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President-Elect Obama to Hold Press Conference Today, Making Military Brides' Dreams Come True; Gas Prices Continue to Decrease
Aired November 07, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: You've got to take a look at what is coming up for you next. A massive human tribute to U.S. troops. There it is. Look at all those people. Thousands gathered yesterday at Ft. Knox, Kentucky, to form a massive yellow ribbon. They donned yellow hats and shirts to make the symbol that signifies supporting U.S. troops.
Organizers are hoping to break the world human yellow ribbon record which stands at 1,350 people. And they say more than 2,100 took part yesterday.
New recession fears, jobless rate, worse than expected. How are investors reacting to the grim news? We are watching Wall Street.
Plus inheriting a crisis. President-elect Obama meeting with economic advisors to come up with his plan. It is Friday, November 7th. I'm Betty Nguyen in for Heidi Collins. And you are in the CNN NEWSROOM.
Your money, your job, your latest reason to worry. Yes this morning, bleak new numbers. Listen to this. Unemployment jumps to a 14-year high. The auto industry adds to the gloom and ford announces job cuts and billions of dollars in losses. Later this hour we have more grim news expected from GM. So it is not over folks. So are you looking for answers? Well President-elect Barack Obama assembles his experts. Can they shore up the sagging economy? We'll delve into that.
But first up, look at the numbers. Not so bad considering the news. It is up, the Dow, 113 points in positive territory. We'll continue watching the market throughout the day. And we're also watching those markets overseas, but caution seems to really be the watch word. In Asia, markets, they are mixed. Japan's Nikkei was down. But markets in Hong Kong, they were up. Same story across Europe. Markets overall mostly flat.
CNN's money team is in place to break it all down for you. So let's begin with the jobless numbers and senior correspondent Allan Chernoff. So Allan, how bad is this unemployment picture?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: It is simply awful. That's how we can describe it. I mean these are just horrific numbers that we're seeing. First of all, the unemployment rate shooting up to 6.5 percent, huge increase over one month. Remember just one month ago it was 6.1 percent. This is the highest rate in 14 years. And the jobs lost in the economy very, very dismal, far worse than had been forecasted. In October a loss of 240,000 non farm jobs. There was a big revision upward for September and as a result for the last three months we have lost, as you see, more than 650,000 jobs, year to date a loss of 1.2 million jobs, Betty. Very, very bad numbers here.
NGUYEN: OK. But as we look at these numbers, help us understand exactly where are we loosing all of these jobs?
CHERNOFF: Well, we've lost a lot of jobs, first of all, within manufacturing, although part of that loss was actually people striking at Boeing. So that wasn't a total, total loss there. Construction, we're seeing a big loss, of course, because of the housing industry. Homes are just not being built at the same pace. Lots of people being laid off there. Now, within retail - this is interesting - auto dealerships have laid off about 20,000 people in the last month. Obviously cars not selling at all. Professional services, and that includes employment services, there's been a big cut there. Leisure, that includes hotels. People are not traveling at much. Hotels have been laying off as well.
NGUYEN: OK. When we look at the jobless report, I mean that is just one sector of this, one part of the bigger problem. It doesn't tell the whole story, though, does it? When we're talking about this bad financial news?
CHERNOFF: You know, truth is the news is even worse than these numbers indicate because there are a lot of people who are discouraged workers. These are people who have simply given up looking for work because they simply don't believe that there are jobs out there. More than 480,000 Americans within that category during the last month. So that gives you a fuller picture of just how dismal the situation is. And unfortunately, it is likely that the employment situation is going to be getting even worse in the coming months. Betty.
NGUYEN: They're downright discouraging.
CHERNOFF: It is.
NGUYEN: Allan, OK. We do appreciate it. Unfortunately you had to be the bearer of the bad news, but the facts are the facts. Thank you.
So when you become a statistic, how to get by and get back on your feet when it's your job that's eliminated. Personal finance editor Gerri Willis has some advice just minutes from now.
The Obama White House takes shape. The President-elect takes center stage. This afternoon Barack Obama holds a news conference, his first since Tuesday's election. Now this morning Obama is meeting with experts on the economy, and the focus, the first steps that need to be taken once he is in the White House.
Let's set the stage for the Obama news conference. CNN's Suzanne Malveaux is in Chicago. What are we expecting to hear from Obama today, Suzanne? SUZANNE MALVEAUX, CNN CORRESPONDENT: Betty, it really is all about Barack Obama trying to show people that he is responding to this financial crisis, that he's on top of it. He's meeting with this transition economic advisory board, about 17 members from various business sectors, government sectors, CEOs from google, from Hyatt. You know Warren Buffett, the billionaire, as well as some numerous former treasury secretaries to sit down, to look at these job numbers and to figure out what is the best course of action. We have heard from Barack Obama before saying that he would give 95 percent of Americans a tax break, That is part of it, that those who make more than $250,000, that tax break from the bush administration would no longer exist, that he would provide grants for folks when it comes to education, and at least some long-term goals when it comes to creating jobs, some public works programs, build bridges and highways and those type of things. So clearly he's going to be answering some questions. There's going to be a lot of questions on what is the best way to proceed here. He wants to show that he is on top of this, that he is paying close attention and that he is an advisory board, some real heavy hitters here he is turning to. Betty?
NGUYEN: As he listens to this economic advisory board, any chance that we're going to hear word on possible picks for his cabinet?
MALVEAUX: We're told not to expect any public announcements about personnel at this moment here. But it's interesting, Betty, because there are several people who are on this advisory board who he's been consulting with for at least the last month or so who are possible picks, possible picks for Treasury Secretary. It includes former Federal Reserve chair Paul Voelker as being one of them, former Treasury Secretary Larry Summers being another. These are folks that he has been talking to for the past weeks or so as well as Timothy Geithner, president of the Federal Reserve Bank in New York. He is someone who has been key in trying to figure out the bailout plan and all this since that financial crisis, the meltdown in September. So it is not beyond the stretch of the imagination that one of those people certainly could be in that seat. We don't expect any announcements today. But he does want to show Americans that there's a certain sense of continuity here, a steadiness, that he is reaching out to these folks and that these folks are considered to be a really key group of people that he's turning to in this time. Betty.
NGUYEN: Nonetheless, names that are being floated around. OK. Suzanne Malveaux, thank you for that.
Well, the man who will serve as Barack Obama's chief of staff is talking to reporters about his appointment. Rahm Emanuel, a congressman from Illinois accepted that key position yesterday. He says the Obama administration has a lot of work to do come January.
(BEGIN VIDEO CLIP)
REP. RAHM EMANUEL (D), ILLINOIS: Today American people are working harder, earning less and paying more in their bills. We have got to turn this country around on their behalf. I made a series of phone calls to both democrat and republican leaders to reach out. I've received a lot of calls from not only democratic colleagues but republican colleagues who could not have been nicer.
(END VIDEO CLIP)
NGUYEN: So who is Rahm Emanuel and what will he bring to the table? We're going to take an in-depth look at Obama's right-hand man just 20 minutes from now.
And just a reminder for you, we have live coverage of Barack Obama's news conference. It is scheduled for 2:30 Eastern. So stick around for that.
Severe weather, look at this. Isolated damage from a tornado that touched down in Oklahoma town. The storm destroyed one mobile home and damaged a couple of others. Randy Booker was able to pull his family out of that rubble. And now the Red Cross is helping them with food and a place to stay.
So you know it is that time of year that we're looking at the weather outside. Still hurricane season, can you believe it? It is not over just yet. And the man watching over that, our very own Reynolds Wolf. Reynolds, what do you have for us today?
REYNOLDS WOLF, CNN METEOROLOGIST: You know, we get all kinds of stuff today, Betty. We're talking about of course Paloma, the hurricane. We also have rough conditions in parts of the midwest, western half of the great lakes. Let's get things started just to our north. We got cold windy conditions compliments of this area of low pressure, a lot of cold air evection coming in from Canada. When you have the cold air at the surface and the all burning moisture, that's a recipe for snow. That's what we've been seeing in parts of the twin cities. We're going to zoom in right now into Minneapolis. And from southwards of Wilmington it's going to be on and off with the snow showers, a few raindrops here and there farther to the north.
But another thing that we're going to be dealing with is a lot of wind. So there is the chance that you're going to have very limited visibility at times when that wind really begins to pick up. We have a live image for you right now. Let's go to that. And that happens to be in the twin cities. Here you go. KARE in Minneapolis, got that great picture. You see a little bit of sunshine going through those low clouds. If you keep staring right ahead you're also going to see some of those snowflakes, people making their way in and out of the city there.
I tell you it's going to be an interesting day as we go back to the weather computer, farther to the south, precipitation still in the mix, but not in terms of snowfall, rather rainfall from Nashville south into Birmingham. Not so much in Birmingham for this time, but by the time I'd say we get into the lunch time hours and maybe around 2:00 we're going to see the showers continue and the biggest rainmaker, one of the biggest we have on the planet is this.
This happens to be Paloma, that we are referring to with winds at 85 miles an hour, gusting to 105. The storm is expected to strengthen significantly. In fact if you take a look at the latest path we have from the National Hurricane Center, here we go as you go into Saturday, strengthening to a category 3 storm. When it reaches category 3 or higher it's considered a major hurricane. That is certainly a possibility as we get into Sunday. Storm makes landfall right into Cuba. And with its interaction with land and some higher elevations the storm should weaken considerably. Once it pops up north of Cuba, it should be a tropical storm. It's going to zip right through the Bahamas losing some strength to 35 miles an hour into Tuesday and Wednesday. But thankfully the frontal boundary that's bringing the snow with rain to parts of southeastern U.S. into parts of the Great Lakes, Betty, that's going to be the thing that's going to help steer the storm away from the United States.
NGUYEN: Good news. Yes.
WOLF: Certainly, some good news there.
NGUYEN: All right. Thank you, Reynolds.
WOLF: You bet.
NGUYEN: You know change is more than just a platform playing for this candidate. It is part of his life. New mayor with a new look.
(COMMERCIAL BREAK)
NGUYEN: All right. So nothing affects your wallet more than your job. So what happens when you lose your paycheck? CNN personal finance editor Gerri Willis joins us with some advice on surviving a job loss. Gerri, give it to us and give it to us straight because a lot of people need some help on this.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Betty, first things first, right? You're not going to think of this, but grab your rolodex. Before you start packing up your desk, take the stuff that will help you find your next job. Grab all those contacts and networks you've been establishing. Look, all your company property is off limits including customer lists, financial data, strategic plans, contract information. If you get caught, you could lose your severance or be sued. You usually have some time to return gadgets so you'll be able to retain any personal info. But in case you're required to hand these gadgets in right away, say laptops or blackberries, you want to be prepared. If you have a laptop computer you have to return, make sure you download the personal info. If you kept contacts on your Blackberry, have a backup at home. Make sure you do this if there are only rumors of lay-offs in your company right now.
NGUYEN: Because who you know can make all the difference. In fact, I have a friend, Gerri, who recently lost her job. And this is important because one of her biggest concerns was health care. What do people do about those health benefits?
WILLIS: You know this is critical. You don't know how long you're going to be unemployed. There are some things to which you have a right though when you leave. And health care is one of them. Cobra is a federal law that allows you to continue your health care coverage up to a year and a half after you leave your job. Now you generally have 60 days to decide if you have want the coverage, if you have a pre-existing condition, maybe you're going to travel overseas. Consider taking it but it's not cheap. You'll be required to pay full premiums and administrative fees of two percent. Now most companies will pay your medical coverage through the month, so if you get laid off on January 30th, see if you can push that coverage through the end of February. If you think you have another job lined up in a couple of month's or you're able to join your spouse's health care plan, well then you won't need the cobra coverage.
NGUYEN: All right. Another one of your tidbits of advice is don't leave money on the table. Explain that.
WILLIS: Right. Well, you know look, you also have a right to whatever money you've collected in your 401(k) and your pension benefit plan, whatever is vested. Don't forget to roll over your 401(k) or your pension into a traditional IRA using what they call a trustee-to-trustee roll over. That's the critical language. You'll have more investment options for your retirement. And you won't have to pay penalty fees that come with cash disbursement. Now keep in mind, the tax laws prevent you from directly rolling over into a Roth IRA, so you have to go with the old fashion variety instead. If you have a flexible spending account, a lot of people do this now, you'll generally want to use your allotment before you leave the company. And don't forget stock options. A lot of people have stock options. If you have vested stock options, check the price and decide if you want to exercise them, if it makes sense. You'll typically have from 90 days to do this. Otherwise you will lose them. But it's important to go after all these details. Start thinking about them even before you lose the job if there are rumors about lay-offs in your office, you want to act and act quickly.
NGUYEN: Yes and just know that with that flexible spending account, if you don't use it, you loose it. So yes -
WILLIS: Yes if you didn't continue working for the company and lose the money, right? I mean if you don't use the money. Got to use it to get it.
NGUYEN: All right. Gerri Willis, always good information. Thank you.
WILLIS: My pleasure.
NGUYEN: You know an economy in crisis. It is a government in transition. Your wallet could be in limbo. We have so much to talk about. We're going to go to Washington and talk to the nation's Secretary of Commerce.
And check this out. Another day of protests in Los Angeles over Proposition 8. That is the ballot measure banning same-sex marriage. It passed on Tuesday, and appeals have already been filed with the California Supreme Court. Now, the court struck down a similar measure earlier this year. Some of the demonstrations are now aimed at the Mormon church. Protesters blame the church for helping push Prop 8.
A new mayor turning heads in Silverton, Oregon. He's bringing something a little extra to the job.
(BEGIN VIDEO CLIP)
MAYOR ELECT STU RASMUSSEN, SILVERTON, OREGON: Some guy's mid life crisis is sports cars or motorcycles or climbing mountains or trophy wives or whatever. I always wanted cleavage. So I went out and acquired him.
(END VIDEO CLIP)
NGUYEN: Yes, you heard him right. Stu Rasmussen is the town's transgender mayor elect. But his appearance didn't seem to matter to the voters. He won by 13 points and he is confident that he can handle the job.
(BEGIN VIDEO CLIP)
RASMUSSEN: The first 30 seconds you think am I in a freak show? Is there a camera behind me? What's going on here. Then we get down to discussing whatever the issue is, whether city business or business or whatever, and they figure out, oh, well, this guy is different, but he knows what he's talking about.
(END VIDEO CLIP)
NGUYEN: The new mayor was born and raised in Silverton and he has been an elected official there for 20 years.
Four marines charged with murder and robbery in California. They won't be arraigned for another two weeks. The men are accused of killing a fellow marine and his wife in their home last month. Prosecutors say the marines broke into the couple's home looking for valuables and then sexually assaulted the wife before shooting both victims in the head execution style.
(BEGIN VIDEO CLIP)
DANIEL DELIMON, PROSECUTOR: I can't tell you that each of the defendants have been charged with two counts, the special circumstance murder which makes them eligible for the death penalty. That decision has not been made and will be made sometime in the near future.
(END VIDEO CLIP)
NGUYEN: Well, according to court documents, the marines confessed their crimes to investigators.
Listen to this, dropping the risk of breast cancer? Yes. A new study offering good news for people suffering from migraines.
(COMMERCIAL BREAK)
NGUYEN: Probably the only thing worse - ouch - than being a lame duck president, being a lame duck dog. Yes. That's Barney, the White House dog apparently feeling the pain. He bit, as you saw it there a White House reporter. The reporter was bandaged and by a White House doctor and was prescribed antibiotics. It's mesmerizing. First Lady Laura Bush says Barney was probably fed up with the paparazzi.
All right. Some good news. We like that, especially for women who suffer from migraine headaches. You may be less susceptible to breast cancer, yes, by 30 percent. Researchers in Seattle say it all resolves around estrogen, excess makes breast cancer more likely but migraines are associated with low levels of the hormone.
And there are signs of the tough economy that are being seen at hospitals around the country. "The New York Times" now reports many hospitals are seeing fewer patients checking in for elective procedures like hip replacements or knee surgeries. Those are money- makers for hospitals. Emergency room visits they are actually on the rise, though. Many of those patients can't pay because of this economy, even hospitals that haven't been hit are cutting jobs in anticipation of the tough times.
Well healthcare reform was one of the biggest campaign promises of President-elect Barack Obama. So can he deliver? CNN chief medical correspondent Dr. Sanjay Gupta talked with some of the medical community to get their take on it.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: President- elect Barack Obama promised to make health care reform a priority in his first hundred days. His goal? Make insurance available for everyone who wants it.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: no one will be turned away because of a pre-existing condition or illness. If you have children, they will be covered, too. If you change jobs, this insurance will go with you. And if you can't afford this insurance, you'll receive a tax credit to help pay for it.
GUPTA: He wants to make the same health insurance that's available to government employees also available to every citizen. The estimated cost, up to $65 billion a year. President-elect Obama says the money will come from rolling back President Bush's tax cuts. The average family will save about $2500 a year. The idea? More people in the pool will drive premiums down.
KAREN IGNAGNI, CEO, AMERICA'S HEALTH INSURANCE PLANS: The concept that now president-elect Obama has advanced is a very important one, having all Americans in the system does play an important role in making coverage available as efficiently as possible.
GUPTA: Other medical experts are cautiously optimistic.
DAN SMITH, PRES. AMERICAN CANCER SOCIETY: He has put forward some big ideas on health care. And I think that obviously the devil will be in the details.
GUPTA: Some of those other details include requiring doctors and health care facilities to switch to electronic medical records. And the safe reimportation of drugs from developed countries. OBAMA: -- tell the pharmaceutical companies thanks, but no thanks, for over priced drugs. Drugs that cost twice as much here as they do in Europe and Canada and Mexico.
GUPTA: So how soon before you'll be able to order your next batch of meds from Canada? The FDA cautions that may not happen any time soon. They tell CNN most imported drugs are not FDA approved and have not been shown to be safe, regardless of what country they come from.
Obama will also push for insurance coverage of preventive care with a focus on wellness as opposed to just managing sickness. Also increases in funding for cancer and stem cell research.
IGNAGNI: That is a very tall order from where we are today. Now the question is, is turning the proposals that were made during the campaign into legislative proposals and specifics.
GUPTA: Dr. Sanjay Gupta, CNN reporting.
(END VIDEOTAPE)
NGUYEN: There is something new brewing in Texas, a healthy beer. Yes, students at Rice University, believe it or not, have a special batch that they say can actually protect against certain diseases.
(BEGIN VIDEO CLIP)
DAVID OOYANG, RICE BIOBEER TEAM: What someone said was that, we're giving the health benefits from the wine and cheese crowd to the Joe six-packs of America.
(END VIDEO CLIP)
NGUYEN: It's called bio beer, and it's genetically modified with a compound from red wine. Students say they'll have a drinkable version by the end of the semester. Can you imagine that hangover after all those trials? Don't expect to see it on store shelves any time soon. We'll stay on top of that story for you.
Well, a bad report on job losses. The government reacting to the tough news.
(COMMERCIAL BREAK)
NGUYEN: It is a busy day for President-elect Barack Obama. He's meeting with his newly-named chief of staff, Rahm Emanuel. Obama will then sit down with his team of top economic advisors and receive additional security briefings and record a Saturday radio address. A lot on the plate today. Finally this afternoon, Obama will hold his first official news conference since he was elected president and of course, CNN will bring that to you live at 2:30 Eastern.
Obama's choice of Rahm Emanuel is getting praise from fellow Democrats. He worked in the Clinton White House. Hillary Clinton had this to say. (BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), NEW YORK: President-elect Obama made an excellent choice. Rahm Emanuel understands both ends of Pennsylvania Avenue. He understands the private sector, where he was very successful for a number of years. He gets things done. You know, Rahm is determined and effective, and I think he will serve President-elect Obama and our country very well.
(END VIDEO CLIP)
NGUYEN: To further Obama cabinet announcements are expected today. He and Michelle will go to Washington on Monday, where they will be guests at the White House.
All right. So, he once trained to be a ballet dancer. But, Rahm Emanuel developed a reputation based on force, not grace.
CNN's Susan Roesgen on President-elect Obama's chief of staff.
(BEGIN VIDEOTAPE)
REP. RAHM EMANUEL, CHMN., HOUSE DEMOCRATIC CAUCUS: I'm very fortunate that my parents are alive to see that whatever choice I make.
SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): It's not a side of Rahm Emanuel most people see. This is a guy who's at the top of his game as a Washington power player. Someone who knows how to throw an elbow to get ahead. Here he is in the Clinton White House defending his boss during the Monica Lewinsky scandal.
EMANUEL: The president of the United States is doing his job, focusing on the American people and their future. And that's where his energy and time is going.
ROESGEN: Described affectionately as an attack dog --
EMANUEL: Know that the president has failed to lead --
ROESGEN: Emanuel started as a political fundraiser. First, for Mayor Richard Daley here in Chicago. Then for Arkansas Governor Bill Clinton, running for president. That led to Emanuel's role as a senior adviser in the Clinton White House.
And the legendary stories that may or may not be true. Like the one about his getting so angry he stabbed a dinner table with a steak knife. And then there's one about his sending an enemy a dead fish. The kinds of stories Hollywood couldn't resist.
UNIDENTIFIED MALE: We got to narrowed down to the guy we want.
ROESGEN: The deputy White House chief of staff in the "West Wing" series is said to be based on Emanuel.
JEREMY PIVEN, ACTOR, "ENTOURAGE": Stop clapping your gums and put them through.
ROESGEN: And in the HBO series, "Entourage," the character of the Hollywood agent, Ari Gold, is said to be based on Ari Emanuel, Rahm's powerful brother.
So, what is Rahm Emanuel really like? We asked his rabbi.
RABBI ASHER LOPATIN, ANSHE SHALOM SYNAGOGUE: He is committed to America, committed to his Judaism and committed to the people around him. And he's very popular in the synagogue. People like him. He's a really good man, good man.
ROESGEN: In 2002, Rahm Emanuel ran for office himself and became an Illinois congressman. Now, so powerful that he could be in position to succeed House Speaker Nancy Pelosi. But the pull of something greater will take him back to the White House. The legend continues.
Susan Roesgen, CNN, Chicago.
(END VIDEOTAPE)
(WEATHER REPORT)
NGUYEN: We do have breaking news and more questions about the survival of the U.S. auto industry. Just hours after Ford announced billions of dollars in losses, General Motors is expected to release its own devastating news.
So, let's take you straight now to CNN's Brooke Baldwin, outside a GM plant in Warren, Michigan.
Have you gotten a look at the numbers just yet?
BROOKE BALDWIN, CNN CORRESPONDENT: Betty, we are standing by. I have my producer two feet away from the me. We are waiting for those numbers. They're supposed to come down, any minute now, from general motors. As soon as we get them, I will certainly pass those along to you.
But, losses so far. We have seen Ford losses there in the billions. We know people right now aren't buying cars. We knew sales were bad. Ford was down some 30 percent October '08, compared to October '07. Let me get you some of those hard numbers from Ford. They came out just a couple of hours ago.
Now, Ford posted their third quarter losses this morning. They announced nearly $3 billion pre-tax operating loss. They say car sales have plunged 25 percent. They also announced that they will be cutting salaried employment costs by 10 percent and that they plan to cut 2,600 hourly jobs.
Now Betty, all of these numbers this morning are coming one day after a huge meeting in Washington. It was a meeting involving the executives of the big three, here in Michigan. Also, the UAW president meeting with House Speaker Nancy Pelosi and a number of House leaders, Congressional leaders. What they're doing is that they are pleading with Congress to see if they can get a second $25 billion loan. They would like to have a possible bailout for the auto industry, similar to that $700 billion that we saw to financial institutions. They would like $25 billion for the automotive industry.
Now these executives have also appealed to President-elect Barack Obama. In fact, I have a letter from the executive chairman of Ford inviting the President-elect to a national summit to participate. And they're asking for his support. Barack Obama is speaking this afternoon in Chicago. A topic of his agenda will be the economy.
And you can believe that a lot of people here in the Rust Belt and beyond, Betty, will be watching the President-elect very closely to see if he pledges any kind of support regarding any potential buyout -- rather -- bailout for the big three.
NGUYEN: Yes. Actually he's going to have a press conference after that meeting at 2:30 Eastern time. And we'll bring that to you live.
In the meantime though, Brooke, when you do get those numbers, let us know.
OK. So, things are also tough on the upper end of the car business. The world's largest Lamborghini dealership has shut down in Southern California. Now, the average price tag for the 12 cylinder sports car, something a lot of us absolutely can't afford. But, it is a whopping $600,000.
There are dismal new numbers out today on those job losses, yet another sign of a weakening economy. But with 10 weeks to go before a new president takes office, will the nation's economy and your wallet be stuck in limbo? Joining us now from Washington, Carlos Gutierrez, the nation's Secretary of Commerce.
We do appreciate your time. Especially, on the news of those jobs losses today. Over a million jobs lost this year alone.
How did we get to this point? Is it the credit freeze, the mortgage meltdown? Has it just been a perfect storm of sorts?
CARLOS GUTIERREZ, SECRETARY OF COMMERCE: Well, you're right. It's been very disappointing. And if you notice that there were job revisions in September and August. In September clearly is when we had the credit freeze really peak in a way. The peak was October the 10th. But it began in September.
So the irony is that we were suffering from high oil prices. Oil has now come down. But we do have a credit freeze which is beginning to thaw. But this is what the president's $700 billion rescue package is designed to do. Is to get credit flowing again so that consumers and businesses can have credit because our economy needs credit to grow.
NGUYEN: OK. But, let me ask you this. How is that working so far?
GUTIERREZ: Yes. What we see -- and this has just started recently, about a week ago. But, there are two indicators that we've seen that are positive.
One is the interest rate that banks use to lend to each other has declined gradually and consistently. And the other thing, too, is that commercial paper issuance is up quite dramatically over the last couple of weeks. And that is a positive sign that credit is beginning to flow again.
We've got work to do. We're going to have you know, a few difficult months. But we're getting through this, and we will get through it, Betty.
NGUYEN: Well, it sounds like it's going to take some time. So, as you look into the future her here, what kind of add do you have for the Obama administration?
GUTIERREZ: Well, two big things. One, of course, we have a plan that is being implemented and that plan should be taking hold by the time the new administration takes over.
And obviously continuity is important, keeping the plan important. Tax policy is critical. We do not need a tax increase. And the other thing, too, is that we continue to be engaged in the world economy, opening up new markets, engaging in free trade, leading the world in free trade. Those are two things that we believe are very important.
NGUYEN: All right. Carlos Gutierrez, the Secretary of Commerce.
We do appreciate your time with us today. Thank you.
GUTIERREZ: Pleasure. Thank you, Betty.
NGUYEN: You know, a troubling report out this morning, as we've been talking about more jobs lost in an already struggling economy. Plus the market trying to rebound from a brutal couple of days. And so far, so good in positive territory, up 225 points. We are watching the big board.
(COMMERCIAL BREAK)
(BUSINESS REPORT)
NGUYEN: You know, children, they are vulnerable to identity theft. An alert sent to parents in Arizona. Here's what happened. A storage facility in Phoenix was broken into. Missing is a computer hard drive with the personal information of about 40,000 children. Everything an identity thief would need. So, here's advice for parents.
(BEGIN VIDEO CLIP)
TODD DAVID, CEO, LIFELOCK: Contacting the Social Security Administration and asking for a work history for their child. You want the answer to be, one does not exist. That's the right answer. But, you want to regularly ask, at least once a year, make that request so that if something has happened, you detect it early.
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NGUYEN: Although they've issued the warning to parents, officials think the thieves may not know what they really have.
Well, Craigslist cracking down on prostitution. The online classifieds company says it reached an agreement with law enforcement officials in 40 states, to more carefully monitor its listings of, quote, "erotic services." That site has been used by prostitutes and sex businesses to get clients. Craigslist says it will now weed out any illegal activity by confirming the advertisers' identities.
There is a major milestone for a man affectionately known as America's preacher. The Reverend Billy Graham turns 90 years old today. Graham's family says he's in good physical shape and his mind is sharp. Celebrating his birthday with a barbecue at the Reverend's home in North Carolina. Now, a much bigger bash will be held next week, where Graham will be presented with a book of greetings from thousands of fans all across the world.
Going green to help the economy. Plans from the President-elect gaining new importance following more troubling economic numbers.
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T. BOONE PICKENS, FOUNDER CHAIRMAN BP CAPITOL MANAGEMENT: Now, with the price of coming down -- when I opened on July 8th, the price of gasoline was $4.11. That's when I when I launched. And now, we're half that. Does it hurt? You know, really, the cheaper the gas price goes, the better it helps the country, no question.
But we're importing exactly the same amount of oil today, as we did back on July 8th. So, the security issue is still -- has not changed a bit. The economic issue has. It's cheaper now to import. We cannot continue to do this.
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NGUYEN: That was Texas oil man T. Boone Pickens, on his plan to help relieve the U.S. on what he calls its addiction to oil. Meanwhile, gas prices, they keep going down. AAA reports the national average price for a gallon of unleaded gasoline is now $2.31. That's down 2.6 cents from yesterday's price. AAA says this is the 51st consecutive decrease.
We've been talking about it all morning long, the economy. It is bleeding jobs. But President-elect Obama has said a new green economy could provide some relief. CNNMoney.com's Poppy Harlow has our Energy Fix from New York.
Hi there, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hi there, Betty.
Well, this morning we heard that the unemployment rate in this country is now 6.5 percent. 1.2 million people have lost jobs already this year. That report really just tells a grim, grim story about the state of our economy. It shows just how much President-elect Obama has before him. Here's how he plans to turn the tide.
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SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Creating a new electricity grid so that we can bring renewable sources of energy to population centers that need them. Invest $15 billion a year in renewable sources of energy, building wind turbines and solar panels, creating the next generation of biofuels. Investing in clean coal technology. Making sure that we're building the new generation of fuel efficient cars, not in Japan, not in South Korea, but right here in the United States of America.
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HARLOW: You heard the laundry list of ideas. Obama says he can create five million new jobs. He plans to spend $150 billion over the next 10 years to do that. One proposal he didn't mention is job training. He wants to retrain laid off workers. He also wants to help military members return from deployment to employment, a plan called the Green Vet Initiative. That trains veterans from Iraq and Afghanistan to compete for jobs in the green economy -- Betty.
NGUYEN: It all sounds very good. But, here is the million, perhaps a billion dollar question.
How's he going to pay for it?
HARLOW: It is a great question. I think he's probably asking that right now, as well.
What he's doing, what he's calling for right now, is a plan to use revenue from his cap and trade program. That's essentially where the government will auction off permits that allow mainly energy companies to emit carbon. And each year, the government will reduce the number of permits, therefore reducing the amount of greenhouse gases those companies emit.
The money raised from auctioning off those permits will be used to fund the job creation program. Critics though, really are concerned that asking companies to spend money to buy those permits may hurt their bottom line, cause them to cut more jobs. That's a big concern. We explain it more right there on CNNMoney.com.
And, Betty, back to you. I wanted to congratulate you on the Heroes award you got.
NGUYEN: Oh, thank you. I do appreciate it.
That show will be airing Thanksgiving night.
OK. So, 240,000 jobs lost last month. Reaction this morning from the market and the White House. That's at the top of the hour.
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NGUYEN: Listen to this. A Denver woman is giving back by giving away a dream dress to military brides-to-be and to fiancees of active duty personnel. We're not just talking about any dress. She is giving these women the wedding gowns of their dreams.
Here's Thanh Truong, from our affiliate KUSA.
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ALICIA DONALDSON, BRIDE: I'm like, shaking. Can you tell?
THANH TRUONG, KUSA REPORTER (voice-over): Dreaming are coming true for Alicia Donaldson.
DONALDSON: It's a blessing to actually get the dress that you want, the dress that you dreamed about.
TRUONG: She's engaged to Army Sargent Urich Abram (ph). And they've set a wetting date, not once, not twice, but four times. His extended tour in Iraq threw off the wedding plans. But, they're now going to be married in May.
DONALDSON: And to have a date to look forward to now it's just amazing. Sorry. I'm usually not so emotional.
TRUONG: With help from D'Anelli Bridal, she doesn't have to worry about finding or paying for her wedding dress.
DONALDSON: I think this experience is so emotional because it's not that I'm getting a free dress. I'm getting my dream dress for free.
TRUONG: The bridal salon is taking part in a national gown giveaway. Military brides-to-be, or fiancees to active duty Military who served in Iraq, or Afghanistan, are eligible for a free wedding dress. The shop's owner has a personal connection to all of this. She too, was once a Military wife.
SANDI SCHREIVOGEL, D'ANELLI BRIDAL SALON: I got married right out of high school and he left for Vietnam. And three months later he was killed. So, I get a little emotional.
TRUONG: The shop plans to give out 30 dresses. But, it's willing to part with up to 70 of them. First-come, first-serve. But there will be one dress already claimed.
DONALDSON: There's no words to express how much I appreciate this.
(END VIDEOTAPE) NGUYEN: Such a great story. You know, that bride-to-be got a head start. The giveaway is part of a national program that officially kicks off this Sunday.
Next Tuesday is Veteran's Day, a day to honor and remember. So, be sure to join Heidi Collins for CNN NEWSROOM, live from the deck of the Intrepid. Coverage begins at 9:00 a.m. Eastern.
I'm Betty Nguyen. Join us again, Monday morning, starting at 9:00 a.m. Eastern. For now though, CNN NEWSROOM continues with Tony Harris.
