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TARP Two; Anxiety inside GM; Terrorized by Arson; Nowhere to Run
Aired February 08, 2009 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Tonight, the President prepares to address the nation and all of us are waiting and watching. We want to know, when will that massive stimulus bill reach every day Americans?
(BEGIN VIDEO CLIP)
JAMES KENDALL, PRESIDENT, UAW LOCAL 23: If it don't work out here at this facility, and there's to where else to go, well I'll do what I have to do to get by.
(END VIDEO CLIP)
LEMON: Tonight, the faces of this recession.
The worst ever wildfires are ravaging Australia tonight. The death toll and the devastations spiral.
And meet the new White House Social Secretary, accomplished, stylish, young, and a familiar face to the Obama family. The news live from Washington, D.C. starts right now.
Hello, everyone, I'm Don Lemon live tonight from Washington.
President Barack Obama has been in office for just 20 days, not even a month. And already he is facing huge tests of his political leadership and enormous pressure to close the deal on an economic stimulus package.
There are growing signs Americans have creeping doubts about the young administration. Energized Republicans are united in their opposition and new polls suggest public support for the stimulus bill is slipping.
Plus Mr. Obama is struggling to fill key cabinet posts. The President holds his first primetime news conference in a little more than 24 hours. He has also scheduled town hall meetings this week in Indiana and also in Florida.
And there's no greater illustration of the need for stimulus than this.
This is Chicago, hundreds of people lined up this week and outside Wrigley Field hoping to score a part-time job at the stadium. Scenes like this are playing out all across our country. People are desperate to find work. Meantime, the President has returned to the White House after his family's first trip to Camp David. He is well aware, of course, of the tough times facing so many Americans. Members of Congress are feeling the heat, too.
The Sunday talk shows were filled with lawmakers making the case for and against the proposed stimulus plans.
(BEGIN VIDEO CLIP)
SEN. RICHARD SHELBY, (R) ALABAMA: We're going down on a road where it's uncharted. We're going down a road to disaster. We've never seen this kind of spending ever and there's a lot more to come.
There's got to be some other way better than what we're doing. Not the socialist way, but to try to get our free markets working again.
SEN. CHARLES SCHUMER, (D) NEW YORK: The most important thing is that we are not going to let small differences stand in the way of passing this very strong bill which the American economy desperately needs. To quibble over small little things and let the bill go down would be a huge mistake for the American people given the state of our economy and the need for a real shot in the arm.
(END VIDEO CLIP)
LEMON: We have a lot to sort through here for you tonight. Let's bring in two of our very best, Mark Preston of CNN's political editor and Poppy Harlow, is from CNNmoney.com.
Mark, we'll start with you. I was here just under three weeks ago and a very different tone seems to be going on right now. In the middle of this crisis, is this a welcome to the presidency, Mr. Obama, moment?
MARK PRESTON, CNN POLITICAL EDITOR: Absolutely. And what we're seeing right now, Don, is that Republicans have finally gotten their voice, they finally have got in their footing and they've been able to rally around one of their core principles and that is fiscal discipline.
We've seen Republicans in the House stand together to oppose the stimulus bill. When this vote occurs on Tuesday in the Senate, on their version, we're likely only to see three Republicans support it. So right now, what we're seeing is really a partisan warfare over how best to get out of this economic crisis.
LEMON: And it appears not just here in Washington, Mark. Even some of the people, and really it's a very young administration, but some of the people who were pro-Obama during the election, Frank Rich this morning from the New York Time, says, "Even as President Obama refreshingly took responsibilities for having screwed up. It's not clear that he fully understands the huge forces that hit his young administration last week talking about what happened with two of his appointees when it came to tax problems, both of them having to bow out." PRESTON: Yes, and he had a great honeymoon period from November until literally up to Inauguration Day. But really this is where it all counts and this is where the Republicans seem to be in disarray up until that day. But they really seem to have got it back together.
Also, Barack Obama really seemed to be able to reach out to the masses. We saw soaring poll numbers; we've seen them start to fall down a little bit. He still is doing very well, but there's a lot of questions about his proposals and if can he actually get them through. And if he does get them through, will they be in a bipartisan --
LEMON: All right, stand by Mark, I want to bring in Poppy Harlow now to talk about the stimulus bill that's getting ready to be talked about on Tuesday, Poppy.
And so let's talk about what the stimulus bill is going to put into people's pockets. When is it going to put money into people's pockets? We're talking about tax rebates for 95 percent of Americans, bigger unemployment checks, extended unemployment benefits, subsidized health insurance, credit for home buyers.
Poppy, so tax rebates, how is that going to help Americans? Don't they need money?
POPPY, HARLOW, CNNMONEY.COM: Yes, and the big problem here is that a lot of analysts say ok, these tax rebates will go to about 95 percent of Americans, that's at least what was included in the House version of the bill. But it would only be about $500 per individual.
What is $500 going to do for someone, critics say, when they don't have a job. It's really similar, Don, if not almost identical to the stimulus package we saw last spring when checks were mailed to individuals. So that could be a problem.
But what you see in this in terms of what is very likely going to go into Americans' hands is a lot of aid for people that are already unemployed because those jobless numbers just go up and up. So what this is extending those unemployment benefits, giving people a little more money to live on every week.
And then also trying to incent (ph) people to buy homes in this country because housing is still a big part of this crisis. And then Don, I know you and I were talking about those shovel-ready project, right? When are people going to see jobs creations.
LEMON: That shovel-ready, that's the term that's being thrown around this weekend that I've heard a lot of this week.
HARLOW: Yes.
LEMON: What are we talking about?
HARLOW: Well, some people do say they're optimistic, they say when this bill passes we could see jobs in four to six months. And obviously there are states Don that are hurting more than other, especially Michigan. And on Friday, I talked to the Mayor of Lansing, Michigan. And he said listen, our unemployment rate is near 11 percent. This is a GM town. We need help from Washington. Take a listen.
(BEGIN VIDEO CLIP)
(VOICE OF) VIRG BERNERO, (D) MAYOR, LANSING, MICHIGAN: They need to know that this stimulus package is about them, the average American. That it's not about the banks it's not about the Wall Street interest, it's not about the petty partisan bull crap and fighting.
The heartland of this country is sick; the heartland of this country is down. And hopefully not out.
(END VIDEO CLIP)
HARLOW: Don, he's talking about all those manufacturing and construction jobs that were lost, a lot of those, right in Middle America. That's far from Wall Street, that is far from Washington, but they need help from Washington and from Wall Street right now.
LEMON: Poppy Harlow and Mark Preston, we appreciate it. Thank you. You stand by, because we want both of you to stick around and we're going to be talking so much about this stimulus plan coming up.
But there's another huge economic plan out there aimed at propping up Wall Street and thawing the credit freeze that's been going on. We'll break down the recovery plan and what it means to you, as well.
But first, more than 4 million people have lost their jobs since the recession began. More than a year ago and those who still have jobs wonder how long they can hang on to them.
(BEGIN VIDEO CLIP)
SCOTT MCMILLIN, INDIANAPOLIS, AUTO WORKER: You just don't know. It's all a crap shoot. My dad worked for 27 years and retired from the foundry that I started in. His job was secure from day one. Nowadays, as an auto worker is pretty much a modern day gypsy, moving from plant to plant.
(END VIDEO CLIP)
LEMON: The faces of recession, we'll introduce you to you them in just a few moments.
And all the talk about stimulus has overshadowed the other big money issue that is awaiting action by the Obama administration. Deciding the best way to spend the remaining $350 billion in government's financial industry recovery package; the remaining bailout funds.
Treasury Secretary Timothy Geithner will unveil his plans on Tuesday.
Poppy and Mark, come back to talk about the recovery, yes, this recovery plan, so we'll talk to them in just a little bit about that. Actually, we'll talk to them now. Let's talk to them now. So, listen, we talked about this recovery plan, Poppy, I'll start with you, --
HARLOW: Yes.
LEMON: The TARP money; $350 billion of it. That was already spent by the Bush administration.
HARLOW: Right.
LEMON: Do we know what's going to happen with the other 350?
HARLOW: We don't Don, but there are many educated guesses out there. I like to call this TARP one and TARP two, so half was for Bush, half is under Obama's oversight.
We know one thing, this time it'll be radically different because there was a lot of criticism about how many times the plan changed under the Bush administration.
And here are some ideas that we could very likely hear from our Treasury Secretary on Tuesday. Maybe forming a bad bank, meaning taking all those bad assets off the book so places like Citigroup and Bank of America so that you, Americans, want to invest in those banks and then they lend to you and you can start businesses again. That's the whole idea.
Another, backup the bank's asset, give them some kind of insurance. That's really focused on confidence, Don, instilling more confidence which we know is at record lows right now.
Also, maybe make more investments in the banks like TARP one as I said, put more money directly into banks, but, again Don, it all comes down to oversight because people are really, really upset. So they say there wasn't enough oversight before, --
LEMON: Poppy?
HARLOW: Yes, Don.
LEMON: Really quickly, I understand allow banks to fail?
HARLOW: Right.
LEMON: What does that mean?
HARLOW: That is being talked about. It's not getting the lion's share of the attention, if you will. But maybe we let these banks that essentially are so unhealthy that they've already needed billions of dollars in government money, and maybe you let them fail, you let the FDIC come in, take them over and sell them to healthier parties.
But, again, Mark, let's bring in you on this if we can, and wouldn't the political reaction to that just would be massive.
LEMON: It would be and there's lot of political reaction, too, as well, Mark, because that's a lot of money $350 billion already spent by the Bush administration. There's been some criticisms about that because people say they don't really know where it went.
So this administration is really under the gun to take ownership of the next $350 billion, as well.
PRESTON: They are, and I think Poppy was correct in calling it TARP one and TARP two. That first $350 billion, nobody really knows where it went, how did it stimulate the economy. Did it propped up these banks?
A lot of criticism here in Washington about that money and really how it was administered, and what the oversight was. TARP two now, the Obama administration, there was a lot of talk, there was a lot of promises about making sure that they would use that money correctly, that they would put it into the right place.
Well, right now, it's no longer about talk Don it's about actually getting it done. And we will hear that on Tuesday.
Two things though, Don, we should keep in mind. Barack Obama has taken two steps, President Obama has said, one, he will cap executive compensation at these banks who receive large amounts of TARP money.
And, also, in addition to that, they say they will give more transparency. We will know where this money is going. So he's talking -- still talking a very good game. He seems to be taking good steps. But the fact of the matter is we need to hear from Geithner on Tuesday and how they'll actually administer it.
LEMON: Just getting information as well that's coming in here, Mark, that Secretary Geithner is going to unveil this 11:00 a.m. Eastern on Tuesday, 11:00 a.m. Eastern on Tuesday. That is just coming in.
Thank you very much Mark Preston for that. I appreciate it.
Poppy, I want you to stick around because a little bit later on, we're going to take a closer look at where the jobs are, where the jobs are and why women might be in a better position to hold on to theirs.
And as always, we want you to be part of our newscast and act a part of our newscast here tonight. Here's what some of you are saying.
Here's what Dallas Black is saying. "Republicans need to stop offering obstacles and provide solutions on this stimulus bill. No time for stalling."
And trimphantbiz, says, "I work in many shifts or working many shifts, I can took in reliable roommates, selling my computer at Joy computers, not waiting on stimulus.
Make sure you log on to Twitter, Facebook, MySpace or iReport.com and tell what was you're thinking. We will get your responses on the air.
The economy and the stimulus bill are sure to be the focus of President Obama's first primetime news conference tomorrow night, 8:00 p.m. Eastern. And, of course, you can see it right here live on CNN.
Facing tough financial facts of life.
(BEGIN VIDEO CLIP)
KENDALL: If it don't work out here at this facility and there's nowhere else to go, well I'll do what I have to do to get by.
(END VIDEO CLIP)
LEMON: Those are autoworkers at a plant that is downsizing and wondering how long they can hold on to their jobs. These are the "Faces of Recession."
And if you don't think that change on the ground is worth picking up, well, think again. There's a potential fortune under your feet.
We're back live from Washington moments away.
(COMMERCIAL BREAK)
LEMON: We have been asking for your feedback and you guys are doing it already.
Here's what Steve Grant says. He says, "I think that it is really important the bill get passed as soon as possible, ASAP. We have to start from somewhere, let's take action now."
And career engineer says, "Don, my concern is we had a May 2008 stimulus plan. Did it stimulate anything? Second time around needs to produce results."
Make sure you become an active part of our show by sending your comments to Twitter, Facebook, MySpace, iReport.com. We will get them on the air for you.
You know what we do here, throughout this economic crisis we are committed to keeping a human face on the recession. We can't tell everyone's story, but we can tell a lot of your stories. And for every face you see, there are countless others across America just like them.
At a General Motors plant in Indianapolis, the main thing rolling off the factory floor these days, quite frankly, is anxiety about the future.
Here's CNN chief national correspondent, John King.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: General Motors plant in Indianapolis.
JAMES KENDALL, PRESIDENT, UAW LOCAL 23: I was tickled to death when I hired in here. I was working for the largest cooperation in America. I mean, I was just on cloud nine. KING: 3,400 workers when James Kendall arrived 18 years ago.
And how many now?
KENDALL: Well, after a lay off of (INAUDIBLE) there'll be roughly 630 folks working.
KING: Inside on Friday, GM officials tried to sell those union workers on a buyout plan. The company says shrinking its workforce is critical to becoming more competitive. Kendall will say no, as will Scott McMillin.
Indianapolis is his third GM plant in the past 15 year. He has a daughter in college.
SCOTT MCMILLIN, GM EMPLOYEE: If I did retire now from General Motor, I would be looking for another job and they're just not out there.
KING: But saying no is a gamble. GM has talked of closing this plant all together.
MCMILLIN: You just don't know. It's all a crap shoot. My dad worked for 27 years and retired from the foundry that I started in. His job was secure from day one. Nowadays, an auto worker is pretty much a modern day gypsy moving from plant to plant.
KING: Workers who say the buyout isn't enough, no layoffs later, could mean nothing.
What if it doesn't work out, what happens to you?
KENDALL: Well, I don't know. We'll see. If it don't work out here at this facility and there's nowhere else to go, I'll do what I have to do to get by. It's just snowballing into massive, massive unemployment. And I don't think we've seen the end of it. All you have to do is watch the news and it's depressing really.
KING: John King, CNN, Indianapolis.
(END VIDEOTAPE)
LEMON: Make sure you tune in tonight here on CNN for John King's "State of the Union" beginning at 8:00 p.m. Eastern -- 8:00 p.m. Eastern.
Caught in an inferno, dozens of them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: When we saw the floorboards was on fire and windows were smashed and the fire was coming in the windows and the door caught on fire.
(END VIDEO CLIP)
LEMON: The pictures are unbelievable. The stories just horrible; Australia's massive wildfires take a deadly and historic toll. We'll take you to the heart of them.
(COMMERCIAL BREAK)
LEMON: A terrorized Pennsylvania city doing whatever it can tonight to fend off serial arsonists. Coatesville is extending its overnight curfew for everyone under 18, plus police are ready to fine people up to $600 if they don't remove flammable items from their porches.
Just this year, 23 fires in and around Coatesville were found to be arson. This latest one destroyed a mobile home late Friday. Last year, a string of arsons also hit the city, which is just outside of Philadelphia.
In Australia, more than 100 people have lost their lives as ferocious wildfires ravaged the brush in the bush in all direction. The flames are moving so rapidly that some people were burned alive trying to flee.
Libby Weiner (ph) of ITV news has a horrific footage and we should warn you some of the images are very disturbing to see.
(BEGIN VIDEOTAPE)
LIBBY WEINER, ITV NEWS: Fires were expected but not a firestorm like this. It raged unchecked through the villages of Victoria, the searing heat literally vaporizing buildings, livestock and people in its path.
Australia has been braced for the worst, but few could imagine this. From the air, the scale of the destruction was apparent. Whole communities wiped off the map. Where there were survivors many were in shock; one seeking solace from Australia's prime minister.
KEVIN RUDD, PRIME MINISTER, AUSTRALIA: Hell and all its fury has visited the good people of Victoria in the last 24 hours. And many good people now lie dead.
WEINER: We traveled through the blackened bush to one of the areas where many had perished; all around, evidence of panic and devastation. An abandoned motor bike and beyond, the body of its rider, caught out as he tried to run away from the flames. Elsewhere, cars had careened into each other, the fate of their occupants unknown. Most of the houses in the town have been completely destroyed.
Much of the small settlement of King Lake is now a ghost town. Everywhere there's evidence of the haste with which residents were forced to leave. But the intensity of the heat meant many didn't make it. From what now appears to be the worst bush fires here for a generation.
Just a mile away, one of the luckiest of survivor, Eddie Giacometti, who took refuge in the cellar with his family as fire swept over them.
EDDIE GIACOMETTI, FIRE VICTIM: When we saw the floorboards on fire and the windows smashed and fire was coming in the windows and the door caught on fire, so we had to make a call to leave, but it was hard to open the door. The thing was a million degrees in your face. We put a blanket around all four of us and headed out towards the back and ran throughout fire.
WEINER: But the survivors here are few and far between. The fires have taken a deadly toll; the power of nature outstripping the power of mankind to defend itself.
Libby Weiner, ITV news, Victoria.
(END VIDEOTAPE)
LEMON: Boy, oh, boy. Jacqui Jeras -- let's go to our Jacqui Jeras now so she can talk about these fires.
Jacqui, people were burned alive trying to run away from these fires because they were moving so rapidly. What's going on there, just dry heat?
JACQUI JERAS, METEOROLOGIST: It's a combination of factors like it usually is, Don. But the winds were really driving this fire in the last couple of days. There's been an ongoing heat wave that literally has been lasting for weeks where temperatures have been well into the triple digits, believe it or not. On top of that, they've had an ongoing drought. So any little spark and things can really take off.
And the heat's so intense we are detecting it on our satellite. You can see that on the Google Earth Map back behind me. Southeastern parts where the most intense fires are, right in that area where you see Queensland and Victoria, if you take that fully, you'll have a better idea -- there we go -- of the area that we're talking about down in the southeastern part of the country.
Melbourne, there you can see it popping up on the map as well, to put this in perspective. And then Marysville which is just north and east there is also one of the more extreme areas. They're saying it could take weeks for these fires to extinguish.
Temperatures there today, it's already tomorrow actually, temperatures Monday are going to be a little bit cooler, so that's a little bit of good news. And just to make things a little more interesting, unfortunately, believe it or not, while these fires are raging in southeastern Australia, check out all those clouds up there in northern parts of the state. Yeah, they've got flooding in Queensland, about 60 percent of that area is under minor to moderate floods.
Back here in the U.S., we've got heat, nothing compared to what they've been dealing with in Australia where it's summer, but we've been dealing with more spring-like conditions. A number of record highs today: Raleigh Durham, 75; 73 in New Bern; and check it out, Bangor, Maine, 47. Hey, you should be in the 20s this time of the year. So it's feeling pretty good.
Those temperatures are going to be sticking around for a couple of day, particularly in the southeast. Here we are 7:00 and we're still looking at 60 degree conditions. From the southwest, a little cone (ph) system is moving in here with some cooler air, so you put those two things together and we can get severe weather.
Severe thunderstorm watch issued including you in Lubbock and Amarillo until 10:00 local time. But more significant severe weather we think will be pulling in to the area on Tuesday as a new storm moves in from the west -- Don.
LEMON: Ok, thank you very much for that, Jacqui Jeras back in Atlanta. We appreciate it.
The unemployment gender gap: how women might be better positioned to survive the recession. And this --
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: That's 13 cents.
UNIDENTIFIED MALE: You're standing in the sewer picking up a penny. Are you feeling any humiliation or embarrassment?
UNIDENTIFIED FEMALE: I'm really proud about it.
(END VIDEO CLIP)
LEMON: A penny here, penny there, it all adds up to these tough economic times.
(COMMERCIAL BREAK)
LEMON: A critical week ahead for Congress, President Barack Obama and the rest of us. A senate stimulus bill is expected to pass on Tuesday. It then has to be reconciled with the more expensive stimulus package already passed by the house.
President Obama is calling on lawmakers to iron out their differences and do it quickly. He wants a bill he can sign into law by the middle of the month.
Not every industry is suffering in this economy. In fact, a few sectors are actually pretty strong.
Our Mary Snow gives us a look at one career field that's been hiring for years and shows no signs of slowing down.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Bucking the trend of mass layoffs, the health care industry. It added 19,000 jobs last month. Job security is one reason why Alexis Golada (ph) left social work to go to nursing school.
ALEXIS GOLADA: I don't think anybody that's in this program can have trouble finding a job.
SNOW: Nursing student Nancy Yang was a professional singer seeking a safe haven.
NANCY YANG, NURSING STUDENT: Everything else you get cut off on but health care especially the ageing population, it will just keep growing.
SNOW: Applications to nursing programs have been on the rise for eight years. And the dean of Stony Brooke University's nursing school says she's been seeing more applicants ever since the dotcom bubble burst and there's a break from the past.
LENORA MCCLEAN, STONY BROOK UNIV., SCHOOL OF NURSING: More men are coming into nursing and more men and women beyond the typical college age student.
SNOW: Seizing the momentum, Christopher Luis left 20 plus years of corporate life to open a business as a head hunter for health care workers. He says he started in October and has since expanded.
CHRISTOPHER LUIS, BRIGHT STAR HEALTHCARE: I looked at the marketplace where the needs were over the next five, 10 years. Healthcare, particularly healthcare staffing, was a no brainer to me.
SNOW: While healthcare stands out among sharp cuts and other industries, not as many people are being hired compared to last year and one recruiting firm tracking job losses expects the ripple effects of record unemployment to put a dent in the healthcare industry, too.
JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: Companies are letting go of workers, that's giving them less access to health care coverage and that means fewer times that they can go get the healthcare they need.
SNOW (on-camera): Another pocket of strength in January's dismal jobs report was education. The labor department reports 33,000 hires in private education last month. Mary Snow, CNN, New York.
(END VIDEOTAPE)
LEMON: And for the first time in this country, the workforce seems to be operating on an even playing field. Could women actually surpass their male colleagues on the nation's payrolls? Let's ask our cnnmoney.com's Poppy Harlow. She joins me live from New York. So breakdown - break this down for us.
POPPY HARLOW, CNNMONEY.COM: All right. Don, yes a lot of talk about this after an article on Friday in the "New York Times." So I made some calls because I'm not an expert in this so I called Kim Gany (ph) , she's the president of the National Organization for Women. I talked to her for a while and she said, listen, Poppy, women make less money than men, they make 76 to 77 cents on the dollar but as you just heard, in Mary's piece, it is the health care industry and the education that are actually adding jobs.
They added thousands of jobs last month when nearly 600,000 jobs were cut in other sector. So the real thing that's going on here is Don, is that the areas that are cutting jobs like auto workers, right, and construction and manufacturing and financial jobs, those are look at that number, folks, 598,000 jobs lost in January alone. A lot of those jobs that are being cut are male dominated fields.
So the unemployment rate is going up, it's 7.6 percent now, but women may be fairing a little bit better in this recession even though they do make less money than men. They're becoming more and more, Don, the sole bread winner many homes in this country.
LEMON: It's because male dominated fields are - the jobs are being cut more. That's why the disparity there.
HARLOW: And Don, because men make more money, typically than women, it's those higher paying jobs that are getting cut first.
LEMON: The first to go. Yes.
HARLOW: Exactly.
LEMON: Their target.
Poppy Harlow, we appreciate it. And, of course, you can always get more Poppy Harlow's sound financial advice, it's just a click away, cnnmoney.com. Make sure you check it out. We've been asking you for your responses and a lot of you are weighing in tonight. Here's what Obama8and12 says "it looks like the economy is going into a great depression. Obama and Congress will have to work together to get the economy fixed.
Saxwriter says "one more thought: The President needs to play hardball with the Republicans. Mr. Nice Guy apparently doesn't work. He won."
And SeptemberRenegade says "the hole we're in, I doubt the stimulus will do anything. We need a miracle at least. Chrisburnesradio says Republicans need to stop crying socialism every time government has to spend money. Their ideology has gotten us into this mess. Make sure you keep all of it coming at twitter, Facebook, myspace and ireport.com. We will get your responses on the air tonight.
Well, this week marks Abraham Lincoln's 200th birthday. The Postal Service is marking the occasion with four new first class stamps. They depict Lincoln at different phases of his life. Rail splitter, lawyer, politician, and president. Each one will cost you 42 Lincoln pennies.
Well this, Thursday, CNN presents from Lincoln to Obama. It is our bi-centennial celebration of President Lincoln's life and his legacy and our exploration of the link between Lincoln and President Obama. Our Soledad O'Brien is live in New York, Kyra Philips in Springfield, Illinois and I will be right here in Washington, D.C.. Our coverage starts at 9:00 a.m. Eastern only here on CNN.
Building fancy new stadiums with luxury boxes and gourmet restaurants. A good idea? In a recession? Well, according to our Rick Horrow, they sure are and he'll tell us why. It could be one of the first results, you would see from a potential stimulus. What the heck is that? We'll find out.
RICK HORROW, CNN SPORTS BUSINESS ANALYST: That's the Orange Bowl.
LEMON: We'll see. All right.
(COMMERCIAL BREAK)
LEMON: With all the dust up over bank failures and rescues, Citigroup is reportedly rethinking it's decision to name the new METs baseball stadium after the bank. Well, no final decision has been made but the "Wall Street Journal" says Citigroup believes a volatile political climate could make proceeding with the deal not so wise. The troubled bank got a big chunk of federal bailout money and members of Congress are demanding answers about the $400 million stadium naming rights deal.
One of the fist things President Barack Obama wants to accomplish during his first 100 days is a major overhaul of the country's infrastructure and when we hear the word infrastructure, we usually think of roads and bridges and tunnels and things like that. But sports, entertainment and spectator facilities are also included in that. Right, Rick Horrow? Rick Horrow is our sports business analyst. He joins us now live from West Palm Beach. You were holding up the Orange Bowl there. All right. So listen, I have to ask you, why is this stuff included and will this kind of construction be the first jobs we see created from this stimulus plan or at least among the first?
RICK HORROW, CNN SPORTS BUSINESS ANALYST: Well, Don, the reason it's included is because whatever House or Senate version ultimately survives, let's just remember that 19,000 of these projects already teed up by the National Conference of Mayors. Tennis Center, Virginia Beach, frisbee golf course in Austin, Texas and everything in between. Rest assured, stadiums, performing arts center, convention centers, arenas and the like will be an important part of those four million jobs they say will be created.
LEMON: OK. Is there a precedent or anything like this, Rick?
HORROW: Absolutely. (Squire Sanders and Dempsey) one of the big law firms in the country, in the world had one of its first partners running the original Herbert Hoover administration in the 1930s who turn in WPA and they showed us some stats, $11 billion of these infrastructure dollars, about $150 billion if today, but more important, 2,500 stadiums, six million seats, including this, the real thing. By the way, the Orange Bowl built in 1937. This isn't. It's already been torn down but that was re-built with WPA funds. Rutgers Stadium in 1938, Double Day field where the hall of fame is in Cooperstown, New York in 1939. Let's just remember when we talk about federal money in this kind of context, we've been seeing it, Don, for over 70 years.
LEMON: All right. So then what does it mean for the industry?
HORROW: Well, it mean as lot. We have new stadiums going up now and opening, Yankee Stadium, Mets Stadium, Dallas just this year. But also we have some issues here. New stadium controversies in Miami, in San Francisco, and Oakland, in L.A., in San Diego. And using the public dollars to create these kinds of jobs will be a very important part. $250 sports and recreation facility built since 1990, $20 billion of public funding. The characterization of infrastructure and stadiums and arenas will be an important part of the future.
And people could use those jobs, can't they Rick. Hey, by the way, where does one get a replica of this stadium you have?
HORROW: Well, since it was torn down, I probably have the only one. And, frankly, I'm not selling it.
LEMON: So don't look for it on ebay. Rick Horrow, we appreciate it. Thank you very much, sir.
HORROW: Bye.
LEMON: Hank Aaron, Major League baseball great and legend. Well, he's got 755 home runs under his belt and one very important message to the next generation of dreamers. As he celebrated his 75th birthday with family and friends, he talked passionately about why he encourages young people.
(BEGIN VIDEO CLIP)
HANK AARON, BASEBALL HALL OF FAMER: I feel like a few years ago that when I was chasing my dream, that if somebody didn't step in and say, Hank, keep chasing, keep doing this, then I would not have had a chance to be a home run hitter.
(END VIDEO CLIP)
LEMON: Yes, you can see there in the video, Hank Aaron's birthday party was a star-studded fundraiser for the Hank Aaron Chasing the Dream Foundation, which he founded 15 years ago with his wife Billye and she sang happy birthday to Hank Aaron in a way that would have made Marilyn Monroe jealous.
(BEGIN VIDEO CLIP)
BILLY AARON: Happy Birthday to you.
(END VIDEO CLIP)
LEMON: Very nice.
Let's talk about going Grammy gold now. Our Brooke Anderson is working the red carpet. How are doing out there, Brooke?
BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I'm doing great, Don. Yes, here I am at the 51st Annual Grammy Awards. The excitement is building. We're about 15 minutes away from the top of the show. Give me the commercial break and hopefully I'll have one of the nominees to talk to and we'll come back. How about that?
LEMON: All right. We'll see you then. ANDERSON: OK.
(COMMERCIAL BREAK)
LEMON: Behind every social function at the White House, there is one key person who is responsible for planning every single detail. In the Obama White House, that person is that young lady right there, Desiree Rogers. She is a Chicago businesswoman with an MBA from Harvard and a close friend of the Obamas. CNN's Lola Ogunnaike recently visited her at the White House to talk about her high profile job. Hey listen, she may know fashion. She knows how to throw a party but she's a smart lady - head of - when I was in Chicago's People's Energy, People's Gas. She's serious stuff.
LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT: Executive at All State. She's a Harvard MBA. This woman is the real deal. She's got the resume. But, again, she's a socialite and she knows how to throw a mean party. Here's what she had to tell me about that, Don.
(BEGIN VIDEOTAPE)
OGUNNAIKE: How do you go about turning people down? Do you have a line yet, these days, to day, it's not you, it's me? I'll get you next time, don't worry?
DESIREE ROGERS, WHITE HOUSE SOCIAL DIRECTOR: Some people are extremely persistent. I say to them we have four years, we just got here. I mean, I think that line will probably have to go away soon, but I'm going to use it for at least the next six months.
(END VIDEOTAPE)
OGUNNAIKE: Don, clearly she's got the keys to the hottest ticket in town. Everyone wants to be on the Obama's dance card. Everyone wants to be at the White House. They are - this is a must have ticket in D.C. and, again, she's very clear about making sure that they're accessible, but not too accessible, because, again, hundreds of thousands of people want to get to them and she frankly has to figure out who gets on the guest list and who doesn't.
LEMON: And she has to be very guarded. Obviously, she's old friends with the Obamas, known them for a long time. Did she share any of the personal stories or anything else with you that you want to tell us about? Did she talk about her friendship, about the beautiful, you know, apartments that she's supposed to have and wardrobe or any of that stuff?
OGUNNAIKE: We talked apartments, we talked clothes, we talked first dog, but that's going to be for tomorrow. I have to give a little tease. First dog comes tomorrow, not tonight. But we also talked about her first day there and just what it was like to walk into the White House. This is where she's going to be working for at least the next four years.
(BEGIN VIDEOTAPE)
OGUNNAIKE: What went through your mind? You walk into the White House and say I actually work here?
ROGERS: Well, you know, what comes to my mind is OK, let's get going. I just tried to like save that so that I could just focus at the beginning. and I do have a walk - I do have a walk that I take each day between the east and west wing that I do say, oh, my goodness, I really am here.
(END VIDEOTAPE)
OGUNNAIKE: Don, she's already planned 14 successful events and there are more on her ticket and she says invitations flood her mail box day in, day out. Her blackberry is full. She's going to have a lot of work to do juggling people who are trying to get to her and people who are trying to get to her to get to the Obamas.
LEMON: Yes but don't be fooled. Desiree Rogers' blackberry and social calendar were full even before she came to the White House. But you know -
OGUNNAIKE: This is nothing new for her, right?
LEMON: I saw an old friend of hers at one of the balls and said what's amazing, they were very happy for the Obamas, they said. You know what, Desiree got the perfect job and she really did. So we wish her much luck with that. I can't wait to see your piece on tomorrow morning. Thank you.
OGUNNAIKE: Thank you.
LEMON: All right, Lola.
The full interview with Desiree Rogers, the new social secretary at the White House, it will air tomorrow on AMERICAN MORNING with Kiran Chetry and John Roberts, 6:00 a.m. Eastern. You don't want to miss that.
U2, Coldplay, Li'l Wayne, Kenny Chesney, Justin Timberlake, Paul McCartney, my gosh, and guess who else. One of our very own is there. Just some of the stars at tonight's Grammy Awards kicking off this hour. You're seeing live pictures on the red carpet in Los Angeles. And there's our star, Brooke Anderson is there, looking beautiful in black. All right. So drop some names for us.
ANDERSON: You drop sod many names just then, Don. I don't know, did you say T.I.? Katie Perry? Did you say Jasmine Sullivan?
LEMON: I did not. I did not.
ANDERSON: Well, look who I have right here with me right now. One of tonight's big nominees, Jazmine Sullivan, up for five Grammys including best new artist.
JAZMINE SULLIVAN, GRAMMY NOMINEE: Amazing.
ANDERSON: Amazing. How excited are you to be here? And to be honored by your peers in the recording industry? SULLIVAN: It feels so wonderful. I mean, I've been working towards this since you know, really I was really a kid. I'm 21 now. So it's been a long time. So you know, I'm just happy that the music and myself we're finally being recognized.
ANDERSON: And your hit song "Bust your Windows" where does your inspiration come from?
SULLIVAN: Well that actually was very personal for me but you know, most of the songs are just real-life experiences and I make it that way so it's very relatable to my audience.
ANDERSON: And your guest tonight you told me are your parents and your boyfriend. And this is your first time at the Grammy Awards. So how incredibly meaningful and special is it?
SULLIVAN: Wow, it's absolutely wonderful, especially, you know, for the album to be nominated in best contemporary R&B album. I feel really great. I feel great.
ANDERSON: And hitting this red carpet for the first time. Is there anything that surprise you'd or anyone that has shocked you that something you didn't expect?
SULLIVAN: I don't know. I think all of the stars are really little, like when you see the stars on TV you think they're so big and then you see them and they're like really little. So that surprised me.
ANDERSON: Well, you are a star, in your own right. And you look so lovely. Congratulations. Best of luck to you Jazmine, on tour right now, right?
SULLIVAN: Yes. With Neo.
ANDERSON: Thank you so much. Enjoy yourself tonight.
ANDERSON: On tour with Neo, Don, and you know, if you love music, tonight's Grammys are going to be such a concert. There are 24 musical performances. More than ever in the past for a Grammy Awards show. So it should be exciting.
LEMON: Well, you're on tour with A.J. Hammer or you're just alone tonight? Solo performance?
ANDERSON: I'm solo tonight. Yes.
LEMON: Thank you very much for that Brooke. Enjoy.
ANDERSON: Thanks.
LEMON: Find a penny, and pick it up.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: That's 13 cents.
RICHARD ROTH, CNN CORRESPONDENT: You're standing in the sewer picking up a penny. Are you feeling any humiliation or embarrassment?
UNIDENTIFIED FEMALE: I'm really proud about it.
(END VIDEO CLIP)
LEMON: To save every single penny. It's not just the homeless, everyone is doing it. More and more of us looking to the sidewalk jut to get by.
(COMMERCIAL BREAK)
LEMON: Well, a lot of everyday Americans have been asking, where's my bailout? For a couple of days this week, it was in Times Square.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Heard about the free money. It's my daughter's birthday, so I could buy her a present.
UNIDENTIFIED FEMALE: So you're here to get something nice for your daughter and to get a bailout? Yes. you're a good father.
UNIDENTIFIED MALE: Thank you.
UNIDENTIFIED FEMALE: Let's see what the bailout bill can do for you, OK?
UNIDENTIFIED MALE: Today, we got $50 for you.
(END VIDEOTAPE)
LEMON: Well, everybody who stood in the freezing weather, some for up to five hours, was given at least $50, no strings attached. A Lucky few got substantially more, if they could persuade the mystery man in the booth that they needed the cash. The give-away was publicity stunt for a new website, it's called bailoutbooth.com. All you have to do to get the money was be 18 or older and explain on camera why you needed the cash. Similar stunts are planned in Philadelphia, Washington, and Boston. So look for them there. That's what everybody could use free money.
Well some New Yorkers are really hanging their heads in this recession, making money while they're doing it as well. One family gives the new meaning to the term pinching pennies. CNN's Richard Roth has their story.
(BEGIN VIDEOTAPE)
(BEGIN VIDEOTAPE)
ROTH (voice-over): Meet the Humpherys. They're not depressed in this tough economy. They just like to look down.
UNIDENTIFIED FEMALE: I found it in the grass.
ROTH: This family of stupors illustrates America's new found devotion to saving money. They are obsessed with collecting coins.
BARBARA HUMPHERY, COIN HUNTER: And it comes out of the car, it comes back with a dime. I'm like, how did you see it?
UNIDENTIFIED FEMALE: Mommy, Daddy, I found one.
ROTH: The parents feel the kids are learning that every penny counts.
PRES. BARACK OBAMA, UNITED STATES: What we need is real change.
UNIDENTIFIED MALE: Whopping four pennies.
UNIDENTIFIED FEMALE: Four pennies.
ROTH: Pennies that go into the change pot at the Army Sergeant's home.
SCOTT HUMPHERY: The importance of money, the importance of saving money with the economy the way it is right now.
ROTH: $1,100 found in more than three years.
BRIANNA HUMPHERY, COIN HUNTER: If you actually save up money instead of wasting it on junk, maybe -
ROTH: The morning haul, 15 cents.
SCOTT HUMPHERY: I found a dime in the parking lot, and then we also had a pitbull try to keep a nickel from me, but I got it.
ROTH: That hurts the feelings of Mame McCutchin's dog. The writer hopes Manhattan streets are paved with cash.
MAME MCCUTCHIN, COIN HUNTER: We're really excited we're going to find something today. Come on. Find me a 20.
ROTH: May got three piggy banks but isn't trying to learn any lesson.
MCCUTCHIN: When I find money, I just spend it. There's no savings.
ROTH: Here's a tip.
MCCUTCHIN: You know what's a good place, it's in the candy boxes at the register places, there's always change in there. People drop -
ROTH: I think that's called stealing.
MCCUTCHIN: That's 13 cents.
ROTH: You're standing in the sewer picking up a penny. Are you feeling any humiliation or embarrassment at all?
MCCUTCHIN: I'm really proud about it.
ROTH: So in this economy, how low would you go?
UNIDENTIFIED MALE: If I see a penny on the street, I'll pick it up.
UNIDENTIFIED FEMALE: I wouldn't pick up a penny. I mean it would have to be something valuable, maybe a quarter.
UNIDENTIFIED FEMALE: See a penny, pick it up and all the day you'll have good luck. See a penny, let it lay and bad luck you will have all day.
UNIDENTIFIED FEMALE: Aha!
ROTH: She beat me for that penny. Richard Roth, CNN, New York.
(END VIDEOTAPE)
LEMON: If I see a penny on the street, pick it up was supposed to be heads up, otherwise you just flip it there, leave it for someone else, you'll have bad luck. Let me know if it's true on twitter or facebook.
Here's what you're saying as a matter of fact on those platforms. Here's what Obamaladen08and12 say's "everyone needs to save every penny in these tough times. Obama and Congress have to look past party lines to fix the economy." Elsrmp56 says "why do Republicans want to take things out of the stimulus that would help me, my family, and my business? I'm a republican."
And Jim in Missoula says all of this began when gas hit $4 a gallon. Oil execs are just as guilty as anyone. Gas prices are going up. Time to freeze them?"
ShadowmasterD says, Shadowmaster, I like that, "it's a recession, when you lose your job, and the depression when I lose mine. Something must be passed soon." They're talking about that stimulus package.
Make sure you logon to twitter or Facebook, myspace, or ireport.com and tell us what you're thinking but become part of our show, part of our community here. We'll get your comments on the air.
CNN is the place for the latest and most in-depth coverage of the economy. Make sure you join me tonight at 10:00 p.m. Eastern. We will have more coverage of how people like you are coping in these tough economic times. Real people overcoming real problems.
Plus an update on this week's Washington showdown over an economic stimulus. I'm Don Lemon. See you back here tonight. John King with "STATE OF THE UNION" begins right now.
