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Busy Days Ahead for Obama; Speculation on Transition Team

Aired November 06, 2008 - 10:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: All right. One job over, a new one begins. The President-elect makes presidential plans. What's on his list? And who could be on his team?
Plus big board watching, eyes on Wall Street as new reports give hints on the economy. It is Thursday, November 6th, I'm Fredricka Whitfield in for Heidi Collins. And you're in the CNN NEWSROOM.

Busy days ahead for President-elect Barack Obama. Before he moves into the White House he's putting together his transition team and his cabinet. Plus he's getting his first top secret intelligence briefing today. Michael McConnell, director of National Intelligence and a team of CIA officers are to meeting with the incoming president as well as vice president-elect Joe Biden. All right. A few names already leaking out about possible Obama advisors. Suzanne Malveaux is in Chicago. What are you hearing, Suzanne?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, already Barack Obama wasting no time to really try to put this transition team together. John Podesta, he's the former chief of staff of President Clinton is leading that effort. And one of the things that they're looking to get is who is going to be chief of staff. On the top of that list, the short list is Illinois Representative Rahm Emanuel. A natural fit, many people think he's a close adviser to Barack Obama, widely basically getting the credit for bringing the democrats back into power in 2006. He actually talked to one of our affiliates, WLS-TV last night. He talked about the fact that it's a difficult decision, that he's weighing career versus family, saying this is not a professional choice it's a personal choice, about what my wife and I want to do with our family as much as what I want to do with my career. He does have young kids. So that's part of what's going into the mix. But obviously they are discussing this potential job for him.

The other thing that they're looking at is Treasury Secretary position, Barack Obama making it very clear that the financial mess is going to be at the top of his agenda. So the short list, some of the people they're talking about, the former Treasury Secretary, Larry Summers. He was also the president of Harvard University. He is on Obama's advisory team, his economic advisory team already. So they talk on a regular basis. Timothy Geithner. He is the president of the Federal Reserve Bank out of New York. He's been a key individual in looking at the bailout plans and what has happened since September in those markets. Former Federal Reserve chair Paul Voelker. He is somebody who is already on Obama's economic team. They talk on a regular basis. And then finally New Jersey Governor Jon Corzine. He who used to be an executive with Goldman Sachs. But this is not by any means an exhaustive list. There are other names as well. But this is just to give you a sense of the kinds of individuals that he's looking for as a part of his team, Fred.

WHITFIELD: And Suzanne, we know as Senator Barack Obama has gone back and forth between Washington and Chicago. He'll be doing a lot more of that between now and January or trying the stay in one place?

MALVEAUX: He's going to be doing a lot of back and forth. But mostly he's going to be here in Chicago. He missed his daughters and his wife tremendously during the campaign. He talked about it often. He's going to try to spend as much time with them. So the setup really is he's got an office here where he's going to be getting those security briefings you mentioned where there's going to be kind of a makeshift briefing room. If he has a press conference, they said that they'll hold briefings here. But then there's that D.C. office where the government itself has been working on that for the last two years, this whole transition setup operation. They've now turned that over to the Obama team. So he'll be doing a little bit of back and forth. But mostly we anticipate he'll be here in Chicago and that's where we'll be Fred.

WHITFIELD: Yes. I have a feeling you might as well just go seek out your old apartment that you used to have while living in Chicago and move back in.

MALVEAUX: Exactly.

WHITFIELD: All right. Suzanne, thanks so much, coming from Chicago this morning.

All right. Live pictures of the White House right now. President Bush still has three months to go before he exits, but he's also playing a huge part in helping the new administration transition. He will be meeting with his cabinet in the next hour. Of course, when the president addresses the cameras there, we'll be bringing that to you as well to find out exactly what his plans are to try to make for smooth transition from the Bush administration to the Obama administration.

OK. So buckle up for a wild ride on Wall Street again. Less than an hour after the opening bell, a live look at the big board right now, showing the Dow down 121 points. We knew that the Dow would be down. That was the expectation after yesterday. It closed way down with a loss of more than five percent.

So fears of this global recession also apparently pushing down the markets overseas. While you were sleeping stocks fell throughout Europe and Asia. Japan's Nikkei index is down 6.5 percent. Hong Kong's Hang Seng index slid 7.1 percent. Markets in Britain, Germany and France are still open, but they have been down all morning as well.

All right. Your money, issue number one in the presidential race. Now that the votes are counted, it will be a huge challenge. Challenge number one, in fact, for the Obama White House. CNN's Christine Romans has a closer look from New York. Christine. CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Fredricka. Well, you're absolutely right. I mean, look no further than the recent economic news for evidence that what confronts this president- elect is a very seriously, seriously weak economy with some big challenges. Let's talk about the deteriorating labor picture first because the job is pretty much the backbone of all of our personal economies. And jobs have been lost quite rapidly right now. We've got the most recent jobless claims number that came out this morning that showed 481,000 people lined up at the unemployment office for the first time last week waiting to get their jobless benefits, 481,000. Anything above 400,000 is considered a sign of significant weakness in the economy. And the week before it was revised higher to 485,000. So you know a lot of numbers. What these numbers tell you is that there's still weakness in this economy and something that confronts this president-elect.

As many as half a million jobs are expected to be lost between now and inauguration. So this president is confronted with the challenge of how to figure out, how to either create jobs or try to stem the job losses. And many, many economists are telling me that they expect 200,000 jobs lost a month to become the new norm over the next maybe six months or so. Tomorrow we'll have a big jobs report that could very well show us some more big jobs loss. So what has the president- elect said on the campaign trail about what he plans to do very short term to protect your money and your job?

Here are some of the promises he made. He wants a tax credit for businesses to create jobs. The tax credit of about $3,000 per new jobs created for business. He wants a 90-day moratorium on foreclosures. He'd like to temporarily eliminate taxes on the unemployment insurance. That's the insurance that jobless benefits all those thousands of thousand of people are lining up for every single week for the first time and he'd like to allow early 401(k) and I.R.A. withdrawals so people who do lose their jobs, if they need to, have lots of different avenues to try to tap in and get money to live on.

Now here is the thing. You know how do you survive in this kind of economy as we're waiting for all of these things to take effect and waiting for a president and his economic transition team to get this thing, at least some kind of recovery, to steer some kind of recovery. You have to take care of your jobs and your savings and your personal outlook. The only things you can control are your own spending and your job, if you can control your job. So this is really a time for Americans to really buckle down as well and look into next year because things aren't going to change today or tomorrow or the next day for this economy. Instead, we're seeing the steady drum beat of grim news. So it's time for people to save for a rainy day, right? It's raining.

WHITFIELD: That's right. It's raining. It's going to take quite a while which we all might as well expect. It's going to be a very thin holiday season.

ROMANS: It is. And we can look forward and hope that next year there will be a team in place that will be able to at least try to figure out how to get some jobs created and try to get this thing - at least to mitigate the pain that's coming for next year.

WHITFIELD: All right. Christine Romans, thanks so much from New York. Appreciate it.

ROMANS: Sure.

WHITFIELD: Well, as we mentioned, just a few minutes ago, President Bush has three months to go before he hands over the keys to the White House. This morning he is meeting with his cabinet. CNN's Elaine Quijano is at the White House. So give us an idea what exactly is on the table?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hi to you, Fredricka. Well with just over 10 weeks left in office, President Bush is meeting today privately with members of his cabinet. And of course, the focus is on making sure that there's a seamless transition to the incoming Obama administration. Now part of the discussions today focusing on things like the upcoming financial summit taking place here in Washington on November 15th. Also, of course, the on going wars in Iraq and Afghanistan. But a big focus will be on national security. And here is what White House Press Secretary Dana Perino had to say on that front just a few minutes ago.

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: That we are providing intelligence briefings to the president-elect and his team. We're giving security clearance to members of his transition staff. We are ensuring that the Obama transition team has all the equipment and space necessary to do their jobs. We're starting to brief the Obama team on major on going policy issues, ranging from the financial markets to Iraq.

(END VIDEO CLIP)

QUIJANO: Next hour President Bush is said to make remarks on the south lawn here on the White House. He will talk to about a thousand staff members, people who work in the executive office of the president, again, thanking them for their work, but also saying look the work is going to continue. We want to make sure that when the Obama administration is here on day one, that they will have everything they need, that they are fully prepared. Fredricka.

WHITFIELD: All right. Elaine from the White House, thanks so much.

Of course, when the meeting ends, we do expect President Bush to talk to reporters about this transition from this administration to Barack Obama's. We'll take you to the White House live for those comments as they happen.

Well, let's check in again with Rob Marciano. Say it isn't so? A fall snowstorm in Oklahoma? Well, it's not really even though it looks like it, that's actually hail on the ground. Yes. Thunderstorms brought tennis-ball-sized hail, a lot of it to Deer Creek in Central Oklahoma yesterday. Affiliate KOCO's helicopter captured these pretty amazing pictures. Rob, that's pretty astounding, isn't?

ROB MARCIANO, CNN, METEOROLOGIST: It is. And you know from that shot, dark skies, the warm lights, it almost did look like a snowstorm. But tennis-ball sized hail. Yes, we had a number of hail reports, between hail and wind damage reports we had over 80 of those. It was a big day severe-wise. We had a lot of snow in spots as well. On top of that we got a potential hurricane brewing in the northwestern Caribbean. So we are running the gamut here as far as the weather table is concerned. 45-mile-an-hour winds. This is tropical storm Paloma. I want to say Palermo. That would be in Italy, Sicily. This thing is forecast to strengthen actually to a hurricane. This time of year it's tough to get them towards the U.S. so hopefully it will continue its path north and then northeast. It's a category two status and then hitting Cuba. Cuba has really gotten hammered this year with a bunch of really strong hurricanes.

All right. This is a low, just off Delmarva, not a hurricane but certainly spiraling in some rain bands. And there are heavy high surf advisories out for the Jersey shore and Long Island as well. You waves and wind coming with this. And you know what wind means across some of the metropolitan airports in New York City and Philly, we got delays. And La Guardia has got well almost three-hour delays right now, and we're not even into the afternoon. 110 in Boston, and almost two hour delays in Newark.

All right. Check out this snowstorm and rainmaker through Minneapolis. Back through Rapid City, we've seen over 30 inches of snow in the black hills with this storm. And that doesn't include the Colorado Rockies and the Utah mountains there where in some cases a couple of feet of snow. So this is a strong front that's pressing to the east. It will cause some severe weather down across the south including places like St. Louis. Quick shot there of the Gateway Arch. KTSK, thanks very much. Temperatures in the mid 60s. You will see thunderstorms throughout the day and then temperatures will cool dramatically behind this front, especially across the upper midwest, will go from 60s easily into the 30s. So blues will take over the map before too long. Fredricka.

WHITFIELD: All right. Thanks so much. Appreciate that update, Rob.

All right. Two wars and a pretty big to-do list, there will be plenty on the Pentagon plate for Barack Obama.

(COMMERCIAL BREAK)

WHITFIELD: all right. The clock is also ticking on one of the Bush administration's top priorities, an Israeli-Palestinian peace deal. Secretary of State Condoleezza Rice is on her eighth trip to the Middle East in just the pass year. Rice will meet with Israeli and Palestinian leaders. But the White House admits that a peace deal is unlikely before President Bush actually leaves office. There you're seeing her yesterday in Washington.

Meantime, bombings in Baghdad, at least five people are dead in three separate attacks in or near the Iraqi capital. In the first blast a roadside bomb exploded near a check point in central Baghdad. Two people were killed, one was a member of an awakening council. They are former Sunni insurgents who turned against Al Qaeda in Iraq. Another roadside bomb at an awakening council check point southeast of Baghdad killed two. A fifth person died in another part of that city.

All right. Despite today's attacks, the U.S. military says violence is down in Iraq and U.S. troop reduction is under way. Two brigades are heading home this month, one of which will not be replaced. The U.S. military says that will bring the number of brigades in Iraq down to 14, 100,052 U.S. troops remain in Iraq. Meanwhile, the Iraqi prime minister tells CNN his government has received a formal response from the U.S. on proposed changes to a deal on U.S. troops presence in Iraq. No immediate word on details.

President-elect Barack Obama has a lot of decisions to make about the Pentagon. And many simply can't wait until he actually takes office. Here now is CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: First off, Barack Obama needs a strong defense secretary. Sources tell CNN the popular incumbent, Robert Gates, could be persuaded to stay on for a short time, but he has not been asked. Other names you hear, republican Senator Chuck Hagel and former deputy defense Secretary Jon Hammry. Obama has to decide how and how fast to change strategy in two wars.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us.

MCINTYRE: Already one army brigade is leaving Iraq earlier than planned, and dropping the number from 15 to 14 and making Obama's goal of withdrawing a brigade a month seem more doable. That could also free up troops in Afghanistan where 20,000 reinforcements are desperately need. But Obama will have to figure out whether to take the advice of General David Petraeus or give Petraeus orders to change course.

Then there's the Pentagon's 500-something billion budget due just weeks after Obama's January inauguration. It is larded with the kind of costly weapons Obama has pledged to cut such as the Army's pricey computerized future combat vehicles. The Air Force's F-22 raptor, the most expensive jet fighter ever.

And what Obama has called unproven missile defenses, whose intended to deployment to Europe has already provoked Moscow. Russian President Dmitri Medvedev greeted Obama's election with the threat to target U.S. sites in Poland and the Czech Republic. In order to neutralize the missile defense system, Medvedev said in a speech, Russian missiles will be deployed in Kaliningrad if necessary.

(END VIDEOTAPE)

MCINTYRE: Obama will be under pressure to make other decisions in his first few weeks in office, everything from closing Guantanamo to opening a dialogue with Iran. But many believe his most pressing problem may be Pakistan which is incensed about U.S. air strikes on its territory and is also in dire straits financially. Jamie McIntyre, CNN, the Pentagon.

WHITFIELD: All right. Need a second opinion? Well, forget about driving to another doctor's office. You don't even need to leave the house.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

WHITFIELD: All right. So there are a lot of folks inspired by election day two days ago but only if that were the case in the markets, not so inspired. Down 84 points on the Dow. It has been such on the past two days. We've been on this roller coaster ride for a while now. We're going to continue to watch the markets all day long.

OK. So when you want to get a second opinion, where should you go? Your living room? Well that turns out to be the case. CNN medical correspondent Elizabeth Cohen is here with this week's "Empowered Patient" segment. It usually means that you physically go to a doctor's office but now you can do it at home?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Huh? I know. The doctor just walks in the door. No, no, I'm kidding. You do it all on-line. These are really incredible services.

WHITFIELD: It scares me.

COHEN: It sounds a little bit scary but these are reputable places. It's not like askdrbob.com or something. It's Massachusetts General Hospital, the Cleveland Clinic. You send them your records and often all of it is done electronically and you get a second opinion. You can go to cnn.com/health right now. We have all the URLs you need to figure out how to get there and how to do it.

WHITFIELD: OK. So how much does it cost? People think of cost when it involves a doctor's appointment, even if it's on-line.

COHEN: Oh, absolutely. No, you definitely need to think of cost, particularly in this situation. It costs, Fred, between about $495 and $565. So we're talking, sort of $500, or so. It's not as bad as I thought it would be. It can cost more if the doctors have to look at x-rays and biopsies. Insurance often does not pay. In fact, probably usually it doesn't pay. So you really want to think about whether you want to do this. And it takes about two weeks. That's about it. So you fill out all the paperwork, do everything you have to do. You get your doctor to do his part. And you get a response. You get an e-mail report in about two weeks.

WHITFIELD: So why do you want to do this as opposed to sticking within your hometown and getting that second opinion, I mean, since there is a pretty hefty price tag involved and maybe risk?

COHEN: Right. Well I mean there's risk no matter who you go to, right? Anybody can be wrong. You can just go to a doctor in your hometown. That's definitely a possibility. But some folks I talked to say you know it gets a little tricky. If you're from a small place, these doctors are friends with each other. They refer each other patients to each other's business. One doctor number two might not want to contradict doctor number one. When you go far away that's less of a concern. So that is an advantage of going faraway.

WHITFIELD: Wow. That's a great advantage when you look at it that way. All right. Elizabeth Cohen, thanks so much. Appreciate it.

COHEN: Thanks.

WHITFIELD: OK. Well, voters, talking about being able to go to your internet and find a doctor. Well, now voters can become lawmakers as well. Taking the measure of the big ballot measures around the country.

(COMMERCIAL BREAK)

WHITFIELD: Well talk about transition time. Such is the case for President Bush as well. Looking at live shots right now of the White House, still plenty of work to do before he leaves Washington. Right now he is meeting in the White House there with his cabinet. Afterwards he's expected to come out and talk to reporters. CNN will take you to the White House for his comments live as it happens.

Well, talk about busy, the president-elect is getting his first top secret intelligence briefing today. Michael McConnell, director of National Intelligence and a team of CIA officers will be in charge of that. At the same time Barack Obama is working on selecting his transition team and looking at those that he wants on his cabinet. We're hearing a lot of names. As soon as we know something definitively, however, we'll be able to bring it on to you.

Barack Obama may not look far to choose his White House team however. CNN's Susan Roesgen takes a look.

(BEGIN VIDEOTAPE)

SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): When President Obama is in the White House, some familiar faces might be there with him.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: President-elects often look to people they know very well, people they've been comfortable with, people they've been living with and working with over the past couple of decades. And that's why you often see hometown friends of the president-elect come with them to Washington.

ROESGEN: If public housing is on the president's mind, this may be his Secretary of Housing and Urban Development Valerie Jared. She runs a firm that's been appointed by a Federal Court to oversee the desegregation of Chicago's public housing.

If the president-elect needs help on an issue involving education, he's got another Chicago friend who could help. ARNE DUNCAN, SUPERINTENDENT, CHICAGO PUBLIC SCHOOLS: We have a moral obligation to come in and do something dramatically better for those children now. We cannot wait.

ROESGEN: This is Arne Duncan, the new chief of Chicago public schools and he has pushed for some major reforms. His next job might be secretary of education. Every president needs someone to oversee White House staff and decide who gets in to see the president, and who doesn't. This could be that gatekeeper, Illinois Congressman Rahm Emanuel. Who worked in the Clinton White House as well. Why would a congressman want to be chief of staff?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Being chief of staff to the incoming president can be a stepping stone to whatever Rahm Emanuel wants, be that the mayor of Chicago, or maybe even the Senate seat in Illinois. Serving for a year or two as Barack Obama's chief of staff would definitely give him the creds for any of those positions.

ROESGEN: Of course, many state and national (AUDIO GAP) position in the new administration. Right now it's a guessing game. Nobody really knows who will be chosen except the president-elect himself. Susan Roesgen, CNN , Chicago.

(END VIDEOTAPE)

FREDRICKA WHITFIELD, CNN ANCHOR, CNN NEWSROOM: The general election over, but U.S. Senate races are not settled in. In at least two states, in Georgia Republican incumbent Saxby Chambliss and Democratic challenger Jim Martin will likely face each other again in a run off. With 99 percent of precincts reporting Chambliss has 49.8 percent of the vote. That's shy of the 50 percent plus required under Georgia state law. Martin has 46.8 percent of the vote. State officials say, if needed, a run-off would be held on December 2nd.

And then in Minnesota, a hotly contested U.S. Senate race is headed for a likely automatic recount. As of yesterday incumbent Republican Norm Coleman was holding just a 475-vote lead over challenger Al Franken. Coleman declared himself a winner. Franken says he'll await the recount.

The future is still very much up in the air for Alaska Senator Ted Stevens. He still holds a narrow lead in his re-election race. But there are more than 60,000 absentee ballots left to count. It could be days before we know if he's returning to Washington -- or for how long. Stevens still faces prison time after being found guilty in his federal corruption trial last month.

The apparent passage of an anti-same-sex marriage measure in California leading to protest in the state, including this one outside CNN's Los Angeles bureau. CNN's Casey Wian looks at that initiative and how other ballot measures did.

(BEGIN VIDEOTAPE)

CASEY WIANS, CNN CORRESPONDENT (voice over): California's Proposition 8, a ban on gay marriage that faced organized opposition by the state's political, media and entertainment elite, is leading by about 5 percent. In preliminary results after a record $73-million initiative battle.

UNIDENTIFIED FEMALE: I believe in the family, and that children need a mom, and a dad.

WIAN: That view also prevalent in Florida and Arizona, which approved gay marriage bans. And Arkansas, which voted to prohibit adoptions by unmarried couples, both same-sex and opposite sex. Voters rejected a measure to restrict abortions in South Dakota. Parental notification measure is leading in California, where votes are still being counted. A Colorado initiative that would have outlined abortion by defining a fertilized egg as a person was defeated.

GOV. BILL RITTER (D), COLORADO: This amendment takes an extreme position. It goes way too far, extends medical care and would create a legal nightmare in our state.

WIAN: Colorado measure to end affirmative action in the state is still too close to call. Voters approved Nebraska's affirmative action ban. Michigan became the 13th state to approve medical marijuana use. Massachusetts voted to decriminalize small quantities.

Egg-laying hens, pregnant pigs and veal calves on farms in California now have the right to more space. Arizona voters provided a reminder that pre election polls and pundits can be stunningly wrong. Proposition 202 was named the "Stop Illegal Hiring Act", deceptively so said opponents. It would have gutted an existing Arizona law penalizing employees of illegal aliens. A month ago, pollster had 202 ahead by a 63 to 19 margin, with 18 percent undecided. But on election day it lost by 59-41 percent, even though business interests who supported the measure outspent opponents 20-1.

ANDREW THOMAS, ATTORNEY, MARICOPA CO., ARIZONA: Any time you upset the apple cart, you're going to have special interests come out of the woodwork to try to stop you.

WIAN: In California, however, Proposition 6 was defeated. Among other things it would have denied bail to illegal aliens charged with violent or gang-related felonies. Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

WHITFIELD: Let's check in again with Rob Marciano. Let's talk about, is it Paloma? Yeah, Paloma. You said Palermo earlier. Now I'm like all screwed up.

(WEATHER FORECAST)

WHITFIELD: Seems hard to believe, but deliberations are set to begin today in the murder trial of Atlanta's courthouse killer. Brian Nichols admits to the shooting spree that left four people dead, including a judge and a sheriff's deputy. He has pleaded not guilty by reason of insanity. Nichols could face the death penalty.

So what can Barack Obama do for your kids' education? The head of the Children's Defense Fund joins us.

(COMMERCIAL BREAK)

WHITFIELD: Pretty unsettling, but the recession calls are growing louder with each passing day. Today we have dismal numbers on the state of the labor market and the retail sector. It doesn't help that right now the Dow is down 169 points. Stephanie Elam is at the New York Stock Exchange with the very grim details -Stephanie.

STEPHANIE ELAM, CNN FINANCIAL CORRESPONDENT: Hi, Fred.

Yes, we have more evidence now that the labor market is, in fact, in a recession here. The number of people who are continuing to file for unemployment benefits hit a 25-year high, and that means 3.8 million people now have signed up to get long-term benefits. This actually does show - it's taking people a long time to find a job.

And it's not a good sign for tomorrow's monthly job reports. It is expected to show 200,000 job cuts in October. Obviously, more bad news there.

Right now taking a look at numbers, the Dow is off 179 points, 8,960. Nasdaq off 36, at 1645. S&P 500 off more than 2 percent as well, Fred.

WHITFIELD: All these economic reports are kind of tied together. You can't have one without the other. Retailers are struggling. So many people out of work, et cetera, housing, industry is all in the dumps, too. Very depressing.

ELAM: Yes, it is very depressing. It is a total ripple effect. Because when you have people losing their jobs and obviously that means as consumers they're not shopping. They're pulling back. That means the economy weakens. Remember two-thirds of the economy is driven by people's spending. A turn-around in one area could have a broad effect in other parts of the economy.

But most retailers are reporting weak October sales. We've got GAP, American Eagle, Abercrombie & Fitch, they all posted double-digit percent declines. Even wholesalers like COSTCO and Target they are struggling as well. Wal-Mart was one that actually bucked the trend. It posted increase in sales. But Wal-Mart has been aggressively cutting prices. And on top of that, Fred, we all know when people are pinching their pennies, they tend to go to the discounter so they can get bang for their buck.

WHITFIELD: That's right. Every little bit help, or dishing out zero dollars, period.

ELAM: Right, exactly. Or just not spending at all, exactly.

WHITFIELD: Nobody getting anything. All right. Stephanie, thanks so much. We'll talk about these ripple effects that Stephanie is underscoring there.

U.S. auto execs, they are in Washington today looking for help. House Speaker Nancy Pelosi is reportedly is holding a meeting with Ford, GM, and Chrysler chiefs, plus the head of the United Autoworkers, they'll be discussing the credit crisis and access to government funding. Pelosi plans to call Congress into a lame-duck session to work on another stimulus program for the struggling economy.

So what can Barack Obama do for your kids' education? The head of the children's defense fund is joining us.

(COMMERCIAL BREAK)

WHITFIELD: Long before the economy became the dominant issue on the campaign trail, energy was the hot topic. The candidates including president-elect Obama made a lot of promises. So what can we expect from an Obama administration? CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.

Hello to you, Poppy.

POPPY HARLOW, CNN CORRESPONDENT: Hey there, Fredricka.

Promises, promises. We counted them up, from Obama, when it comes to his energy plan. There are about two dozen. It is ranging from conservation to transportation. So you all want to know what can you expect right away.

Some big changes to the federal government. That's one thing. Obama's plan calls for the entire White House fleet to be plug-in vehicles within the first year that he is in office. That, of course, is as security permits. By the end of his first term, he says half the federal vehicles will either be plug-in hybrids or electric vehicles.

He also wants existing federal buildings to be 25 percent more energy efficient. He wants to see any new federal buildings that are built - he wants them to be 40 percent more energy efficient. This is all within his first term. On top of that he's calling for a 15 percent reduction in the amount of energy the federal government consumes by the year 2015. Keep in mind, though, the federal government, right now, is the world's largest single largest consumer of energy, spending an estimated $14 billion a year.

WHITFIELD: Wow. I wonder about that fleet you talked about. Because I saw pictures recently about the new Cadillac, the new limo. It doesn't look like it's going to be a plug-in. Let's move on from the federal government. What about the rest of us? What else can be done?

HARLOW: Hi there, Fred, I'm sorry.

WHITFIELD: Can you hear me.

HARLOW: I'm having a hard time hearing you here. Someone else is talking to me. But let's go in to what else can be done, what he's calling on here.

Obama is planning to spent $150 billion over 10 years on clean energy. If you look at the proposals, he really wants a huge overhaul to our transportation system. That includes reducing carbon in fuels. He wants to make all new vehicles fuel flexible by the end of his term. That's a big -- that's a hefty goal. He wants to get 1 million plug-in hybrids on the road by 2015. He really wants the average American to do more. Take a listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We are going to ask all citizens to participate in that process, not just government. But each and every one of us are going to have -- are going to make commitments in terms of increasing fuel efficiency in our cars and our homes.

(END VIDEO CLIP)

HARLOW: Now, he's talking about a renewed commitment to conservation in this country. What he wants to see is 10 percent of electricity come from renewable sources by the end of his first term again. He's calling for a 15 percent decrease in electricity demand by 2025. This is interesting. He wants to make 1 million low-income homes more energy efficient every year for the next 10 years.

On top of all this, he wants to make part of this alternative energy initiative part of job creation in this country. That's what we're going to talk about in "Energy Fix" tomorrow. Hopefully I'll be able to hear you better then.

WHITFIELD: I hope so. OK, we'll have to work that audio problem. We need and audio fix, don't we?

HARLOW: We need an audio fix. I got you now, Fred.

WHITFIELD: All right, Poppy. Thanks so much.

HARLOW: Sure.

WHITFIELD: Much more in the NEWSROOM right after this.

(COMMERCIAL BREAK)

WHITFIELD: All right, making way for his successor, President Bush on the transition of power. He is talking shortly to reporters. Right now he's meeting with his Cabinet members right there, at the White House. There are live pictures right there. Of course, when he addresses the cameras and reporters, we'll bring that to you live as it happens next hour.

We've been talking a lot about the transition. President-Elect Barack Obama getting his team into place, but then it will be time to govern and live up to the potential and the promises. One of the top campaign priorities was children's welfare and education. Marian Wright Edelman is the founder and president of the Children's Defense Fund. She is joining us now from New York.

Good to see you.

MARIAN WRIGHT EDELMAN, FOUNDER, PRES., CHILDREN'S DEFENSE FUND: Good to see you.

WHITFIELD: All right, so two days after America decides, did it sink in for you immediately, or is it still sinking in?

EDELMAN: Well, it is still sinking in. But with great hopefulness and enthusiasm that finally we'll be able to move forward again, and see that every one of our children gets a healthy start, and a fair start in life. So great time.

WHITFIELD: What does this presidency symbolize for you, and perhaps for our parents, our grandparents' generation? This might be coming full circle after so many sacrifices, so much dreaming, and now this younger generation, perhaps it symbolizes something different?

EDELMAN: I think it symbolizes new energy, forward direction, a unity that we have been so longing for, for so long. And a chance to reset America's moral and economic compass and the chance to change our misguided investment priorities, to give every child a level playing field from birth.

This new administration now has an enormous opportunity to start off the year with guaranteeing health care to every child in America, and every mother prenatal care. The state Children's Health Insurance Program has to be reauthorized. We can go beyond that. The president- elect has committed to providing health care for all children. I have three sons, I wouldn't think of just giving one of them health care or two of them health care. This is a chance now to sort of put into play a chance for every child in 2009 to be guaranteed universal health coverage with comprehensive benefits, regardless of where they live in America. This is what I hope we will start off with in the beginning of the new year.

WHITFIELD: These are huge numbers. These are huge numbers that we're talking about; 9 million American children that are uninsured, 45 million uninsured Americans as a whole. You're hoping these are going to be the top priorities this president-elect addresses right away?

EDELMAN: Well, I hope that all Americans will get health care in the first term and even earlier. But I hope that every child will get health care, all 9 million, and pregnant women will get health care in 2009. And that we will not have a piecemeal approach that leaves many millions out. So this is the chance for the new president and the new Congress to show they can make a significant down payment. Children can't wait. All of them need to get health care. All of their lives are of equal value. I hope this will be one major step forward in 2009, all children, comprehensive benefits.

Then I -

WHITFIELD: You, you -go ahead, sorry.

EDELMAN: Go ahead.

WHITFIELD: Go ahead.

EDELMAN: No, no, no.

WHITFIELD: I was going to say you have invested in children for a long time through the Children's Defense Fund, and so many other efforts. If the president-elect were to consult upon you, were to tap you, would you want to work in his Cabinet as he's working on his transition team? Or would you want to work with this presidency in some other capacity while at the same time sticking with the Children's Defense Fund?

EDELMAN: Oh, I will stay with the Children's Defense Fund because while I'm so proud of this new president and so proud of America, we need to build a strong citizen's movement to really enable him, and the new Congress, to achieve what they want to achieve.

So I would never go inside government. But I do hope that every citizen will step up to the plate, make sure there's a strong, unwavering voice for investment and quality early childhood education, and health care for every child, and ending child poverty in this rich nation and in seeing that every child gets a first-class education.

We cannot live with the fact that a child drops out of school every 10 seconds, and 80 percent of our black and Hispanic children are not able to read at grade level in fourth, eighth and 12th grade, and there's a growing problem of a cradle-to-prison pipeline that's sending some our children to prison. This is a chance for us to really achieve new goals in our policies, new goals in our investment priorities. That's going to require all of us stepping up to the plate to support our new president and these goals.

WHITFIELD: Marian Wright Edelman of the Children's Defense Fund. Thanks so much for your time. Appreciate it.

EDELMAN: Thank you.

WHITFIELD: Barack Obama, the first African-American elected president. We all witnessed history this week. Well, a Denver museum is scrambling to preserve it, taking it the next step. The Blair- Caldwell African-American Research Library and Museum is saving many of the things that could wind up in next week's trash. We're talking about newspapers, stickers, buttons, documents of all sorts, all bearing the name and image of the president-elect.

For many Americans Obama's election is one of those singular memories of a generation. You know the kind. Like the moon landing or the JFK assassination. It earns that most distinguished of questions. Where were you when...? CNN 's Deborah Feyerick witnessed the moment in Harlem.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice over): To people in New York's Harlem, it was like winning the World Series on New Year's Eve. Total euphoria.

UNIDENTIFIED FEMALE: Doesn't matter what color you are. Barack Obama is your president. It's not a dream for the black people. It's a dream for the whole world.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: At this defining moment, change has come to America. FEYERICK: Everyone, no matter their age, shook their heads and said the same thing. They never believed it would happen in their lifetime.

UNIDENTIFIED FEMALE: We actually made it as African-American people. That's a huge step. Who would have ever thought that this day would come?

FEYERICK: Many felt the victory was highly personal, embraced by every man, woman and child sharing the night in the heart of Harlem. School teacher Daniel Clark called it a revival.

UNIDENTIFIED MALE: The thing is, after so many years, it's a catharsis, a spiritual and mental cleansing. That's what Barack means to us.

UNIDENTIFIED FEMALE: We haven't had someone to speak for us, as a people, since Adam Clayton Powell (ph), in Harlem.

FEYERICK: President-Elect Obama not only got the highest black vote ever, he also got more of the white vote than any Democrat since Jimmy Carter.

UNIDENTIFIED MALE: Our parents grew up in the '60s, most of us. Uh, I don't know, for us it wasn't about his skin color, it was more about his message, his character. He was a real person. Like he touched us spiritually and mentally.

UNIDENTIFIED MALE: Obama has really proved over the last couple months that he can really bring people together, but that he can also challenge us to start solving some of our own problems.

FEYERICK: As people celebrated late into the night, they felt the future had truly begun.

UNIDENTIFIED MALE: That means my son, who is 12, has no excuses. That means anything is possible. That means that to everybody. That's why people are so involved. It's personal.

(END VIDEOTAPE)

WHITFIELD: So many inspired.

I'm Fredricka Whitfield, join us again tomorrow morning starting at 9:00 a.m. Eastern. For now CNN NEWSROOM continues with, badda-boom, Tony Harris.

TONY HARRIS, CNN ANCHOR, NEWSROOM: No excuses. Kids today you were shot out of a cannon, anything is possible. A black man is president- elect of the United States. Now, get to work. Thanks for that. We'll get to work here in the NEWSROOM.

Good morning everyone. It is Thursday, November 6th, and here are the stories we're following in the CNN NEWSROOM today. America and the world wait with great expectations. Can the president-elect turn grand campaign appeals into real world solutions. Your money during the era of wild market gyrations. Personal Finance Editor Gerri Willis and smart money moves you need to make right now. Two year's worth of pictures from a "Time" magazine photographer, freeze framed from an historic campaign for the American presidency.