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More Tropps to Afghanistan; Pulling Out of Iraq; New Attempt to Overhaul Health Care

Aired February 27, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN HOST: We're covering the angles of this developing story of course. CNN's Arwa Damon is gauging the reaction in Baghdad, and Suzanne Malveaux is at the White House with us this morning. We want to go ahead and begin now with Suzanne. Good morning to you once again, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good morning, Heidi. Make no mistake about this. This is the day that President Obama is going to answer that question, when is this Iraq mission going to change, when is the war going to end?

Two senior administration officials telling me just moments ago, let me say this as plainly as I can. By August 31st, 2010, our combat mission in Iraq will end. Those will be the words of President Obama at Camp Lejeune, just within a couple hours or so. He is making it very clear that it's going to be August 2010, at least for those combat troops.

Now what is also going to be important to note, however, is the contingency force that will stay on the ground. We're talking about 35,000 to 50,000 U.S. troops. Their mission, as well, is going to change. They are going to be there largely to provide instructions, as well as equipment to Iraqi troops. Also to support civilian efforts, as well as very targeted counter terrorism type of operations.

These are the things that are going to happen. And Heidi, there are some people who are looking at this very closely saying, what was the campaign pledge here? You said 16 months should get these troops out, combat troops. It has now been extended to 19 months. We have been told that the president, taking the advice of those on the ground, the commanders, as well as civilian and military advisors over the last couple of weeks said he really did kind of split the difference.

The campaign pledge was 16 months. There were some who said maybe we should wait until 23 months. He went with 19 months. They said a very sober assessment of the situation on the ground, Heidi.

COLLINS: All right. So back to the politics of it all for just a moment. How are Democrats and Republicans reacting to this time frame?

MALVEAUX: Well, it's really a fascinating to see, and almost ironic, if you will. Because it seems as if Republican lawmakers are happier with this announcement than fellow democrats. I want you to take a listen to lawmakers after they heard the news that this would be about 19 months when they pull out those combat troops.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), HOUSE SPEAKER: I don't know what the justification is for 50,000 -- the present 50,000 troops in Iraq. I would think a third of that, maybe 20,000, a little more than a third, 15 or 20,000. But, again, I don't know what purpose he has in keeping them there.

SEN. JOHN MCCAIN (R), ARIZONA: And I believe the president's withdrawal is a reasonable one. I think the plan is reasonable. Given the gains in Iraq and the requirements to send additional troops to Afghanistan, together with the significant number of troops that will remain in Iraq, and the president's willingness to reassess, based on conditions on the ground, I am cautiously optimistic that the plan is laid out by the president can lead to success.

(END VIDEO CLIP)

MALVEAUX: And Heidi, what's interesting to note about this is that the objections from the Democrats is not necessarily that they're going to stay an extra three months or so, but it really is the number of troops that will remain on the ground in that kind of supporting role. They are very worried, because obviously, those U.S. troops are in harm's way. You think about the numbers here, 142,000 U.S. troops in Iraq now.

If you left on the high number, say 50,000, it really is about a third of the force would still be there. Of course, significant amount of time. So that's what they're saying here. Do we need as many U.S. troops, those boots on the ground, that the president says is necessary, that the president and his administration coming back saying they believe that this is the wisest course of action, one that the military command, as well as those on the ground, are supporting. Heidi.

COLLINS: All right. CNN's Suzanne Malveaux for us outside the White House this morning. Thank you, Suzanne. And next hour, just a reminder, we will have live coverage of President Obama's announcement from Camp Lejeune, North Carolina, scheduled for 11:45 Eastern, 8:45 Pacific.

Let me get now to your money. It's Citigroup's future, big news this morning. The U.S. government will soon have more control over the troubled banking giant. And it won't cost anymore taxpayer money. Here to explain all this for us, CNN senior correspondent Allan Chernoff. So it sounds good on paper when you read it that way, that it won't cost taxpayers anymore money.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Sounds good. Let's have a little illustration here to explain what's going on. Heidi, this is Citigroup. And this is the financial cushion that the company has just negotiated. Without this cushion, let me tell you, Citigroup would be feeling a lot more pain going forward. It needs this new financial cushion. What's happening here is that the U.S. government is going to convert preferred stock up to $25,000 billion worth into common stock. Common stock meaning actual ownership of the company. The U.S. government is now going to own up to 36 percent of Citigroup. So this is all very important here. What's going to happen for Citigroup is that it builds up a financial cushion against future losses, and Heidi, it really does need that in these economic times.

COLLINS: So what's the trouble then? What are people talking about in all of this?

CHERNOFF: Well, let's talk about the bottom line here. For U.S. taxpayers.

COLLINS: Yes.

CHERNOFF: First of all, this means more risk to U.S. taxpayers. Even though more money isn't being injected from the government right now.

COLLINS: Right.

CHERNOFF: All of a sudden, we're taking risk. The preferred stock that U.S. taxpayers have been holding. Well, that actually pays a dividend. And we still will hold some of that, an eight percent dividend, that's a pretty hefty dividend. All of a sudden now, taxpayers are getting common stocks, that does not pay a dividend, and that can fluctuate very much in the market.

As you know, Citigroup's stock has plunged below $3 a share. So there is certainly a lot of risk here. And let's also consider the fact, Citigroup will still be getting that stress test. It's already begun. And the stress test, even with this new cushion, potentially could show that Citi needs even more government bailout money.

One other note, Heidi, the board at Citigroup is going to have a big shake-up. They're going to have a majority now of independent directors. Heidi.

COLLINS: All right. Boy, we'll be watching this one. Sure do appreciate that. Allan Chernoff for us from New York this morning.

But here is something rare for you as U.S. auto workers, now, a bit of good news. Just a few hours ago, Ford announced it will reopen its Cleveland engine plant number one. The reason? It becomes the first site to build Ford's new fuel-efficient Echo boost engines. The plan has been idle since 2007. Ford purposed $55 million to upgrade and bring back 250 workers.

A top executive at the investment firm headed by Texas financier Allan Stanford is in handcuffs this morning. Laura () Holt is appearing before a federal magistrate in Houston. The chief investment officer at Stanford Financial Group was arrested and charged yesterday. She is accused of obstructing a federal probe into an alleged $8 billion investment scheme at the company. A snowstorm in Minnesota leaves one person dead. Police say a man was hit and killed by a snowplow. Between five to eight inches of snow fell in most of central and southern Minnesota yesterday. The heaviest just before rush hour. The snow is over now, but today bitter cold will follow that storm. So that means, Rob Marciano, obviously, he's going to stick around for a while on the ground.

ROB MARCIANO, CNN, METEOROLOGIST: It is. The cold air up there will remain. Actually, it's sinking to the south. So we're starting to switch up and get into a bit of a colder pattern after.

COLLINS: It's the snow that says stick around on the ground if it's cold.

MARCIANO: Yes. What did I say?

COLLINS: I don't know, the cold was moving away. I meant now. Anyway.

MARCIANO: OK. I got you.

COLLINS: Anyway, carry on.

MARCIANO: Pink, is what I'm more concerned about right now.

COLLINS: Exactly.

MARCIANO: You know, the snow is yesterday's news quite honestly. We're looking at Lamar and (inaudible) county. This is where tornado warnings are in effect. It was just across the border, and we're looking at Mississippi and Alabama, by the way. There is Columbus, Mississippi. So the southeast of that, this cell which has the potential of throwing down a tornado is rolling to the east, northeast about 40 miles an hour. You can see this line of almost a training effect where one cell kind of follows the next.

And this is a classic tell tale sign of seeing some flooding. We have already seen a ton of rain in this area. So flash flood warnings are posted. And then some of these cells, just west of the Mississippi, across - starting out in the Arketex region, they're kind of - they're individual, and that kind of scares a little bit, because that gives them a chance to organize and become potentially really dangerous storms.

So I think I just saw a red line there. Shawn, is there a severe thunderstorm watch that was just posted by the severe storm prediction center? We'll check on that in a sec. But I think we have a watch on that for that one. We have flash flood watches that are posted for Mississippi, Alabama and Georgia.

Now some of these areas need the rain, but obviously you don't want it to come all at once. So I think we're going to see some flooding here before the day is done. There is that yellow box. Probably likely a severe thunderstorm watch that's in effect through at least through lunch time across parts of the southeast there. All right. This is not severe, but it's heading across the Appalachians, about to get into the bigger cities. This is just some rain. It's pretty mild ahead of this system. Again, the action is going to be down here across parts of the southeast.

Here is your cold air where that snow is, and where that snow will stay. Because, you're right, Heidi, it's going to be cold up there. So have the kids get out and enjoy it. It's wintertime.

COLLINS: Yes, indeed, it is. All right, Rob. Thank you.

MARCIANO: All right.

COLLINS: We'll stick with you on those warnings though for sure. Thank you.

Fixing broken schools from crumbling buildings to falling ceilings, the president is promising big dollars and big support for education. Also promising big changes for health care. But what does that mean for people struggling through tough times right now? It's our snapshot across America.

(COMMERCIAL BREAK)

COLLINS: Quickly now, a live look for you at Marine One. The president's view on Iraq is plain and simple. He says the U.S. combat mission will end there by August 2010. These live pictures, once again, as the president prepares to depart - actually, of course, he'll be landing first and then departing from Andres Air Force base. He's headed to North Carolina, Camp Lejeune, where he will outline those Iraq withdrawal plans. We, of course, are following the president. Stay right here with CNN for those announcements.

Now we want to get the view from Iraq. CNN's Arwa Damon is in Baghdad for us this morning to get more of the picture from there. Arwa, good morning to you.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Heidi. Well, this really comes as no surprise to the Iraqi government. Very aware that President Obama was going to try to put forward some sort of plan to end the war here. And they do say that they are in agreeance (ph) with any sort of U.S. withdrawal, as long as it is responsible and not carried out unilaterally.

The Iraqi prime minister, Nuri Al Maliki, does believe that his own forces are capable to take on the mission of securing Iraq both from internal and external threats. However, the truth is that the Iraqi security forces have never been truly tested, even though they have been in some fierce fire fights, they have always had the U.S. military, if not by their side, then at least the knowledge that America's military might is behind them. Which is why any sort of withdrawal from here is going to have to be done very carefully.

President Obama himself acknowledging that. There are caveats that state that any sort of withdrawal plan would depend on conditions on the ground. Because the U.S. really does not want to make another mistake in Iraq that is just going to drag this war on, even longer.

For the last six years, the U.S. military has effectively been fighting, trying to reverse the mistakes of the Bush administration from entering the country without a proper post-war game plan to dismantling the Iraqi security forces that ended up making up the bulk of the insurgency, and eventually paving the way for Al Qaeda and other Shiia-backed militias to maintain their foothold here. So any sort of withdrawal very carefully executed. The Iraqis themselves, aware that the u.s. is one day going to leave. Some are optimistic about it, others are still very cautious.

COLLINS: All right. CNN's Arwa Damon for us with the picture from Baghdad this morning. And we are also I would call it a big little. We're looking at President Obama right now with defense secretary Robert Gates, getting ready to depart for Camp Lejeune, North Carolina. But we are going to hear more about that announcement and the troop withdrawal plan coming your way a little bit later, right here on CNN. We, of course, will carry that live, as well.

(BEGIN VIDEO CLIP)

GINA BOCK, I-REPORTER: I lost my job three months ago. I've given up shopping, driving, pretty much everything, just to save money. I try not to drive much. I try to walk, so I don't spend money on gas. But I have - I get unemployment, but I pay the rent, the cable, the phone and then grocery shopping. So pretty much, I have nothing left.

(END VIDEO CLIP)

COLLINS: Some would say the nation's schools are broken, and the president is promising to fix them. But it could cost billions of dollars. CNN's Randi Kaye reports on the state of public education.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT(voice-over): It used to be kids just brought their lunch to school. But school districts around the country are in such dire straits that in Detroit, one school citing budgetary constraints asked students to bring light bulbs, trash bags, paper towels, even toilet paper. This, in the same city where automakers got billions in bailout money.

UNIDENTIFIED MALE: it seems like the school should have it, you know? And you know, we try to do the best to comply with what they ask for.

KAYE: The slumping economy has robbed states of precious tax dollars that help fund education. Help is on the way. It's not clear yet when, but the stimulus package should pump about $100 billion into public education. That is more than double the annual funding under the Bush administration. Before the stimulus passed, President Obama made one last pitch.

PRES. BARACK OBAMA, UNITED STATES: I visited a school down in South Carolina that was built in the 1850s. It's right next to a railroad. And when the train runs by, the whole building shakes, and the teacher has to stop teaching for a while. The auditorium is completely broken down. They can't use it.

KAYE: In Miami, the school budget was cut $300 million. Some students learn in trailers, on the playground.

UNIDENTIFIED MALE: The condition of American public education is entering a desperate state.

KAYE: Outside Cleveland, Ohio, one superintendent wrote then Treasury Secretary Henry Paulson to ask for $100 million. Todd Hoadley never heard from Paulson, but was told his district doesn't qualify because it is not a financial sector business. Hoadley has already cut $2.3 million from his budget. 1200 students are crammed into a building made for 800. So tight, maintenance closets are used as classrooms.

TODD HOADLEY, SUPT. OLMSTEAD FALLS CITY SCHOOL DISTRICT: We use the stage and the gymnasium for an art class with Phys. Ed. right on the other side of the curtain. Both going on simultaneously.

KAYE: At this school in Yonkers, New York, concrete is falling off the 87-yea-old building. This building needs to be replaced, definitely.

UNIDENTIFIED MALE: This building needs to be replaced definitely.

KAYE: The building is sagging, windows don't even close. When this Yonkers school couldn't get the money to repair its roof, officials put up scaffolding and plastic to protect students. It was all they could afford to make sure the roof didn't collapse. The superintendent just doesn't have the money for a new one.

That may change once stimulus funds arrive. Its allocated based on how many school-age children states have. But it comes with restrictions. Funds cannot be used to be build new athletic fields or on anything that isn't directly related to academics. Restrictions or not, California will take it. Maybe then this San Diego calculus teacher won't have to sell ad space on his exams to cover the cost of printing them, like he did last fall.

UNIDENTIFIED MALE: I would never have done this five years ago or 10 years ago. I wouldn't have even thought of it, because there was never a necessity.

KAYE: These are desperate times. Randi Kaye, CNN, New York.

(END VIDEOTAPE)

COLLINS: A horrible situation to find yourself in. Losing your job and your employer-paid health insurance. Then finding out you have cancer. Hear one woman's story.

Plus, health care concerns from struggling patients and doctors alike. It's our snapshot across America.

(COMMERCIAL BREAK)

COLLINS: Job and health insurance. What happens when you've lost both, and you're sick, too. CNN's senior medical correspondent Elizabeth Cohen has one woman's story.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): In early 2008, life was going great for Pamela Rainsuch. She had a good job and was about to get married. Then in March, the plant where she had worked for more than 20 years in Sarasota, Florida shut down, and she lost her job. And with it, her employer-paid health insurance.

PAMELA: I was upset, but I thought it would be all right.

COHEN: But two months later, an even bigger bombshell.

PAMELA: I found out I had breast cancer.

COHEN: ()does have insurance, but she is paying through the nose for it. Her unemployment check is $900 a month. And she pays $368 of that just for insurance. And the insurance has high co-pays and deductibles. So now she is $20,000 in debt because of her medical expenses. One doctor has even refused to see her until she pays her bills.

Pamela: I offered to go and do all I could. Went to the office to cover it.

COHEN: According to the Department of Labor, more than 1.7 million jobs were slashed in the past three months. Analysts believe about half of the people who lost jobs also lost their employer-paid insurance.

COHEN (on-camera): When people don't have health insurance, they often end up here in the emergency room, and that costs all of us. It's one of the major reasons why insurance premiums have skyrocketed.

DR. KATE HEILPERIN, EMORY UNIVERSITY HOSPITAL: In many respects, we all are paying for the uninsured. Those who don't have health insurance are actually impacting those who do have health insurance.

COHEN: And despite efforts from the president, Congress and others -

RON POLLACK, EXECUTIVE DIRECTOR, FAMILIES USA: I think there is no question that it is likely to get worse before it gets better.

COHEN: As for Pamela Rainsuch, she's done with her chemotherapy, and for now she is cancer-free. But more surgeries lie ahead.

RAINSUCH: I just try and keep a positive attitude. (END VIDEOTAPE)

COLLINS: Health care reform. Something odd has happened since the first plan 15 years ago. Old enemies are now on board. Does that mean this is a done deal? This and more in today's snapshot across America.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM. Heidi Collins...

(BEGIN VIDEOTAPE)

COLLINS (voice-over): President Barack Obama's prescription for change. A sweeping overhaul of the nation's health care system. Sounds like the Clinton efforts of the early '90s, except for one big difference. Old foes are now supporting some of these changes. CNN national political correspondent Jessica Yellin has the details.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN CORRESPONDENT: Sounds familiar? A democratic president is vowing to overhaul the health care system.

OBAMA: We can no longer afford to put health care reform on hold.

YELLIN: The administration's budget director tells CNN he is optimistic it will get done this year.

PETER ORSZAG, WHITE HOUSE BUDGET DIRECTOR: We are going to try to avoid the mistakes of the past and not lay down a fully-detailed plan, but rather work constructively with Congress.

YELLIN: It may not be a pipe dream. Remember those Harry and Luis ads which killed President Clinton's ambitious health reform plans.

UNIDENTIFIED FEMALE: Well, another billion dollar bureaucrazy.

YELLIN: We'll have the same business and insurance groups that fought the Clinton health care effort are pushing Congress to pass reform now. Can you imagine an insurance industry spokesman saying this in the '90s?

ROBERT ZIRKELBACH, AMERICA'S HEALTH INSURENACE PLANS: Rising health care costs are putting a burden on individuals, small businesses and families across the country. The most expensive thing we could do is nothing the at all.

COHEN: The president has started laying the ground work for reform. His stimulus package provided the first steps with billions for electronic health records, research on efficiency, and community health centers. The budget calls for creating a $634 billion health care fund over the next 10 years. And would pay for it in part by raising taxes on the wealthy, beginning in the year 2011. Saving on Medicare with more competitive pricing on insurance plans and reducing the cost of prescription drugs in part by encouraging more use of generics. Not every one likes this road map to reform.

REP. JOHN BOEHNER (R-OH), MINORITY LEADER: The question is, how do we get to that goal? When you look at the president's plan, it puts the government in charge of delivering this.

YELLIN (on camera): Several groups of senators have been meeting on a weekly basis to hash out just what health care reform legislation might look like. And the White House is holding a health care summit next week, so we should learn more then.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

COLLINS: So, how are the president's plans playing in the trenches with real people trying to find a balance, right now. It's our "Snapshot Across America" today. From Columbus, Ohio, this morning, Lora Walker. She's a mother who is about to lose her insurance. In fact, tomorrow. The hip-hop doc, Doctor Rani Witfield, is joining us from Baton Rouge with a doctor's perspective. And from Washington, Kenneth Thorpe, the chairman of Emory University's Department of Health Policy.

Lora, I want to go ahead and begin with you. So, tell us quickly the story. You're about to lose your health care coverage tomorrow.

LORA WALKER, SOON TO BE UNINSURED: Yes. Through ABX Air, where I was employed with DHL pulling out.

COLLINS: So you lost your coverage, just like we have been reporting here, and Elizabeth Cohen was saying people are losing their jobs, i.e., losing their health care. Why are is this important to you specifically? I'm thinking about your daughter.

WALKER: Well, my daughter, last June 7th, was swinging her leg off a horse, when -- her right leg, when her left knee literally blew apart. Tore her ACL, MCL, meniscus and fractured her tibia. And she has been in three different hospitals, surgery, we've had all sorts of treatment. I cannot pay that portion that the insurance doesn't cover.

COLLINS: sWell, do you even have any idea what your total overall medical bill at this point is?

WALKER: No, it's a little too scary to look at.

COLLINS: Yes, I imagine. So what are you going to do?

WALKER: Well, right now, my whole goal is to hang on to my home. And I would hope that President Obama will keep his promise and look to the Americans. I would love to become a member of the health care reform team because I have struggled with this health care issue for 12 years. And this is not a new problem. And I have a lot of good ideas. Washington really needs to think outside of the box and get help to people instead of trying to beat something to death and make it perfect.

COLLINS: President Obama, Laura Walker wants on your team. All right. Laura, thank you so much for sharing your story.

Want to get now to Doctor Rani Whitfield. Ronny, I know you see a lot of indigent patients, as well as those who are privately insured. Specifically what are you seeing out there?

DR. RANI WHITFIELD, FAMILY PHYSICIAN: Physician frustration. I just left a prison, which is the only group of people in this country that are guaranteed health care. We're seeing lower...

COLLINS: How crazy is that?

WHITFIELD: Oh, interesting. But we're seeing lower reimbursements. Physicians are relocating to areas where liability insurance is cheaper. There is major problems in this country. I think one of the good things about the policy -- I'm not saying that it's flawless -- is that the physicians are involved in creating the health care reform policy with Senator Kennedy and the transition team. So we will be actively or play an active role in hopefully forming something that will help America and help our country.

COLLINS: One of the ideas, in fact, that you like is this idea of minimum coverage for all. Like, pay what you can pay and then provide sort of a minimum standard for everybody.

WHITFIELD: Yes. Every American in this country, the greatest country in the world, should have some basic form of health care coverage. On a day-to-day basis, my nurse spends hours, ungodly hours, preauthorizing prescriptions or appointments, and we're wasting time.

Instead of doing health care, we're doing more sick care in our country. So, it's time we have the best doctors, the best nurses, the best hospitals in the world, but it's time for us to start taking care of patients. Doctors need to practice medicine, patients need to be patients and insurance companies need to reimburse us for the services that we provide.

COLLINS: Ah ha, insurance companies. All right, our hip-hop doc, Dr. Rani Whitfield, thanks for your story, as well.

The president's health care plans bring back memories of the Clinton administration's health care fight. And we saw a piece on that just a few moments ago by our Jessica Yellin. Emory University's Kenneth Thorpe helped work on those reform efforts as an assistant secretary at the Department of Health and Human Services.

Right now, we have no hhs director or a surgeon general, which is interesting to me. But Kenneth, tell us, if you would, is this going to work? Is it going to be enough money, $686 billion, I believe -- pardon me, 36, I think it is -- over the next ten years to overhaul health care?

KENNETH THORPE, CHAIRMAN, EMORY UNIV. DEPT. OF HEALTH POLICY & MGMT.: Well, it's a very substantial down payment. I think he's got us almost all the way there, 60, 70 percent of the funding needed to do this. But as you mentioned, what's happening this time is so fundamentally different than 15 years ago.

COLLINS: How so?

THORPE: Well, you heard Peter Orszag talk about the fact the administration was not going to come out with a detailed plan. Rather, the Congress is taking a lead, and particularly in the Senate in putting this plan together. In order to make sure that you can do this in as much of a bipartisan way in the Congress as possible, with input, as you've heard, from consumers, business groups, and health care providers. So, the process -- which is so important in Washington -- of doing this, really is quite different this time around. And it leads to some optimism we can get this done this year.

COLLINS: Are you optimistic about it?

THORPE: I'm very optimistic. I think that there is a president who wants to get this done. They've learned from how this went down 15 years ago.

COLLINS: Yes.

THORPE: I think many members of Congress are certainly motivated to do this. Senator Kennedy, this is his legacy issue.

COLLINS: Is it a lot more expensive this time around?

THORPE: Well, it is. I mean, had we fixed this problem 15 years ago, it would cost everybody who has private health insurance today substantially less. So, it's like anything in health care. The longer we wait to fix it, the more expensive it's going to be. So, I hope we can get it done this year.

COLLINS: Are we talking about universal health care ultimately?

THORPE: Absolutely. You just heard from one of your patients there with cancer that this is a major economic issue. If we don't get everybody coverage, we're going to continue to find people who file for bankruptcy, who lose their houses. And obviously that just accelerates a lot of the economic issues that we're facing.

So, we have to finally step up to the plate to make sure all Americans have health care. And the thing that they're talking about is private health insurance. So, I think there is a compromised position to do here, but as you mentioned...

COLLINS: Affordable private health insurance.

THORPE: Affordable, and underscore that.

COLLINS: Absolutely. All right, well, we sure do appreciate your story, as well. Kenneth Thorpe, thanks so much. And also, thanks to Lora Walker in Columbus, Ohio, and Doctor Rani Whitfield, the hip-hop doc, in Baton Rouge. Thanks, guys, sure do appreciate it.

It looks like any other ski resort in America, except for one big thing. Tell you what it is in a moment.

(COMMERCIAL BREAK)

COLLINS: In Texas, raging wildfires are keeping firefighters very busy. A 1,200-acre fire that started in western Taylor County Tuesday, it flared up again. People are being evacuated. Ash is falling in Abilene. Hot, dry air and steady winds are also feeding several other fires in the state.

Get a check on that in just a moment with Rob Marciano. But right now, Rob, it looks like you have new information about those tornado warnings?

ROB MARCIANO, AMS METEOROLOGIST: Yes, you're looking over the shoulder of Shawn Morris (ph) there driving the Doppler and checking out this nasty squall line about to move through Tuscaloosa into Birmingham. It's got some gusty winds. No tornado warnings out with this particular squall line, but any time you see things start to bow out like that, you know the mid-level winds are pretty strong and driving this thing, and sometimes those mid-level winds can come down to the surface and do some damage.

So, a couple of severe thunderstorm warnings out for this particular line. And Birmingham, get inside because you're about to get your clock cleaned there.

(WEATHER REPORT)

COLLINS: On Wall Street now, the latest snapshot of economic activity paints a scary picture. Investors were preparing for bad news, but what they got was much worse. Susan Lisovicz on the floor of the New York Stock Exchange now with the numbers. We're talking GDP here. Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, you know, we all knew that the U.S. economy basically fell off a cliff in the fourth quarter. Now we have a number attached to it. And the number, revised number is a lot worse than the original number. The U.S. economy, the biggest in the world, shrank 6.2 percent annual pace (ph) the final three months of the year. The estimate was for a drop of 5.4 percent.

The report will be revised one more time, Heidi. I was wrong on that before. I mentioned it was the final report. No. There are three numbers attached to it. This is the revised number. We'll get the final number in a few more weeks. OK? So we'll get -- hopefully, it won't be any worse than what we got.

Why did it come in so bad? Well, consumer spending, the engine of growth for the U.S. economy, cut spending by the most in 28 years. Businesses really cut back because they saw what was happening with consumer spending. Exports, a huge factor here, too, because that was really propping up the U.S. economy, despite the fact that the housing market was in the trenches.

And what we've seen is that the global economy has also weakened dramatically and quickly. And so that really hurt exports. And so you're getting a sense that well, things are bad, and investors' sentiment not so bright, either. The Dow Industrials (INAUDIBLE) right now, down 57 points at 7125 at the lows of the session. So far, Heidi, we got 33 points within 7000. The Nasdaq, meanwhile, is up by 1 point -- Heidi.

COLLINS: OK, we'll hang on to that point, too. But listen, just a few days ago, Ben Bernanke said the recession could end this year. With numbers like that, people are probably wondering if that's realistic or not.

LISOVICZ: Well, that's right. I mean, when you see a number like this, which is revised, much worse, I mean, you get a better sense of just how tough it is right now. But the sense is that we're really in the trenches. A lot of economists, including the chairman of the Federal Reserve, thinks this first quarter, what we're in right now, will be the worst.

But plenty of people agree, the first half of the year, the U.S. economy will continue to shrink, and that with all the stimulus with the recovery, the recovery program for homeowners, with the additional money for financial companies, all this stimulus that you are going to start to see a slow recovery later in the year. At least that is the hope, Heidi. And we haven't seen any major revisions to that. Not yet, anyway.

COLLINS: Yes, that is the hope. All right, Susan Lisovicz from the floor of the New York Stock Exchange. Thank you, Susan.

LISOVICZ: You're welcome.

COLLINS: President Obama wants to double renewable energy resources in the U.S., and some places are already on board the green train. CNN's Reynolds Wolf has one story now from Hancock, Massachusetts.

You know what, we're going to show that to you in a minute. Meanwhile, in this economy, the safety net can be as small as a closet. A man who lost his job, his home, and then his family now tries to rebuild his life.

(COMMERCIAL BREAK)

COLLINS: President Obama said in his address to Congress Tuesday night, the number one issue in helping boost the economy is energy. He wants to double the level of renewable energy resources in the U.S. Some places already onboard that green train. CNN's Reynolds Wolf has one story now from Hancock, Massachusetts.

(BEGIN VIDEOTAPE)

REYNOLDS WOLF, CNN CORRESPONDENT (on camera): I'm coming to you from high in the Berkshires, the Jiminy Peak Mountain Resort. And you know, at first glance, this could be any ski resort in America. I mean, you've got the skiers, you have the snow, you've got the trees, you have the ski lifts, but you know, there is one big thing that does set this place apart from any other ski resort in America. Take a look.

(voice-over): Meet Zephyr, a turbine named after the Greek god of wind. It's taller than the Statue of Liberty, standing more than 250 feet high, and it generates power for the mountain.

BRIAN FAIRBANK, PRES. & CEO, JIMINY PEAK RESORT: We had been trying to do everything we could to conserve on energy, and somebody suggested, take advantage of the wind.

WOLF (on camera): Not exactly Everest, but still, man, let me tell you, this is pretty intense. Latching on.

(voice-over): Zephyr's blades produce a third of the resort's electricity, and when demand is low, it helps power local homes and businesses. But not everyone is a fan of the $4 million turbine.

FAIRBANK: We've had some people in the community that have said, I don't want to look at that.

WOLF: And studies show turbines can be deadly for migrating bats. But some think the benefits far outweighs the cost.

UNIDENTIFIED MALE: This is the sign of the future. If it helps us have less dependence on foreign oil, it's a wonderful thing.

FAIRBANK: That thing is going to keep giving us power every year.

WOLF: Reynolds wolf, CNN, hancock, Massachusetts.

(END VIDEOTAPE)

COLLINS: A plea for European aid. General motors says their European automaker, Opel, needs more than $4 billion in government loans to survive. General Motors made the plea as part of a restructuring plan put out last hour. The head of GM Europe says he sees Opel splitting off from GM but remaining a technological partner. He says they'll try to avoid layoffs, despite earlier reports saying some Opel plants could be closed down or sold to other manufacturers.

The global recession costing people not just their jobs or homes, but in some cases their families. CNN's Kyung Lah has one man's story from Tokyo.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): This was home for Hidefume Ito (ph). The size of a closet, it had what he needed most, an Internet hook-up and computer to job search. Ito (ph) rented this net room for around 20 U.S. dollars a day after he lost his art gallery director job, his expensive home and went bankrupt. Then, his wife and three children left him.

Six months later, life has improved.

HIDEFUME ITO (PH), LOST JOB AND HOME: (SPEAKING FOREIGN LANGUAGE)

LAH: Ito has a tiny apartment with his own kitchen and bath. But more importantly, a job. It's not glamorous, but it's saving him from a life on the street. Ironically, the same economic downturn that cost Ito (ph) his upper-class lifestyle landed him this job.

Su Casa, the company that created the net rooms, is seeing a boom in demand for its cheap daily rooms. Occupancy is always 100 percent, says Su Casa's general manager. The company is constructing more buildings, but can't keep up with demand. Su Casa, growing beyond expectations, hired Ito a few months ago.

ITO: (SPEAKING FOREIGN LANGUAGE)

LAH: This is today's Japan, says Ito. It's a reality of the country. There's no safety net. We don't know our lives tomorrow.

You can hear that same warning again and again in Tokyo's tent cities. This is a once-unthinkable scene in a country where lifetime employment was a rule just a decade ago. After the change in labor laws, temporary workers now make up a third of Japan's work force. They make less, have few employment rights compared to full-time workers, and are being fired en masse in Japan's recession.

MAKOTO KAWAZOE (ph), YOUNG WORKERS UNION: (SPEAKING FOREIGN LANGUAGE)

LAH: They're the working poor, and they're the ones losing their jobs, says Young Workers Union Makoto Kawazoe (ph). It's not true anymore that Japan is a stable, rich country. Kawazoe (ph) says there's not enough unemployment insurance for these workers and not enough jobs, so the fired have no way out.

LAH (on camera): Compounding the problem, Tokyo is one of the world's most expensive cities. So the line between comfortably middle class to suddenly homeless is in some cases very thin.

ITO: (SPEAKING FOREIGN LANGUAGE)

LAH (voice-over): It was for Ito, who still grieves for what he once had. But he's trying to focus on rebuilding a life. Step by step, he says. A process that is painfully slow, unlike how quickly you can lose it all in this economy. Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

COLLINS: Piles and piles of money. The next budget pagged at $3.6 trillion. What could you do with that much money? (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

KYLE AEVERMANN, IREPORTER: What am I cutting from my budget? Something sad, I'm sad about. My car. I'm trying to sell it, for a couple of reasons. One, I can't find a new job. So, I can't afford the car payments anymore. Mr. Obama, this is where you're supposed to come in and get me a job, please.

(END VIDEO CLIP)

COLLINS: Hard to imagine trillions of dollars in the president's new budget proposal. How much is a trillion, anyway? It boggles the mind, doesn't it? CNN's Tom Foreman tries to wrap his head around the concept.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): For Congress, spending a trillion dollars is pretty easy. Explaining that amount, much harder. Stacked up as 1s, they've said it would reach a third of way to the moon. As tuition, it would pay for college for every middle- and high-school student. And if money really were time?

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: If you started spending the day that Jesus was born and you spent a million dollars every single day, you still wouldn't have spent a trillion dollars.

FOREMAN: But now we're talking about a $3.6 trillion budget, and a new worry. If people can't comprehend 1 trillion, how can voters assess the value of one multitrillion-dollar plan over another? What if all of the trillions are spent and the economy still gets worse? Jeanne Cummings covers economics for politico.com.

JEANNE CUMMINGS, POLITICO.COM: There are truly consequences, and ultimately, it would be awful if that's how our country found out what is the real meaning of all of these numbers. If some calamity came our way, we might actually have a real sense of it.

FOREMAN: By the way, gene, do you understand a trillion?

CUMMINGS: No, I don't understand a trillion dollars.

FOREMAN: The fundamental issue is, even when you compare a trillion dollars to something you do understand, the comparison quickly becomes absurd.

(on camera): Let's say a family makes $60,000 a year, it would take more than 4,000 families to make $260 million. Or roughly, what Oprah makes in that same amount of time. But, to make a trillion dollars, that would take almost 4,000 Oprahs. Confused? Well, now you see the problem. But maybe something else is at work, too.

(voice-over): The famed psychiatrist Sigmund Freud wrote about denial, which Webster's defines as "refusing to admit the reality of something unpleasant." He wasn't talking about the economy, but if he were around these days, who knows? He might be.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

COLLINS: I'm Heidi Collins. Join me again Monday morning beginning at 9 a.m. Eastern.

For now, CNN NEWSROOM continues with Tony Harris.