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Automakers Find It An Uphill Drive To Get Slice Of The $700- Billion Bailout From Treasury; Scrooge Likely To Haunt Retailers This Holiday Season As Consumers Hold Onto Their Cash
Aired November 12, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
KYRA PHILLIPS, CNN ANCHOR: Broken down on the side of the economic road. Detroit's warning of a chain reaction pileup; millions of jobs and billions of dollars at risk. Carmakers still asking the government to ride the rescue with a bailout.
UNIDENTIFIED FEMALE: To see the new First Lady walking into the White House for the first time, I mean, it is unimaginable.
PHILLIPS: The pressure that is, so far, nothing but grace under fire. But Michelle Obama is entering a whole new world and some insight on the future First Lady from her biographer and fellow Princeton grad.
UNIDENTIFIED MALE: Everyone is whining about the economy and about the world, let's move from whining to whoopee!
PHILLIPS: Can I get an amen. Will a seven-day spousal sex challenge really put problems to bed?
(END VIDEO CLIP)
PHILLIPS: Hello, everyone. I'm Kyra Phillips live in the CNN World Headquarters in Atlanta. You are live in the CNN NEWSROOM.
Well, if you are headed for trouble, it is good to be big. Too big to fail was the rationale for a $700-billion bailout of the financial industry. And now, the Big Three wonder, what about us? America's homegrown automaker still provide directly or indirectly millions of jobs and billions of dollars in spending. And all are on the skids.
Updating the public on the state of the bailout, Treasury Secretary Henry Paulson would not commit to roadside assistance for GM, Ford, or Chrysler. And the president-elect and the speaker of the House are on board for a Big Three bailout, but the path is far from clear. CNN's Kathleen Koch brings us up to speed from the White House -- Hey, Kathleen.
KATHLEEN KOCH, CNN CORRESPONDENT: Hi, Kyra. Well, certainly the administration is very well aware that Detroit is essentially teetering on the edge of a financial cliff. And Secretary Paulson this morning repeated what the administration has said before in the past, this is a quote, "critical industry in this country". But the question is, will the administration pull it back from the brink? White House Press Secretary Dana Perino, this morning took issue with some lawmakers from the region who say that the president is obligated to help.
(BEGIN VIDEO CLIP)
DANA PERINO, WHITE HOUSE PRESS SECRETARY: The state of these companies is not the fault of the president of the United States. We are trying to help them in a variety of ways. I have told you that the secretary of the Treasury, the Department of Energy, and others and the Department of Commerce, have been trying to work with those companies, in regular contact with them, to make sure that we are doing all that we could, given what Congress has allowed us to do.
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KOCH: Now that is the key, what Congress allows them to do. The administration insists that the financial bailout bill does not apply, does not allow them to make any loans to the auto industry. Now what is available, the administration says is a bill that was passed by Congress last December giving them, the auto industry, some $25 billion in loans the retool to make more fuel efficient cars.
Perino, this morning, said well, Congress could always increase that loan, double it to $50 billion, whatever, if they chose. But both Perino and Paulson pointed out today that Congress in that law said only viable companies can get that money. That is a measure to protect taxpayer dollars. And Kyra, frankly with the bleak earnings reports we're seeing from Detroit, that viability is going to be very difficult to prove.
PHILLIPS: We will keep tracking it. Kathleen Koch live from the White House. Appreciate it.
KOCH: All right.
PHILLIPS: Remember the U.S. Treasury's plan to buy up worthless securities that were driving big banks to the poor house? Change of plans. Here is where things stands on the so-called Trouble Assets Relief Program, aka, the bailout. You remember that Congress approved $700 billion, and half now, and half later. And of the first installment $250 billion is being used to invest in banks on the brink; $40 billion is going to the insurance giant AIG and $60 billion is still up for grabs.
Now, in his briefing this morning, Treasury Secretary Paulson said we are already seeing results, but the credit markets still are not healthy and nothing is carved in stone.
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HENRY PAULSON, U.S. TREASURY SECRETARY: What we said to Congress was we needed a financial rescue package because the credit markets are stopped up. We were focused on the problem, and the -- and when we went to Congress, the illiquid assets looked like the way to go. As the situation worsened, the facts change, the thing I am grateful for is that we were prescient enough, and Congress was, that we got a wide array of authorities and tools under this legislation. And I will never apologize for changing an approach or a strategy when the facts change.
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PHILLIPS: Well, a change may be in the works for a $300 billion program aimed at homeowners in over their heads. It has been on the books since October 1st, actually, but in the first few weeks only 42 people have applied for help. Well, the snag appears to the sizable loses that the mortgage lenders have to voluntarily. They have to swap loans in danger of default for new loans worth no more than the home's 90 percent of the current value. Regulators may decide to raise that percentage.
And in these hard times job cuts always seem to be around the corner. Latest example, Georgia Pacific citing a sluggish economy, says it is laying off 300 workers and shutting its plywood mill in Peterman, Alabama. And the Sanford Corporation, maker of Sharpie markers, says that a reshuffling of operations will result in 100 fewer jobs in Tennessee. It is moving operations from the Nashville area to a location near Knoxville.
And for those seeking jobs over the holidays it likely will be a blue Christmas. Stores that usually hire a lot of holiday workers are turning people away in droves. This year's job seekers are not the usual teenagers or stay-at-home moms looking to make some extra cash. Many have been laid off and are desperate for ways to pay their bills. Many of those retailers are losing money, and one major mall operator may even be looking at a bankruptcy.
Stephanie Elam at the New York Stock Exchange with all the details on that --Hey, Steph.
STEPHANIE ELAM, CNN FINANCIAL CORRESPONDENT: Hi, Kyra. Yes, a new survey shows retail sales are expected to decline this holiday season. And that is the first time that that will happen in nearly a quarter of a century. But the affects are easy to see.
Macy's, for example, said it didn't make any money over the past three months. Best Buy says this is the worst retail environment it has ever seen, and that there is what they are calling a seismic shift in consumer behavior.
And the nation's number two mall operator is called General Growth, well, it is warning that it is on the brink of bankruptcy. Shares of those three companies, they are down somewhere between eight to 18 percent. And the major averages, well, they are getting hammered as well today. The Dow industrials are off 321 points, 8372. Nasdaq off 63, at 1517. So taking a look, our indices are off close to four percent at this hour, Kyra.
PHILLIPS: All right, what happens if big mall operators go bankrupt? Will the malls just close?
ELAM: Well, that would awful, because I think a lot of infrastructures around town would fall apart if that happens.
PHILLIPS: We'd be in big trouble.
ELAM: One analyst says that it is rare for an entire mall to shutdown, and that a piece-by-piece sale is probably a more likely outcome. But because individual stores are closing at such a rapid pace, mall vacancy rates are soaring and some malls could be forced close their doors for good. So if that happens to General Growth it could be massive. This is a company that operates malls in 44 states, including the world famous Water Tower Plaza, right there on Michigan Avenue in Chicago, and the Paramus Park Mall, here in New Jersey. And in New Jersey, we believe in our malls around these areas. This part of town, malls are huge.
Kyra, one final note on how bad the situation is; a group that tracks the number of people at retail stores says traffic dropped by 12 percent last month, which is considered an extreme decline. So, obviously, it is weighing on people's mind and they are just not spending their money.
PHILLIPS: Our Stephanie Elam, she loves to shop.
ELAM: I am not against it.
PHILLIPS: She is hanging out - we like the outlet malls.
ELAM: I am not against that either.
PHILLIPS: See you again in a little bit.
ELAM: Sounds good.
PHILLIPS: Everybody wants something from a new administration. As the president-elect sets his priorities will the U.S. carmakers zip to the head of the list?
And thanks, a lot. Don't expect much from new guidelines aimed at speeding up the process of getting you off planes stuck on airport tarmacs this winter. We will explain.
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PHILLIPS: Gearing up for a new administration. You know times are tough when the prospect of bankruptcy for the Big Three automakers is only one of the economic crises facing the president-elect.
CNN's Ed Henry joins me now from Chicago with the Obama's teams take on an auto industry bailout, among other things. Ed, there is a lot to talk about.
ED HENRY, CNN CORRESPONDENT: Absolutely, Kyra. As you know a couple of days ago when Barack Obama was at the White House he pressed the current president, George W. Bush, about getting an immediate aid package to the auto industry. And we're now hearing that Speaker Nancy Pelosi in fact wants to move forward on such a package next week when there is a lame duck session of Congress, post-election session. And we are getting some details about that package. What Democratic aides are saying is that it would be in the neighborhood of $25 billion. They are saying that they need this money fast, because of fears that one of the Big Three automakers could go bankrupt in the near term, because they are bleeding cash so quickly. And that is why Barack Obama raised it this week with the president directly, because he doesn't think that the Big Three automakers can wait until he is sworn in January 20th.
Earlier today, though, Treasury Secretary Henry Paulson raised some questions about that. Says he understands the car industry is pivotal to the U.S. economy, but is concerned about yet another bailout. There obviously been a lot of criticism of previous bailouts and there is also concern about the U.S. Treasury running dry, frankly, with all of these bailouts.
And so what Henry Paulson said specifically is that he is open to the idea, but he wants to make sure that there is some sort of string attached to make sure that the industry has viability long term. What that means is that neither the Bush administration nor the incoming Obama administration wants to get into a position where the auto industry is just coming back every six months desperately seeking cash. That is why there is a couple of important things to look at moving forward.
One would be any strings attached to this aid in terms of making sure that the auto industry is making moves, steps forward for example, make more of the so-called green cars, vehicles that will have much higher miles per gallon so that they are not in the situation they are in right now. And the second thing is there is a little bit of talk right now about Barack Obama potentially creating a new position within the White House, a so-called car czar. Someone who would be tasked with sitting down directly with the industry, day-by- day, and working this out to figure out a long-term solution so Washington is not just doing this short term, Kyra.
PHILLIPS: Yes, we were actually talking with the bureau chief based for "The Wall Street Journal", based in Detroit, I was actually looking for his name. He mentioned David Bonior as that possible czar. So we are going to track that, Ed, definitely and see if indeed he does do that. But let me ask you, with regards to -
HENRY: Well, it is interesting that you say that, because David Bonior's name is actually coming up from some of the people I've been talking to, in the auto industry. They say, look, here is someone who used to represent Michigan in Congress. He is someone who was very high official in John Edward's presidential campaign, but when that ended he came over the Barack Obama's team. And as you know David Bonior is very close to the labor unions, who will sort of be pivotal to sort of any kind of a way forward for the auto industry, because of all of those legacy costs of health care and pensions that are really bleeding these auto companies, Kyra.
PHILLIPS: We will track it. Ed Henry live from Chicago. Good to see you, Ed.
HENRY: Thank you.
PHILLIPS: Well, what is Michelle Obama most concerned about in moving to the White House? Our Carol Costello has been checking that out. She will have the latest on the Obama's big move to D.C.
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PHILLIPS: Well, America's next First Lady is making history in her own right. Michelle Obama will be the first African-American woman to call the White House home. So what can she expect when she moves in? Here is CNN's Carol Costello.
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CAROL COSTELLO, CNN CORRESPONDENT (voice over): Imagine you are Michelle Obama, about to decorate the White House. Your personal style, one for the history books, talk about pressure.
JACQUELINE KENNEDY, FORMER FIRST LADY: It is where we lived when we first came here.
COSTELLO: Jacqueline Kennedy, anyone?
KENNEDY: The most famous one, of course, is the Lincoln bed.
COSTELLO: Arguably, Mrs. Kennedy had impeccable taste, but even Letitia Baldridge, Kennedy's secretary says Mrs. Obama should relax, although that trip with Mrs. Bush through the White House must have been intense.
LETITIA BALDRIDGE, JACQUELINE KENNEDY'S SOCIAL SECRETARY: I would imagine she would be awe struck. I mean, anyone is, but to be new First Lady walking into the White House for the first time, I mean, it is unimaginable.
COSTELLO: Sources tell me Michelle Obama is feeling the heat, but not about decorating. Her worry comes in making the White House a home for her daughters, who cannot wait to move in.
SASHA OBAMA, PRESIDENT-ELECT OBAMA'S DAUGHTER: It would be very cool.
MALIA OBAMA, PRESIDENT-ELECT OBAMA'S DAUGHTER: I think my most excitement about it is that I get to redecorate my room. I enjoy decorating.
COSTELLO: Can a 10-year-old really do that to a bedroom that once belonged to Caroline or John-John? Yes, she can.
CARL ANTHONY, HISTORIAN, "FIRST LADY LIBRARY": Even though it is a historic house, it is also a living house. It is a home.
COSTELLO: In the next few weeks the Obama girls, and their mom, will receive a large book filled with pictures of all the furniture that is available in the White House collection. Or they can bring their own furniture to Washington. Mrs. Obama already plans to bring the girl's favorite toys and family photos. Yes, Malia can plaster the bedroom with pictures of her fave cute rock star, Nick Jonas, all over the walls. Hey, she won't be the first.
ANTHONY: I do know that Lucy Baines Johnson loved The Beatles.
COSTELLO: And yes, Michelle Obama can redecorate the second floor family living quarters however she wishes. If she wants to bring in Oprah's fave interior designer to help, she can do that, too. Baldridge does have a bit of advice for her, though.
BALDRIDGE: She should relax and just say I'm going to take my time about making these decisions, leave me alone, let me decide by myself. She has a lot of taste, and she can make it herself.
COSTELLO (On camera): Keep in mind Mrs. Obama can decorate the private room where the family lives if she wishes, but the other ones, the ones we see, the public sees, she can make small changes, but the White House usher, that man in charge of White House decor will make sure those changes fit in with the historic look of America's house. Carol Costello, CNN, Washington.
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PHILLIPS: Well, strong, smart, independent, and a family woman, and those are just some of the words that friends and close associates of Michelle Obama use to describe the next First Lady. Liza Mundy, a writer for "The Washington Post", is the author of "Michelle", a new biography. She joins us now -- Liza, good to see you. Tell me why you wanted to write this book? Why Michelle Obama?
LIZA MUNDY, AUTHOR, "MICHELLE": Well, she is a fascinating public figure. She is obviously going to be the first African-American First Lady in the White House, and that is enormously significant. It also happens that I was at Princeton around the same time that she was and that, you know, her Princeton thesis has been written about and sort of dissected in the public. And I think every Princeton graduate empathizes with anybody who has had their thesis posted online.
PHILLIPS: OK, let's talk about that for a minute. Now, you did not know her when you were at Princeton, right?
MUNDY: No, we did not. We would have had there one year in common.
PHILLIPS: OK. But you did read her thesis and you write in the book that critics read her Princeton thesis and argued that she is Angela Davis in designer sun dresses. What did you think about the controversial paper? And do you agree with that criticism?
MUNDY: I don't agree with that criticism. I think, certainly, she was still working out her relationship to her community back in Chicago. She came from the south side of Chicago, which is a large African-American community, and trying to understand, I think as many of us were on campus at this time, where she fit in.
She was in a completely new environment, a much more privileged environment, meeting all sorts of new people. Some of whom were less enthusiastic about her presence than others probably. Women had only been at Princeton for about a decade when she and I were there. African-Americans had been there in any number for about the same amount of time, and people were still sort of working out their views about all of this. So it was not an easy time necessarily to be a newcomer on campus.
PHILLIPS: But she said she did not really feel racism while she was at Princeton, right?
MUNDY: Not racism per se, I think. She said that she felt aware that she was black really for the first time in her life. And oddly, and may sound odd, but I could understand that, because I come from the South. And I didn't really realize that I was a Southerner until I went to Princeton, and people could not understand the way I pronounced my name.
PHILLIPS: I even had to practice your name, Liza, the last part though. And what are your thoughts? And you write about this in the book, as well, that Michelle Obama is smarter than Barack Obama?
MUNDY: Well, I don't know about smarter, but she is certainly a very, very smart person. She is a very quick study. To interview her, you know, she speaks swiftly and in very complete thoughts. She is a very extroverted person, very capable, and very comfortable with authority. She likes to be in charge. She is happier as a boss than she is as an employee.
PHILLIPS: There was a lot of talk at the beginning of all of this when Barack Obama came into the fold, that he was not black enough. That he wasn't a descendent of slaves. He received a lot of heat from the black community. Now, she - Michelle Obama is a descendent of slaves, and does she bring something different to the table here? Her background? Her culture? Her family history?
MUNDY: I think she does. As I said, you know, it is enormously significant, and I think that we are still, you know, reflecting on the significance of her presence in the White House. And she has lived through, you know, transitions in this country. She was born in 1964, the year that the Civil Rights Act was signed into law by our President Johnson; and landscape gradually opened up to her family. Her family moved into a neighborhood of Chicago that had been all white for decades and decades. Many of -all, in fact, of the white neighbors moved away as they moved in. She has watched as the American landscape has opened up and opportunities have opened up for her. And obviously, this is the culmination of that.
PHILLIPS: Everyone talks about their marriage. How strong their marriage is. Is it true?
MUNDY: Well, it is certainly appears to be true. I think that like many parents of small children, both of whom have demanding careers, they certainly had, you know, a hard time at the beginning. And they have both talked very openly about that. Barack Obama has always been the sort of person who burned the candle at both ends. He was always doing more than one thing, and being a politician, campaigning for office, teaching law, sometimes and practicing law sometimes. And she had to learn to adjust to that. They have both said that there were some years when that was difficult.
And then she has said that she realized that this was not going to change. And that in order to not feel angry about it, she was going to have to put together a support network of people who could help her continue to have a career, and give their children the, you know, the attention and love that they needed to be as well adjusted as they clearly are.
PHILLIPS: Perfect segue into my final thought about her mom possibly moving into the White House. Is she a good mom, from what you found out? And what do you think about the fact that her mother may be moving into the White House to help out?
MUNDY: Well, I think she is a very attentive and engaged and wonderful mother. Like many women of our generation, you know, we are all sort of helicopter parents. And we are all very involved the ballet lessons and the soccer games. And her mom has clearly been a major part of her support network in Chicago, and I'm sure will provide a great sense of continuity for all of them when she moves to Washington.
PHILLIPS: Liza, I like that, helicopter parents, quite a switch from soccer moms. I'm going to remember that. That is the phrase of 2008, for us, isn't it?
MUNDY: I think it is.
PHILLIPS: Liza Mundy, what a great conversation and great book. Thank you.
MUNDY: Thank you.
PHILLIPS: A lot of folks are intrigued by the Obama daughters, Malia and Sasha that includes Hannah Montana star, Mylie Cyrus' dad, Billy Ray. He tells "Access Hollywood" the two Obama girls are likely to appear on the popular show probably next spring. The Obama camp has not yet confirmed any invitation.
And what is she wearing? Followers of First Lady fashion may have to look beyond Michelle Obama. Her daughters may be upstaging her. Jeanne Moos has the story.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice over): Only seven-years old and already she has got something named after her?
(On camera): What is this dress called now?
UNIDENTIFIED FEMALE: Well, we're calling it Sasha, now. Why wouldn't we?
MOOS: After all, millions saw her wearing it. Oh, sure it was Mrs. Obama's dress that caught everyone's eye and lots of flack. Described by one blog as hell colored. A critic posted, "She was probably just dressing a moose backstage."
But the kids are also casting fashion shadows albeit little ones. The designer of Sasha's dress watched President-elect Obama make his victory speech on TV without recognizing her dress until a co-worker showed her a photo the next morning.
CAROL HICKS, COWORKER: Brenda, can you believe this? Look at this. This is your dress.
BRENDA EDWARDS, DESIGNER, "SASHA" DRESS: That's what she did, but it was a little bit louder.
MOOS: How did designer Brenda Edwards react?
EDWARDS: I said ah!
MOOS: Here at Gerson & Gerson overlooking Macy's in New York City, they're creating Sasha's in colors other than black for next season.
(On camera): Ivory Sasha, we've got pink Sashas there.
(Voice over): There are Sashas everywhere. The company says they believe the Obamas bought the dress at Nordstrom's or Dillard's for about 75 bucks.
ZEINS: I shed a few tears over this. I think we all did. We come to work every day and, you know, we're just sort of your average schmoes making dresses here in the back room.
MOOS: As for Malia's red dress, its maker, Biscotti, Inc. says it retails for about $110, leaving one person to post on the "Wall Street Journal" blog, "So does this mean Obama is going to add an extra $110 tax credit to each child so we can buy them designer clothes that they will outgrow in a year?"
Hey, come on. It's a dress for the night her dad was elected president. Biscotti's co-owner is volunteering the dress the girls for the inauguration. When their mom wore this on "The Tonight Show"....
MICHELLE OBAMA, PRESIDENT-ELECT BARACK OBAMA'S WIFE: This is a J. Crew ensemble.
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": Really, wow.
MOOS: J. Crew used that to take advantage of the Obama connection. The kiddy clothing companies say they don't expect to make much money from the girls, but boy, are these models cute.
S. OBAMA: Hi, daddy.
SEN. BARACK OBAMA (D-IL), PRESIDENT-ELECT: Hey, sweetie.
MOOS (on camera): Do you have this in a size 12?
(voice over): Nah. It helps to be small enough to pick up to qualify as first kid fashionista.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: And it's 2:32 Eastern Time right. Here are some of the stories we're working on in the CNN NEWSROOM.
For the second time in less than a week, a school has collapsed in Haiti. The Haitian Red Cross reports no deaths, but some injuries. Last week a school collapsed killing at least 89 people, and many of them children.
Now a look at the stock market. The Dow has been down all day, currently Dow Industrials down 265 points.
Gay couples getting married in Connecticut. Ceremonies began today right after a judge cleared the way. That was made possible after several gay couples successfully challenged a state law banning gay marriage.
(COMMERCIAL BREAK)
PHILLIPS: More than 550,000 votes have already been cast for the CNN Hero of the Year. We'll announce the top honoree Thanksgiving night in an all-star tribute right here on CNN.
These are amazing people and we're going to meet one of them in just a minute, but first a quick look at all the 10 finalists.
(BEGIN VIDEO CLIP)
ANNOUNCER: The 2008 CNN Hero honorees. They all dare to make a difference.
TAD AGOGLIA, COMMUNITY CRUSADER: I put together a crew that stays on the road 12 months out of the year, responds to disasters all over America free of charge.
MARIE DA SILVA, CHAMPIONING CHILDREN: My mission is to educate AIDS orphans in Malawi.
YOHANNES GEBREGEORGIS, CHAMPIONING CHILDREN: I am bringing literacy to the children of Ethiopia.
ANNE MAHLUM, COMMUNITY CRUSADER: And we use running to help the homeless move forward.
DAVID PUCKETT, MEDICAL MARVEL: I bring artificial limbs and with big braces for those in need to Mexico.
LIZ MCCARTNEY, COMMUNITY CRUSADER: I'm helping families rebuild in St. Bernard Parish.
CAROLYN LECROY, COMMUNITY CRUSADER: I started the Messages Project so that incarcerated parents can keep in touch with their kids.
PHYMEAN NOUN, CHAMPIONING CHILDREN: I recruit children from this dump to attend school at my organization.
MARIA RUIZ, CHAMPIONING CHILDREN: I cross the border to help people in Juarez.
VIOLA VAUGHN, CHAMPIONING CHILDREN: I came to Senegal from Detroit, Michigan. I started a girl's education and self-sufficiency program.
ANNOUNCER: Your vote will help one become the CNN Hero of the Year. Vote now CNN.com/heroes.
(END VIDEO CLIP)
PHILLIPS: Well, the hero you're about to meet has opened up her heart and home literally to AIDS orphans.
Marie Da Silva currently lives in Los Angeles working as a nanny, but she's also opened her family home in her native country of Malawi as well as establishing a school to help those AIDS orphans. Marie joins me live from Los Angeles. Great to see you, Marie.
MARIE DA SILVA, AIDS ACTIVIST: Hi, Kyra. How are you?
PHILLIPS: Better now that I see you. I want to know how does a nanny working in L.A. afford to run a school for AIDS orphans in Malawi. How do you do it? How do you afford it?
DA SILVA: Well, I just take whatever extra money I have on the side and send it away. It just happens. I, myself, ask myself that question. I don't know how I do it. It -- you know, I've been doing this for the past five years, I just take, you know, the little bit that I have at the end of the month and send it there, and it does go a long way.
It's amazing that we never think that, you know, just a little money can make a huge difference, but it's been happening to me, and it just happens. And -- I don't know, it just happens.
PHILLIPS: I know good works spring unexpected blessings, don't they?
DA SILVA: Yes.
PHILLIPS: Well, let's talk about how you ended up coming to the U.S., and what, you know, inspired you to even do this in the first place.
DA SILVA: Well, I came to the U.S. a couple of years ago. Literally, I have been working as a nanny for the past 15 years in -- I started off working in New York. And then I moved to Los Angeles five years ago, and I'm with this family that I'm working with now for the past 10 years. And -- I came to America from England. I was studying in England. I was married. And my husband was transferred over here to America. And I just started to work with children. I've always worked with children, I think, ever since I -- you know, I was in Malawi, I always had this love to be with kids. And I had been a nanny for the past, past 15 years.
PHILLIPS: Well, the children love you. We got a little bit of sound from the kids in Malawi sending you a message. Let's take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This is Victor.
UNIDENTIFIED MALE: God bless you. We are happy to Marie. I wish you Happy Mother's Day.
UNIDENTIFIED FEMALE: Happy Mother's Day, Mother Marie.
UNIDENTIFIED FEMALE: Happy Mother's Day, Mother Marie.
UNIDENTIFIED MALE: Happy Mother's Day.
UNIDENTIFIED FEMALE: Happy Mother's Day.
UNIDENTIFIED FEMALE: Happy Mother's Day.
UNIDENTIFIED FEMALE: Happy Mother's Day, Mother Marie.
UNIDENTIFIED MALE: (INAUDIBLE)
GROUP: (INAUDIBLE)
(END VIDEO CLIP)
PHILLIPS: Oh, Marie, just hearing that, they all call you Mother Marie. They're wishing you a Happy Mother's Day. We came across this on the Internet. How does that make you feel when you see that and hear that?
DA SILVA: I -- I'm touched. I am really touched by these children, because as you see them singing there and saying they are happy, this is exactly what I witnessed when I was there three weeks ago.
They are just radiant, happy children. When they walk through those school gates, you would never actually think that where they are coming from, because they are literally coming from very, very underprivileged backgrounds. I visited their homes, and they are children who are, like, living alone, because most of them are orphans.
We have 230 children right now at the school, and 90 percent of them are orphans, orphaned by AIDS. So they are coming from very poor homes and literally, literally underprivileged kids. So when I see that and they are singing this song of them being happy, it really makes -- it just brings me so much joy.
PHILLIPS: Do you have kids -- do you have kids of your own?
DA SILVA: Well, I don't have kids biologically, but I tell people that I have 232 children, because the 230 are from the school, and the two kids are here that I am actually taking care of right now.
PHILLIPS: You are the mama of the year.
(LAUGHTER)
PHILLIPS: Marie Da Silva -- and I want to plug the Jacaranda Foundation, that is the foundation that you have created. And tell me the meaning of Jacaranda.
DA SILVA: Jacaranda is the jacaranda tree that we have here in Los Angeles a lot when they are in bloom. The purple beautiful flowers, and we have those trees in Malawi, too. I grew up with them around me.
And the reason why I called the foundation Jacaranda Foundation or the Jacaranda School is because when my father was in the hospital in 1988 dying of AIDS, right outside his window was a huge jacaranda tree in bloom.
And I stayed with my dad at the hospital for two weeks where I lived in his ward with him, and it was very sad and solemn, because not only was my dad dying of AIDS in that ward, but there were hundreds of people in that hospital dying of AIDS.
So every morning when I woke up, and I opened the curtain, there was this huge jacaranda tree in full bloom and that brought in light and brought in hope into the room and brought in some color.
And so, when I came to picking a name for the school and for the foundation, I thought of that tree and what it brought into, into the room into my life just for me to go on and have a lot of hope and just move on and do whatever I could.
PHILLIPS: Wow.
DA SILVA: You know, to -- make things different and to help out.
PHILLIPS: Well, that is what you're doing, and your father's spirit lives right within you. Marie Da Silva, what a pleasure to talk to you. Thank you so much.
DA SILVA: Thank you, Kyra.
PHILLIPS: Well, there are only seven days left to vote for your favorite CNN Hero. Go to CNN.com/heroes to see their stories and vote for your favorite.
Then join Anderson Cooper Thanksgiving night to find out who will be CNN's Hero of the Year. Vote now at CNN.com/heroes.
(COMMERCIAL BREAK)
PHILLIPS: Well, a blanket of white covering parts of Colorado. The snow just east of Denver, other parts of the state getting as much as 10 inches on the ground. It's good news for the ski industry which has been hoping for just a little more help from Mother Nature.
Not a great weather day across much of the U.S., though. Chad Myers is trying to keep track of all the rough spots. Hey, Chad.
(WEATHER REPORT)
PHILLIPS: All right. Thanks, Chad.
CHAD MYERS, CNN METEOROLOGIST: Sure.
PHILLIPS: Well, you got to admire the straight shooting spokesman for AirTran explaining that carrier's decision to start charging for first checked bag. The spokesman says, well, we needed all the revenue we could get.
Starting next month, AirTran is charging 15 bucks for the first piece of luggage that a passenger checks. It already charges 25 bucks for the second, 50 for the third. Flights booked before yesterday won't be affected and business class and elite passengers won't be charged.
Well, oil prices are $56 a barrel, way down from where they were last summer, but one agency is predicting $200 oil down the road more than triple the current price. CNNmoney.com Poppy Harlow has now more -- has our "Energy Fix" from New York. Hey, Poppy. I'm sorry, I couldn't get it out.
POPPY HARLOW, CNNMONEY.COM: It's OK. No problem, Kyra. You know it's hard to stomach that number, $200 a barrel when we see oil at $56 today. But the highly respected International Energy Agency came out with this annual report today saying that will be the case, $200 a barrel by the year 2030, that is up sharply from its prediction last year which was for $108 a barrel.
It's not the only scary prediction in the report. The IEA says demand for energy around the world will increase 45 percent over that same 21-year period. The only good news, that number is down from last year, Kyra, due to, of course, the global economic slowdown.
PHILLIPS: OK. Good. So something good is coming from the slowdown?
HARLOW: It is on the demand side for energy, but there are two sides, of course, to every equation. The IEA, they're really worried about supply, believe it or not. It says, $1 trillion a year in investments is going to be needed around the world to keep up with energy demand.
That's an amount, I think, will be pretty hard to actually make happen in the current credit crunch. The company -- the report, rather, saying, quote, "Current trends in energy, supply and consumption are unsustainable, environmentally and economically and socially they can and must be altered." The report goes on to say the era of cheap oil is over -- Kyra?
PHILLIPS: All right. Poppy Harlow, thank you so much. We'll talk to you again.
HARLOW: Sure.
PHILLIPS: Well, church lady, prepare to be scandalized. A Texas pastor is telling his flock to just do it, everyday for a week straight.
(COMMERCIAL BREAK)
PHILLIPS: So eight days after the election Sarah Palin is back in the governor business, but not in Alaska. She's in Florida where Republican governors are plotting the party's course for the future.
Thinking about her own future, Palin might want to know about a CNN Opinion Research Corporation poll. Forty-nine percent of Americans hold a favorable opinion of the former Republican vice presidential candidate, 43 percent have an unfavorable opinion.
Men still tend to see Palin more favorably than women, by the way. And earlier today, Palin sat down with CNN's own Wolf Blitzer who asked her about possibly helping the Obama administration, and this is what she said.
(BEGIN VIDEO CLIP)
WOLF BLITZER, CNN ANCHOR: Are you ready to help him?
GOV. SARAH PALIN (R), FMR. VICE PRESIDENTIAL CANDIDATE: Absolutely, especially on energy independence, energy security that we need for this nation. Being the governor of an energy-producing state knowing that we have the domestic solutions there in our states and in other energy-producing states, I'm more than willing and able to help President-elect Obama to start tapping into the domestic solutions that we have now so that we can quit being so reliant on foreign sources of energy.
BLITZER: So if he reaches out to you and says, Governor Palin, I need your help on energy or some other issues, kids with special needs...
PALIN: Yes.
BLITZER: ... for example, and says, I want you to be part of the commission, you would be more than happy to say yes, Mr. President?
PALIN: It would be my honor to assist and support our new president of the new administration -- yes.
(END VIDEO CLIP) PHILLIPS: Well, you can hear more of what Sarah Palin had to say to CNN's Wolf Blitzer coming up "THE SITUATION ROOM." That's at 6:00 p.m. Eastern. And tonight the Alaska governor will also be a special guest on CNN's "LARRY KING LIVE." That's at 9:00 Eastern.
Team Sanchez, back there working on that big hour of CNN NEWSROOM. What's your working on?
RICK SANCHEZ, CNN ANCHOR: Are we ready, guys? Are we ready?
PHILLIPS: Go ahead, Ricardo.
SANCHEZ: Everybody thumbs up? Listen to this, this is Beth. She just Twittered me or sent me a Twitt, which is more appropriate. She says that the Twitter privileges have been taken away because yesterday while she was watching our show she threw a mouse at the TV.
Not a real mouse, you know, the mouse like, like these. When she was watching Neil Boortz. I see you on TV, have a good one. She calls herself "bad girl."
I'll tell you. The things that happen when you watch this show. Do you know what we're going to do today?
PHILLIPS: What is that?
SANCHEZ: I think this is really fascinating. I mean do you remember when -- in Florida and Palm Beach County, guys were looking at these chads like this with their -- with their glasses hanging off.
PHILLIPS: Right. Hanging off of the tip of the nose, hanging up the nose and look really confused.
SANCHEZ: Who did they vote for? Well, this is about to take place again, maybe not in that form, but in Minnesota. We're hearing there's a news conference coming up in just a couple of minutes but at the top of the show, and they're going to be talking about this race between Coleman and Franken where they're between 200 votes now.
This thing is so close they are going to canvass all the precincts and go vote-by-vote to see who really won this thing after 1 million cast.
PHILLIPS: All right. Just to take you on a little bit of a derail here. I got a little something for you and your wife, Suzanne. Are you ready for this?
SANCHEZ: You go, girl.
PHILLIPS: Listen. Listen. You know that song, Rick?
SANCHEZ: I do.
PHILLIPS: Yes, you're Cuban. You know that song.
SANCHEZ: Yes. PHILLIPS: Yes. Stay tuned. This story is for you. A Texas pastor shocked his flock, Ricky Rick, challenging couples to have seven days of sex. Talk about going to the mattresses for the lord.
(COMMERCIAL BREAK)
PHILLIPS: Boy, you don't hear much about sex and church, maybe some references to not doing it so one pastor's spicy sermon is raising eyebrows and hope. He wants his flock to just do it every day for a week. Sorry singles, this is married couples only. Details now from Michael Ray and our Texas affiliate KDAF.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Sex is good. Don't you think?
MICHAEL RAY, KDAF REPORTER (voice over): Fellowship Church's pastor Ed Young does. He says that God does, too.
ED YOUNG, SR. PASTOR, FELLOWSHIP CHURCH: God was not shy to create sex and he talks about it very openly and honestly in scripture so I think it's time for the church to really talk boldly about it.
RAY: Young has been preaching a series he called "Leaving Lust Vegas."
Last Sunday, his sermon got his congregation's attention.
YOUNG: I'm going to challenge you, I can't make you, but I'm going to challenge you to have sex with your spouse for seven straight days beginning next Sunday.
RAY: Young expresses his challenge for married couples of Fellowship Church only. Word of it has spread throughout Grapevine.
UNIDENTIFIED FEMALE: I think it's a great idea, yes, because I know that it brings an intimacy with the couple when you are together.
UNIDENTIFIED FEMALE: It should be happening already in your relationship. You shouldn't have to do it everyday.
UNIDENTIFIED MALE: There's other ways besides having sex all week, but I mean just spending time together, having that one-on-one time is -- I think is fundamental to a good solid marriage.
RAY: The seven-day of sex challenge reminds this woman of a study she saw on TV.
UNIDENTIFIED FEMALE: They took time-out even if it was, you know, five minutes here or half hour there, I mean they're just -- were going to do it, and they said in the end of the study, that it brought them much closer together.
RAY: Young says the challenge will help couples refocus on each other rather than the outside world.
YOUNG: You know, everybody is whining about the economy and about the world. Let's move from whining to whoopee.
RAY: And for those asking, yes, he does plan to practice what he preaches.
YOUNG: My wife and I are going to try. We are. We have been married for 26 years.
(END VIDEOTAPE)
PHILLIPS: Hey, Rick Sanchez -- you there, Rick?
SANCHEZ: I am here, I am here.
PHILLIPS: Are you there? Hey, I got to go, man. I got to go to church. OK? Can you take it from here?
(LAUGHTER)
SANCHEZ: I can't believe you did that to me.
