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Hamid Karzai Declared President of Afghanistan; Tough Decisions on Afghanistan for Obama Administration; Small Biz Credit Concerns

Aired November 02, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Monday morning, November 2nd. And here are the faces of the stories driving the headlines today.

Hamid Karzai declared the winner of Afghanistan's flawed presidential election this morning.

President Obama snagging free advice on the economic recovery from Washington outsiders this hour.

Nancy Brizendine expecting a child but not swine flu. What pregnant women should know about the H1N1 threat.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

You know, it's hard to have an election runoff when there's only one candidate. Afghanistan's Election Commission declared President Hamid Karzai the winner today after candidate Abdullah Abdullah withdrew.

CNN's Sara Sidner is live for us now in Kabul.

And Sara, why did Abdullah pull out of this runoff?

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: Abdullah was clear about why he pulled out. He said they did it because he did not believe he could get a fair shake in this election, that the electoral system needed to be revamped, and that he believed that the runoff would be fraught with as much fraud as the first election on August 20th, where some speculate there was one in four of the votes were tainted by fraud -- Tony.

HARRIS: And Sara, did pressure from the United States and the international community play a role in this decision at all?

SIDNER: There is a lot of speculation about that, but surely we are hearing that there has been pressure from the international community, the U.S. included, on how the country goes forward after the statements by Dr. Abdullah Abdullah that he was going to pull out of this race. And indeed, he did. And then the statement that he believed that this race would have been fraught with fraud anyway. The U.S. though did send out a statement congratulating Mr. Karzai for his win as the president, and is look at him as a legitimate president of the country.

Now, the Independent Election Commission here looked at all of these different issues and how to go about doing this, and they met today and decided that constitutional law and electoral law did lead them to make the decision that they made, and they say it's legally legitimate, as well as some other factors. The other two major factors, the safety for voters -- the Taliban clearly had threatened anyone who took part in this race and anyone who went to the polls -- as well as the cost. This was an estimated $20 million voting, would cost that much just to put on this vote.

So, certainly a lot of issues to think about. But clearly, they said they looked at the legal ramifications and the legal issues here, and they believe they made the right decision. Mr. Karzai will be the president for the next five years -- Tony.

HARRIS: Well, and Sara, one more quick one here. What about Karzai putting together a coalition government? Are you hearing much talk on that front today?

SIDNER: We talked to the president of the elections commission here in Afghanistan. He was very stern about that very issue before this announcement was made. He said that a coalition government, according to Afghanistan's constitution, is absolutely illegal and he would not support it. So, there you have an answer from this commission that was put in place by President Karzai, and President Karzai saying before this decision was made, that whatever decision the IEC, as it's called, made he would follow that decision -- Tony.

HARRIS: OK.

Sara Sidner for us in Kabul, Afghanistan.

Sara, good to see you. Thank you.

So what does all of this mean for President Obama as he considers whether to send more U.S. troops to Afghanistan?

Our senior White House correspondent, Ed Henry, joining us now live.

And Ed, what is -- we heard a bit of it there from Sara, but give us more of the U.S. reaction to this decision to cancel the runoff and declare President Karzai the winner.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Tony, here at the White House, the State Department, they're certainly trying to downplay this latest development and it seems like it's business as usual. But let's face it, this Obama administration really put a lot of stock in the runoff just a couple of weeks ago, saying that was critical, a critical step to try to restore credibility to the Afghan election process, which has been in shambles. Let's face it, all kinds of allegations of fraud and the like.

President Karzai certainly under a cloud right now. But the U.S. now trying to turn the page very quickly.

A statement coming out from the U.S. Embassy in Afghanistan, "We congratulate President Karzai on his victory in this historic election and look forward to working with him, his new administration, the Afghan people and our partners in the international community to support Afghanistan's progress towards institutional reforms, security and prosperity. We also congratulate Dr. Abdullah and all of the other candidates for their efforts to strengthen Afghanistan's democratic future."

But, of course, as you were just noting, Dr. Abdullah is now essentially leaving the state. Unclear if there will be any sort of power-sharing agreement. And this White House has been very clear in recent weeks that before the president sends more U.S. troops to Afghanistan, he wants to get a sense as to whether he has a credible partner in Afghanistan. It's unclear right now whether or not he really has that partner -- Tony.

HARRIS: Yes. And Ed, are you getting any more of a sense as to when the president might make that decision on troops? We heard that there was a window between the runoff and the president's trip to Asia, but that might slip a bit as well.

HENRY: It might. And, in fact, some new information on that.

You're absolutely right. I mean, the runoff was supposed to be November 7th. The president leaving November 11th for Asia.

There was an expectation maybe in that window, as you say, the president would make this announcement, but now some administration officials are saying, well, he could actually do it after the Asia trip, which lasts about 10 days. So now you're pretty deep into November, right before Thanksgiving.

Obviously, this president has already been under pressure. Republicans like Dick Cheney saying that he's dithering and taking too long to make this decision as the violence gets worse on the ground. The longer he takes, the more pressure he's going to face.

But they've been very clear here, they're not going to rush this decision. They think that after eight years in Afghanistan, it's finally time to get it right instead of getting it done fast -- Tony.

HARRIS: Yes. OK.

Our senior White House Correspondent Ed Henry for us.

Ed, good to see you. Thank you.

HENRY: Thanks, Tony.

HARRIS: Checking the wire now and the day's other big stories.

In Pakistan, suicide bombings in cities today. At least 35 people are dead, dozens more wounded in Rawalpindi. The attacker targeted people waiting to get their paychecks outside a bank. The victims both civilians and soldiers. A second bombing in Lahore near a police checkpoint wounded 17 people.

We will get a live report from Rawalpindi at the half-hour. Seattle police searching for a cop killer this morning. Veteran officer Tim Brenton (ph) took a bullet to the head as he sat in his patrol car Saturday night. A car pulled alongside Brenton (ph) and someone opened fire. A second officer was wounded. The mayor vows the city will not rest until the killer is brought to justice.

(BEGIN VIDEO CLIP)

MAYOR GREG NICKELS, SEATTLE, WASHINGTON: This was the first intentional homicide of a Seattle police officer since 1994. The killing of someone who protects us, who protects our public safety, who protects our communities is universally condemned.

(END VIDEO CLIP)

HARRIS: All right. Live pics now.

Construction crews in California hope to open the Bay Bridge today. The San Francisco to Oakland link shut since Tuesday, when a temporary fix failed. Workers are installing new metal supports to shore up a cracked beam. Then come stress tests.

(BEGIN VIDEO CLIP)

BART NEY, CALTRANS SPOKESMAN: We're down sort of to the final visual inspection. Literally, we have to do -- we are going to use trucks, we are going to run them across the lower deck. There are a few other things that we're going to do to vibrate the rods to ensure that they don't move. And then we should be good.

(END VIDEO CLIP)

HARRIS: Well, it received TARP money, but that didn't save CIT, one of the nation's biggest lenders. Files for bankruptcy protection, we will tell you how that might, might, impact the holidays.

That's next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

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HARRIS: CIT, a primary lifeline for small-and-mid-sized retailers, in bankruptcy court this morning.

Let's talk with CNN's Christine Romans about it. Christine, a part of our money team.

Christine, good to see you.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Tony.

HARRIS: Good morning.

CIT and this news, why is this important?

ROMANS: Well, whenever you have the fifth largest bankruptcy in American history, Tony, you know it's important. It's a big company. It has a million customers, 30 different industries. It's a big player in what's called factoring in the retail industry, meaning it helps keep the cash flowing as you're waiting for your products to actually be sold.

It's a top lender to women and minorities, it leases things like railcars and aircraft. I mean, it's in a lot of different businesses.

When you look at the size of its loan portfolio, what we're looking at here, it is number five on the list of the biggest bankruptcies, $71 billion. They're calling it a prepackaged bankruptcy, and they're hoping that many of its -- you know, its operations can continue.

But Tony, just look at the list. I mean, all but one of those companies has gone down in the past year. I guess it just shows you how difficult it's been. And now here, CIT, the latest on the list, a very big company with its fingers in an awful lot of different kinds of businesses: Avaya, Marquis Jet, Dunkin Brands, including Baskin- Robbins, Spencer Gifts. A lot of different companies, when they're looking to start a new franchise, or grow their franchise business, you can get loans through this company.

Also, again, as I said, factoring. If you're a small manufacturer, you know what factoring is, and you're a little concerned about your ability to get money before you get paid from customers for your goods. So, all of this making people a little uneasy.

HARRIS: Well, you know, I'm thinking about winners and losers here, and maybe you put up a list of some of the folks who hopefully can stay in as customers of CIT. But when I'm thinking about losers, TARP money, right, the American people?

ROMANS: Yes. You're a loser and I'm a loser. Taxpayers are most likely going to -- I mean, if they get anything back on their investment, $2.3 billion is the government bank bailout investment into this company from last December. If anything comes out of it out of bankruptcy court it will be minimal, that's for sure.

The Treasury Department, Tony, says that they'll be monitoring this whole process to try to get the best that they can for taxpayers, but $2.3 billion, Treasury points out, in the context of how much money has been spent on the bank bailouts, $2.3 billion is our first kind of, like -- we're just going to have to write most of that off. And stockholders, too. If you own CIT stock, when it comes out of the end of the bankruptcy process, your stock will be worth nothing.

HARRIS: I think I saw something on the end of one of your notes suggesting that this might have a bit of an impact on the holiday shopping season. Oh, prey tell.

ROMANS: It might. You know, back in July, when we were so concerned about this company in the first place, that's when these retailers were placing their orders for goods for the fall. And they were concerned if CIT went down, that there could be this disruption in the capital flow to make sure that their shelves are stocked. It's unclear if it's going to really hurt retailers here heading into the end of the year, or if it's something that might hurt them later on, next year. But retail analysts are watching this very, very closely.

Yes, the company is saying that it's a prepackaged bankruptcy, that they're going to keep operating as normal. But remember, there's nothing normal about bankruptcy, you know.

HARRIS: Right.

ROMANS: I mean, it's a seen that the business model is broken and failed, and a lot of people wondering what it's going to look like on the other side.

HARRIS: Well, you mentioned prepackaged bankruptcy. In the next hour, let's talk about that. Is it going to look more like, say, Chrysler, GM, or could it be something a little more protracted than that? But let's talk about that next hour. All right?

ROMANS: All right. Sure.

HARRIS: All right, Christine. Appreciate it. Thank you.

Big banks are under fire for taking taxpayer money and not making loans to small businesses. The backlash against bailed-out banks was a hot topic on CNN's "STATE OF THE UNION" with John King. Mississippi Governor Haley Barbour took aim at the banks and the $787 billion stimulus package.

(BEGIN VIDEO CLIP)

JOHN KING, HOST, "STATE OF THE UNION": You're a chief executive of your state. You're dealing with this economy in hard times. You're one of governors who was prominent in the debate about whether the stimulus would help or hurt.

I want you to listen to something the Treasury Secretary, Tim Geithner, said this morning about his sense of the economy. He says, yes, it's growing again, but...

(BEGIN VIDEO CLIP)

TIMOTHY GEITHNER, TREASURY SECRETARY: This is going to be a different recovery than in the past, because Americans are going to have to save more, a lot of damage was caused by this crisis. It's going to take some time for us to grow out of this. It could be a little bit choppy, it could be uneven, and it's going to take a while. But I think, again, this is encouraging signs.

(END VIDEO CLIP)

KING: Encouraging signs is the growth in the national economy, the GDP. But if you go state by state, it depends on where you are in the country as for unemployment.

What is, A, your sense? Have we hit bottom, are we on the way back? And B, the national role in helping?

GOV. HALEY BARBOUR (R), MISSISSIPPI: John, I've never seen as big a disconnect between Wall Street and the stock market, on the one hand, and Main Street on the other. These banks have been given these -- these big banks, particularly -- gigantic infusions of TARP money, but they're not lending the money out. They're buying assets, they're trading. And when you look at Goldman Sachs, they're making all of their money trading.

Well, what the economy need is for them to be lending. And Main Street, small business, even middle-sized businesses, are really unable to borrow money.

And I was one who believed, and believes, that for about half as much money, the stimulus package could create as many or more jobs. I still believe that. But what is really, really hurting us on the ground today is the inability of small business to borrow money and the continued lack -- the continued decrease in employment that goes with that.

(END VIDEO CLIP)

HARRIS: Well, the dangers of using your debit card, we haven't talked about that in a while. You know, there are some risks you may not be aware of.

Personal Finance Editor Gerri Willis shares her "Top Tips." That's next.

(COMMERCIAL BREAK)

HARRIS: So let's get you caught up on our top stories now.

Afghanistan cancels its presidential runoff election and declares President Hamid Karzai the winner. Challenger Abdullah Abdullah, the man on the right here, dropped out of the race yesterday, citing fears of runoff fraud.

In Michigan, a threat of airborne chlorine gas after multiple explosions rocked a welding supply plant earlier today. One person has been hospitalized. Those who live near the plant in Marysville have been told to stay indoors. Marysville is about 50 miles northeast of Detroit.

The pride of New York getting a 21-gun salute near Ground Zero this morning. The USS New York is making its inaugural visit to the Big Apple -- 7.5 tons of steel from the World Trade Center was used in making the Navy ship. The New York is an amphibious transport vessel.

And do we have live pictures, the Bay Bridge?

Opening of the Bay Bridge, we told you that it might happen today. Boy, after problems over the last week and a fix to the Bay Bridge that didn't hold, it looks like we've got a fix that will work. Caltran is making the announcement now.

Let me dip in for just a second to hear what is being said at this moment.

Let's listen.

NEY: The team did their best work during Labor Day weekend. The repair worked as design to make sure that the crack didn't propagate.

We had a problem with vibration, which is something completely different than what that system was designed for. We have focused on that problem and made sure that we will not have that problem again.

QUESTION: Talk about the testing and inspections afterwards. You said something about safety inspections after this?

NEY: Right. At this point we're going to continue to monitor this system daily. And what that's going to mean is that on off-peak hours with traffic, we're going to be taking lanes and having our inspectors go up there, and take a look at the system and see how it's behaving.

HARRIS: All right. So, the Bay Bridge is reopening. There is some stress testing that has to go on.

And we will, of course, continue to monitor this situation throughout the day.

All right. As more and more Americans shun traditional credit cards, they're turning to debit cards. But you should know there are some downsides to debit cards as well.

Personal Finance Editor Gerri Willis is here with details.

And Gerri, great to see you. Let's do this...

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Tony.

HARRIS: ... let's start with the security risks.

WILLIS: Well, that's a good place to start. The security can be a big issue.

You know that if your credit card is stolen, you're not responsible for unauthorized charges over 50 bucks. But if your debit card number is stolen, you have fewer protections.

First off, you have to report any misuse within two days to get that $50 limited liability. And if you miss that deadline but you report the loss or misuse within two months, you can be on the hook for up to $500. After 60 days, your liability is unlimited. Card issuers do have different policies, though, so you have to make sure that you know what your bank's policy is.

HARRIS: Any other downsides here, Gerri? WILLIS: Well, look, Tony, if you're trying to build up your credit score -- and a lot of people are -- you don't want to use your debit card. It has no impact on your credit since the debit card is pulled strictly from your bank account. There's no credit, there's nothing to record, and that can help your score if you pay bills on time.

But that's not to say that if you overdraw on your bank account it won't be reported. And unlike credit cards, you can't dispute charges once you've paid for them.

HARRIS: Are there occasions when you just should not use a debit card at all?

WILLIS: Well, look if you're buying a big-ticket item, I wouldn't recommend use a debit card. Bottom line is that credit cards just offer better protection, and that's going to be even more important when the purchases you make are expensive items.

Forget online purchases with a debit card. Credit cards are much safer.

And finally, don't link your debit card to a large checking account, because you could be at risk.

Of course, we do want to mention some pros here, including the fact that you won't have the option of racking up big debt, and carrying a debit card is a whole lot easier than carrying around a wad of cash. And since debit card transactions generally aren't reported to credit bureaus, you don't have to have a good score to qualify for a debit card.

HARRIS: Very nice. All right, Gerri.

And give us the e-mail address once again so folks can send you their questions.

WILLIS: All right. It's Gerri@CNN.com. We love to get your questions, and we answer them right here every Friday.

HARRIS: Gerri, great to see you. Thank you. And see you in New York in a couple days.

WILLIS: Good to see you.

HARRIS: Another bloody day in Pakistan. Suicide bombers striking twice today.

Plus, no runoff election in Afghanistan as the challenger calls it quits.

We want to hear from you. Let's give you the phone number here.

Give us a call, all about the situation in Afghanistan as President Obama considers sending more trooped to the region. Here's the number: 1-877-742-5760. (COMMERCIAL BREAK)

HARRIS: Extremists keep up a wave of terror strikes in Pakistan. Two suicide bombings today leave dozens of people dead or wounded.

CNN's Reza Sayah joining me now from the capital, Islamabad.

Reza, another attack on a so-called soft target. Civilians again bearing the brunt of these attacks.

REZA SAYAH, CNN CORRESPONDENT: Well, actually, two of them today, two of Pakistan's most important cities, Tony, targets of suicide attacks. The latest one happening a few hours ago in the city of Lahore, considered Pakistan's cultural capital. Police say two men wearing suicide vests drove up to a police checkpost in Lahore. While they were being searched by police, they detonated their explosives.

At least 17 people injured, according to officials, among them security personnel. Police say these two men were very likely headed for a bigger target, and they're convinced that they really prevented a major attack.

Earlier today in Rawalpindi, the garrison city outside of the federal capital of Islamabad, a suicide attacker did reach his target, which was a bank with a line of people outside who were simply waiting to withdraw their salaries and their pensions. This was the first working day of the month, and this really illustrates how barbaric and ruthless these attacks have become.

Police say it is very likely that this suicide attacker knew that many of his victims were going to be civilians. It didn't matter. He blew himself up anyway. Police say he approached the bank on a motorcycle. Among the people waiting in line were soldiers. Police say that was likely the target of the suicide attacker but again, many civilians among the fatalities once again today -- Tony.

HARRIS: All right. Boy, Reza Sayah for us. Reza, appreciate it. Thank you.

A bit more background now on the recent violence in Pakistan. The bombing today happened outside a local bank a few miles away from Pakistan's army headquarters. It's the same heavily guarded facility that was attacked and held under siege three weeks ago. Eleven military personnel died as well as three civilians. Nine militants were also killed.

President Obama looking for ways to rev up the economic recovery. The president is meeting with his economic advisory recovery board made up of leaders from business, labor and academics. Take a look at these live pictures now from the White House Web site. The meeting streaming live for you right now.

The board is designed to give the president outside independent advice on the economy. And the economy grows, but jobs continue to lag. Boy, that's the constant story here of late. Despite numbers suggesting the recession has ended, the high unemployment rate is still a major concern.

On CNN's "STATE OF THE UNION," the House Republican leader said the jobless numbers are evidence the stimulus plan is not working.

(BEGIN VIDEO CLIP)

JOHN BOEHNER (R-OH), HOUSE REPUBLICAN LEADER: Three million Americans have lost their jobs since the stimulus was signed into law. And yes, the economy grew last month but after a trillion dollars of an economic stimulus plan was spent, probably another $7 trillion or $8 trillion that the Fed has pumped into the economy, I would hope that we've seen some economic growth. But Americans all around the country continue to ask the question, where are the jobs?

JOHN KING, CNN HOST, "STATE OF THE UNION": And so, the vice president says it grew because of the stimulus. You opposed the stimulus. Your party opposed the stimulus. You stand by the vote, or was it a mistake? Was that spending necessary to do something?

BOEHNER: That spending in the stimulus bill did nothing more than grow government. Republicans had a better solution that wouldn't have cost half as much and created twice as many jobs, according to a model created by the president's own chairwoman of the Council of Economic Advisers.

And this was about allowing the American people, families and small businesses, to keep more of what they earned. We really would have gotten the economy going. And the problem we're having is that small businesses and large businesses are sitting on their hands.

Why? They're seeing a government here in Washington with spending that's out of control, a national energy tax, a nationalization of our health care delivery system and higher taxes on the horizon. Business people are afraid to invest in their business, afraid to grow their business because they don't know what's going to happen next.

(END VIDEO CLIP)

HARRIS: All right. Here's something we don't hear about very often, an American automaker that's actually making money, a lot of it, too. But that's exactly what's happening at Ford.

Susan Lisovicz has this unusual story from New York. Susan, good to see you. Good Monday to you. We're talking about nearly $1 billion here?

SUSAN LISOVICZ, CNN CORRESPONDENT: Nearly $1 billion from a Detroit automaker, Tony, one that never filed for bankruptcy, one that never took a handout from Uncle Sam. It made money. The Street was expecting a quarterly loss. After all, big-ticket items are a tough sell these days. But Ford, as you said, made nearly $1 billion. Even its core North American unit made money, and that's the first time that's happened since '05.

Why is that? Well, "Cash for Clunkers," that benefited all automakers. But the Ford Focus and the Ford Escape were among the top five vehicles purchased. And the F-150 pickup truck, Tony Harris, I don't know if there's one, you know, in your driveway...

HARRIS: Not yet.

LISOVICZ: ... but it is in a lot of other peoples'.

HARRIS: Yes.

LISOVICZ: It's still the most popular truck in America. And unfortunately, I mean, to its benefit, it gained market share when GM and Chrysler went bankrupt earlier this year because a lot of folks, they get skittish when a company is in bankruptcy, especially for a big-ticket item like a car.

Ford says it will be solidly profitable by 2011.

HARRIS: Really?

LISOVICZ: Its shares right now up 9 percent. Yes, it's doing real well. And of course, you know, we've got a nice rally for this first trading day in November -- Tony Harris.

HARRIS: Look at this. Nice, triple-digit rally. You know, all this comes -- look, as GM and Chrysler are still cutting brands and closing factories, what is it that Ford is doing that is actually working here?

LISOVICZ: It's a good question. One of the things that is most different here is that Ford brought in new blood and outside the industry, CEO Alan Mulally came from Boeing. There was a lot of talk about what a gamble it was, but what he did -- didn't have any allegiances. He started cutting costs almost immediately with layoffs, contract concessions from the UAW, reduced retiree costs and improved productivity.

HARRIS: Right.

LISOVICZ: ... product development. Very painful, but ahead of the competition. In the last quarter alone, cut costs by $1 billion.

It's not like he's out of the woods or that Ford's out of the woods. Last week, workers rejected more concessions, which as you know, is a tough sell. Once a company starts making money, why should we continue to be getting hit?

So, that will be something we'll follow in the meantime. But you know, when he arrived a few years ago, Tony, he did have one -- he had a PR problem right at the outset. He was driving a Lexus.

HARRIS: Oh, I remember that!

LISOVICZ: Onto the company lot. We talked about this.

HARRIS: That's Mulally, yes, yes. Yes, you (INAUDIBLE).

LISOVICZ: Yes, that was -- yes, he doesn't do that anymore. Not to the company lot.

HARRIS: Come on.

All right, Susan, see you next hour.

LISOVICZ: Got it.

HARRIS: The resurgence of nuclear power. The industry poised to get billions in federal help but some say that's a bad idea. Check out the story at CNNmoney.com.

Violence and death across country over the weekend. Man, we'll put that in the spotlight a bit here. It was a pretty gruesome weekend. We'll detail it.

(COMMERCIAL BREAK)

HARRIS: Hey, we want to quickly update the Bay Bridge story because it looks like we're really close to -- well it will be more like noonish Pacific time before the Bay Bridge actually reopens again. But crews, as you can see here, are in the final process now of reopening the San Francisco Bay Bridge.

Some stress testing is going on. It looks like it's come back successful so far. Engineers will do a bit of a vibration test by driving trucks over the bridge's lower deck to essentially simulate the effect of vibration. But it looks as though the Bay Bridge between San Francisco and Oakland will reopen noonish today.

We will continue to follow developments and show you pictures. We'll follow this story. Pretty significant, particularly if you live in that area and you use the Bay Bridge to get back and forth. It is a major, major piece of infrastructure that needs to be up and running again.

And it looks like it will be open in the noon Pacific hour. We'll continue to follow this story and get those first pictures for you right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: All right, let's check our top stories now. Violent crimes from coast to coast. Authorities looking for answers. In Seattle, a veteran police officer shot to death sitting in his patrol car. A rookie cop wounded as well. Police say someone opened fire from a vehicle that had pulled up alongside the cruiser. Seattle's mayor calls the brazen attack a cold-blooded shooting.

(BEGIN VIDEO CLIP)

MAYOR GREG NICKELS, SEATTLE: We will not rest until we make sure that the people involved are brought to justice.

(END VIDEO CLIP)

HARRIS: In Cleveland, police are investigate the deaths of six women whose decomposing bodies were found at the home of a convicted rapist. He is in custody but has not been charged. Police say the victims were strangled. They are looking at missing persons cases to try to identify the victims.

(BEGIN VIDEO CLIP)

KYANA HUNT, DAUGHTER OF MISSING WOMAN: I want to think that to get some closure, because it's been over so many months, but I do not know.

(END VIDEO CLIP)

HARRIS: And a break in the killing of four people gunned down outside a television store in North Carolina. It happened in Mount Airy, the town that was the inspiration, yes, for Mayberry in "The Andy Griffith Show." Police say a 29-year-old suspect with a criminal record was arrested at a motel 50 miles away in Virginia.

Let's get to the president meeting with his economic advisory panel.

(JOINED IN PROGRESS)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ... economic recovery advisory board. Each of these men and women have extraordinary and diverse expertise in the economy. I want to especially thank Paul Volcker, who has been a terrific adviser to me since the transition and has continued to help steer this group in ways that are providing us some very practical advice as we move forward.

I've said before, but I think it bears repeating, that we have come a long way since January, when, at that time, we were losing 700,000 jobs per month. And across the political spectrum, I think there was fear of the possibility of another Great Depression.

We have pulled the economy back from the brink. We got good news last week showing that, for the first time in over a year, the economy was actually growing once again. And we have seen some other indicators that manufacturing is beginning to pick up. That's all good news, and we are pleased that the actions that we took swiftly through the Recovery Act helped to stem what could have been a disastrous situation for the economy , and we are starting to see stabilization and indeed some improvement.

But the reason we're here today is because we just are not where we need to be yet. We've got a long way to go. We are still seeing production levels that are significantly below peak levels. And most distressing is the fact that job growth continues to lag.

Now, we all know that in every economic recovery, there is going to be a lag between the economy growing again, businesses investing again and businesses hiring again. But given the severity of the job growth that -- the job losses that took place at the beginning of the year, and the need for us to make up a whole lot of job loss, is going to require I think, some bold, innovative action on our part and on Congress's part and on the private sector's part.

It's also going to require that we look at new models for where future job growth is going to come from, because one of the, I think, key understandings coming out of this past financial crisis is that a lot of our growth was debt-driven, credit cards maxed out, home equity loans being taken out to finance a lot of purchases. Consumers, I think, wisely recognized that they can't get that overextended anymore, and businesses are going to be more cautious in terms of how they approach taking on a lot of debt. The government is going to have to get serious about reducing our debt levels.

And so one of our challenges now, and I've been speaking about this for many months now, is how do we get what I call a post-bubble growth model, one that is sustainable. That's what we're going to be discussing here today. As I said, we've got experts from a wide range of business sectors. And what we're going to talk about is, are there mechanisms that we can start putting in place where we see the kind of growth that used to characterize the U.S. economy -- export-driven growth, manufacturing growth, growth that pays high wages and provides high living standards for a broad-based middle class.

And I think that there are some excellent ideas that are already on the table. Some of them are being talked about in Congress. It's likely this week that we start seeing some discussion about potential tax cuts and credits that could make some difference in hiring. But we want to go beyond just tax policy.

So, for example, we've got John Doerr sitting next to me, who has been one of the leading venture capitalists in the innovation economy and helped to spur on the revolution in the computer industry. John has an equal passion for the possibilities of green job growth in the future and how, through projects like weatherization and retrofitting of buildings, we could generate millions of jobs and create huge, you know, prospects for growth over the long term.

Jeff Immelt of GE, down at end, has been at the helm of one of our greatest manufacturers, an international company. Jeff, I think, recognizes that if we don't do more to export, we are not going to succeed in global competition. And so, how we coordinate more effectively in our trade policies, in our approaches to working with manufacturing here in the United States, if we don't do that effectively, we're not going to succeed.

Rich Trumka has been talking about infrastructure for a long time, as have I. I think my team will testify, when we've got several trillion dollars worth of infrastructure that is falling apart, we need to put people to work doing the work that America needs done. But we're also in an era of fiscal constraint, which means that we've got start finding some more creative new approaches to financing these projects.

So, those are the discussions we're going to be having, not just today, but in the weeks and months to come. This is my administration's overriding focus. Having brought the economy back from the brink, the question is, how are we going to make sure that people are getting back to work and able to support their families? It's not going to happen overnight, but we will not rest until we are succeeding and generating the jobs that this economy needs. And I couldn't ask for a better group of people to bounce ideas off of. And we are going to be soliciting ideas from the private sector, from businesses large and small, from academia and from all political persuasions. If somebody can show me a strategy that's going to work, then we are happy to consider it.

And just, I want to end by saying this: We anticipate that we're going to continue to see some job losses in the weeks and months to come. As I said before, there is a -- always a lag of several months between businesses starting to make profits again and investing again and them actually rehiring again. But I want to emphasize I am confident that having moved the economy on the right track, that if we apply some good common sense and some -- and reinvigorate that sector of our economy that's based on innovation and dynamism and entrepreneurship, that there's no reason why we're not going to be able to not only create jobs but the kind of sustainable economic growth that everybody's looking for.

So, thank you very much, everybody. All right?

HARRIS: OK. Let's do this. Those are comments from the president from the top of his meeting with his economic advisory recovery board. We can actually show you the meeting as it continues right now, streaming live at the White House's Web site. The board is made up of leaders from business, labor and academia. The board is designed to give the president outside independent advice on the economy.

The president looking for ways to build sustainable economic growth. You heard him say it himself, not something not so dependent on bubbles. the president wants to know what can be put in place now where growth is not based on, say, a tech bubble, a real estate bubble. Once again, the president meeting right now -- that's streaming video -- with his economic advisory recovery board.

Still to come in the NEWSROOM, the day the world changed. We are starting a weeklong look at the fall of communism and the day the Berlin Wall came down.

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HARRIS: And here's what we're working on for our next hour. Several key elections are happening tomorrow. The results could shed light on the power of the president and the state of the political landscape across the country.

Also, ignoring their own troubles to welcome troops back home. Making a difference in Bangor, Maine, one handshake, one hug, one well wish at a time.

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(BEGIN VIDEO CLIP) Practice good handwashing techniques. Take precautions if you have a cold, fever, flulike symptoms. Stay home. Don't bring them into the work environment.

(END VIDEO CLIP)

HARRIS: You know, one of the groups most at risk for H1N1, pregnant women. While the White House says its expects 10 million more doses of the H1N1 vaccine to arrive this week, it is already too late for some.

Here's Kara Finnstrom.

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): A year of twists and turns for Nancy Brizendine.

NANCY BRIZENDINE, PREGNANT WITH H1N1: I was like, what?

FINNSTROM: This past spring an unexpected pregnancy for the 42- year-old. Shock turned to celebration. And then just weeks ago, that jubilation turned to fear.

BRIZENDINE: I had, like, a cough, like, sinus infection, infected ear, nausea and fever. And then that's when I went into the urgent care.

FINNSTROM: Nancy tested positive for the H1N1 virus, and the fact that she was pregnant put her right in the middle of a group that experts are most worried about.

DR. ANTHONY DULGEROFF, HIGH DESERT MEDICAL GROUP: Women who are pregnant seem to be somewhat immuno-compromised. And it just turns out that women who get the H1N1 tend to get sicker than the general population.

BRIZENDINE: I couldn't even get out of bed and lift my head because I was just so sick and achy.

FINNSTROM (on camera): It's tough enough to fight the ravages of H1N1 at home, but many pregnant women end up waging a much more serious battle. The Centers for Disease Control says pregnant women are four times more likely than other H1N1 patients to end up hospitalized.

(voice-over): Just last week, an expectant woman from El Monte died from the H1N1 virus. She was 27. Doctors say for some reason, the virus seems to cause the most serious complications in women who are both pregnant and young.

Nancy believes age worked in her favor. She got better with Tamiflu and rest. But Nancy wasn't just worried about one baby on the way. You know, Nancy's 22-year-old daughter Kayla is also pregnant, and doctors strongly suspect she also caught H1N1.

UNIDENTIFIED MALE: One more time.

FINNSTROM: The difference? Kayla, who had no health problems, ended up with bilateral pneumonia and on oxygen support.

UNIDENTIFIED FEMALE: Like, I was hyperventilating because I couldn't breathe.

FINNSTROM (on camera): Was she at risk of dying? I mean, how...

DULGEROFF: Yes, absolutely. Absolutely.

BRIZENDINE: Honestly, I thought OK -- honestly, I thought, is God giving me this baby because he's going to take my other baby. And I didn't want that to happen, so it was hard. It was real hard.

And that's -- you know, I'm thinking OK, you know, what can I do, being here? You know, I need to go to the hospital. I need to be with my baby. But I couldn't.

FINNSTROM (voice-over): Three weeks later, doctors say mother, daughter and both of their unborn girls seem to be doing very well. But still there are fears.

BRIZENDINE: I was just worried, I mean, like what effects is this going to have on my baby? You know, and what effects are the medications going to have or what effects the X-ray is going to have?

DULGEROFF: Since the virus doesn't cross the placenta, probably not too much of a threat that we know of. However, if there are very high fevers in the mother, that could affect the baby.

FINNSTROM: Health officials are urging pregnant women to get the H1N1 vaccination, and Kayla and Nancy agree.

BRIZENDINE: And you have to realize, it's not just you, it's your baby.

UNIDENTIFIED FEMALE: Yes.

BRIZENDINE: You know? You have to protect both of you.

FINNSTROM: In Lancaster, California, Kara Finnstrom for CNN.

(END VIDEOTAPE)