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President to Focus on Education Today; Warren Buffett: Current Crisis is an "Economic Pearl Harbor"; Gunman Was Armed for Armageddon; Surviving a Worst-Case Scenario; Foreclosures Swell California Tent City; Madoff Back in Court Again; Afghan Women's Groups Concerned About U.S. Talks; Career Web Sites That Work
Aired March 10, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Welcome. Glad you're with us on this Tuesday, March 10th. I'm Kiran Chetry along with John Roberts.
JOHN ROBERTS, CNN ANCHOR: Good morning to you.
CHETRY: Good to see you this morning and...
ROBERTS: It's "No Tattoos" day.
CHETRY: I was just about to say that.
ROBERTS: Why not?
Here are the big stories topping our agenda right now. We're going to be breaking them down for you in the next 15 minutes here on the Most News in the Morning.
This morning President Obama marking a milestone, 50 days in office. And with the economy continuing to loom over his presidency, late last night the president's top moneyman was on Capitol Hill aggressively making the case that the administration's plans will cure America's economic ills. We're live at the White House this morning with details on what was said and the reaction to it.
Warren Buffett employing some strong language in his assessment of the current economic crisis. The billionaire investor relating it to one of the country's greatest military crises, all while the stock market falls to a new low. We're "Minding Your Business" for you this morning.
And a stunning development in the shooting death of an Illinois church preacher during his sermon. Authorities say a day planner found in the home of the suspect had Sunday marked as "death day" suggesting that he intended to kill many more people. We're live with the very latest on that story.
CHETRY: And turning now to the "Most Politics in the Morning," and a major milestone as we said for the Obama administration. Today marks the president's 50th day in office. His first seven weeks on the job marked by an ambitious agenda.
Today, the president turns his attention to education reform after addressing health care, stem cell research, troops in Afghanistan and more. But those priorities continue to be overshadowed by the country's economic crisis. Since the president took office, the Dow has dropped more than 1,400 points and the anxiety that's creeping across the country is also alive in Congress.
Last night, Treasury Secretary Timothy Geithner was on Capitol Hill trying to reassure lawmakers that efforts to revive the economy are working.
(BEGIN VIDEO CLIP)
REP. STENY HOYER (D), MAJORITY LEADER: Secretary Geithner indicated that he believes that what we are doing is working. The problem with s working, of course, is that that means it's not getting worse. Obviously, the first effort was and had to be to stop the deterioration and the stability of the economy.
It's very difficult to show any of us progress when all you're doing is stopping the boat's not taking on more water but you haven't yet pumped it out.
(END VIDEO CLIP)
CHETRY: Well, CNN's Suzanne Malveaux is the only reporter live at the White House this early. And, Suzanne, explain more about what the administration was hoping to accomplish with that visit?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kiran, good morning.
Actually, I spoke with a top adviser who said what the administration is trying to do is absolutely breathtaking. Today, they're going to be talking about obviously reforming education. Yesterday, it was stem cell research, not to mention the Iraq war and health care, all of this, and so what the president did, he dispatched Timothy Geithner, the treasury secretary, to the Hill, not to meet with Republicans but with Democrats, simply to try to reassure them, Kiran. They're hearing an earful from some of these Democrats who are saying their own constituents, the people that they talked to on a daily basis are saying when is this thing going to work? The bottom line, Kiran, the message was please be patient.
We are not ignoring this. We are trying to make sure that we are tackling the economic crisis, but we also have a lot of other things on the agenda on our plate that we believe we can do. That's the message from the White House. They clearly need lawmakers that need these members of Congress to be on board here to stick with them because it is a bold and ambitious agenda, Kiran.
CHETRY: All right. Suzanne Malveaux for us this morning, thanks.
ROBERTS: Well, how bad is the recession? Consider this assessment by billionaire investor Warren Buffett. He says the U.S. economy has "fallen off a cliff" and describes the current crisis as an "economic Pearl Harbor." Buffett is an informal adviser to the president, and he told CNBC the White House cannot afford a muddled approach to halting the financial collapse.
(BEGIN VIDEO CLIP)
WARREN BUFFETT, CHAIRMAN, BERKSHIRE HATHAWAY: The message has to be very, very clear as to what government will be doing. And I think we've had -- and it's the nature of the political process somewhat but they've had muddled messages and the American public does not know. They feel they don't know what's going on and the reaction that is to absolutely pull back.
(END VIDEO CLIP)
ROBERTS: Buffett also predicts that many more Americans will lose their jobs before the economy turns around. Our Christine Romans here "Minding Your Business" for us this morning.
He spoke for an hour yesterday, fascinating interview as well and talking about this sort of unprecedented approach to living life that Americans have undertaken, that is not just pulling back on the spending but many people not spending anything over and above what they absolutely have to.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right, John and Kiran. He says his worst case scenario has played out on the economy here. I mean, this is bad as he thought it could possibly be and it's exactly his first worst case scenario playing back.
Even the World Bank also yesterday said that this is the worst global economy in 80 years and that you will see trades shrink for the first time, you know, in modern history. Patience and confidence are what's lacking here. You know, Warren Buffett said it as well. He said muddled was the word he used. That's a great word because I've been hearing, you know, that these plans lacked cohesion, they lacked, you know, they weren't comprehensive, that there's just not a feeling among market participants and people who are in the economy that we're going in the right direction.
Washington is saying be patient, but how can you be patient when you look at a Dow like this? I mean, your money is attached to this. Look since the bank bailout, the market went down. Election day, market is down. Inauguration day, the market is down. Stimulus, market is down, one thing after another.
CHETRY: And also Buffett's comments yesterday caused Asian stocks to tank and our markets to slump as well.
ROMANS: I mean, every single thing we do to try to fix this thing we go down. Steny Hoyer, I thought it was fascinating. He said it's hard to show progress when you're just, you know, getting the water -- you know, keeping the water from taking on -- the boat from taking on more water, rather. And that's a pretty good analogy. From the very beginning we have heard that.
You might not see the reaction to all of this in the economy. It's just going to keep it from getting worse.
ROBERTS: He still thinks it eventually will get better, though, Buffett does. So fingers crossed.
Christine, thanks.
ROMANS: Sure.
CHETRY: Well, now to another story developing this morning. New details about the man accused of killing a church pastor during a service in Maryville, Illinois, on Sunday. Police say 27-year-old Terry Sedlacek had much bigger plans, came to the First Baptist Church armed for Armageddon. They say the two church members who took him down might have prevented even more killings.
Jim Acosta is working the story for us. He is live in Washington. What are the new details this morning about the suspect, Jim?
JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kiran. Investigators still don't know why gunman Terry Sedlacek carried out this rampage. He remains in the hospital in serious condition this morning. He had stabbed himself from the throat in the moments after the shooting. One police -- one thing police do know, this day of violence could have been much worse.
(BEGIN VIDEOTAPE)
ACOSTA (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.
KEITH MELTON, TACKLED CHURCH GUNMAN: I just ran and got behind the guy, 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: 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.
UNIDENTIFIED MALE: 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 his 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.
(END VIDEOTAPE)
ACOSTA: 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, Kiran. A very sad story.
CHETRY: It is a sad story especially when you hear that there were, you know, some warning signs at least, you know, some indications that perhaps this suspect was not, you know, fully competent or capable, you know, of being around.
ACOSTA: Yes. Yes. And a lot of these -- yes, a and a lot of these workplace shootings and school shootings and sometimes in these church shootings, there are warning signs that are missed and sometimes they involve mental illness. Sometimes they involve previous criminal activity and investigators are looking into those warning signs and see if they were missed here in this case as well.
CHETRY: Jim Acosta for us this morning. Also one programming note, we want to let people know that we are going to be talking with Keith Melton. You just saw him in Jim Acosta's piece. He was one of the heroes who tackled the gunman and possibly averted even more bloodshed at the church. He's going to be our guest on AMERICAN MORNING, coming up at 7:30 Eastern.
ROBERTS: You know one of the questions you got to ask yourself is if it was so obvious this level of disturbance that this fellow was experiencing, how did he ever get a gun?
CHETRY: Another big question for investigators.
ROBERTS: Yes.
This morning with hundreds of billions of dollars in the pipeline from Washington, states are scrambling to decide how best to spend your tax dollars. So this morning, we've got one state's answer and the eye-popping proposals.
And a European gigolo gets jail time for blackmailing a string of wealthy women including a BMW heiress. We'll take you to Berlin for the story.
It's nine minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. Eleven minutes past the hour. We're going to fast forward now to the stories we'll be seeing on CNN and CNN.com later today.
This is new video of Vice President Joe Biden. He's in Brussels this morning. He's there to consult with U.S. allies on Afghanistan and Pakistan. Biden is going to be holding a joint press conference with NATO's secretary general at around 7:20 Eastern Time. He'll also meet with senior leaders of the European Union around 8:30 Eastern Time this morning.
And at 9:00 Eastern, thousands of Tibetans and their supporters will march across the Brooklyn Bridge to the United Nations General Assembly building in New York. Today marks 50 years since Tibetans rose up to protest China's invasion of their homeland, which forced the Dalai Lama into exile. The protest at the Chinese consulate is also planned for this afternoon.
And Senate Majority Leader Harry Reid is hoping today will be the day that the $410 billion spending bill can clear the Senate. Senator John McCain's attempt to strip the bill of its earmarks was defeated by both Democrats and Republicans. The White House says that President Obama will sign the measure despite its more than 8,000 pet projects -- John.
ROBERTS: So much money being thrown around these days, Kiran.
This morning, the government writing those stimulus checks to get people working again, and states and cities across the country are ready to cash them with plenty of projects ready to go. The only problem, which projects get the green light?
CNN's Kate Bolduan is live in Washington with one state's answer to that question.
Good morning, Kate.
KATE BOLDUAN, CNN CORRESPONDENT: Good morning, John. Well, every state is facing the same dilemma right now, the need to get stimulus dollars out quickly but make sure it's well-spent. Now Virginia is getting $4.8 billion and like several other states is asking for help in a very unique way.
(BEGIN VIDEOTAPE)
BOLDUAN (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.
(END VIDEOTAPE)
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 the state's stimulus priorities, John. ROBERTS: So if he's only going to get one percent of the money that's been requested through this process, how are they going to make the decision on where that money goes?
BOLDUAN: He says he has an internal group that's looking at projects right now and it seems transportation is high on his list. He mentioned that several times and the money will -- they'll start talking to the agencies within the state and start getting those dollars out there quickly, he said.
ROBERTS: Interesting exercise.
BOLDUAN: Yes.
ROBERTS: Kate Bolduan for us this morning from Washington. Kate, thanks so much.
BOLDUAN: Of course.
CHETRY: A former Swiss banker who charmed and then blackmailed some of Europe's richest women is sentenced by a German court. We'll tell you how of a price the gigolo has to pay.
It's 16 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. A look at the top videos right now on CNN.com. Most popular, check out this video of a store clerk.
He overpowered a robber who had a loaded gun. The man burst behind the counter with a double barrel shotgun, but the clerk quickly turns the tables by twisting the man into a choke hold, using his own weapon. Now, of course, police would say don't attempt to do this but he was successful. The would-be robber got away. He left behind a shoe, though, and police are now using it to track him down.
Also, reunited after 39 years. Two pilots who flew together in Vietnam meet for the first time since one man saved the other's life during a rescue operation in Vietnam. They located each other last year using the Internet, but this is the first time that they've met in person.
And some presidential partying, President Obama seen here in this video showing off some of his dance moves at Senator Ted Kennedy's birthday party. Well, he's hugging him there. He'll be dancing in a second.
There you go. Sort of just kind of clapping and shuffling from side to side. I'm not seeing any actual dancing. I don't know. I think that one was a little misleading, John.
ROBERTS: You know, he just -- he can't stop moving, though, which is a good thing, you know. Notorious conman known as the Swiss gigolo will now be doing his sweet-talking behind bars. He's been sentenced to prison for his scheme to blackmail a string of super rich lovers, including a German BMW heiress.
CNN's Frederik Pleitgen has got the story for us from Berlin.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN CORRESPONDENT (voice-over): When the man dubbed "The Swiss Gigolo" entered the courtroom, he was smiling. Asked what he expected, he said, "I have no idea."
Helg Sgarbi soon found out, six years in prison for cheating and blackmailing some of Europe's richest women after having had affairs with him. The court reduced Sgarbi's sentence because he had confessed. The state prosecutors had wanted him behind bars for nine years. The confession was very important so that the victims didn't have to appear here in court but then the defense practically recalled the confession by saying that everything is the victim's own fault, he says.
Among Sgarbi's victims, Susanne Klatten, by some estimates, the richest woman in Germany. Klatten's family owns a large stake in German carmaker BMW. Klatten's spokesperson says the married mother of three had an affair with Sgarbi, then he started asking for money. She paid several million at first but then Sgarbi asked for more, nearly $60 million. When Klatten refused the Swiss man threatened to send compromising videos to her husband and the media. Klatten went to the police.
In a written statement to the court, Helg Sgarbi claimed he was sorry for what had happened. His lawyer was less diplomatic.
EGON GEIS, HELG SGARBI'S LAWYER: "Yes, he did cheat her," he says, "but only in a minor way." "He was just playing around, really."
PLEITGEN: But many questions remain unanswered. Where are the seven million euros Sgarbi managed to get from Susanne Klatten? What happened to the compromising videos he claims he had? And did Sgarbi have an accomplice?
The defendant refused to answer. That's why the prosecution believes the sentence is too weak.
ANTON WINKLER, STATE PROSECUTOR: "We might enter an appeal," he says, "but that is something we will decide later."
PLEITGEN: Most important for now, the prosecution says, is that Sgarbi is behind bars and his victims were spared the humiliation of having to testify in a public hearing.
Fred Pleitgen, CNN, Berlin.
(END VIDEOTAPE) CHETRY: You're confused.
ROBERTS: I'm not confused. I'm puzzled. I'm puzzled as to how he convinced her it would be a good idea to let him take compromising video of her. What did she not get about that?
CHETRY: I think she wasn't thinking unfortunately, and ended up costing her millions and...
ROBERTS: Oh, apparently there was a hidden camera.
CHETRY: Oh, really?
ROBERTS: There you go.
(LAUGHTER)
CHETRY: Now you're not puzzled.
ROBERTS: The little voice -- the little voice in my head just said it was a hidden camera.
CHETRY: Right, but I mean, it wasn't...
ROBERTS: Our executive producer, Janelle, loves this story. She's all over it.
CHETRY: But she also -- I mean, she was married and she embarked on an affair. I mean, that part was not hidden.
ROBERTS: No.
CHETRY: You know, for long.
Anyway, we have some amazing new video this morning capturing a volcanic eruption in southern Japan. It's a camera set up by the Japanese Transport Ministry showing this crater spewing out lava, a thick plume of black smoke into the air. An eruption had been expected, though, after a series of smaller explosions over the weekend.
And this morning, the woman who gave birth to octuplets is about to move into a new home. Nadya Suleman's dad is reportedly helping her buy a 2,500 square foot home. It has four bedrooms. She also covered some of the down payment on her own with money she made over the last few weeks from various appearances, Internet blogs and interviews.
Another new development in the case as well, Suleman has reportedly accepted free round the clock neonatal care from a volunteer group that offered it up. I mean, this is worth more than $100,000 per month, and apparently she was convinced that that would be in her best interest by some high-profile people.
Oprah Winfrey has a warning for superstar Rihanna. What the talk show host is doing to try to get the message out about domestic violence.
It's 24 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
Pop star Rihanna is back in the spotlight not for her music but her decision to get back together with boyfriend Chris Brown just weeks after he allegedly attacked her. Word of the reunion has raised eyebrows with some fans and now Oprah Winfrey is taking notice in a very big way as Oprah is known to do. This week, the queen of talk will devote an entire show to the case and the overall issue of domestic abuse. And Oprah is already laying out a very blunt message.
CNN's Kareen Wynter has got that story for us this morning.
(BEGIN VIDEOTAPE)
OPRAH WINFREY, TV HOST: I'm been saying this to women for years. Love doesn't hurt and if a man hits you once, he will hit you again.
UNIDENTIFIED FEMALE: That's right.
WINFREY: He will hit you again. I don't care what his plea is.
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Nineteen-year-old Chris Brown known for hits like this has yet to enter a plea.
Brown is charged with two felony counts, accused of beating Rihanna following a pre-Grammy party in February. This leaked photo that appeared on the celebrity Web site TMZ shows Rihanna's bloodied and battered face.
WINFREY: It makes me so sad that I said to the producers that I wanted to do a show about it this week dedicated to all the Rihannas of the world.
WYNTER: Brown has publicly apologized for what happened and some observers say he's now engaged in damage control.
HARVEY LEVIN, EXECUTIVE PRODUCER, TMZ: We know that the defense is using this to try and plea bargain this case and get a misdemeanor with no jail time.
UNIDENTIFIED MALE: Chris Brown wants a misdemeanor with no jail time and, of course, people in hell want a little sip of ice water, too. Whether he's going to get that or not will depend on how much his attorney can weaken the prosecution's case. So things are looking more optimistic for Chris Brown now than they have.
WYNTER: The couple has reportedly reconciled. There was a report in "The Chicago Sun-Times" of a joint book deal, talk shows, even a $10 million payout by Brown if he abuses Rihanna again. But Brown's attorney says it's just not true. (END VIDEOTAPE)
WYNTER: Brown's next court appearance is set for April 6th -- John, Kiran.
ROBERTS: Kareen Wynter for us this morning. Kareen, thanks so much.
Twenty-nine minutes now after the hour. And here's a check of the top stories that we're following for you this morning.
The Obama administration addressing Democratic concerns that the president's economic plan is taking too long. On Capitol Hill last night, Treasury Secretary Timothy Geithner tried to reassure lawmakers that the plan is working. Geithner also told members of Congress he will unveil his domestic team this week.
And just in to us this morning. The price for a gallon of gasoline going back down. According to AAA, the national average now $1.94. That's down about a penny. Right now just 11 states and the District of Columbia have gasoline prices of $2 or more a gallon.
High drama on the high seas. The U.S. military says five Chinese vessels surrounded a U.S. Navy ship in the South China Sea. Those on board the unarmed American ship used fire hoses to fend off the Chinese. Beijing is accusing the U.S. of breaking international law and this morning, CNN learning this is not the first aggressive act by China. We'll bring you the latest developments live from the Pentagon in our next hour here -- Kiran.
CHETRY: All right. Well, this morning the Dow opening at levels we haven't seen since 1997. And we've been hearing this devastating news day in and day out about the economy. It can make us feel powerless. So how can you take back some of that control over your life and your money?
Best selling author Neil Strauss joins me now. And he wrote a new book "Emergency: This Book Will Save Your Life."
Neil, that's a lot to live up to, by the way.
NEIL STRAUSS, AUTHOR, "EMERGENCY": Yes.
CHETRY: And the chronicles is eight-year journey into survival mode. And along the way revealing a lot of tips and tricks that could end up saving your home, your money, your loved ones in uncertain times. Great to talk to you today.
STRAUSS: Thanks for having me.
CHETRY: The book is fascinating. You decided to take some drastic measures. I mean, there' many parts of it, but the parts we're going to focus on is about the financial aspect of it. You say that in a crisis there are very extreme measures you can do to protect your money.
STRAUSS: Right.
CHETRY: Explain how you were able to figure that out and some of the things that you learned.
STRAUSS: OK. So if you read my book, you know I go to the extremes and especially the way the world's been not just lately but the last seven years, really, I started a -- it's kind of generational panic attack because these bad things did happen to us. They're not supposed to happen in America.
CHETRY: You talked about 9/11, Hurricane Katrina.
STRAUSS: Hurricane Katrina, now the economic crisis and everything else we've all been through. So, I found this group of billionaires. And these are guys who have so much money and it's almost about three years ago, and I watched what they were doing. And the first thing they were doing is they were getting second passports. They were getting passports for European communities, for the Caribbean, and they want to have sort of escape plan, a backup plan in case things went poorly here. So, I followed their footsteps and got one.
CHETRY: So you found about this.
STRAUSS: Right.
CHETRY: You also said you wanted to get your net worth down to zero...
STRAUSS: Right.
CHETRY: ...using some, quote, "shady lawyers." How does this work?
STRAUSS: Yes. That's the other thing I did, because no matter what happens, whether in good times or bad times, you're always at risk of a lawsuit, whoever you are at anytime. And I found these lawyers who had this whole asset protection plan. The idea is you own nothing. My net worth is like whatever money I have in my pocket right now. Everything else is like buried in a bunch of corporations and other corporations that are owned by trusts and they sort of created this whole sort of flow chart, so it costs someone as much to get the money as it would for the money that actually get out of it.
CHETRY: And you also say the interesting thing about billionaires is that they have to find ways to protect their money because they have so much of it. It's not day-to-day living that a lot of us face.
STRAUSS: No.
CHETRY: And so...
STRAUSS: They're so paranoid that they even are worried about -- this I can't say -- but they're worried about even -- they're worried about getting people pregnant. They're worried about everything because they're just living like they have so much to lose that they can be incredibly unhappy.
CHETRY: You can say that. It's OK. All right. So, obviously, most of us are not billionaires here.
STRAUSS: Right.
CHETRY: Most of us are not going to try to hide our money in St. Kitts.
STRAUSS: Right.
CHETRY: But what are some of the things that you learned about practical places for people to start thinking that maybe it's time for me to put my money here or at least think about putting some of my money here? What are some of the things that you want us to know?
(CROSSTALK)
STRAUSS: Right. (INAUDIBLE) because we're seeing that we can't -- we're looking at what's going on at Citibank, what's going on at GM. We're seeing kind of all these institutions kind of crumbling before our eyes. It's an amazing time of history. But so -- you know, don't put -- it's obvious, don't put all your eggs in one basket.
So what they're doing and sort of what I've done is having some money in a bank overseas. It doesn't have to be a secret Swiss bank account, which is kind of they're not secret anymore now anyway.
CHETRY: Right.
STRAUSS: But, so, putting it in other currencies that are backed, more hard assets, sort of putting them in Swiss francs, which aren't doing that well, that's OK, in Australian dollars...
CHETRY: You also talked about gold.
STRAUSS: ...in Canadian dollars and -- as well as in gold.
CHETRY: U.S.-backed treasuries.
STRAUSS: Right and tips, so.
CHETRY: OK. So, that's very interesting stuff. Now the other interesting part of this book is that you talk about the fact we're a nation of people that really don't know any survival skills.
STRAUSS: Right
CHETRY: Meaning that if all of our luxuries were taken away from us, we wouldn't know what the heck to do.
STRAUSS: Right.
CHETRY: And so how do you -- I mean, obviously, we can't all quit our jobs and learn how to do all of the things that you did. STRAUSS: Right.
CHETRY: You learned how to pretty much make, what, a knife out of a credit card, live off of the land...
STRAUSS: Right.
CHETRY: Kill if you needed to find edible plants.
STRAUSS: Right.
CHETRY: But what are some practical things that we can take from understanding how to live with just, you know, our basically our shirts and whatever we can take with us?
STRAUSS: Yes, I went to the extremes, like you said, because I went and learned from a guy named Tom Rennin (ph) in New Jersey how to survive in the woods with nothing but a knife and the clothes on my back, so that I want to be independent and self-sufficient so I don't have to worry about what goes on with the economy. I got -- I live in the city but I literally got -- you can buy a chick, like, you know, a baby chicken for $3. That's the price of a carton of eggs. You can have a lifetime supply of eggs.
You know, you can learn to be sort of self-sufficient. You can sort of, you know, gray water, harvesting gray water and rain water so you don't have to worry about water. But at a very minimum, and, you know, (INAUDIBLE) once said, at a very minimum everyone should have seven days' worth of food and water especially with the storms going on right now. You need to have seven days' worth of food and water as well as fuel to stay warm, for, you know, kerosene heat or for your fireplace.
CHETRY: Very interesting. You also say a windup flashlight and radio in case you need one. Very, very interesting stuff. And what Neil also got out of this besides a lifetime of experience is three goats.
STRAUSS: Yes.
CHETRY: And so you have to read the book to find out more about how that happened. Great to talk to you, Neil.
STRAUSS: Thanks for having me on.
CHETRY: And it's a very interesting book.
STRAUSS: Thank you.
CHETRY: Thanks so much for being with us. It's 34 minutes after the hour.
ROBERTS: Trapped in tent city. How do you go from making $45,000 a year to living in a place like this?
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: There's a lot of people that are homeless because they choose to be, but I'm not one of those.
ROBERTS (voice-over): Tent city, once you're here what, what it may take to get out.
UNIDENTIFIED MALE: It's kind of a mess. I didn't clean it this morning.
(END VIDEO CLIP)
ROBERTS: Ahead on the Most News in the Morning.
(COMMERCIAL BREAK)
ROBERTS: Coming up now on 38 minutes after the hour. Time to fast forward to some of the stories that will be making news later on today on CNN and cnn.com. This morning, 9:45 Eastern, President Obama will talk education reform in a meeting of the Hispanic Chamber of Commerce.
Should the big banks be allowed to fail? Some Republican members of Congress say yes, calling on Fed Chairman Ben Bernanke to stop the support. Bernanke will be discussing his banking policy today at 8:30 a.m. Eastern. He'll host an event with the Council on Foreign Relations in Washington.
And Bernie Madoff will be back in court again today. A hearing at 3:00 p.m. Eastern will determine whether or not Madoff's attorney, Ira Sorkin, has a potential conflict of interest in representing the former the investor. While Sorkin's parents invested with Madoff, the attorney says he never had any of his own money involved with his client.
CHETRY: All right.
ROBERTS: The case goes on. This thing ever going to go to trial?
CHETRY: Perhaps, perhaps hopefully soon.
Well, yet another disturbing sign of the times. It's a new kind of neighborhood that's cropping up in California -- a tent city with a growing population of people who are casualties of the economic crisis. CNN's Dan Simon is following the story for us.
DAN SIMON, CNN CORRESPONDENT: John and Kiran, we recently spent an afternoon on the outskirts of Sacramento in an area you might call tent city. It has been there for about a year. And it's a very vast area, about 300 tents are there and about 10 percent of them -- 10 percent of them are filled with people who are newly homeless. In other words, these are people who had jobs, people who had homes, and now find themselves homeless, living in a tent.
(BEGIN VIDEOTAPE) SIMON (voice over): One is 50-year-old Jim Gibson. He's a construction worker and says he cannot find work. He says he made about $45,000 a year, but then home building and construction slowed. Gibson downsized first from a house and then to an apartment, and when the recession stopped construction all together, he ran out of money.
UNIDENTIFIED MALE: So it's kind of a mess. I didn't clean it this morning.
SIMON: Now he lives here in a three by six tent.
UNIDENTIFIED MALE: The only thing that I can really say about my situation is that I am not the only one out here. There's a lot of people that are homeless because they choose to be, but I'm not one of those. We don't want to live out here. All we ask for is basically to be given a chance at, given a job, some kind of a work situation and just let us take it from there and take care of ourselves.
SIMON: Gibson's wife died 12 years ago. He has five grown children but he won't tell them he's here. He's too embarrassed, he says.
And just a little ways away, another new resident in this tent city, 50-year-old Tina Garland. She was a construction truck driver and the work is gone. Her husband's also not working. They pitched their tent here 11 months ago.
UNIDENTIFIED FEMALE: So scary because you look at the economy and see that -- we're already out here. You know, I mean, we can't go a whole lot farther down. But we're going to be joined by hundreds, thousands of people because they're losing their houses, and after the shelters run out, then they're going to be out here like we are.
(END VIDEOTAPE)
SIMON: We did hear about one success story -- a person living there in tent city, got a job at a local bowling alley and was able to save enough money and get himself an apartment.
Meanwhile, you might ask why those folks are not living in a homeless shelter. Well, there's a good reason for that. There are only 2,000 beds for homeless people in Sacramento, and they're all full.
John and Kiran, back to you.
CHETRY: Just a shocking story.
ROBERTS: It really is.
CHETRY: I used to live in the area, and for this part of the year, it's actually really nice. I mean, the weather's temperate, the rainy season is over. But then, I mean, quite quickly it turns into about 105, 110 degrees as a daily high. And so, it's going to be a difficult situation to be out there. ROBERTS: And you've got to figure, if it's happening there, too, in the capital of California, it's happening elsewhere as well. Remember, the Hoover bill that popped up here in Central Park during the Depression. Are we going to see that again?
CHETRY: And the thing that was so shocking is that back in 1937 -- they had juxtaposed these pictures in that same area back in the late '30s, people living in tent cities and now in 2009 in the same area, it's back.
ROBERTS: It's amazing. Wow. So much economic trouble up there.
Well, listen up job seekers, career Web sites really can work. We'll show you the best ones out there and how to make the most of them.
And -- it's an ice invasion. Residents forced to evacuate when ice jumps over the sea wall and into their homes. Look at that. We'll show you where it happened. It's 42 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. A live look at Cleveland waking up today, thanks to our friends at WKYC, 39 degrees there right now going up to 58, but unfortunately rain is in the forecast. Extreme weather still taking its toll in the Midwest this morning.
Check out this incredible video out of Linwood, Michigan. Huge chunks of ice and snow forcing residents out of their beachfront homes around Saginaw Bay. That's incredible. Police discovered up to 12 feet of ice inside some homes. Thankfully, no injuries have been reported.
Our Rob Marciano tracking all of this from the CNN weather center in Atlanta.
Rob, the ice that ate Saginaw Bay there, my goodness.
ROB MARCIANO, AMS METEOROLOGIST: Yes, I tell you that the ice that builds up on the shorelines of all the Great Lakes is they're very impressive and they get winds that batter -- make waves that batter the shorelines and -- I've never quite seen like that. That's for sure.
(WEATHER REPORT)
ROBERTS: Spring 11 days away but it seems like it's further away than that in many parts of the country, Rob.
MARCIANO: That's the way it rolls in March. It's a transition month.
ROBERTS: Got you. Thanks. 46 minutes after the hour now.
Living in fear of the Taliban. What women worry about most? (BEGIN VIDEO CLIP)
HILLARY CLINTON, U.S. SECRETARY OF STATE: This is not culture. This is not custom. This is criminal.
(END VIDEO CLIP)
ROBERTS: Why violence against women is intensifying again.
(BEGIN VIDEO CLIP)
UNIDENTIFIED GIRL (through translator): The Taliban told us not to go to school. We were afraid because those who tried to learn were beaten.
(END VIDEO CLIP)
ROBERTS: Target of the Taliban, ahead on the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: This morning while the war rages in Afghanistan, and the Obama administration considers direct talks with moderate members of the Taliban, women in the country are facing their own battle. After being silenced by the Taliban for decades, women began to forge a new future. But with the country again slipping under Taliban influence, that future is now less certain.
CNN's Carol Costello joins us now, and she's following this story.
Good morning, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: I met a lot of courageous women over the last few days, Kiran -- one of them Suraya Pakzad. She and other women activists from Afghanistan are in Washington today talking to Congress about this idea of using moderate elements of the Taliban to bring order to Afghanistan. It's an idea that greatly concerns them.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): It was America's promise to the women and girls of Afghanistan. Empowerment after years of Taliban oppression.
UNIDENTIFIED GIRL (through translator): The Taliban told us not to go to school. We were afraid, because those who tried to learn were beaten.
COSTELLO: Today, more than seven years after U.S. troops toppled the Taliban, the Afghan government says 2 million Afghan girls now go to school. But there is evidence that Taliban and the dark days are returning.
Suraya Pakzad provides shelter in Afghanistan for women and girls who are victims of violence.
(on camera): Do many women still fear the Taliban?
SURAYA PAKZAD, VOICE OF WOMEN ORGANIZATION: Yes. Even I feel fear sometimes because when I -- when I receive death threats, when I'm going to the office, I don't use the same way that every day I'm going. I change the road going to the office. I cannot share my schedule even with my friends, with my staff, and even sometimes I'm not secured talking on the phone.
COSTELLO (voice-over): Pakzad says violence against girls grows by the day. Four months ago, men on motorcycles used water pistols to spray acid on a group of girls walking to school. The incident was widely condemned as were other Taliban-inspired acts against women by America's new secretary of state.
CLINTON: This is not culture, this is not custom, this is criminal.
COSTELLO: Pakzad says Clinton's words brought a renewed optimism, which promptly dissipated when President Obama floated an idea to reach out to Taliban moderates to bring peace to Afghanistan.
PAKZAD: This is a hard question for now.
COSTELLO: She says if the Taliban is brought in women's rights must be on the table, but as of Monday, there were no clear assurances from the State Department.
ROBERT WOOD, STATE DEPARTMENT SPOKESMAN: Well, I think you have to wait until our policy review is done before, you know, drawing any conclusions on anything.
COSTELLO: Despite her worries, Pakzad will go back to Afghanistan with hope.
PAKZAD: And I know when I see that you are enjoying your freedom in this beautiful country, and I know, I believe it doesn't come by itself. It was the result of the hard work of a group of dedicated women that put their lives at risk.
(END VIDEOTAPE)
COSTELLO: And the State Department told us women's rights are important in Afghanistan, and to keep in mind this idea of using moderate elements of the Taliban is just that right now, an idea.
Kiran?
COSTELLO: A lot to consider for sure. Carol Costello for us this morning. Thanks so much. 53 minutes after the hour.
Hero in a holy place. He jumped from the pew and tackled a stranger who had just gunned down his pastor.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: Somewhere within that struggle he was able to stab me.
(END VIDEO CLIP)
CHETRY: Stabbed by the shooter, now the brave parishioner is on AMERICAN MORNING, live.
Plus, good news job seekers. We'll show you the best career Web site out there. You can find a job online. You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
ROBERTS: More than 650,000 Americans lost their jobs in February alone contributing to the highest unemployment rate in more than 25 years. Lots of them are logging on to the Internet to try to find a job. But where should they look? And are some Web sites better than others to mine for job prospects?
Nicholas Thompson is a senior editor of "Wired" magazine. He joins us this morning with some news that we can use.
Good morning to you. It's good to see you.
NICHOLAS THOMPSON, SENIOR EDITOR, WIRED MAGAZINE: Good morning. Good to see you.
ROBERTS: So do these Web sites really help people find a job? Because I'm thinking that there are millions of people out there who are surfing these sites now and you're just one of those millions. How do you stand out above the crowd if you're applying through these job sites, for this positions that are available?
THOMPSON: Well, absolutely they can help, and absolutely it's a problem that there are so many people applying. Because you see all these jobs, they look good. But there are 1,000 people applying for each of them. So it can be a very depressing experience and a waste of time. So you need to know which ones to navigate and how to use them.
ROBERTS: All right. So we know that the big Web sites like monster.com, careerbuilder, some other Web sites out there that you would steer people to, or they might be more inclined to be able to find a job?
THOMPSON: Well, it depends on what you're looking for. If you guess you need short-term work, you need something to get you through the month, I recommend Craigslist. It has great ads if you want to walk dogs, or be a nanny, or have some part-time experience.
I actually just hired somebody for $150 to drive something from New Hampshire to New York yesterday on Craigslist.
ROBERTS: Oh, you're driving from New Hampshire to New York.
THOMPSON: I need to get a chair down to New York. It's complicated.
ROBERTS: So (INAUDIBLE), just put out an advertisement.
THOMPSON: Went on the Manchester Craigslist. And I need somebody to do this. You know, you need to go to a house here and deliver it here, and I need it done by now. And a bunch of people wrote back, said I'm unemployed, they need work and we're set.
ROBERTS: All right. So there maybe some people out there willing to do odd jobs.
THOMPSON: That's right.
ROBERTS: Part-time work, that sort of thing. But if you're really looking for a bona fide job, he's got health insurance, maybe some other benefits attached to it, where are the best places to look?
THOMPSON: Well, the one place that I recommend the most is Indeed.com. And what it does is it aggregates a lot of the others sites. Everybody knows Monster and Careerbuilder, but there actually tens of thousands of sites you can look for. So if you go to Indeed, and it pulls from all of those different sites.
So this morning I looked up electrician Milwaukee. Indeed is a very clean interface. You type in what and where? So electrician Milwaukee, had a job on Monster. Had one that pulled from milwaukeejobs.com, Wisconsin jobs network. So it aggregates information from lots of different sites, and make sure it's very easy.
ROBERTS: So it's like some of these travel sites, where if you want to search Travelocity and Orbits, and all of that.
THOMPSON: Right. It's just like kayak.com.
ROBERTS: Kayak.com. Right. Just plug in your criteria and up pops information from all these other Web sites.
THOMPSON: Right. Now, another very important thing to know is that you should look in certain niches. So if you're an electrician there, electrician sites.
(CROSSTALK)
THOMPSON: Right. So if you're a cook, you should go to cookline.com. You want to look inside an area where people want people just like you. The big aggregators, the problem is there are so many applicants and sometimes they're not really right. So figure out what you want, find the site that serves that particular need and go in. So the one I like the most there is Idealist.org. It's great.
If you're looking for a job, in the non-profit sector, you want to do environmental work or something like that, you go to Idealist.org. It's a very clear interface, and it finds all sorts of jobs you can do there.
ROBERTS: And what about social networking sites like Facebook, or LinkedIn, other places like that?
THOMPSON: Those are great. So there's a lot of research that suggests that you don't -- people sometimes think they get jobs either from a random ad or from somebody you know really well from your brother bob. But a lot of times, it's from sort of faint connections -- a friend of a friend, or somebody who went to college with they don't really remember. So social networking sites connect you to them.
The one I like most for job hunting is called LinkedIn. What you do is you set up your profile, you type in what you've done, what you want to do, and you connect with all sorts of people you know. And then there's a really great feature.
Let's say I want to work at Microsoft. I type in "Microsoft." And it will tell me all of my friends who work at Microsoft. They probably know that. That's not helpful. But it will tell me friends of friends who work at Microsoft. So let's say I know there's a programming job that, you know, I want there in a certain sector. It turns out this guy, Bill, I went to college with, is good friends, or you know, is connected to the head of human resources for that department. So it's very helpful for finding people inside of companies that you're connected to, even if you don't realize it at the time.
ROBERTS: So your way of using the social networking sites for actual job networking.
THOMPSON: Right, absolutely. That's the best thing. That's the best thing about that. You can do it on any social networking site. LinkedIn is set up to facilitate that kind of work, so I like it for that.
ROBERTS: Some great tips this morning. Nick, it's great to see you. Thanks for coming in.
THOMPSON: Thank you.
ROBERTS: Appreciate it -- Kiran.
