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Hundreds Turn out for Food Giveaway in Indiana; House Battles Over Spending Bill; Citi Fuels Triple-Digit Rally on Wall Street; Survivor of Great Depression Shares Tips; Detroit Feeling Economic Pain; Lawyer Helping Homeowners Break Bad Mortgages

Aired March 10, 2009 - 13:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Thanks, T.J.

Well, we're pushing forward on the front lines of recession. While you're hoping for recovery and waiting for stimulus, sometimes charity will have to do. We're live at a food giveaway at Elkhart, Indiana.

Buyers' remorse in the housing crunch. We're pushing forward on ways of backing out of home contracts, even mortgages.

Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.

Well, it's a welcome sight on Wall Street: a triple-digit rally. Really. Take a look at this. It's fueled by two straight months of unexpected profits at Citigroup. More on that in just a moment.

Over to Cap Hill. It's the $410 billion question: will Congress play "Chicken" over earmarks and pay hikes in a spending bill that's six months overdue?

We're also turning to some age-old wisdom, 91 years old to be exact. We're weathering hard times.

And read all about it: newspapers write their own grim stories of losses, layoffs, even shutdowns.

OK. Let's get started. If you don't believe charity begins at home, well, you can look at Elkhart, Indiana, today. That's a blue- collar town with a jobless rate roughly double the national average, and the key word there -- rough. Today, Elkhart is getting help, and CNN's Susan Roesgen is there.

Susan, what's happening right now?

SUSAN ROESGEN, CNN CORRESPONDENT: Well, Kyra, we're here at the line, actually, a couple of lines of people here who are coming in their cars now because it's so cold outside. It's been raining all morning. Here in Elkhart to get free food and free toiletries.

These are items that have been collected from different companies all around the country. Potatoes, canned goods, baked goods, a little bit of everything. And what they're doing is they get a voucher, as they've been identified by local churches as having a need. And once the people here realize that they've got the vouchers, then they go in line, Kyra, and they get the food and the toiletries in big boxes off the backs of those trucks there.

Can we talk to you about why you're here today?

UNIDENTIFIED FEMALE: You can talk to her.

ROESGEN: What's your situation?

UNIDENTIFIED FEMALE: Without a job.

ROESGEN: When did you lose it?

UNIDENTIFIED FEMALE: July -- no, before Thanksgiving.

ROESGEN: Where did you work and what happened?

UNIDENTIFIED FEMALE: Alpha Systems.

ROESGEN: What is Alpha Systems?

UNIDENTIFIED FEMALE: What is it?

UNIDENTIFIED FEMALE: (INAUDIBLE)

ROESGEN: Makes glue and caulking materials, we heard there. And you both lost your jobs?

UNIDENTIFIED FEMALE: Yes.

ROESGEN: Just layoffs?

UNIDENTIFIED FEMALE: Yes. I go back in August. Hopefully. Hopefully.

ROESGEN: OK. I see you got some kids there, too. Lot of mouths to feed?

UNIDENTIFIED FEMALE: Yes.

ROESGEN: OK. All right.

Kyra, we're hearing all kinds of different stories here. I talked to a young man who is a welder, or was a welder, at one of the big R.V. companies. This is known as the R.V. capital of the world, Elkhart, Indiana. But it now has, as you mentioned, about double the national average in unemployment: 20 percent. That means one out of every five people is out of work. So if these folks aren't out of work, then they know someone who is.

Hi, sir, what's your situation?

UNIDENTIFIED MALE: Out of work. I work in R.V.s. ROESGEN: We just talked about that. What happened? Where did you work and what were you doing?

UNIDENTIFIED MALE: Worked at Forest River for 11 years. And they just shut down production where I was at. So...

ROESGEN: Any hope of getting your job back? What are they telling you?

UNIDENTIFIED MALE: I'm up for rehire. But who knows what that means or when?

ROESGEN: What do you think of this food giveaway today?

UNIDENTIFIED MALE: It's nice. I appreciate it. I need it. I've been off work for almost a year now. So...

ROESGEN: You know, I've never had to be in line to get food like this, but I can imagine it happening. Is it a difficult thing for you to be here today?

UNIDENTIFIED MALE: No. Been quite a wait, but it's well worth it, I'm sure.

ROESGEN: All right, good luck to you.

So Kyra, those are the kinds of stories we're hearing here, people who worked at all different sorts of jobs, lining up in these cars here. The organizers at Feed the Children were expecting about 5,000 people initially now. Because the weather was so awful earlier, maybe only about 2,000 people, but they are sure that everything they have here on the backs of those 18-wheelers is going to go -- Kyra.

PHILLIPS: You know, Susan, it's just amazing as I listen to these stories. And now you just took a shot of that line of all those cars. I mean, we're both Midwest girls, and these are hard working people. These are humble people.

Doesn't it just amaze you that, I mean, what you're looking at and what you're experiencing? I mean, this shouldn't be happening in the United States of America.

ROESGEN: I couldn't hear you just at the very end there, Kyra. But it does amaze me, I think, because of the magnitude of this. We've always heard of, you know, food pantries and church giveaways and that sort of thing. But when you have one out of every five people in Elkhart, Indiana, a town of about 200,000 people, out of a job, that means that everybody here either knows somebody who's out of work or they're out of work themselves. Families are struggling, people put their pride in their back pocket and come out here and say, "OK, we'll take it."

And you know, really, the volunteers that are here, Kyra, have been very gracious. They've decided to put the people in their cars and say, "Come on, just pull your car up and get the food that way." They were going to have people stand in line. But as one of the organizers told me earlier, there's a fine line between giving away food and taking away someone's dignity. They just want people to get what they need and keep going. They don't want this to be a bad thing here today. They want this to be a good thing.

PHILLIPS: It's really tough to see. But you're right: those humble hearts are pretty moving.

Susan, really appreciate it.

You may remember Elkhart, Indiana. It may sound familiar to you because President Obama, he visited there just barely a month ago. He was trying to drum up support for his economic stimulus bill. He also visited Elkhart twice during his campaign.

Recessions come and recessions go, but you can always count on budget fights on Capitol Hill. That's for sure. Today we're following a big one with a deadline. And once again, earmarks. Critics call them pork. Well, that's the sticking point.

CNN's Brianna Keilar following the progress of a must-pass spending bill for the rest of the fiscal year.

Brianna, it seems most lawmakers like earmarks, so is the opposition just P.R.?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, certainly Democrats are saying that. There are 8,500 earmarks, these requests for federal dollars to pay for projects in local districts and in states. So again, 8,500 earmarks.

And the reason the Democrats say Republicans are being disingenuous in raising a raucous about them is that 40 percent of the earmarks in this spending bill are Republican earmarks, and furthermore, some of the Republicans who are really getting upset about these earmarks and pointing them have themselves some earmarks to the tune of millions of dollars in this spending bill, Kyra.

PHILLIPS: Well, speaking of dollars and raising a ruckus, a lot of talk also about lawmakers' pay raises. That's another part of this bill.

KEILAR: Yes. Senator David Vitter, Republican from Louisiana, is proposing an amendment that could be voted on today. And what it would do is change the way Congress gets its annual cost of living increase.

So you know what it is. This was a $4,700 more for lawmakers the last time they got a pay increase, putting their salaries at $174,000. And what Vitter would like to do is force Congress to go on the record with the vote each and every year, basically then saying, "Hey, I want to give myself a pay increase." You can see how that is somewhat politically awkward.

But big picture here is that Democrats needed to win over a few Republicans and get their support to get -- to clear a key vote to get those 60 votes and move this out of the Senate. To do that, they had to give Republicans the opportunity to amend this bill.

That doesn't mean, Kyra, though, that Democrats actually want these amendments to pass. In fact, they don't, because House Speaker Nancy Pelosi has said that she doesn't want the Senate to make any changes.

So Republicans saw an opportunity here to really put some tough issues there up for a vote and kind of paint the Democrats into a corner. And they've been successful in doing that, if, for instance, with this David Vitter amendment, they go ahead and vote on that, Kyra.

PHILLIPS: All right. Brianna, thanks so much. We'll keep tracking it.

A lot happening on the Hill. "Don't ask me" isn't the ideal answer for a witness at a Congressional hearing right now, but it's pretty much the message from the White House budget director to the Senate Finance Committee today.

The panel wants to hear the nitty-gritty of the president's plan to broaden health care coverage, but Peter Orszag says that's largely up to Congress, so stay tuned.

Also up there on the Hill, a rally to press Congress to take bold action to help keep families in their homes.

(BEGIN VIDEO CLIP)

(CHANTING)

(END VIDEO CLIP)

PHILLIPS: A so-called Recovery Express Bus Caravan rolled into the capital this morning after a cross-country trip. Onboard, dozens of people from across the country who've lost their homes or face that prospect. They're calling on Congress to change bankruptcy laws, giving judges the power to cut mortgage interest rates and payments.

That rally was organized by faith-based community groups.

All right. Let's get back to that news on Wall Street now, something that we haven't seen much of lately: surging stocks. Checking right now the big board, Dow Industrials up 286 points. The climb started after troubled Citigroup said it operated at a profit during the first two months of the year.

Stephanie Elam at the New York Stock Exchange with a quick check on those details.

Why are we seeing a rally?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Well, part of it, Kyra, is because this letter from Citigroup is boosting some confidence. Financial stocks have really been a primary driver in the market collapse, so Citi's CEO saying that they've made $8 billion in January and February, equal to what Citi lost in the previous quarter, is actually a bit of a progress report that the street likes to see.

Now, they could still post a loss after they're done with the whole quarter, but right now this is leading financial shares on the street. You've got the Dow off of its highs but still up close to 5 percent, NASDAQ up more than 5 percent, and the S&P 500, as well, Kyra.

PHILLIPS: All right. We'll keep tracking it with you. Thanks so much, Steph.

We're also pushing forward with some tips to help you, me, everyone else get through this economic mess. We've actually got a guest coming up who lived through the Great Depression, and guess what? She's 91 years old. And I tell you what, she's thriving, and her insights could help you. She's even running for town council.

What do you want to ask her? E-mail us your questions at CNNnewsroom.com.

Got buyer's remorse about a condo that you closed on? Well, there might be a way to get out of it. Gerri Willis is live right here in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Halfway through the first 100 days, we'll push forward on the many works in progress of the new administration.

(COMMERCIAL BREAK)

PHILLIPS: Well, she's 91 and frugal. And she says she's ready for town council. Why? Well, she says since she survived the Great Depression, she can help her town of Addison, Texas, survive this economic downturn.

Fan Benno-Caris says that she has a love affair with life. She's a five-time race walking champion, motivational speaker, and now she wants to teach her town a few lessons about life and money. Fan joins me live from Dallas.

Good to see you, Fan!

FAN BENNO-CARIS, ADDISON, TEXAS, TOWN COUNCIL CANDIDATE: Good to see you.

PHILLIPS: So I'm curious. You talk a lot about these lessons that you have learned from the Great Depression and that many of us younger folk have not learned those lessons. What is it that we're missing?

BENNO-CARIS: Well, I went through the first Depression, and the only thing that saved us then, to bring us out of it, was the war. Right now there's nothing to bring us out of any recession or depression.

People are losing their jobs. They don't have any money. And they're desperate. They're losing their homes. So I want to help them. And that's why I'm running for the city council, so maybe I can help my town of Addison, which is a small town in Dallas, close to Dallas. And help them survive.

PHILLIPS: Well, tell me, Fan, how are you going to do that? Let's say you win this position on the town council. What's the first thing that you want to do? What's your main big idea?

BENNO-CARRIS: Well, they raised taxes about '07. I want to cut back on the taxes on the people. And I not to have any -- we have funds. And be careful of what you invest them in so you won't lose them in the market.

And also to survive, because it could be one year, two years, three years, and we have to be prepared for it. If there's nothing to keep -- there's nothing to keep them from bottoming all the way out. So we're all in the same boat. I'm for the people!

PHILLIPS: I know you are. I've seen the pictures. I've seen your platform. I tell you what: you were 11 years old back when the stock market crashed. You have a lot of thinks to tell us.

What we've done is we've decided to ask for e-mails. So if you don't mind, stick with us, Fan. I know you've got a lot of wisdom to share with us. Our discussion isn't going to end here.

The great lady, Fan Benno-Caris, she's going to come back a little later in the show to answer some of your e-mail questions. So keep them coming. Send your questions to us here at CNNnewsroom@CNN.com.

Well, bleak towns in Motown. Detroit harder hit than most major cities by the recession. So what's the mood and how are folks holding up? Are they even getting the help that they need? Maybe Fan might want to go to Detroit and help get some answers.

Meanwhile, we'll go to Rod Malone of our affiliate WTIV.

Rod, good to see you. You know, the economy obviously is horrible there. Let's just lay it out. But you have said, after covering this for so many years, and specifically in the past couple of years, that America's finally experiencing what you've been feeling for five years now in Detroit.

ROD MALONE, WTIV-TV CORRESPONDENT: Precisely. I mean, the pinch that America, the nation, is feeling is the pinch we had five years ago. And essentially, Michigan has gotten worse on a daily basis for the past five years and is desperately looking for the bottom.

I mean, if you were to ask for the collective mood of metro Detroit, it is numb. I mean, we're just numb. We just keep wondering when we're finally going to bounce off the bottom and then start moving upward again. Because there is faith, there is belief here, that, you know, America's economy is a great one and that we will recover at some point. But it has just been a steady downward slide.

And when I cover stories and talk about layoffs, we -- you know, because we had the auto industry here, when we talk about layoffs, it's several thousand at a time, and those come almost on a weekly or a monthly basis and have been for the past five years.

PHILLIPS: And, you know, we've been talking a lot about Michigan, in particular Detroit. And, you know, the auto task force came through, the crew there visiting what's supposed to be the future of GM and other big automotive companies there.

What do you think? I mean, was that the right thing to do? Did that give people any hope there in the factories?

MALONE: Well, it sure does. Mainly for two reasons. One, because they actually came.

Now, one of the things that frustrates a lot of people in metro Detroit is that there is nobody on the automotive task force who really knows much about the automotive industry. It's a complex industry. It is not something easily understood.

And so the fact that they actually sent a group of people from the task force here to Detroit to look through plants, to look through technology centers and see what they've got going, and talk to the people on the ground, talk to people on the assembly line, talk to people in the labs who are developing technology, and alerting them to the fact that Detroit is not some ghost town that doesn't understand good technology and that doesn't understand fuel efficiency and the like, is very helpful for us here with the notion that they at least cared enough to ask and to see, you know, what is here.

The other thing that people are taking hope in is that the process hasn't stopped. In other words, they've come here. They've looked at our plants now, and that they are continuing to try and figure out what's best for this industry.

Of course, we're in that quiet period now between reports...

PHILLIPS: Right.

MALONE: ... going into the federal government and their assessment of them to decide what is going to happen. And there is a lot of people on edge in metro Detroit right now, trying to figure out what it is that the federal government is going to decide.

PHILLIPS: Yes, and what happens there definitely parlays into everything else happening across the country.

Rod Malone, we'll stay in touch with you. Thanks so much.

Well, some call them throwaways, but homeless teens do have places to go where people are trying to help. We're going to tell you about one success story right here in Atlanta.

(COMMERCIAL BREAK)

PHILLIPS: Well, is the rot (ph) in housing markets making you regret a purchase? There are some new resources out there that might be able to help, maybe issuing more new money. Personal finance editor Gerri Willis has more now from New York.

Hey, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, there Kyra.

Yes. Now what happens when you sign a contract to pay one price for a piece of real estate, and the market pushes prices lower even before you move in? Well, some condo purchasers are fighting back against falling prices, trying to break contracts they've 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 that contract and getting their deposit money back.

NoCondos.com was started last year. It's a company staffed by lawyers who currently have about ten cases in litigation.

So how do they do this? How do they overturn a contract? Well, they find legal loopholes. They maintain there were certain procedures these firms were supposed to follow through on, but they failed to do, rendering that contract null and void.

Here are some of the gotchas these companies look out for. So with condos, it's developer -- developer errors. Like they failed to file government disclosure forms or they made false or inaccurate statements about when the development was supposed to be completed. Or they made changes to documents without telling the buyer.

Now, of course, it's not just condo buyers trying to get out of deals. People who have seen their monthly mortgage payments balloon in price are claiming that their mortgage documents were invalid. And here are some of the reasons they're saying why it happened.

Here are the mortgage slip-ups: that the mortgage lender failed to provide a good faith estimate of loan costs. That's the law; they have to do that. That they charged excessive fees; that they created false income for the borrowers, filling in the numbers themselves.

Now, these borrowers threaten suit, and that may encourage the lender to modify the loan instead of foreclosing on it. So that's what they're really after here: get the new loan and a loan they can afford.

Kyra?

PHILLIPS: What is it, Gerri?

WILLIS: Well, I've got to tell you, if you want to be successful with this, it's a fairly new technique that's being used. One expert we talked to said that lenders have been sort of slow to respond to inquiries, so the buyers are upping the ante.

But the legality of your mortgage shouldn't be the first step that you take if you're having a problem. It's much more cost effective to work out a loan modification directly with your lender.

If you've been denied, give those mortgage docs a second look. It's really worth paying close attention to good-faith estimates and any modifications or addendums.

If you pursue this route, get a forensic loan audit. Yes, that's a mouthful. It can cost $1,000 to do it. It may help you understand if the law was broken in getting you that loan -- Kyra.

PHILLIPS: Gerri Willis, always good to see you.

WILLIS: Thank you.

PHILLIPS: Straight ahead, if lies had a smell, well, they might smell like B.O. Some unbelievable stinking research, courtesy of your Department of Homeland Security.

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PHILLIPS: Well, it's been a pretty busy 50 days for the Obama administration. You saw the list right there of everything that they've been dealing with. But it merely just sets the stage for the next 50 days and the 40-plus months after that. Candy Crowley keeping tabs, looking ahead.

You know, Candy, I guess in a way, it's been the 50-day honeymoon, right? I mean, it's been like in Bora Bora. Now he's heading into a much more dangerous territory in the next 50 days.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: He absolutely is. I mean, when you look at the executive orders that you had up there on the screen, that's really low-hanging fruit. I mean, that's the stroke of a pen.

Now, he, you know, ordered the closing of Gitmo. He opened it up for federal funding of stem-cell research. But again, that's writing your name on the executive order.

He did get that huge stimulus bill, also on your chart. That was a masterpiece of getting something through Congress, which is no mean feat when you do it that quickly, in less than a month. He got it.

The problem is we don't actually know whether the stimulus bill is going to work, so you sort of give him an incomplete grade on that.

But when you look ahead to this budget, at least the budget outline that he sent up to Capitol Hill, and you can see that the first 50 days are going to look like a picnic compared to what's coming up, because there are just varying parts of that bill that even Democrats at this point are going, "You know, I don't think this is going to work." I know we've talked about it. He wants to cap the amount that wealthy Americans can deduct for charitable organizations, charitable giving. That has really caused a stir, not only among charities but up on Capitol Hill. Well, if you take that away, it's a piece of the puzzle. Where do you go get the revenue that you're going to lose?

So this is going to be very, very tough, and it's going to be down to the last detail.

PHILLIPS: OK. So if we were to maybe narrow it down to, let's say, two things that he's -- this is where the rubber hits the road, I mean, Wall Street, that's pretty obvious. Right? And then the stimulus package. I mean, that's his baby now; it's all on his shoulders. Both of these things have to succeed.

CROWLEY: Absolutely. And what everybody says now -- Democrats, Republicans, Wall Street -- is you've got to get these banks, the banking industry, stable. That is the key to recovery.

So he really -- and that, they say, is what's upsetting Wall Street. So they do have -- they do understand and the president understands that Wall Street is looking at these.

Although today, suddenly, I mean who understands Wall Street? As you know, it was up in the triple digits. We'll see what happens at the end of the day, but nonetheless they're at 285. That's as good as we've seen for the Dow in some time.

PHILLIPS: We were excited to see that rally. Yes, it happened just before 1:00. We thought, ooh, boy. We've got to get this in the top of the hour.

CROWLEY: Sell! Sell! Exactly!

PHILLIPS: You know what, and something else, too. And maybe I'm kind of stepping -- sort of stepping away from Obama and those things that he's going to be focusing on, but I mean, how about this Michelle Obama factor 50 days in, Candy? I mean, we were kind of -- everybody was looking at this woman, she came across pretty harsh, not so friendly.

And now all of a sudden she's sort of showing this human side of the Obama family. You see her here at soup kitchens. She's having kids into the White House. You see her on the front page of "Oprah" magazine and "The New Yorker," you know, strutting her stuff. I mean, wow, this sort of was kind of a surprise to everybody.

CROWLEY: Absolutely. But, you know, remember, I mean, sort of in the last part of the campaign, she began to kind of step into her own. She lost that harsh image that was there, basically because of one statement she made about, for the first time in her adult life she's proud of America, and everybody sort of piled on to that. But she definitely -- you put your finger on it. This is bringing the human face to the Obama family. It is what everybody loved about this family coming in with these two daughters, the first young children we've had in the White House since JFK. So that, you know, spoke of youth and vitality. And so, she keeps that going, because again you see these rough times ahead for President Obama. His popularity ratings are not always going to be at 60 percent. And she is the one that kind of brings out the things that people have really liked about the Obamas, and that is that they seem approachable and that they seem real, remembering that when former President Bush got very unpopular, they sent first lady Laura Bush out because she remained popular.

So, this is kind of, you know, starting right there. And she can kind of bring that human element to the White House that has been so popular and made them so appealing.

PHILLIPS: Candy Crowley, great to see you.

CROWLEY: Glad to see you.

PHILLIPS: Sounding tough but offering hope and promises, President Obama unveiled his ambitious plan to reform public education today in his 50 days list. The cornerstone -- merit pay for better teachers, longer days in school -- school years, rather, for students, and new investment in early education. What we have now, Mr. Obama said, is simply unacceptable.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We have a legacy of excellence and an unwavering belief that our children should climb higher than we did. And yet, despite resources that are unmatched anywhere in the world, we've let our grades slip, our schools crumble, our teacher quality fall short and other nations outpace us.

(END VIDEO CLIP)

PHILLIPS: Well, what ultimately is at stake, if reforms aren't carried out, the president said, is nothing less than the American Dream.

Call it a gold rush of sorts. States desperately seeking billions of money in stimulus cash, and their plans put it to work pretty quickly. CNN's Kate Bolduan looks at Virginia and its nearly $5 billion pot of gold.

(BEGIN VIDEOTAPE)

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

UNIDENTIFIED FEMALE: $25,000.

UNIDENTIFIED MALE: $37 million.

UNIDENTIFIED MALE: I threw a figure out of $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.

BECKY WOLFORD, STUDENT: 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, VIRGINIA: 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 will 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, some 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.

UNIDENTIFIED MALE: Just cut.

BOLDUAN: Maybe to people like Robert Watson, who owns a local plumbing company. He wants a hundred thousand 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 we will try to make the best decisions.

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

ROBERT WATSON, SMALL BUSINESS OWNER: I don't know if 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 (on camera): 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.

(END VIDEOTAPE)

PHILLIPS: All right, we're reminiscing about all the different places that we've worked. Of course, you know weather all across the country. JACQUI JERAS, CNN METEOROLOGIST: In the Midwest.

PHILLIPS: Yes, so, I'm thinking, OK, our producer, (INAUDIBLE), she's from Michigan. So, this is for her. I don't think she's ever had ice chunks through her house, though.

JERAS: Have you seen this video?

PHILLIPS: I guess it's pretty unbelievable.

JERAS: It's really amazing. I've never really seen anything quite like this. You know, this isn't snow piled up, people. This is ice, believe it or not.

PHILLIPS: So, what happened? Do we even know what happened?

JERAS: Well, this right along Lake Huron, you know, the Saginaw Bay area. So, if you think of Michigan, and you know, think of the thumb, the "L" part. So, it's right in there, right off the bay. And the winds were really strong all weekend long, pushing it from the northeast, and big waves started developing. So that starts to break up the ice. And then the wind pushes the wave up towards the shore. So, it's, you know, just like taking a big snow shovel and taking that ice and pushing it up right into these people's houses.

PHILLIPS: That's kind of scary. Can you imagine waking up to that?

JERAS: No, I mean, you're sitting in your house. You're watching TV. I was reading the wire, and some guy was saying he was just sitting there, and all of a sudden, boom! It scared the heck out of him. But nobody was hurt.

PHILLIPS: So, that's good news.

JERAS: Absolutely, some good news.

PHILLIPS: Just great pictures to talk about.

JERAS: It is. It's really amazing. I guess it was a little more common back in the '70s and '80s when the lake levels were a little bit higher. So, we haven't seen a lot of that because the lake level's a little lower, you got a little more room between, you know, the beach and your house. Not so much room anymore.

(WEATHER REPORT)

PHILLIPS: All right, kicked out by her mom, living on the street. She thought nobody wanted her. But guess what? Someone did want to help. We'll tell you her great success story.

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PHILLIPS: Well, it's a traditional start of the day for many of us, reading the morning newspaper. But that could become a thing of the past. Newspapers across the country are taking drastic steps to stay afloat amid the devastating recession.

The latest example, McClatchy Newspapers slashing 1,600 jobs. The cost-cutting spree has cut nearly one-third of McClatchy's workforce in less than a year. And among the hardest hit of the chain's 30 newspapers, the flagship "Sacramento Bee" and the "Kansas City Star."

Well, on top of the recession, newspapers are facing stiff competition from the Internet. That's where classified ads, as well as that prize demographic, folks in their 20s and 30s. The toll is devastating. And on its Web site, "Time" magazine has a list of the ten major daily newspapers that are most likely to fold or shut down in their print operations and only publish online.

We put those top ten in map format so you'd be able to see all across the country. This is happening -- it's not just one level. For example, "The Miami Herald" here in Florida, an institution there in that state, circulation of 220,000, it could be the next chain to go to Chapter 11, we're told. It's been on the market since December, but no serious bidders have emerged.

As we continue to look across the country, also at "The Miami Herald," very small chance it could merge with the "Sun-Sentinel," we're told. And then more likely "The Herald" will go online with only two editions, one for the English-speaking readers and then one for Spanish. And then, here, "San Francisco Chronicle is another. The "Chronicle" lost as much as $70 million, we were told, last year. The online version of that paper could be the only version by the middle of 2009.

Other papers across the country, the "Chicago Sun-Times," the New York "Daily News," the Fort Worth "Star-Telegram." Let's go ahead and look at "The (Cleveland) Plain Dealer." This has been an incredible newspaper for a number of years, winning a lot of awards. One of the economically weakest markets in the country. "The Plain Dealer," we're told, will be shut or go digital, possibly by the end of next year.

It's the economy, it's people turning to the Internet, it's people watching more broadcast television. It is a shame because the newspaper has been such an institution for all of us for so many years. Some of us still every morning get that print all over our fingertips. We'll follow, of course, all those newspapers across the country and keep you updated on what's happening.

All right, let's move on. Let's talk about this woman here. She's wise beyond her years, shall we say. She's also answering your e-mail questions. Find out what a survivor of the Great Depression thinks of our current economy and hear her tips for beating the recession. She's taking your e-mails.

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PHILLIPS: She's lived through the best of times and the worst of times. Great Depression survivor, champion racewalker and Addison, Texas Town Council candidate Fan Benno-Caris back taking some of your e-mail questions. We had to do this, Fan. A lot of people write in about the fact that you're 91, you're so active, you're an inspiration to all, and you have many life lessons with regard to what's happening in our economy.

This question coming from Janet in Wyoming, Michigan. She says, "Fan, how have you kept your hope and good attitude for all these years, 91 years?"

BENNO-CARIS: Well, you never give up. You just know that every day's going to be better, and you don't have any negative attitudes and crawl under the covers. You just go out and keep moving.

PHILLIPS: All right, and Christina (ph) wants to know, "How different is the government reacting to the recession now from the Depression in the 1930s?"

BENNO-CARIS: Well, it's about same. The government was reacting to it in the 1930s. And they're reacting now. In the 1930s, we had Franklin Roosevelt. He was reacting, trying to get jobs for people and have them build roads. But now, they're not looking. They're -- it's like it's instant gratification. They just want to go ahead and do everything and not look back.

PHILLIPS: One more question for you. This comes from Bill Reilly (ph). He says, "Thank God there are people like Fan out there with experience and common sense. Her lesson at life sorely needed. How do we convince our friends and neighbors, Fan, that we cannot spend our way out of this financial crisis and we must all learn to live with less until and when we recover?"

BENNO-CARIS: Well, the first thing you need to tell your friends is to put off all the credit cards. And live within their means instead of -- do you need it, or do you just want it? And I feel that if they will do that and live without going out and buying the most expensive cars, and live like -- day by day, then they will live. They will be OK. Otherwise, if they keep on and they keep looking in the rear view mirror what they did before, they better look ahead now.

PHILLIPS: Amen. We love to push forward. Fan, I remember interviewing a man that was 100 years old, still on the job. And I said, what's your best piece of advice? And he said, never get a credit card. So, there you go. Fan Benno-Caris, we're going to be tracking that campaign as you run for town council there in Addison. Thank you for your insight and your tips. You're a wise and beautiful woman.

BENNO-CARIS: I wish you could vote for me. Come move to Addison.

PHILLIPS: I may have to. All right.

BENNO-CARIS: No, no, you won't.

PHILLIPS: Thank you, Fan.

BENNO-CARIS: Thank you. Bye. PHILLIPS: Bye-bye.

Well, you probably know a person whose B.O. gives him away. He may actually be sitting right next to you right now. But body odor might do more than just offend. Get this -- the Department of Homeland Security is having a study done to see if it indicates lies like a polygraph. How would you like to be the researchers doing that work? Well, if they call you a stinkin' liar, they really mean it. They're also looking into whether your unique smell can identify you, kind of like fingerprints.

Well, this really stinks. No detector needed. What could be more innocent than a high five. Heck, Arnold Schwarzenegger loves them, so they have to be OK, right? Well, a city council in Australia has ordered a crossing guard to stop high-fiving the kids and their parents as they walk by. One parent who apparently needs a lot more fiber had a problem with the physical contact. So, 18 years of hand- to-hand slappage come to an end. Petitions are actually circulating right now to bring back the high fives.

Well, protecting your health. Is anything more important? A look at model plan that could be the right prescription for reforming health care.

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PHILLIPS: Vice President Biden looking for common ground on Afghanistan. He's at NATO headquarters in Belgium today, reaching out to U.S. allies who are less than eager to spend more troops against the Taliban. Biden says that the allies agree on a comprehensive strategy combining military action with civilian and diplomatic offensives.

Well, it could be one of the most complex political fights the president faces during his administration: Overhauling health care. The end result may mirror one model already in place in Massachusetts. Our chief medical correspondent, Dr. Sanjay Gupta, breaks it down for us.

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DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (on camera): Well, a term that a lot of people are talking about, of course, is universal health care. You don't have to go to France or to Canada to get an idea of what universal health care might look like. There's a model of it right here in this country. We investigated.

(voice-over): Three years ago, when Republican Governor Mitt Romney signed the new law, more than half a million people in the state did not have health insurance. Today, fully 97 percent of the people living in Massachusetts are covered by the state's version of universal health care. Romney and his partner in the plan, Democratic Senator Ted Kennedy, are a political odd couple but powerful enough to get it done.

SEN. TED KENNEDY (D), MASSACHUSETTS: It recognizes that there's a common responsibility for people in that state to get health care and to get coverage.

GUPTA: Everyone pitches in. Government: The state took more than $200 million from programs offering free care for the poor and used that money to help them buy insurance. Business: The law requires companies with more than 11 employees to offer health insurance. Individuals: If you don't have coverage through a job, the law says you must buy it on your own or pay a penalty. It's painful. It can be more than a thousand dollars a year. This aspect, pressure on the individual, was especially controversial. This man is a self-employed musician.

"MASSPIKE" MILES WHEELER, SELF-EMPLOYED MUSICIAN: That means that I'm going to have more bills, and that's going to be less food for my son. That's going to be, you know, less things that I'm used to having, because I am forced to pay health insurance.

GUPTA: But others were more positive.

UNIDENTIFIED FEMALE: It was better than I expected and less money than I expected.

GUPTA: Jon Kingsdale runs the universal health care program in Massachusetts. He warns, the biggest threat to universal health care is rising costs.

JON KINGSDALE, EXEC. DIR, MASS. HEALTH INSURANCE CONNECTOR: We are going to have to be in the single-digit rates of increase in premiums and the corresponding medical costs that they cover, if reform is to be sustainable.

GUPTA (on camera): So, it is worth talking about these costs just a little bit more when it comes to these numbers. In the first year of the plan, it costs $628 million in Massachusetts, the majority of the plan. That was about 20 percent more than they expected. You can see the numbers go up year after year.

A lot of people will say, look, that's just an example of how these costs are going to continue to spiral out of control. Other people will say, no, the only reason these costs went up is because more and more people are enrolling for the plan, and they point to that 97 percent insured number. Remember this term, incremental universalism, slowly creeping toward universal health care. It does mean that Medicaid may be expanded. It does mean there might be mandates for employers.

One point of contention: Will someone be forced to buy health care if they can afford it and they don't have it right now? That is something the White House hasn't quite decided on. This plan is going to take greater shape over the months and years to come. We'll bring it to you as it comes to us.

Dr. Sanjay Gupta, CNN, reporting.

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