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Obama Meets With Economic Advisors, Readies Press Briefing On His Financial Strategy; Workers Nationwide Brace For Layoffs
Aired November 07, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR, CNN NEWSROOM: Hello, everyone. I'm Kyra Phillips live in the CNN World Headquarters in Atlanta, and you are live in the CNN NEWSROOM.
First off, a hemorrhaging workforce means an even more staggering workload for the president-elect. Barack Obama is behind closed doors in Chicago today with the economic think tank ahead of his very first news conference as president-elect. The backdrop for both is a tenth straight month of job losses and 240,000 in October alone, and more multibillion-dollar losses for GM and Ford. You will see the next president live here at the bottom of the hour right here on CNN.
Our guides for the busy hour ahead are CNN's Candy Crowley, with the Obama transition team in Chicago, Stephanie Elam, she is on Wall Street, and Gerri Willis on how to hang on the your job and survive, if you don't .
Candy let's go ahead and start with you. Barack Obama won't be president for 74 more days, but today the world will be definitely be hanging on every word he has to say, right?
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Absolutely. He is giving obviously his first press conference since winning the presidency, and we have already had a big signal about what at least he wants to talk about in the press conference. They have allowed cameras in for the beginning of a meeting with his top economic advisors and pretty much reads like a who's who of some top business executives and JPMorgan, Google, that sort of thing. As well as some very familiar names from the Clinton administration, Robert Reich, William Daley, and et cetera.
He also intends to bring them in here. So what you are hearing first of all from Barack Obama, you are seeing in pictures. which is that my first focus is on the economy. I think this is certainly directed at voters, sort of a calming, I am coming, and here is what I am working on, as well as a sign that he recognizes obviously the job figures today point to an economy that continues to decline.
So that is what he wants to talk about. You know, press conferences are sort of free-wheeling things and we will see what everybody else wants to talk about.
PHILLIPS: Sure, we're curious to see what he has to say. You know, I reading this op-ed, Candy, and one of the quotes, here, says that "walking into the Obama White House of my dreams will be like walking into Gates Foundation. The people there will be pragmatic, data driven, they will hunt good ideas, like venture capitalists. They will have no faith in all-powerful bureaucrats issuing edicts from the center.
I mean, bottom line, more than anything, America needs to gain trust in this president. This first news conference will really set the stage for that foundation.
CROWLEY: Absolutely. And I think you also saw that growing along the campaign trail, certainly in the debates, when as each one went by in the presidential general election, you saw people's trust in Barack Obama to handle the economy go up. I think you will see that continuing. Again, that is what he is intending to do here, is say, you know, because part of this is getting people to calm down, part of this is getting people to believe that the economy will recover.
And part of it also is a bit of a dance, because if George W. Bush, as lame duck as he may be at this point, and certainly, he is, needs to act quickly to do something about the economy. As one aide said last night, you know, we only have one president, and we are really aware of that.
So it is a bit of a fine line. But certainly Barack Obama, as president-elect, is the future and they are very aware of the fact that a lot of this is about confidence, both in him and in the economy. I think that effort certainly began during the campaign. But you are right, this is the first news conference as president-elect and that is very much what he'd like to do.
PHILLIPS: And Candy, you are right there inside where he is going to step up into the microphone. Can you give us a feel for the room? Is it journalists that are gathering right now?
CROWLEY: Yeah, I'd say so. I wish I could give you -
(LAUGHTER)
PHILLIPS: Plenty of American flags.
CROWLEY: I could give you the scene. Yes, absolutely, yes. This is very presidential looking, obviously, behind me. You are also seeing the office of the president-elect on the podium where he will speak. I have to tell you the mag (ph) line getting in here was a lot of people are coming in here. And also, they are kind of -- the staff is sort of not used to this sort of protocol that there has always been at the White House for the press and that kind of thing. So everybody is a little bit feeling their way, but I would say this is one of the most popular events that I have covered in a while.
PHILLIPS: No doubt. Well, we are all watching and looking forward to first news conference. Candy Crowley, we will come back to you in 25 minutes.
CROWLEY: OK. All right, thanks, Kyra.
PHILLIPS: Thanks, Candy. Well, on Wall Street investors are taking the day's brutal jobs report in stride as they do some bargain hunting heading into the weekend. Stephanie Elam at the New York Stock Exchange with the latest.
Hey, Stephanie.
STEPHANIE ELAM, CNN FINANCIAL CORRESPONDENT: Hey, Kyra. Maybe after two days of huge losses, moving 929 points over the two days, maybe people are taking advantage to buy some stocks. They are holding their own right now, stock are, despite that dismal jobs report and General Motors dragging the Dow industrials.
Right now, the Dow up 194 points at 8889; Nasdaq up 32 at 1641, and the S&P 500 up over 2 percent as well. Now, the economy, it lost 240,000 jobs in October, and that was worse than expected. The unemployment rate, it rose 6.5 percent, that was also worse than expected and brings unemployment to a 14-year high. So far in 2008, nearly 1.2 million jobs have disappeared. And it is likely to get worse before it gets better. Just yesterday, Mattel and La-Z Boy joined the long list of companies announcing job cuts in recent months.
Then, there is Ford, it announced additional job cuts today, more than 2,500 more salaried workers will be let go in an effort to cut expenses. And these cuts, they come as Ford announced a quarterly loss of $3 billion. And at GM they announced a more than $4 billion loss. And they also said they have just enough money to meet operating expenses for current quarter.
Automakers are in dire straits, and part of why is that they are - this is -part of the reason why they are practically begging the government to come to their rescue.
But stocks, rallying despite all this bad news. A results of some profit taking on the last day of the week. A lot can happen in the final hour of trading, as we know, Kyra, but for right now, we are looking good.
PHILLIPS: What is this about your hubby ringing the closing bell today?
ELAM: You hear everything, don't you?
PHILLIPS: Well, I'm plugged in.
ELAM: I had nothing to do with it. But it is true, my husband will be one of the people up there ringing the closing bell.
PHILLIPS: Do a little background? Why?
ELAM: Well, he is ringing it, because actually Barclays is launching some ETFs, they will be trading here at the New York Stock Exchange, Merrill Lynch is a good partner for them. My husband works for Merrill Lynch. Full disclosure, there you go.
PHILLIPS: Well, that's good. We'll be watching. The world will want to check out your new husband. All right.
(LAUGHTER)
All right. Stephanie Elam, talk to you again.
ELAM: Sounds good. Thanks.
PHILLIPS: Well, all this talk about layoffs has a lot of people worried. So, what should you do if it happens to you? CNN Personal Finance Editor Gerri Willis is joining me now with some advice on surviving a job loss.
Far too many people losing their jobs right now, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.
PHILLIPS: So, you know, what do you do? Let's enterprise here.
WILLIS: Well, job number one grab that rolodex. I may not be the first thing that you think about, but before you start packing your desk, take the stuff that is going to help you get the next job. Grab all those contacts and networks you have been establishing. But remember something that is company property is off limits. Customer lists, financial data, strategic plans, contract information. If you get caught taking these you could lose your severance or get sued.
Now, you will usually have some time to return the laptops, the BlackBerries, so you will be able to retain personal information on them. But in case you are required to hand these gadgets back right away, be prepared. If you have a computer laptop you have to return, make sure you download the personal stuff. And if you kept contacts on your BlackBerry, back it up at home. This stuff is essential to getting the next job.
PHILLIPS: Gerri, a lot of people, though, that have lost their jobs, they lose their health benefits. So what do you do? You are out of work and it is very expensive to sign on, when you don't have a job that is paying for it.
WILLIS: Well, there is some good news here. There are some things that an employee has a right to. Health care coverage is one of them. COBRA is the federal law that allows you to continue your healthcare coverage up to a year and a half after you leave your job. You have 60 days to decide if you want that coverage. And look, if you have a pre-existing condition or maybe you are traveling overseas, you should seriously consider take it.
But COBRA is not cheap. You have to pay full premiums and administrative fees; it really ads up. Now, most companies will pay your medical coverage through the month. So if you are laid off on January 30th, you had better tell those folks they have to pay it through the end of February. And if you think you'll have another job lined up in two months, you know, use your spouse's plan, perhaps. Then you won't need COBRA coverage. It is expensive, but it is a fallback position if you don't have anything else.
PHILLIPS: So, what do you make sure that you take with you, if you lose that job?
WILLIS: Don't leave the money in the table. You also have the right to money you collected in your 401(k), your pension benefit plan. Don't forget to roll over your 401(k) or your pension into a traditional IRA, in what they call a trustee-to-trustee rollover. That is the important language, trustee-to-trustee. You will have more investment options for your retirement and you won't have to pay the penalty fees that come with taking a cash disbursement.
Keep in mind that tax laws prevent you from directly rollover into a Roth. You will have to go to the old-fashioned IRA, instead. And if you have those flexible spending accounts, I know they are really popular, you are going to have to use the money before you leave the company.
And, finally, don't forget stock options. If you have vested stock options, check the price, decide if you should exercise them. If it makes sense, you will typically have 90 days to do it, otherwise you lose it. So make sure you understand what is coming to you. There may be more than you think.
PHILLIPS: All right, Gerri Willis, thanks so much.
WILLIS: My pleasure.
PHILLIPS: Stay with us. We will take you live to Senator Obama's first news conference as president-elect. It is set to get started 2:30 Eastern Time.
Former New York Governor Eliot Spitzer, he flirted with a free, multi-night stay inside the correctional system, but now it looks like he won't go to jail, or even trial after all.
Change is more than just a platform plank for this candidate. It is part of his life. We will introduce you to a new mayor with a new look.
(COMMERCIAL BREAK)
PHILLIPS: Once again we want to remind you the President-Elect Barack Obama holding his first news conference after meeting with his economic round table today. "Issue # 1: The Economy".
What is he going to do about it? How is he going to help us all feel a little more confident about our investments, our job losses, and everything that is taking place across the country with regard to low numbers on Wall Street?
Well, we continue to follow a developing story out of Haiti, as well, as we wait for the new president-elect. The Associated Press reports at least seven people killed, many more hurt after a school outside of Port-Au-Prince collapsed. The Red Cross says that the whole building collapsed on the kids. One individual who is there helping to rescue those kids is afraid there will be more casualties than what has been reported. Up to 700 kids could have been in that building and right now a frantic search is under way to try and find as many of them as possible.
No charges for Eliot Spitzer, former governor of New York. Federal prosecutors say they will not bring criminal charges. Spitzer resigned in March after his connection to a high-priced prostitution ring hit the headlines. The prosecutors say they found no evidence that he used taxpayer or campaign money to pay for those call girls.
And a new mayor turning heads in Silverton, Oregon, he is bringing a little something extra to the job.
(BEGIN VIDEO CLIP)
STU RASMUSSEN, TRANSGENDER MAYOR: 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 some.
(END VIDEO CLIP)
PHILLIPS: Yes, Stu Rasmussen is the town's transgender mayor- elect. But his appearance didn't seem to matter to voters. He won by 13 points. And he is confident that he can handle the job.
(BEGIN VIDEO CLIP)
RASMUSSEN: For the first 30 seconds they thinking, am I in a freak show? Is there a camera behind me? What's going on here? And then we get down to discussing whatever the issue is, whether it is city business, or business or whatever. And they figure out, oh, well, this guys is different, but he knows what he is talking about.
(END VIDEO CLIP)
PHILLIPS: Well, he was born and raised in Silverton and has been an elected official there for 20 years.
In California, ongoing protests over the state's new ban on same- sex marriages. This scene, last night in Los Angeles, another big protest is planned in L.A. tomorrow. Voters approved the ban known as Prop 8 in Tuesday's election. It is not clear whether attempts to overturn it in court can succeed.
It is also not clear what the fate of same-sex unions that have already been performed will be. A spokesperson for the campaign to ban gay marriage says that campaign officials say they will not try to nullify the marriages already performed.
Well, come January 20th, the new president will depend on his new Cabinet to help him get his bearings in the world's most powerful office. We will find out who is likely to top the list for some of the most important jobs in Barack Obama's administration.
(COMMERCIAL BREAK)
PHILLIPS: What is the new president going the do for the struggling economy? That is what everybody wants to know as we await, in about 10 minutes, or so, President-Elect Barack Obama stepping up to the podium after hours of meeting with his economic advisers today. We hope to hear something about how he plans to jump start the economy.
Dow industrials up 200 points, right now; as you know, it has been a tough year, well, even longer for those who have lost jobs, and are continuing to lose jobs, as we start to wonder what is going to happen with the $700 billion bailout plan. And also, what is Barack Obama going to do about the struggling auto industry as well as we get horrible numbers from GM today.
And the only top position that we do know has been filled in the Obama administration is a guy known around D.C. and Chicago as Rahmbo, he is Rahm Emanuel, soon to be White House chief of staff. CNN's Susan Roesgen reports, that he didn't get his nickname for nothing.
(BEGIN VIDEOTAPE)
REP. RAHM EMANUEL, (D) ILLINOIS: I am very fortunate that my parents are alive to see that whatever choice I make.
SUSAN ROESGEN, CNN CORRESPONDENT (voice over): It is not a side of Rahm Emanuel that most people see. This is a guy who is 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 in 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 is where his energy and time is going.
ROESGEN: Described affectionately as an attack dog.
EMANUEL: Know that the president has failed to lead and has...
ROESGEN: Emanuel started as a political fund-raiser 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 is the one about his sending an enemy a dead fish. The kinds of stories that Hollywood couldn't resist.
UNIDENTIFIED MALE: We have to narrow it 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.
UNIDENTIFIED MALE: Stop flapping your gums and put him through.
ROESGEN: An 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. UNIDENTIFIED MALE: He is committed to America, committed to his Judaism, and committed to the people around him. Very popular in the synagogue, people like him. He is 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)
PHILLIPS: So, who will fill the Cabinet seats in Barack Obama's administration? There is a lot of speculation and rumors floating around right now. CNN's Senior Political Analyst Gloria Borger joins us from Washington. Gloria, you are always working your sources. You are getting the names for us. I've got a list here. I want to run by some of the names that have been tossed out with regard to secretary of State, if that is OK.
GLORIA BORGER, CNN SR. POLITICAL ANALYST: Sure.
PHILLIPS: Massachusetts Senator John Kerry, Connecticut Senator Chris Dodd and New Mexico Governor Bill Richardson, this looks like the top three names, so far. What do you make?
BORGER: Well, I think that they are all at the top of his list. I think, John Kerry on that list would be the first among equals, although Chris Dodd is a very close friend of Barack Obama's. Another person I would put on the list is Dick Holbrook, former U.N. ambassador. But, I think, you know, it is interesting there are lots of names in the mix right now, Kyra, but nobody is quite sure how it will shake out. Because what they need to do in this Cabinet, as a whole, is make sure, and we have heard this before in the Clinton administration, make sure that it looks like America, that it is a diverse Cabinet.
PHILLIPS: And I know that is number one priority. That is exactly what Barack Obama wants to do, is make sure he does have a diverse Cabinet. I am curious, what about putting a Republican into a key position?
BORGER: Yeah.
PHILLIPS: Yes?
BORGER: Yes.
PHILLIPS: Good idea? OK?
BORGER: Yeah, absolutely. You know, Dick Lugar for example who serves with Joe Biden on the Senate Foreign Relations Committee, is also on that list as secretary of state, although I would put him lower down, because he is not as vigorous as he used to be. But also, for example, at the Defense Department they would like to keep Bob Gates. PHILLIPS: They want to keep Bob Gates.
BORGER: Right. And I was told today by a source that is very involved in this Cabinet gathering process, that in fact, they believe that maybe a real possibility, for a certain period of time. They are not sure that Gates is going to commit to eight years, for example. But they think that for a limited period of time, they might just be able to talk him into doing it. And that would be very important for them as they think about things like whether they can close Guantanamo right away, or how they start with the troop withdrawals in Iraq.
PHILLIPS: What about U.S. attorney general? So far the only name I have seen is Arizona Governor Janet Napolitano.
BORGER: Napolitano. Yes, there are other names. She is very much in play right now. And early Barack Obama supporter, former U.S. attorney, attorney general in the state of Arizona. One thing I was told that is interesting about Janet Napolitano is that she is an immigration expert. She has tried like, 1,000 immigration cases. And that is something that clearly this administration is going to have to deal with.
PHILLIPS: All right, let's talk about secretary of Commerce. Former White House Chief of Staff Leon Panetta.
BORGER: Yes.
PHILLIPS: Dick Parsons, Time-Warner chairman, also Chicago businesswoman Penny Pritzker, and University of California economist, Laura Tyson. That is quite a diversity there for secretary of Commerce.
BORGER: Yes, it is. I think Leon Panetta, who lives in California now, would come back for a job at that level. I think that they are very close to Leon Panetta, but we have to see how that one plays out. Penny Pritzker was a large fund-raiser for Barack Obama, very important to his campaign. So I think that there is a little bit of give in that job.
PHILLIPS: All right. Gloria Borger, stay with us, this news conference is set to start in five minutes, or so. We might want to bring you back into that mix, if that is all right with you?
BORGER: Sure.
PHILLIPS: Fabulous. Gloria, thanks so much.
Seventeen marquee names are advising the president-elect on "Issue # 1" and they include Warren Buffet, probably the world's most famous and successful investor. He is chairman and CEO of Berkshire Hathaway, and then you have Jennifer Granholm, who is the Democratic governor of Michigan. She was advising Barack Obama today. That state was on the economic skids by the way, when the rest of the country was relatively OK. Granholm played the part of Sarah Palin, also, in Joe Biden's debate rehearsals. And then there is Robert Reich, he was secretary of Labor for four years under President Clinton. He is now a professor of public policy at UC-Berkeley. We actually talk to him a lot here in CNN. He was there advising Barack Obama. And as Fed chairman from 1979 to 1987, Paul Volcker knows something about tough times and bridging political differences. He served under Presidents Carter and Reagan. He was also at that roundtable with Barack Obama today.
Now, a week ago, today, four days shy of election day, Barack Obama sat down with our CNN's Wolf Blitzer. And Wolf asked the then- presidential front-runner to set some priorities.
(BEGIN VIDEO CLIP)
WOLF BLITZER, CNN ANCHOR, THE SITUATION ROOM: Health care reform, energy independence, and a new tax code, including tax cuts for the middle-class, education spending, or comprehensive immigration reform?
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Well --
BLITZER: Top priorities?
OBAMA: Well, the top priorities may not be any of those five, it maybe continuing to stabilize the financial system. We don't know yet what is going to happen in January. None of this can be accomplished if we continue to see a potential meltdown in the banking system, or the financial system. So that is priority No. 1, making sure that the plumbing works in our capitalist system.
Priority No. 2, of the list that you have listed, have put forward, has to be energy independence. We have to seize this moment, because it is not just an energy independence issue, but it is also a national security issue and it is a jobs issue. We can create 5 million new green energy jobs with a serious program. Priority No. 3 would be health care reform. I think the time is right to do it.
Priority No. 4, is making sure that we have tax cuts for the middle-class, and part of a broader tax reform effort. Priority No. 5, I think would be making sure that that we have an education system that works for all children.
One thing I want to make a point of though. The tax cut that I talked about may be part of my priority No. 1, because I think that is going to be part of stabilizing the economy as a whole. I think we are going to need a second stimulus. One of my commitments is to make sure that the stimulus includes a tax cut for 95 percent of working Americans. That may be the first bill that I introduce.
(END VIDEO CLIP)
PHILLIPS: Oh, what a difference a week makes. Today the first- term senator is president-elect and turning talking points into policy. We're moments away from Barack Obama's first post-election news conference. Candy Crowley joins us once again to set the stage.
Candy, I understand that those who were with him today, for this economic round table, are they going to come out first, and then Barack Obama?
CROWLEY: Exactly right. This is a show of force and a signal to voters, in fact, to the nation, that he is on this case. The fact that he had his first public meeting, at any rate with his economic advisers, that they will come out here and flank him, if you will, is the president-elect's way of saying that here is my priority. Here is where I am going to move. So that is clearly what he would like to talk about.
In fact, in the list of people that they gave us, here in this room, it is titled "President-Elect Obama, An Economic Press Availability" so that gives you an idea where he would like this to go. As an assurance to the voters, he believes, that he is on the stick about this. That he will in fact move first on this issue. It is also a way, they hope, to kind of calm things down. So many of this is about confidence in the future. And right now, Barack Obama is the future, and he is the man responsible for reaching out and trying to give Americans some sort of confidence that the economy in fact will get better. That there are things he can do as a president, that Washington can do, as a whole, to in fact affect this economy and make things better. So a big signal here today, Kyra.
PHILLIPS: Sure, with all the lack of oversight and the corruption we have seen on Wall Street and the investigations taking place, Candy, it is that trust in government that Americans really want right now. And we saw on Tuesday night, they believe that Barack Obama is the man that can start building that trust and start to make changes.
You know, as I look at the list of all the individuals who were there at this economic round table -- and I know you have the list as well -- who can we talk about? Who is maybe somebody that you have interviewed, or spent time with, gotten to know? We have had for example Robert Reich on our program a number of times, he is from the university of California at Berkeley; he was former secretary of Labor, back from '93 to '97. We have had him on a lot when we talked about issue number one, the economy.
Also we have had Jennifer Granholm, the governor of Michigan, on. She was one who struggled with a really tough economy, made a bunch of changes, did very well there in her state. Warren Buffet, of course, we have had on the air a number of times. He needs no introduction. Who is interesting to you, who could you talk about, Candy, and add a little flavor or context to?
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, first I would just have to, and this is not a man I have interviewed, but the list is fascinating to me for the business people that it brings in, not people that you would ordinarily see in this. The chairman and CEO of Xerox, the chairman and CEO of Google, the CEO classic residence by Hyatt -- oh, let me just pass this along to you. I think you can hear somebody at the podium. We have been told that we are now running about 10 to 15 minutes late.
PHILLIPS: Ok. CROWLEY: So instead of what is this -- 2:30 eastern time, we are looking at about 2:45 eastern time for this. I am assuming the economic meeting may have worked overtime, but with that many people in the room, I assume that's easy to do.
PHILLIPS: Well that's ok, go ahead then and point out, Candy, because I think we are going to roll with this for a little bit and figure out what our game plan is for the next 10 minutes, but you were pointing out the number of CEOs of big companies and a good mixture, too, of female and male?
CROWLEY: Yes, absolutely. And also of elected leaders and those who have old hands. Clinton people, that may because so many people think of the Clinton years as the boom times when you see names like Robert Reich, when you see names like Larry Summers, when you see Paul Volcker who has been, although he is not a Clintonite who has been in fact former chairman of the U.S. Federal Reserve. So, there is a lot of sort of security names in there, if you know what I mean, people -- names that people will recognize, people that have been in Washington before, have a larger view of the economy. And then you have these newcomers and many of them like the Google chairman Eric Schmidt who has obviously a forward technology looking view. So, I just think it's a very interesting mix, certainly women, certainly people of color, certainly males. We see William Daley, who is currently chairman of the Midwest division of JP Morgan Chase, but he's also a former secretary of U.S. Department of Commerce. He is brother of the mayor of Chicago, so there is a lot of different people here and people in fact that he has consulted with over the course of his campaign. It will be interesting to see if there is any kind of getting together in that room, because you have a lot of people with a lot of different ideas and a pretty powerful way of putting them out there. So this is a very resumed group if you will. You know, we also see obviously Richard Parsons someone you and I know who's chairman of the board at Time Warner. Also in the room, if you don't know, vice president elect Joe Biden will be here, as well as Rahm Emanuel who recently just yesterday been tapped to be Barack Obama's White House chief of staff. So it is a pretty big power play in this room. If you can see the setting, you will see how very presidential it looks. This is very definitely a confidence building kind of press conference that they want to have.
PHILLIPS: Well, Candy, let me ask you, if this is the change administration, then why are there so many Clinton era people either currently working with him or under consideration?
CROWLEY: Well, I think honestly, because first of all Barack Obama in so many ways represents that change. He picked Joe Biden, a man that had been in Washington more than three decades to be his vice president. I don't think they feel a particular need to put someone you have never heard of at the state department or the defense department or the treasury secretary. I think there will be familiar names, I think there will be new names, but I don't think that they feel a particular pressure to put out 12 new faces out there. I think that in building this confidence, they would like some familiar old hands to help do that, and again, these are people who have been advising him all along. Presidents and president-elects go for their comfort zone, and so these are people that he has known and people that have been advising him all along.
PHILLIPS: CNN's senior political analyst Gloria Borger also with us as Candy as you're there in the room waiting for President-Elect Barack Obama to step up for his first official news conference since the election. Gloria, Candy mentioned Rahm Emanuel, that's the only person we do know that has officially been appointed, he will be the chief of staff for the new president. What do you think? I mean, how involved will he be with regard to the new president picking all of his various heads?
GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: I think he is going to be, obviously this is a decision that's up to the president-elect, but I think Rahm Emanuel is an interesting choice, because he can play the outside game as well as the inside game. He has been inside the White House, he knows how the White House works. He has been in a White House in crisis. He has been on Capitol Hill. He knows all of the democrats and all the republicans on Capitol Hill, and he is also somebody who can play the outside game for Barack Obama, which is to say that he can talk to people like us in the press. He can speak for the president on the Sunday morning talk shows, and so, he is kind of a man for all seasons in this White House, and also, you know, Barack Obama is known as no drama Obama, well, Rahm Emanuel is just the opposite. If Barack Obama is cool, Rahm can sometimes, you know, butt heads together when he needs to, and that's what they want him to do.
PHILLIPS: So do you think he will be an extraordinarily powerful chief of staff?
BORGER: You know, I can't answer that question yet, I don't know. I think these things in the White House tend to evolve. I think that Obama was very involved in the running of his campaign, so I can't imagine him giving any authority over to Rahm Emanuel other than what he thinks is appropriate. So I think you know that's just all going to have to play out.
PHILLIPS: All right. Gloria Borger, stand by with us there in Washington, Candy Crowley inside of the room where the President-Elect Barack Obama any minute now, well I guess Candy, this makes perfect sense right, the president usually runs late, before the election he was always on time, now he is playing into the presidential role perfectly, he's running late.
CROWLEY: Exactly, it has a familiar ring to it I have to say that. But, if he is there talking the economy with people, then I think probably this is something that Americans are just fine with.
PHILLIPS: Ok, good. All right Candy, let us know as soon as you hear something, and meanwhile, we'll get a little more context here while we wait for Barack Obama to step up to the podium. If there was a honeymoon at all, well it's so over. President-Elect Barack Obama already being slammed by some conservatives as a divider, not a uniter, and what has he done three days in to tick them off? Our Joe Johns investigated.
(BEGIN VIDEOTAPE) JOE JOHNS, CNN CORRESPONDENT (voice-over): So much for Kumbaya. Hours after Barack Obama was elected, Rush Limbaugh known on his show as the man who runs America was back on the radio breathing fire, taking Obama and his now-named chief of staff Rahm Emanuel to the woodshed.
VOICE OF RUSH LIMBAUGH: He is good old-fashioned Chicago thug just like Obama is a good old-fashioned Chicago thug.
JOHNS: And it is true that around the conservative world, the selection of Emanuel who is viewed as a tough partisan street fighter wasn't exactly welcomed as a favorable sign. David Keen of the American Conservative Union.
DAVID KEEN, AMERICAN CONSERVATIVE UNION: If you are a candidate who says that I am running a campaign because I want to bring people together and I want to build bridges and then he tells you that he is going to go out to hire Rahm Emanuel to build the bridge, you would have some real questions about it. You might hire Rahm to blow up the bridge, I don't know if you hire him to build it.
JOHNS: The Republican National Committee pounced on Emanuel saying, "Our nation will be served if Obama runs the White House the way Rahmbo ran the democratic congress. So if you were thinking the country is somehow unified, think again. There are still deep divisions. Just because the president-elect says he's going to listen to conservatives they say, doesn't mean he's going to govern from the middle.
LIMBAUGH: You can listen all day long and do nothing about it, right? There is no unity with Obama.
JOHNS: But make no mistake, conservatives are not just looking outward at the democrats after the loss, they're looking inward, too. So what was it the voters really rejected?
(On camera): Was it all about the Bush administration or was it for example that the party of smaller government and less spending on the right had mushroomed the size of government and exploded the federal deficit.
KEEN: All of those lines got blurred during the course of the last six or eight years. Republicans in congress began to act like the democrats that they had gotten rid of in the '90s, the president began to spend money like he was Lyndon Johnson, and the result was that voters began to get very upset. So, yes, you have to go back to your basics.
JOHNS (voice-over): And now, at least two years to think about how to do that. Joe Johns, CNN, Washington.
(END OF VIDEOTAPE)
PHILLIPS: And we are waiting for President-Elect Barack Obama to step up to the podium any minute now. He was running a little late, it was supposed to start at 2:30 eastern time and it's now about 2:40, we are waiting for his first news conference since being elected the new president of the United States. He met with his economic roundtable today, a lot of big names in the business world, also former secretaries within other administrations advising him on what he should do about the economy and the tough position that we are all in right now as we see job losses and we see the numbers affected on Wall Street, and of course, a number of investigations going on to corruption on Wall Street that got us into this position in the first place. Candy Crowley inside the room there waiting for Barack Obama to step up to the podium, and also see all of his economic advisers face-to-face. Candy, I don't know if you saw this come across your blackberry there, but West Virginia Senator Robert Byrd saying that he is stepping aside as chairman of the appropriations committee. He also made some comments, I'm going to scroll down here, about Barack Obama. He said he endorsed President-Elect Obama, because he believed that we had taken the wrong course both at home and abroad. I am delighted with this victory. I was an early critic of the war in Iraq as was the president-elect who decried this war even before he was running for a United States Senate seat. I wish our new president every success with his commitment to unite us as one people. Then he goes on talking about how he is stepping aside. What do you make of this?
CROWLEY: Well, an era is passing certainly with Senator Byrd's stepping down from this committee. If memory serves, he is the longest serving U.S. senator in history. There had been concern about him. He has been ill lately, in and out of the hospital. He lost his wife within the past couple of years, and there were leaders who felt that it was time so that he steps down is not a complete surprise, but it certainly is a sea change from a man who really represents the old senate. I think his support of Barack Obama, they certainly did agree on the war very early on. Byrd was an outspoken opponent of the war, so this spans a couple of generations from the longest serving U.S. senator, and this fresh young face on the scene that they found a connection here in the way they would see policy going. Byrd always seen as a liberal -- a quick story about Senator Byrd, some time ago during one of his re-election campaigns I went to West Virginia with him and I will tell you, there are a lot of perks to the appropriations committee. He has sent a lot of money back home. He is revered in West Virginia. We would go from one spot to another and see the Robert Byrd highway and the Robert Byrd health clinic, and that sort of thing. I was talking to him, doing an interview with him, and he of course has lots of classic references, and he told me at that point, you know, when I die, and they open me up, West Virginia will be written on my heart. So this is a man with great color to him, really one of those old-school senators who is very fun to cover, but as I say, had been in declining health for some time. They have been real concerned about him, whether he had the ability by the way, let me just interrupt myself.
PHILLIPS: Sure, let's listen to what he's saying. Did they say about five minutes, Candy?
CROWLEY: He said about five minutes, and when we see the economic advisers come out it will be about a minute from them. So we will have to back time this as they say.
PHILLIPS: Ok, good.
CROWLEY: Anyway, Senator Byrd definitely one of those one of a kind senators. Obviously, he will carry on in the U.S. senate and remain certainly a presence there. Coming off of the appropriations committee, obviously a big deal, but something he clearly felt was time to do as did some of the democratic leaders there.
PHILLIPS: CNN political analyst Gloria Borger also still with us, too. Less than five minutes away from President-Elect Barack Obama's first news conference. Gloria, your thoughts about Senator Byrd. I think the last time that we heard from him, he got very emotional when Ted Kennedy was undergoing brain surgery. I remember that very emotional cry there on the floor. But, stepping aside as Candy said, he is a tremendous part of history.
BORGER: Right, he is, and as Candy said, it's the passing of an era in a way with Robert Byrd stepping down on that committee, but also it's the end of an era in another interesting way, because I think President-Elect Obama intends to turn the appropriations process upside down. Word is that he is talking about kind of an FDR-like public works program to create jobs in this country. And from the people I am talking to, usually those sort of projects start at the congress level, because members of congress say this is what I want in my district, and it percolates up. I think the way Obama sees it is that it's going to start at the top and percolate down, which is to say that the federal government will say, look, these are our priorities, here is where we need the projects and here is where we need the jobs. And so, we may be telling you exactly how we want to spend this money. So that is going to create kind of a conflict with congress, because appropriations is where you get the pork for your own district and he may change that.
PHILLIPS: A new deal part two?
BORGER: Yeah, he may, exactly. Exactly.
PHILLIPS: You know, we were talking, Candy, just making me think of, well, Senator Byrd and when he got emotional about Kennedy during his brain surgery, you know we've been hitting this idea of how, this is starting to look like the Clinton II in terms of experienced Washingtonites participating there and advising Barack Obama, but probably he may tap some of the Kennedy clan as well, correct? Kind of adding that dose of glamour to Washington?
CROWLEY: Right, it's really interesting, called Obama-lot by some people because of Caroline Kennedy, there is talk of her coming in. We of course have no idea. She is such a private person whether that would be anything the least bit interesting to her. She of course was one of those in charge of the vice presidential selection process for Barack Obama. There is Bobby Kennedy, you know, lots of different cabinet positions where his name has floated up. Again, we don't -- these names are sort of all over the atmosphere in cyber space, and it is difficult to know if these people would even be interested much less if Barack Obama would select them, but I will tell you that there is a very definite feel by those I have talked to whose names have floated out there that this really is still a once- in-a-lifetime opportunity that most people would be crazy to turn down. I think you saw that with Rahm Emanuel who really had to struggle with his private life and going to Washington and that 24/7 atmosphere at the White House. But he --
PHILLIPS: But he voiced concern about his family.
CROWLEY: Absolutely, and I think though what you see is here is the first African-American to serve as president of the United States, an incredible barrier being broken down and the feeling among those who may or may not be tapped that really, this is a once in a lifetime opportunity, not just because of the history of that, but because of the promises that Obama has made to come in and make a difference. And because of that huge wave that he got and the very different dynamics on Capitol Hill now really overpoweringly democratic. So this may or may not be a real shift in history of the political lines and the political map, but so many people have the feeling that it is. So many democrats, that they want to be a part of it.
PHILLIPS: All right, Candy Crowley, apparently, we're getting another five-minute warning. Boy, he is taking the whole president late tradition to a whole other level now. We will give you a little bit of a break here you and Gloria both, as we wait for the first news conference of the President-Elect Barack Obama and talk about the economy here and the bleeding jobs nearly 1.2 million now have been lost so far this year. That's the number we've been talking about all morning, all afternoon. But President-Elect Obama has said that a new green economy could provide for some relief, he talked about it on the campaign trail, we'll probably hear about that today in the news conference. Cnnmoney.com's Poppy Harlow has our "Energy Fix" now from New York, to add a little context as we wait for the news conference. Hey, Poppy.
POPPY HARLOW: Hey there Kyra. We'll tell you what Obama has said before he speaks and addresses the nation for the first time as a president-elect. We know today's jobs report tells a very grim story about the state of our economy, what it shows us is just how much work President-Elect Obama has before him. Here is how he has said he plans to turn the tide. Take a listen.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, PRESIDENT-ELECT: Creating a new electricity grid so we can bring renewable sources of energy to populations 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.
(END OF VIDEO CLIP)
HARLOW: Of course that was on the stump on the campaign trail, but you heard the laundry list of ideas Obama says he can and will create 5 million new jobs in this country. He'll spend $150 billion to do so over the next 10 years. One proposal he did not mention there, that is job training. He wants to retrain laid off workers, he also wants to help military personnel returning from deployment. And it is a program called the green vet initiative, he'd train vets from Iraq and Afghanistan to help them Kyra compete for jobs in what he says will be a green economy.
PHILLIPS: All right, well it all sounds good, but how will he pay for it?
HARLOW: That is the $1 billion question at this point, right it's a good one. There is some debate over the cost. One report does say his plan will cost closer to $500 billion, not the $150 billion that Obama is talking about. As for paying for it, he wants to use revenue for a cap and trade program. The way it works, the government auctions off permits that allow companies to emit carbon every year and each year they pull back on the number of those permits. They reduce the amount of greenhouse gases and I think I should throw it back to you, Kyra, I see President-Elect Obama coming out right now.
PHILLIPS: You sure, do. Candy Crowley, I'm going to let you take it from here my friend.
CROWLEY: What you see again, are these economic advisers, a huge show of force here. You will certainly see some familiar faces here, some of them not so familiar, despite former congressman David Bonior here. These are the people that Barack Obama has spent the last couple of hours with talking about issue number one as we call it. You see Rahm Emanuel, the new White House chief of staff standing in front of them. We were told when they came out, we would be about a minute from President-Elect Barack Obama coming out. Clearly, with all of these people backing him up, literally flanking him, this is the issue he wants to talk about today, because as we have said before, a lot of the economy at this point when you look at Wall street, when you look at consumer buying, so much of the economy is about rebuilding confidence not just in the government, but also in the economy's ability to recover. So I would imagine although I have not been told, I will imagine there will be an opening statement, clearly, this is also the first time that we have heard from the president-elect since he was elected. So, it will be very interesting and I suspect he will be asked about the historic nature of it. Because, you know, when he came out the night he won, he was such a different person, seemed so at that point presidential and somber. And while so many people were talking about the history of it, I suspect he was thinking really so much about the burden of it, because this is a huge, huge job. I can't remember a president-elect facing so many different things on so many different fronts, because it's not just an economy where the jobless rate has zoomed up. I'm going to let you see the president-elect walking in right now along with vice president-elect, he loves the fact that we're standing up.
Obama's Press conference:
OBAMA: Thank you very much, everybody. Thank you very much.
This morning, we woke up to more sobering news about the state of our economy. The 240,000 jobs lost in October marks the 10th consecutive month that our economy has shed jobs. In total, we've lost nearly 1.2 million jobs this year, and more than 10 million Americans are now unemployed.
Tens of millions of families are struggling to figure out how to pay the bills and stay in their homes. Their stories are an urgent reminder that we are facing the greatest economic challenge of our lifetime, and we're going to have to act swiftly to resolve it.
Now, the United States has only one government and one president at a time. And until January 20th of next year, that government is the current administration.
I've spoken to President Bush. I appreciate his commitment to ensuring that his economic policy team keeps us fully informed as developments unfold. And I'm also thankful for his invitation to the White House.
Immediately after I become president, I'm going to confront this economic crisis head on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.
And this morning, I met with members of my Transition Economic Advisory Board, who are standing behind me, alongside my vice president-elect, Joe Biden.
They will help to guide the work of my transition team, working with Rahm Emanuel, my chief of staff, in developing a strong set of policies to respond to this crisis. We discussed in the earlier meeting several of the most immediate challenges facing our economy and key priorities on which to focus on in the days and weeks ahead.
First of all, we need a rescue plan for the middle class that invests in immediate efforts to create jobs and provide relief to families that are watching their paychecks shrink and their life savings disappear.
A particularly urgent priority is a further extension of unemployment insurance benefits for workers who cannot find work in the increasingly weak economy.
OBAMA: A fiscal stimulus plan that will jump-start economic growth is long overdue. I've talked about it throughout this -- the last few months of the campaign. We should get it done. Second, we have to address the spreading impact of the financial crisis on the other sectors of our economy: small businesses that are struggling to meet their payrolls and finance their holiday inventories; and state and municipal governments facing devastating budget cuts and tax increases.
We must also remember that the financial crisis is increasingly global and requires a global response.
The news coming out of the auto industry this week reminds us of the hardship it faces, hardship that goes far beyond individual auto companies to the countless suppliers, small businesses and communities throughout our nation who depend on a vibrant American auto industry.
The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil.
I would like to see the administration do everything it can to accelerate the retooling assistance that Congress has already enacted. In addition, I have made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars here in the United States of America.
And I was glad to be joined today by Governor Jennifer Granholm, who obviously has great knowledge and great interest on this issue.
I've asked my team to explore what we can do under current law and whether additional legislation will be needed for this purpose.
Third, we will review the implementation of this administration's financial program to ensure that the government's efforts are achieving their central goal of stabilizing financial markets while protecting taxpayers, helping homeowners, and not unduly rewarding the management of financial firms that are receiving government assistance.
It is absolutely critical that the Treasury work closely with the FDIC, HUD, and other government agencies to use the substantial authority that they already have to help families avoid foreclosure and stay in their homes.
Finally, as we monitor and address these immediate economic challenges, we will be moving forward in laying out a set of policies that will grow our middle class and strengthen our economy in the long term. We cannot afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, health care, education, and tax relief for middle-class families.
My transition team will be working on each of these priorities in the weeks ahead, and I intend to reconvene this advisory board to discuss the best ideas for responding to these immediate problems.
Let me close by saying this. I do not underestimate the enormity of the task that lies ahead. We have taken some major action to date, and we will need further action during this transition and subsequent months.
Some of the choices that we make are going to be difficult. And I have said before and I will repeat again: It is not going to be quick, and it is not going to be easy for us to dig ourselves out of the hole that we are in.
But America is a strong and resilient country. And I know we will succeed, if we put aside partisanship and politics and work together as one nation. That's what I intend to do.
With that, let me open it up for some questions. And I'm going to start right here with you.
QUESTION: Thank you, Mr. President-elect. I wonder what you think any president can accomplish during their first 100 days in office to turn the economy around? How far can you go? And what will be your priorities on day one?
OBAMA: Well, I think that a new president can do an enormous amount to restore confidence, to move an agenda forward that speaks to the needs of the economy and the needs of middle-class families all across the country.
I've outlined during the course of the campaign some critical issues that I intend to work on.
We have a current financial crisis that is spilling out into rest of the economy, and we have taken some action so far. More action is undoubtedly going to be needed. My transition team is going to be monitoring very closely what happens over the course of the next several months.
The one thing I can say with certainty is that we are going to need to see a stimulus package passed either before or after inauguration.
OBAMA: We are going to have to focus on jobs, because the hemorrhaging of jobs has an impact, obviously, on consumer confidence and the ability of people to -- to buy goods and services and can have enormous spillover effects.
