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Fed. Chief Sees Recovery Next Year; Congress Trying to Stop AIG Bonuses; New Help for Small Businesses; Economy, Escapism Drives High Movie Sales; Model Stampede Breaks Out in Manhattan; Truck Driving Boom; Best Bargain in Town; A Craigslist Plea For Help
Aired March 16, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Well, good morning. Thanks very much for being with us on this Monday, the 16th of March. Good to be back with you today. Good morning.
KIRAN CHETRY, CNN ANCHOR: Good morning, one more day until St. Paddy's Day.
ROBERTS: Yes.
CHETRY: You got back just in time.
ROBERTS: You know the celebrations - the celebrations are afoot everywhere. I saw people yesterday dressed in hats and wearing the green.
CHETRY: New York is legendary.
ROBERTS: A lot of fun.
CHETRY: Not so much from the next day, though.
Well, we want to tell you about a big commitment CNN is making to cover the economy. This morning we are kicking off a week-long series called "ROAD TO RESCUE." And it's all about explaining the money crisis that this country is facing right now, but also offering solutions to help you and your family. We believe that knowledge is power and we know that the economy is on your mind.
And you can check it out, the CNN/Opinion Research poll released just a couple of minutes ago showing 63 percent of people now say that the economy is the most important issue facing the country today. Specifically, unemployment is the thing that weighs most heavily on people's minds.
So with that as our launching point, we jump right into the big stories that we're going to be breaking down for you in the next 15 minutes.
A hopeful forecast from the chairman of the Federal Reserve. Ben Bernanke putting a timeline on when the country's recession might end. He's also making some promises about plans to try to keep the crisis from getting worse. And the outrage still very much alive this morning. Congress and our iReporters sounding off over insurance giant AIG handing out millions of dollars in bonuses even as the company takes billions in bailout money that you paid for. So why the company says its hands are tied and what could happen on that issue today.
Also this morning, the White House sounding a lot more optimistic about the economy, actually embracing words that the president blasted during the campaign. We're going to have that part of the story, also some breaking news affecting people who work for or own small businesses.
ROBERTS: All right. But first, Fed Chairman Ben Bernanke offering hope that the recession that we're all facing right now could end and end this year. He talked about the financial crisis and the road to recovery in a rare television interview with CBS' "60 Minutes" last night.
CNN's Christine Romans joins us now with more. And interesting what he had to say last night, the first time in modern history that the fed chairman has done in years.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: This just doesn't happen. In Asian markets throughout though, we got a little bit of hopefulness in the markets again today. There's this feeling that there is at least a little bit of a glimmer of light coming through in terms of the language that we're hearing here.
The Fed chairman, you know, does not sit down for interviews. It is unheard of in normal times, but these are not normal times. He's arguably the second most powerful man in America.
He spoke at length with "60 Minutes" so he could, he said, give three messages directly to the American people.
(BEGIN VIDEOTAPE)
BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: The Federal Reserve is here and is going to do everything possible to support this recovery.
The second thing I would say is that recovery is not going to happen until the financial markets and the banks are stabilized. And we do have a plan. We have a program for that. But it's going to take some patience. It's going to take some support and, you know, we're going to have to go forward with that.
But the third and final thing I'd just like to say to the American people is that I have every confidence that this economy will recover and recover in a strong and sustained way.
ROMANS (voice-over): Bernanke said the recession will likely end later this year, and a recovery may begin next year if the financial system stabilized. He said, "new American depression has been averted," but vowed not to make the mistakes that led to the Great Depression, letting the banks fail. SCOTT PELLEY, "60 MINUTES" CORRRESPONDENT: Are you committing in this interview that you are not going to let any of these banks fail, that no matter what their balance sheet actually looks like they are not going to fail?
BERNANKE: They are not going to fail, but what we can do should it be necessary is try to wind it down in a safe way.
ROMANS: He said he understands public outrage at bailing out the very institutions that have brought the global economy to the brink, like AIG.
BERNANKE: It makes me angry, you know, I slammed the phone more than a few times on discussing AIG. It's just absolutely - I understand why the American people are angry. It's absolutely unfair that taxpayer dollars are going to prop up a company that made these terrible bets that was operating out of the sight of regulators, but which we have no choice but to stabilize or else risk enormous impact not just in the financial system but on the whole U.S. economy.
(END VIDEOTAPE)
ROMANS: The Fed chairman, the most high profile of the finance officials to speak out in the past week to tell the American people a plan is in place to put the economy on the road to recovery. The treasury secretary was on "Charlie Rose." Larry Summers made a rare public appearance to say consumer data was showing signs of life.
Paul Volcker, he appeared with the president and President Obama himself went behind closed doors with top CEOs. So there's a feeling that there is a message that is starting to gel here. A message that, look, we have a lot of work to do but we're putting the pillars in place. The question is, do the American people start to listen to and heed that message? But they're definitely getting on board there.
ROBERTS: One of the president's economic advisers, Christina Romer, over the weekend saying the fundamentals of the economy are sound. And remember, when John McCain said that, during the election campaign.
ROMANS: That's right.
CHETRY: People said it was the...
ROBERTS: Yes. They jumped on him. Wham! Pounded him into the ground for it.
ROMANS: Listen, there's a lot of gloom out there and confidence has been lacking and patience has been lacking. And they have to figure out a way to try to convince the American people look, just wait. We're doing what we can. Just wait and be patient. That's a hard thing to tell people when the poll show that we can. That's a hard thing to tell people when the polls show how bad they feel.
CHETRY: It's the same thing. She said the fundamentals of the economy are strong. And elaborating said, I'm talking about the American people, the entrepreneurial spirit. That's what John McCain said on the campaign trail.
ROMANS: It's almost exactly what John McCain said on the campaign trail. You're absolutely right.
CHETRY: Fine. Thanks, Christine.
Well, this morning, Republican and Democratic lawmakers are urging the Obama administration to explore every legal means to prevent AIG from paying out millions of dollars in employee bonuses. The troubled insurance giant received billions of your tax dollars just to stay afloat. Remember the term too big to fail? Well, that's what AIG was sort of the poster child for. And the news has Main Street's blood boiling too.
One of our iReporters took his beat straight to AIG's corporate headquarters. Check it out.
(BEGIN VIDEO CLIP)
DAVID SEAMAN, IREPORTER: A bonus is for when a company is doing so well it appears it's in a position to reward its best employees. You guys are not doing well and now I'm pretty upset.
Let's take a look at your headquarters. Look at that. Pretty swanky, right? Let's do some cost cutting and have you guys move out to a cheap corporate office park in New Jersey.
(END VIDEO CLIP)
CHETRY: All right.
Well, Elaine Quijano following the story for us from Washington. And certainly that sentiment being echoed in different ways from Main Street to the halls of Congress about AIG and these bonuses.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes, that's exactly right. And talk about not doing well, Kiran, AIG lost a record $62 billion in the fourth quarter last year but that has not stopped the company from handing out some big bonus checks.
(BEGIN VIDEOTAPE)
QUIJANO (voice-over): Outrage over word that AIG is doling out $165 million in planned bonuses to senior employees despite getting $170 billion in government bailout money.
LARRY SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: There are a lot of terrible things that have happened in the last 18 months, but what happened at AIG is the most outrageous.
QUIJANO: In a letter to Treasury Secretary Tim Geithner, the company's CEO, Edward Liddy, explained because of contracts in place before the bailout, AIG's hands are tied and he warned of serious legal as well as business consequences for not paying the bonuses. In other words, AIG says it could lose its top performers to higher paying jobs. The company could go under and the $170 billion taxpayer dollars, all for nothing.
The Obama administration insists it did lean on AIG to pull back on the bonuses.
CHRISTINA ROMER, CHAIRWOMAN, COUNCIL OF ECONOMIC ADVISERS: We're the first people to be angry, so absolutely, Secretary Geithner has been furious and has been pushing back, urging them to renegotiate this. We're pursuing every legal means to deal with this.
QUIJANO: The administration did get AIG to scale back some of the payments. Still, Main Street outrage is boiling even among tourists just outside the Treasury Department.
BERNARD DIGREGORIO, OBAMA SUPPORTER: I'm flabbergasted.
QUIJANO: West Virginia resident and Obama supporter Bernard DiGregorio says the AIG situation smacks of injustice at a time when he and other taxpayers are worried about making ends meet.
DIGREGORIO: If they have contracts fine, it's like re-mortgage your house. That's what we have to do. Find a way, but don't take it from me. I don't have it anymore.
QUIJANO: Laura Mechanic, another Obama supporter, has some sympathy for the administration, but for AIG, none.
LAURA MECHANIC, OBAMA SUPPORTER: I think it's deplorable. I think it shouldn't be done. Whether there are contracts beforehand or not, I think it just should be times have changed, things have changed and they have to change that.
(END VIDEOTAPE)
QUIJANO: Now an administration official insists under AIG's restructuring agreement, taxpayers will recoup that bonus money. In the meantime, House Speaker Nancy Pelosi wants Congress to examine what legal options are available to recover taxpayer funds - Kiran.
CHETRY: Elaine Quijano for us in Washington, thanks.
Also this morning, after a huge public outcry, AIG is releasing the list of big banks that it paid off using billions of taxpayer bailout dollars. Two overseas banks along with Goldman Sachs and Merrill Lynch took the most, about $11 billion. In total, 80 financial institutions got paid by AIG.
They had all bought a type of insurance from the company that's designed to protect them if their investments tank. Now, tons of them did since they were linked to subprime mortgages. Critics say that AIG should have known how risky those investments were and never insured them in the first place.
ROBERTS: You know, those infamous credit default swaps. What the heck are they anyway? It's costing us a lot of money.
Also new this morning, the Obama administration embarking on day 56 with a more confident outlook on the economy than we've seen in the past. One of the president's top economic advisers appeared on NBC's "Meet the Press" this weekend. We talked about this just a couple of minutes ago. She agreed with an idea that the president himself criticized during the campaign that the fundamentals of the economy are sound.
(BEGIN VIDEO CLIP)
ROMER: Of course, the fundamentals are sound in the sense that the America workers are sound. We have a good capital stock. We have good technology. We know that temporarily we're in a mess, right? We've seen huge job loss. We have seen very large falls in GDPs.
(END VIDEO CLIP)
ROBERTS: Let's dig a little bit deeper on this this morning. Suzanne Malveaux is the only reporter live at the White House this early.
And, Suzanne, a lot more optimism from the administration than we heard in recent weeks. What's up with that?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know, John, you bring up a really good point here because, of course, we heard John McCain say the fundamentals of the economy were strong. We're hearing that from the Obama folks. They don't apologize for this. They realized it was an opening in the campaign. They seized on that opening, but what you're seeing here is the point is that President Obama, you had Christina Romer, as well as Ben Bernanke all of them coming forward expressing a unified confident message and this is something that they believe they're seeing that the markets are reacting to.
So, this is something that we're going to continue to see this week, John.
ROBERTS: You're up early at the White House getting up early to break some news, and you've got some news this morning that can impact people who either own or work for small businesses. What's up?
MALVEAUX: Oh, it's noon Eastern, that's when we're going to have an announcement from the president and the treasury secretary, Tim Geithner, on a small business plan that they are unrolling. And this is millions of dollars, taxpayer dollars that is backing this.
But the biggest part of the plan here is to give greater loan guarantees to banks. Those banks that actually lend money to small businesses. For example, it could be up to 90 percent of the money that they actually lend would be protected by the government and the idea behind this is to make it easier for banks to lend that money, make it more attractive. Small businesses desperately needing that money.
The second part of this plan is to temporarily eliminate the fees that these banks are actually charging to the lenders and so that runs in the tens thousands of dollars. So you give those small businesses a break. The administration believes that every bit counts, John.
ROBERTS: All right. Suzanne Malveaux for us this morning from the White House. Suzanne, thanks so much for that.
CHETRY: And one of the things that we love to include here on AMERICAN MORNING is you, our viewers. And today, we're launching another tool to get your voice on the air literally. It's our "AMFix" hotline. You call the show 1-877-my-amfix. Leave us a voicemail. Keep it short with your thoughts on the hot topics of the day and we're going to start including your comments on our show tomorrow. You can also check out our new blog "AMFix" when you get to work CNN.com/am, and we'll keep you posted on the big stories there throughout the day.
Well, former Vice President Dick Cheney sounds off on the economy, Iraq and the war on terror. He had an exclusive interview with CNN why he thinks President Obama is putting America at risk of another terror attack.
It's 12 minutes after the hour.
ROBERTS: The silver screen, still golden.
(BEGIN VIDEO CLIP)
PAUL DERGARABEDIAN, HOLLYWOOD.COM: This is the biggest start to any box office year that we've ever seen.
(END VIDEO CLIP)
ROBERTS: Why so many families are still flocking to theaters even in this economy.
(BEGIN VIDEO CLIP)
DERGARABEDIAN: What movies offer is an escape and for $10 that's a bargain.
(END VIDEO CLIP)
ROBERTS: You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
ROBERTS: It's 15 and a half minutes after the hour. Let's fast forward to the stories that will be making news later on today.
And we're standing by for more insight from the White House on President Obama's promise to revamp the nation's food safety net. During his weekly radio address, the president announced the creation of a new food safety group to update laws untouched since President Theodore Roosevelt.
In a few hours, actress Lindsay Lohan will have a court hearing regarding an arrest warrant that was issued on Friday. Lohan's attorney told CNN that the warrant was issued "out of a misunderstanding." It's believed to be connected to a possible parole violation. Lohan currently serving three years probation following two DUI arrests in 2007. She is not expected to appear at that hearing.
We're also learning new details of an interview that Levi Johnston gave to ABC. The former fiance of Alaska Governor Sarah Palin's daughter reportedly says he and Bristol Palin have split, but he says he's also not ruling out a reunion in the future.
They split but they might get back together, who knows?
CHETRY: How about that?
Don't hold your breath.
ROBERTS: Well...
CHETRY: You never know. Young love. Young love.
ROBERTS: He's probably headed for the tundra as we speak.
CHETRY: Well, former Vice President Dick Cheney is defending the Bush legacy in his first televised interview since leaving office. He spoke with CNN's John King on "STATE OF THE UNION." And Cheney addressed the economy, Iraq and the war on terror.
Mr. Cheney says by reversing the Bush administration's anti- terror policies, President Obama is putting the country at risk.
(BEGIN VIDEO CLIP)
JOHN KING, CNN HOST, "STATE OF THE UNION": Do you believe the president of the United States has made Americans less safe?
DICK CHENEY, FORMER VICE PRESIDENT OF THE UNITED STATES: I do. I think those programs were absolutely essential to the success we enjoyed of being able to collect the intelligence that led us to defeat all further attempts to launch attacks against the United States since 9/11. I think it's a great success story. It was done legally. It was done in accordance with our constitutional practices and some principles.
President Obama campaigned against it all across the country and now he's making some choices that, in my mind, will, in fact, raise the risk to the American people of another attack.
(END VIDEO CLIP)
CHETRY: All right. Well, Cheney acknowledged that President Bush's refusal to pardon his former chief of staff, Scooter Libby, strained their relationship.
(BEGIN VIDEO CLIP)
CHENEY: Obviously, we traveled a long way together in eight years, two presidential campaigns, and that built us a very solid, lasting relationship. I was clearly not happy that we, in effect, left Scooter sort of hanging in the wind, which I didn't think was appropriate. I think he's an innocent man who deserves a pardon.
(END VIDEO CLIP)
CHETRY: Cheney also addressed issue number one, the economy, rejecting the notion that the Bush administration is to blame for the country's economic trouble.
ROBERTS: He looks like he's lost a little weight in the last little while. Looks in better shape than he did during the administration.
CHETRY: Good.
ROBERTS: Yes. Well, some good news this morning. Asian markets up for a second day in a row. We're keeping an eye on Dow futures, plus the economic downturn not affecting Hollywood.
Box office sales setting records this year, so what's behind Tinseltown's strong performance?
And look at this. Models gone wild. We'll show you what happened when a crowd of models waiting to audition for a popular reality show suddenly turned into a stampede.
It's 18 and a half minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
The economy, not keeping people out of the movies. Disney's "Race to Witch Mountain" captured the top spot at the box office. Go The Rock." Raking in $25 million over the weekend. Last week's champ "Watchmen" came in second with a little more than $18 million, and the horror flick "The Last House on the Left" came in third.
And this morning Hollywood is enjoying a box office surge and the strong sales might not be in spite of the economy but rather because of it. Here's CNN's Kareen Wynter.
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: John, Kiran, a trip to the movies has now turned into the ticket of choice for many looking for a break from the economic blues.
(BEGIN VIDEOTAPE)
WYNTER (voice-over): Even in the bleakest of financial times, it seems escapism has no price tag.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You're on a budget from now on.
(END VIDEO CLIP) WYNTER: Take this Clark Gable classic released in 1934. It was a box office hit in the midst of the Great Depression. Back then, cash strapped consumers still enjoyed a seat at the cinema.
Now, with the country in the midst of another severe economic downturn, experts say it's no surprise that movie ticket sales are booming even as families tighten their expenses.
DERGARABEDIAN: This is the biggest start to any box office year that we've ever seen.
WYNTER: The first billion dollars in January according to box office expert Paul Dergarabedian. Led by "Watchmen," "Gran Torino" and...
KEVIN JAMES, ACTOR, "PAUL BLART: MALL COP": "Paul Blart: Mall Cop"
WYNTER: Revenues are up 17 percent from last year. Attendance has jumped 15 percent.
DERGARABEDIAN: What movies offer is an escape, a place where people can go for a couple of hours and forget their troubles. And for $10 that's a bargain, especially in this economy.
WYNTER: Box office revenues also rose in five of the last seven recession years tracing back to the 1960s, according to the National Association of Theatre Owners.
UNIDENTIFIED FEMALE: Art always drives I think in difficult economic times because that's an outlet for people, and it's just in history, it's always been that way.
UNIDENTIFIED MALE: You get that two hours where you're not wondering how, you know, you're going to put food on the table or, you know, get your mortgage paid off. You know, it's a good way to disappear, I think.
WYNTER: And forget about all the bills that are due, say these newlyweds visiting Hollywood from out of town. They're willing to spend a few bucks on a movie, just not that costly bucket of popcorn.
MCKENNA THIBODEAU, MOVIEGOER: Sometimes we bring our own.
UNIDENTIFIED MALE: I don't think we're supposed to tell them that.
WYNTER: It is to save money.
THIBODEAU: We'll usually eat beforehand so we're not hungry there.
(END VIDEOTAPE)
WYNTER: After the economy stabilizes, the industry hopes people will continue going to the movies for those few affordable hours of entertainment - John, Kiran.
ROBERTS: Kareen Wynter this morning. Kareen, thanks so much.
CHETRY: There you go. Well, I mean, it's funny because sometimes people say it's very expensive to go to the movies. If you want to take a family of four about the time they eat the popcorn and soda and candy, it adds up.
ROBERTS: But still, you know, in these times, you want a little bit of escape so I guess it's proving it, right?
CHETRY: Exactly. All right. Well, a reminder that we love to hear how you're coping with the tough economy. Record a video. Send us an iReport. Go to our Web site CNN.com/am.
ROBERTS: "Road to Rescue," a CNN survival guide, President Obama is said to unveil his plan to help small businesses. We'll break down the details and tell you what it could mean for you if you work for or own a small business.
And it was bedlam on the streets of Manhattan as would-be contestants for "America's Next Top Model" waited to audition. We'll show you how it suddenly turned scary.
It's 24 and a half minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
Brawling beauties on the streets of New York. It was no catfight though. Something much more serious. Take a look at this video.
Thousands of women, hoping for a spot on "America's Next Top Model" caught up in a stampede as they waited to audition in Manhattan, and some serious fallout from it all. This morning, we're hearing from Tyra Banks who hosts and produces the show.
Our Jason Carroll this morning working this one. He's here with the very latest.
Good morning, Jason.
JASON CARROLL, CNN CORRESPONDENT: Yes, some pretty scary stuff. Banks and her producers are still trying to figure out what happened here. Was it a fight? Was it something else?
There are several versions of what started it. We want you to take a look again at what happened here. It was really a frightening scene all caught on tape by a security camera. It may have started after the crowd spotted a smoky car near them. Someone reported yelled "the car is going to blow" then panic. There was pushing, shoving and a lot of screaming.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Everyone just started running to one direction, which was this way. So we ran, too.
UNIDENTIFIED FEMALE: They were running around the corner. People were dropping their chairs, their blankets, pushing, cursing. Really crazy. Pandemonium, actually.
(END VIDEO CLIP)
CARROLL: Police arrested two women and a man and charged them with disorderly conduct and inciting a riot. They also shut down the audition. Six people were hurt, none seriously.
Late last night, we heard from the host and producer of the show, Tyra Banks, who said, "We are concerned by the events that occurred Saturday afternoon in the vicinity of the New York casting call for the next cycle of 'America's Next Top Model.' At this time, we still don't know all the details of what happened or what triggered the incident."
Saturday's casting call in New York was open only to women shorter than 5'7", much shorter than the industry standard which may explain why there were so many in the crowd. More auditions are planned for later this month, including stops in Dallas, in Chicago, in L.A.
You know in that show, I'm sure you've seen it, in the reality show, Tyra tries to teach a lot of these young girls lessons in life. And maybe the producers learned a lesson about how to, you know, secure a big crowd when they're having an open audition like that.
ROBERTS: Yes. There's so many people there in the streets in such a small area, maybe a little better crowd control.
CARROLL: Yes.
ROBERTS: Jason, thanks so much for that.
CARROLL: Right.
ROBERTS: Just about half past the hour now and here's what we're following for you right now.
Developing details on the drawdown in Iraq. Prime Minister Nouri al-Maliki telling "The Associated Press" that he doesn't want troops taken out of areas that aren't completely secure. He also said any troops the U.S. withdraws must be approved by and coordinated with the Iraqi government.
Actor Ron Silver is being remembered this morning for his contributions as both an artist and a political activist. Silver died Sunday after a two-year battle with cancer of the esophagus. He was an Emmy nominee for his recurring role on the "West Wing." He also won a Tony award and appeared in many films. Ron Silver was 62 years old.
And Vice President Joe Biden's 91-year-old mother is in the hospital this morning after a fall at her home in Delaware. A Biden spokeswoman says Catherine Eugenia Biden is receiving treatment at the University of Pennsylvania. She is said to be in good spirits - Kiran.
CHETRY: All right. Well, returning to the economy, it's part of our unprecedented "ROAD TO RESCUE" coverage. We're going to break down the money meltdown that's changing your life.
This morning, President Obama will announce a new plan to help those of you who work for or even own small businesses by providing millions of dollars to make lending more attractive. And joining me now this morning to discuss this is financial adviser Jill Schlesinger as well as investment advisor Ryan Mack.
Good to see both of you this morning. Thanks for being with us.
JILL SCHLESINGER, FINANCIAL ADVISER: Good morning.
RYAN MACK, INVESTMENT ADVISOR: Good morning.
CHETRY: Ryan, let me just start with an overview, if you will. The administration's plan is to help small businesses. They want to help guarantee loans. They want to free up programs. And they just want to make it all around easier for small business to secure some money as well as to continue operating and, hopefully, continue hiring. What do you think?
MACK: Well, I definitely think the program has a lot of bells and whistles in it, and it's great for small businesses. We got last year small businesses guaranteed about $20 billion worth of loans. But this year, they're on track to do about $10 billion worth of loans.
So, we have to get the small business lending. They've got $730 million in there to decrease lending fees and increase the government guarantee from 85 percent to 90 percent. They've got a lot of tax incentives for making health care premiums at least 50 percent tax credits to make health care for small business more affordable.
And you know what? I'm in Detroit right now, my hometown. We have an unemployment rate of 21 percent and Michigan itself has an employment rate of over 10 percent. So people need jobs. Small businesses get over 70 percent of this employment to this country. There needs to have an increase to make sure small businesses can start lending again and start doing business.
CHETRY: And Jill, this is interesting, because there's a "Wall Street Journal" article today that is saying that the GAO is already citing a lack of oversight in this -- in utilizing this program. They say that they fear that it could possibly go the way of the mortgage crisis where loans are just shuffled off to banks and hedge funds as securities.
How do we prevent that from happening to make sure that a program like this, that's meant to help the people that need it most, doesn't turn into a free-for-all.
SCHLESINGER: You know, I think that's my biggest concern about the plan. I agree with Ryan. We want to help small businesses. I'm a small business owner. I would be affected by something like this.
But remember what's happening here. When you have the government, that's basically insuring up to 90 percent of a loan, will the bank then do enough homework on the borrower to make sure that they're not going to worry about the last 10 percent? And, you know, from the bank's perspective on that 10 percent, they're going to sell it off anyway.
So there's a real concern, a deep concern that this is perpetuating some old bad behavior. I think that what we'd like to see from the small business' end is incentives for hiring, incentives for building out.
I am not sure this is the way to do it. I am actually not pleased with the way this bill - with this program has come down. And I have great concern that we don't have the oversight necessary to make sure it's going to be used correctly.
CHETRY: And Ryan, perhaps touching on that. One of the administrators with the small business administration's office - Capital Access says that they want to try to possibly create more specific guidance for lenders around documenting compliance.
And what we're talking about here is that, you know, there's less incentive, I guess, if you're guaranteeing this money, to make sure that the business can stay afloat. So, how do we address that?
MACK: Well, you know what? In the free market system - the free market system naturally tends towards what works. And for the past eight years, we've had unregulated system and essentially lenders have found out what doesn't work and that what doesn't work is giving loans to those individuals who are not qualified to repay these loans. It has killed the natural market.
So I think the natural incentive for small businesses in order to continue to give out loans is to work towards a more fiscally responsible. So I think it's already in there in a free market system for making sure that these businesses are giving loans to those companies that have the ability to repay them.
SCHLESINGER: Ryan, I think - I understand that you think that everyone has learned their lesson. I'm actually a little bit more cynical about human nature. And my fear is that unless the bank has the risk that is on the line, that the bank itself is not going to take the steps. We have to give them guidelines.
What we learned in the last eight years is not to count on the free market system to, in fact, create very strict guidance for banks so that these institutions are not extending credit to organizations that should not and individuals who should not get it. This should be a much more detailed plan.
And I tell you the truth - it seems to me that the administration has come out once again with a plan that has nice sound bites but not enough detail. We want detail. We want specificity. That's how we're going to get out of this. CHETRY: All right. You know what? I know it's a great conversation and I wish we have more time, but we have to leave it here. Ryan Mack and Jill Schlesinger, thanks so much.
SCHLESINGER: Thank you.
MACK: Thank you.
CHETRY: Appreciate it - John.
ROBERTS: Hey, a quick reminder about a brand-new way that you can get involved with the show. Call us. We're launching a new hotline today. It's 1-877-MY-AMFIX. That's 877-692-6349. Leave us a voicemail. We'll listen to them everyday and include some of your comments on the air.
Also, check out our new blog "AMFix." When you get to work, cnn.com/am. We'll keep you posted on the big stories throughout your day.
It's coming up now on 35 minutes after the hour.
CHETRY: Finding a steady paycheck on the open road.
(BEGIN VIDEO CLIP)
GARNETT VANZANDT, STUDENT TRUCK DRIVER: I never thought I would be here one day, just behind a wheel that's going state to state.
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CHETRY: Why truck drivers are in demand in a down economy.
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UNIDENTIFIED MALE: Just looking for a way of making a living.
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CHETRY: You're watching the Most News in the Morning.
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ROBERTS: Thirty-eight minutes now after the hour. Welcome back to the Most News in the Morning. And let's fast forward to some of the stories that will be making news later on today.
President Obama taking steps to make it easier for small business owners to borrow money. The president will roll out a new plan at 12:00 noon Eastern. It includes greater loan guarantees for banks that lend money to small businesses and reduces fees that borrowers pay to banks.
This afternoon, Vice President Joe Biden will address more than a thousand leaders of the Firefighters Union. He is expected to speak about the economy and homeland security. House Speaker Nancy Pelosi and Homeland Security Secretary Janet Napolitano are also expected to attend that conference on Capitol Hill.
And our "CNN Money Team" is keeping a close eye on the OPEC meeting under way right now in Vienna, Austria. We'll let you know if OPEC decides to cut oil production to try to boost the cries of prude -- boost the price of crude, not the cries of prude. The cries of prude is the same as it's always been.
CHETRY: That's right. That's not changing. Except on Monday morning.
ROBERTS: Exactly.
CHETRY: Thanks, John.
Well, with the economy bleeding jobs, many unemployed workers are being forced to consider a career change, and a growing number are turning to the big rigs for a steady paycheck.
CNN's Ed Lavandera is driving the story home for us.
ED LAVANDERA, CNN CORRESPONDENT: John and Kiran, it sounds strange that just a year ago, high fuel prices drove many truck drivers out of business. But in this economy, truck driving is becoming a popular job again.
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LAVANDERA (voice-over): The economy drove Garnett Vanzandt to get behind the wheel of a big rig.
VANZANDT: Putting it in reverse right now.
LAVANDERA: Vanzandt is learning how to drive this massive beast of a truck.
VANZANDT: Just going straight back, straight back.
LAVANDERA: In just a few weeks, he could be sitting in a new job driving freight cross country.
VANZANDT: I never thought I'd be here one day, behind a wheel, going state to state, sightseeing, seeing stuff that you never thought you would see. Your dream is coming true.
LAVANDERA: But it's a dream borne of nightmares. Vanzandt says he signed up for truck driving school after getting laid off from warehouse jobs six times in six years. He was lured by the hopes of a steady paycheck. First year drivers can make up to $40,000.
VANZANDT: When I get a check, I know my bills can be paid. I don't have to be pulling my heart out, tracing out, crying. I don't want to go through that no more.
LAVANDERA: Just a year ago, high fuel prices drove many truckers out of business. Gas prices have dropped, but the amount of goods being trucked has dropped 11 percent in the last year. Despite this, truck driving schools across the country now say there's a rush of laid off workers looking to make a career change.
LARRY HOBGOOD, INTERNATIONAL SCHOOLS: People are being laid off now that we're trying to help everybody find jobs.
LAVANDERA: Larry Hobgood runs a truck driving school in Texas. His company has reopened schools in places that have seen a rise in unemployment and the classes are filling up fast.
HOBGOOD: We're seeing people from every type of employment background, every walk of life that are considering the trucking industry.
LAVANDERA: His schools say they've seen teachers, real estate agents, even a former airline pilot.
ROB HURST, CONTINENTAL TRUCK DRIVING: There's so many out there. We're getting flooded with calls, and they're just looking for a way of making a living.
LAVANDERA: But a word of caution. The American Trucking Association says 3,000 trucking companies went bankrupt last year. The amount of goods being moved on the roads has plummeted, so finding a job might be just as tough as learning how to drive these trucks.
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LAVANDERA: Truck driving organizations say that while the competition for jobs is tough right now, they do say that as the economy gets better next year, there will be more jobs.
John and Kiran?
ROBERTS: All right. Ed Lavandera for us this morning. Ed, thanks so much.
It's times like these that we're all cutting costs. But there's one place here in Manhattan, of all places, where anybody can afford to shop. We'll take you to the free store just ahead.
And right now the Space Shuttle Discovery on its way to the International Space Station. We're getting some amazing pictures of last night's launch from our iReporters. We'll show them to you. It's 42 minutes now after the hour.
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ROBERTS: Welcome back to the Most News in the Morning. And right now, the Space Shuttle Discovery on its way to the International Space Station. It was a picture perfect liftoff last night. And we are getting some great iReports as the Shuttle lit up Florida's night sky.
This one comes to us from Chris, who is right up the coast in Daytona Beach. And this iReport comes to us from Steven Ballot who was watching the launch in Orlando. Our Rob Marciano is checking out the weather for us today. And not everybody got a great view of the space shuttle last night unfortunately.
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ROBERTS: Nice weather down there in Tampa. Rob, that's the place to be, definitely.
ROB MARCIANO, AMS METEOROLOGIST: And congrats on your honor up there in Canada. That was something, John.
ROBERTS: Oh, hey, thanks very much. I had a terrific weekend. Connected with a bunch of people I hadn't seen for 20 years. It was proof that you can go home, Rob.
MARCIANO: We were all beaming with pride.
ROBERTS: Thanks very much. All right. Thanks, Robby.
MARCIANO: You bet.
ROBERTS: Kiran?
CHETRY: Well, still ahead, the countdown to a turnaround. Fed Chair Ben Bernanke talking optimistically about the economy, predicting when the recession could end, and when things could start to get better. You'll hear from him. It's 47 minutes after the hour.
ROBERTS: Seeking food and shelter on Craigslist. Desperate posts from desperate people.
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JILL GARDNER, JOB SEEKER: It's not easy because I've never had to ask for things like that before.
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ROBERTS: And the heroes who are hitting reply.
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GARNDER: Thank you.
UNIDENTIFIED FEMALE: Oh, you're so welcome.
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ROBERTS: You're watching the Most News in the Morning.
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CHETRY: Welcome back to the Most News in the Morning. Well, we're looking out for your bottom line all this week with our "CNN SURVIVAL GUIDE: ROAD TO RECOVERY, ROAD TO RESCUE." And with everyone searching for bargain in this recession, our Lola Ogunnaike found one that seems to be good to be true. It's a store where everything is free.
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LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT (voice-over): It's a frigid morning in downtown New York, but instead of hibernating at home, dozens of people are here waiting to walk away with the ultimate bargain.
(SONG PLAYING) If you want it, here it is, come and get it.
UNIDENTIFIED FEMALE: One person's junk could be my treasury.
OGUNNAIKE: That's especially true at the free store where everything, everything is free. That's right, F-R-E-E - free.
(on camera): Free incense, free belt.
UNIDENTIFIED FEMALE: Free?
OGUNNAIKE: Free. Free bag, free dish, free. Free.
(voice-over): I wasn't the only skeptic.
UNIDENTIFIED FEMALE: This is New York, and we never get free anything.
OGUNNAIKE (on camera): What if you walk in there and you realize that there's no catch. That it's actually free.
UNIDENTIFIED FEMALE: Then I'm going to take the free items and be happy.
OGUNNAIKE: OK.
(SONG PLAYING) The best things in life are free.
OGUNNAIKE (voice-over): At the free store, the owners don't have to worry about turning a profit because the space is actually an art exhibition sponsored by several New York public arts groups. It's as much art as it is behavioral science.
UNIDENTIFIED FEMALE: The competition is about when there's a crowd.
UNIDENTIFIED FEMALE: People just sort of - that's when the grabbing, kind of the frenziest.
OGUNNAIKE: Customers are highly encouraged to take what they need when shopping, but many are as happy to give as they are to receive.
(on camera): So you all do not accept money at all.
UNIDENTIFIED FEMALE: No, we don't accept any money. Sometimes people try to offer it, and we say we don't accept it.
OGUNNAIKE: You're probably the only people in America saying no thank you to money right now.
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: Yes.
OGUNNAIKE: You got a lamp last week?
UNIDENTIFIED MALE: And this week, I have a tea pot.
UNIDENTIFIED FEMALE: A picture of the Brooklyn Bridge.
OGUNNAIKE: You're holding a DVD player.
UNIDENTIFIED FEMALE: Yes. I'm very excited. I want one for a while.
UNIDENTIFIED FEMALE: This is really cute, like, I would pay money, like a lot of money for this.
UNIDENTIFIED MALE: Hopefully next week, I'll get some knife and forks.
OGUNNAIKE: Are you surprised that something that cute could be yours for nothing?
UNIDENTIFIED FEMALE: Yes.
OGUNNAIKE: Ready to go back to work at brag, aren't you?
UNIDENTIFIED FEMALE: Oh, I can't wait. Yes, because everybody would say, oh, there's not going to be anything there, it's no big deal, but I'm - wait, until they see this.
OGUNNAIKE: Is it better to give or receive?
UNIDENTIFIED FEMALE: Give?
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OGUNNAIKE: Kiran, when I walked in, I was so skeptical. I didn't think there would be anything there, but you saw that one woman walked out with a DVD player.
CHETRY: Right.
OGUNNAIKE: And while I was there, another woman was bringing in a VCR to drop off. So there's some stuff to be had there.
CHETRY: So this is a public art exhibit you said. Is it temporary?
OGUNNAIKE: It's temporary. It's over in late March. So hurry down there at 99 Nassau Street if you want to pick up some free goods. CHETRY: Right, or drop some off. Are they accepting all the time, too?
OGUNNAIKE: They accept donations. The only thing they do not take is money.
CHETRY: I love it. And there's no limit. You just grab as much as you want?
OGUNNAIKE: Yes, you can, but people tend to control themselves. They're not greedy or hording at all, which I thought was also very admirable. People just tend to take a little bit and some leave a lot. So that's great.
CHETRY: Good find, Lola. Thanks so much.
OGUNNAIKE: Thank you.
CHETRY: It's 53 minutes after the hour.
ROBERTS: CNN exclusive - Dick Cheney, his first interview as ex- VP saying don't blame Bush for the economic meltdown.
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UNIDENTIFIED MALE: Stuff happens.
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ROBERTS: And they don't call it screwing up for nothing.
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SEAMAN: Look at that. Pretty swanky, right?
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ROBERTS: Outraged iReporters exposing AIG.
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SEAMAN: Let's do some cost-cutting, and have you guys move out to a cheap corporate office park in New Jersey.
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ROBERTS: You're watching the Most News in the Morning.
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CHETRY: Fifty-six minutes past the hour. Welcome back to the Most News in the Morning.
You know, people often go to Craigslist to post items for sale or trade looking for things. Well, now, the posts are much more basic, even desperate. A reflection of the tough economic times. CNN's Thelma Gutierrez shows us the new reality on Craigslist.
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UNIDENTIFIED FEMALE: Please don't judge me. I'm very embarrassed to ask anyone for help.
UNIDENTIFIED MALE: Five children, and my wife and I are about to lose our apartment.
UNIDENTIFIED MALE: If you need any odd jobs done.
THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): They put it all out there in black and white, calls for help on the Internet.
Jill Gardner is one of those people. She says she's been out of work for six months. Gardner used to work in an oil refinery, wearing coveralls and a hard hat. Now she's looking for a job in the hotel industry, and she needs business suits she can't afford to buy.
GARDNER: I'm in need of women's clothing for size 10, 12. Have job interviews, but no good clothes. Please help if you can.
GUTIERREZ: Gardner says it was tough to post the ad on Craigslist.
GARDNER: It's not easy because I've never had to ask for things like that before. And it's hard, you know, not being able to provide for myself.
GUTIERREZ: Ernie Casillas has been there, too. Casillas, a former banker once lived the good life, processing loan applications. After he lost his job, he had to move in with his mother. Now, he's faced with having to sell off his former life.
ERNIE CASILLAS, JOB SEEKER: No more deluxe for campaigns. No more (INAUDIBLE).
GUTIERREZ: But Casillas needs the money, and Craigslist has lots of viewers.
CASILLAS: IT took a lot for me to put that ad on Craigslist, because I had to change - driving expensive car, having expensive suits. It humbles you. This is for real.
GUTIERREZ: But Casillas is encouraged. He's already had three interviews from his ad.
GARDNER: Well, thank you.
UNIDENTIFIED FEMALE: Oh, you're so welcome.
GUTIERREZ: For Jill Gardner, the ad paid off. Bonnie Sue Robbins (ph), a paralegal saw Jill's request for clothes and gave her a business wardrobe.
GARDNER: You're an angel.
UNIDENTIFIED FEMALE: We'll keep in touch so that I can go out and we can have a drink to celebrate when you get your new job.
GARDNER: OK. Definitely. Definitely, and I'll buy.
GUTIERREZ: Thelma Gutierrez, CNN, Los Angeles.
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