.00 last week. So, coming back and seeing Citigroup at $1.33 and being happy of it, T.J., it's a sign of the times.

HOLMES: That says a lot.

Stephanie Elam, thank you so much and sorry about that.

ELAM: Yes, that's OK. I'm sure the Blackberry will go off now. Thanks, T.J.

HOLMES: All right. See you soon. Thanks, Stephanie.

Well, President Obama proposing a cradle-to-career education for all Americans in his first major speech focused on education. The president also called for stronger teacher standards and cutting the dropout rate. He spoke last hour before the Hispanic Chamber of Commerce and said his recovery plan will keep more teachers in the classroom.

(BEGIN VIDEO CLIP)

OBAMA: From the moment students enter a school, the most important factor of their success is not the color of their skin or the income of their parents, it's the person standing at the front of the classroom. And that's why our recovery act will ensure that hundreds of thousands of teachers and school personnel are not laid off. Because those Americans are not only doing jobs they can't afford to lose, they're rendering a service our nation cannot afford to lose either.

(END VIDEO CLIP)

HOLMES: The president repeated his call for the U.S. to have the highest proportion of graduates in the world by the year 2020.

Well, education you hear him talking about today. Just the latest item on the president's ambitious agenda. Today marks the halfway point of the president's first 100 days in office, so that would be 50. White House Correspondent Suzanne Malveaux takes a look at what he has done so far.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Out of the gate, a bold agenda, some say too ambitious. Check out the scorecard. One of President Obama's first official acts, an executive order to shut down Guantanamo.

OBAMA: I have ordered the closing of the detention center at Guantanamo Bay and will seek swift and certain justice for captured terrorists.

MALVEAUX: A pledge to end torture.

OBAMA: I can say, without exception or equivocation, that the United States will not torture.

MALVEAUX: Billions to bail out the banks, and $780 billion more to rescue more than 3.5 million jobs.

OBAMA: My bottom line is to make sure that we are saving or creating four million jobs. We are making sure that the financial system is working again.

UNIDENTIFIED MALE: Right there, right there!

MALVEAUX: Oh, and by the way, Mr. Obama says he's also taking steps to end the war in Iraq.

OBAMA: Let me say this as plainly as I can. By August 31st, 2010, our combat mission in Iraq will end.

MALVEAUX: CNN political analyst David Gergen, who has served as top adviser to Democratic and Republican presidents alike, offers this report card for the new guy in charge.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: I think the foreign policy overall has been an "A." The handling of the economic crisis, it seems to me, is an incomplete.

MALVEAUX: As Mr. Obama himself admitted, he's already made some serious mistakes. Two of the president's high-profile appointees had to bow out over tax problems.

OBAMA: I think this is a mistake. I think I screwed up. MALVEAUX: And despite Mr. Obama's efforts to woo Republicans, those in the House unanimously rejected his economic stimulus plan and his GOP pick for commerce secretary walked away from the job offer unable to stomach the president's economic policy. But Mr. Obama embracing his mandate for change is moving full speed ahead to roll out his bold agenda reforming health care, energy, education and stem cell research.

(on camera): And the new president heads into his next 50 days with challenges that are equally daunting, with the markets tanking and more Americans losing their homes and jobs.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

HOLMES: The president campaigned on change you can believe in. So how much has changed in the first 50 days? Let's get a progress reports on the Obama presidency. Joining me from Washington, Pamela Gentry, senior political analyst for BET, also writes a blog on BET.com. Also, Jeanne Cummings of politico.com.

Ladies, welcome to you both.

PAMELA GENTRY, SENIOR POLITICAL ANALYST, BET: Thank you.

HOLMES: I will start with you. You there, up top. Jean, actually, I'll start with you.

The president's report card. Just give me a grade. What would you give him overall in the first 50 days? I know it's early, but give me an overall grade?

JEANNE CUMMINGS, CHIEF LOBBYING AND MONEY CORRESPONDENT, POLITICO.COM: Well, I think overall, they have done pretty well. There's certainly a long way to go. You might put him in the B area, he has kept up his public support, despite bringing in big changes. Those are not easy things to do.

HOLMES: What would you say, Pamela? Just the grade you would give him right now?

GENTRY: I'm in the same - I'm in the same mark. It think he has done a B. I mean, he hasn't been able to totally bring everyone on board and I think the part I have to give him the mark down for is that he has got to do more in working with these republicans to see if he can woo them faster.

HOLMES: That was going to be my next question, Pamela, so I'll stick with you on it. We hear the B, and that's above average, but what would you say is the thing you would give him the highest mark for that he has done, and the lowest mark? It sounds like, Pamela, you would say the lowest mark you'd give him is for the ability to be bipartisan, to get some republican support. So, what would you give him the highest mark for that he's done? GENTRY: Yes, plus it's hard to get bipartisan alone, so you have to get the republicans to go along. But I give him his highest marks for his tenacity and his energy and his ability to juggle more than one ball at a time. I mean he's had - you know, listening to Suzanne's package there, I'm almost exhausted thinking about it. I don't know how he's going to be able to do it.

But interestingly new enough, he has been able to keep a momentum and energy, and that's why he's been able to keep the American public with him. He actually has - gives the appearance, and he is giving so much that people are just, I think, enamored by it right now.

HOLMES: Well, Jeanne, on the flip side of that, you just heard Pamela talking about his tenacity, being able to tackle all this. A lot of people are saying, it is too much. Do what we need to do right now, which is focus on the economy. All these other things, yes, they're wonderful ideas and projects and programs that deserve attention, but just not right now. Is he running a risk of just trying to take on too much?

CUMMINGS: He definitely is running that risk. And it's not that his White House might not be able to manage his agenda in the way that he would like and in an effective way. What he may be missing just how much stomach congressional democrats have to push forward. Congressional - whether they're democrats or republicans, members of Congress aren't particularly brave and they aren't particularly bold. And he's asked them to do both things with many pieces of his agenda. It may be too much to ask from them.

HOLMES: Is it also too much, Jeanne - I'll continue with you on this point - is too much to ask of the American people to stomach as well? There are so many numbers. You have this 700 billion for TARP, $787 billion stimulus, you had billions more for the housing, you had billions more for the banks. All of these may be great programs, but is this a matter of policy versus politics? You have this policy which may be great, but people are confused by it, and so the confidence isn't coming back like it should. Jeanne?

CUMMINGS: Well, I think the that public is with him. I think when it comes to his big, bold agenda, that the public actually supports it. They voted for change. I think that they, if you look the at the public opinion polls, they largely are happy with the things that he has done so far. Is there confusion? Sure. Is there a lack of confidence in terms of where the economy is right now? Definitely. But if it you look at public opinion polls and their assessment of what he is doing, he is doing quite well. So, I think his measurement of the public's appetite is correct. His measurement of congressional, you know - for a gut check, maybe not so.

HOLMES: And Pamela, I'll let you have the would last word here, as well. You agree with that? That Americans are going to be able to stomach this. And again, it's a matter of confidence, and right now there's a lot of confusion. And as you wrap up this answer, we're going to put up and remind people one more time just exactly a lot of these things has been doing. We had a kind of a little sheet here of his accomplishments, but you go ahead and get the last worth here for me.

GENTRY: I think basically what he has done is he has come in and said exactly what he was going to do when he was running for office. That is something Congress - Jeanne is very right - is not used to. That is something inside the Beltway we're not accustomed to. But the American people appear to be ready to accept these changes. What's going to happen now is we'll have to see in two years when people are about to be re-elected, if they're going to side with the Obama engine of change and try to move quickly or they'll pay any repercussions for not having gone along with him if they are the reason that these things are forestalled.

HOLMES: All right, senior political analyst from BET, Pamela Gentry; also, Jean Cummings from politico.com. Ladies, thank you so much for being with us today. And we'll see you maybe in the next 50 days. Thank you so much.

GENTRY: Sounds good.

HOLMES: Well, a lot folks, if you could get a personal stimulus check from the government, what would you ask for? Hmmm. That's what the State of Virginia wants to know from its residents.

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HOLMES: Snowplows in North Dakota, they're losing. Mother Nature's beating them up pretty good. Officials have decided to keep a 100-mile stretch of Interstate 94 closed because of the extreme blizzard conditions. Freezing rain has coated the roads with a layer of thick ice that has already caused at least one accident. Particular of note, it's a fatal ambulance accident. Forecasters expect it to get worse out there and are advising not to travel in rural areas.

(WEATHER REPORT)

HOLMES: Well some relief for town that's in crisis. Emergency aid pouring into a city burdened by a 15 percent employment rate. Our construction continues, come on back.

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HOLMES: All right, want to bring you something just in to us. This picture you are seeing is of a school, a high school really not too far outside of downtown Atlanta where I sit right now here at our studios. But this coming to us, live picture from our affiliate WGCL. Hazmat situation there at this high school. We understand there's been some kind of acid spill, in particular sulfuric acid spill. This is Kennesaw Mountain High School in Cobb County, again, right outside of Atlanta.

The police are telling our affiliate at least that nobody has been hurt. Now it appears, at least from this picture, that's the direction of the school these kids are walking back in. I don't know if this is a different building, if this situation is over. We're keeping an eye on it, but children were taken out because of a sulfuric acid spill not too far outside of Atlanta. We're keeping an eye on it. Just wanted to let you know what we are keeping an eye on.

Well, we'll turn now to a situation that seems inconceivable. An American town so desperate that people are reduced to lining up for boxes of food in an American city. We're talking about Elkhart, Indiana now. Our Susan Roesgen is there.

Susan, we're not used to seeing things like this, but we have a feeling - we're seen a couple and we might be seeing more and more of this in cities across this country.

SUSAN ROESGEN, CNN CORRESPONDENT: Well, you know, T.J., maybe not in terms of size, but I do think all around the country we are seeing more of this, people are reaching out to help each other because a lot of people have lost their jobs.

We are in Elkhart. I'm here with Ruth (ph).

Ruth (ph), you're coming to get some of the free food today. What's your situation?

UNIDENTIFIED FEMALE: I just got laid off because our shop got - the third shift and second shift, they cut it off.

ROESGEN: What kind of work were you doing?

UNIDENTIFIED FEMALE: It's a towing products. Sequence, towing products.

ROESGEN: OK, we'll let you go ahead and pick up some of what they've got here today. Thanks, Ruth (ph), good luck to you.

It is a line here, T.J., of people in their cars coming up to get boxes of food, 25-pound boxes of food and 10-pound boxes of toiletries provided by Feed the Children. And really, all of the food and all of the toiletries people are getting here today are all donated. Different companies from around the country have given these products. We talked to people who have given Starkist whitefish tuna, Avon has given some things to make some of the women feel a little better. All kinds of products, things to keep them going, to keep families going in this city here in Elkhart, Indiana, which has 20 percent unemployment. This is the RV capital of the world, T.J. More than 125 companies make these RVs, but with a luxury good like that, lot of people are out of work because people just aren't buying them.

Hi, what's your situation today?

UNIDENTIFIED FEMALE: My son's got a couple of neurological problems and diabetes and I can't work.

ROESGEN: Did you lose your job?

UNIDENTIFIED FEMALE: I had to quit because of him.

ROESGEN: OK, all right, well, good luck to you today.

T.J., that's the situation here, they're going to give away the food and they're expecting about 2,000 people to come through here. And those who don't come through here will get some free food through their churches here in town - T.J.

HOLMES: It is good that they are getting the help, but like you said, the unemployment rate just is higher than the national average. Susan, we appreciate it.

And as a reminder to our viewers, many of you viewers might remember Elkhart is where President Obama actually visited when he was talking about the economy and talking about that was one of the hardest hit areas.

Meanwhile, you heard the Feed the Children is helping out there. Well, this Oklahoma City-based charity is currently involved in a lawsuit. We need to tell you about this, five directors allege they were unlawfully replaced in December. Both sides say they represent the true work of that charity.

Well, billions of dollars up for grabs. Everybody from students to plumbers, hungry for a piece of the stimulus pie. But wait until you see how one state is deciding who gets what.

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HOLMES: The checks are being cut and states can't wait to start spending their billions of the stimulus package. Kate Bolduan now reports on how Virginia will decide who gets the money.

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KATE BOLDUAN, CNN CORRESPONDENT (voice-over): If you could, how much stimulus money would you ask for?

BECKY WOLFORD, STUDENT, NORTHERN VA. COMMUNITY COLLEGE: Twenty- five thousand.

UNIDENTIFIED MALE: Thirty-seven million dollars.

ROBERT WATSON, SMALL BUSINESS OWNER: I figure out $100,000.

BOLDUAN: The state of Virginia wants to know, asking residents to submit their own stimulus ideas online. This Web site now has more than 8,000 proposals. College student Becky Wolford needs a car and help with school.

WOLFORD: I'm kind of struggling right now with money. I don't have any financial support from my parents.

BOLDUAN: Manassas City manager Larry Hughes is looking for millions for a dam project to improve water treatment and expand a museum.

LARRY HUGHES, CITY MANAGER, MANASSAS, VA: We're ready to advertise for bids and if it's one of the selected projects by the state, we're ready to go.

BOLDUAN: So we went to the man in charge, Governor Tim Kaine, to find out what they'll do with this stimulus wish list.

(on camera): Did you ever expect to see this kind of interest?

GOV. TIM KAINE (D), VIRGINIA: No. I mean, I knew we'd get some funny ones and we've gotten some, you know, jokes. But I've been really impressed with how seriously people have taken it.

BOLDUAN (voice-over): Next up, deciding where the money should go and fast. Maybe to people like Robert Watson, who owns a local plumbing company. He wants $100,000 to avoid layoffs. In all, the requests add up to more than $475 billion.

KAINE: We're getting $4 billion worth of stimulus money. So not everybody is going to get what they want but it is helpful as we decide how to use, say the transportation dollars to look at, you know, the big picture priorities that people have and then we'll try to make the best decisions.

BOLDUAN: So Virginians like Robert Watson should probably start looking elsewhere.

WATSON: I don't know it's going to trickle down far enough, but it would be nice for it to start at the bottom and maybe trickle its way back up.

BOLDUAN: Now while this may be helpful, the reality is everyday citizens aren't likely to get money for personal projects. As Governor Kaine put it, this Web site acts as more of a guide than a rule when it comes to Virginia's stimulus priorities and the state's $4.8 billion stimulus dollars.

Kate Bolduan, CNN, Washington.

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