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Clinton Role in Obama Administration?; Global Fix Possible?; Toxic Gift Cards; Car Dealerships Say GM Bailout is Necessary
Aired November 14, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Hello, everyone. I'm Tony Harris.
You are in the CNN NEWSROOM. And here are the headlines we are covering this hour, this Friday, November 14th.
The world's economic powerhouses come together for what may be mission impossible, really. Finding a fast fix for the global economy.
An untamed wildfire burning luxury homes in the hills above Santa Barbara, California. Wind gusts near hurricane strength, fanning the flames.
Do you miss the personalities, the issues, the zingers? Political junkies in campaign withdrawal across the country, and even right here in the NEWSROOM.
President-elect Obama, Senator Hillary Clinton, face to face, talking about whether she'll play a role in his administration. We are learning new details this morning about their meeting yesterday, and the buzz about her as a possible secretary of state.
CNN's Ed Henry live from Chicago, where he is covering the Obama transition.
Ed, hang on a second here. Just moments ago, in speaking before The New York Public Transit Industry Conference, Hillary Clinton directed -- oh, we have the bite? Well, let's roll it. And then, Ed, let's talk about it.
(BEGIN VIDEO CLIP)
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: I'm not going to speculate or address anything about the president-elect's incoming administration, and I'm going to respect his process. And any inquiry should be directed to his transition team.
(END VIDEO CLIP)
HARRIS: So, Ed, something's going on here. Do you know what's going on here?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, nobody really knows for sure. What we know is that Hillary Clinton, yesterday, here in Chicago, met very quietly with Barack Obama. And we also know from officials within the Obama transition that she is getting a look as a possible secretary of state.
And I just spoke to one other transition official a few moments ago who is saying that she is a very real option for Barack Obama, that they are taking her very seriously, because you've got to sort of look at it with a grain of salt and some skepticism. Because you'll remember that Hillary Clinton was allegedly also looked at very closely for vice president, and in the end we learned that she was never even really interviewed. So is this really just kind of to reach out to the Clinton supporters?
Why some transition officials say it's different now is that, look, obviously Barack Obama has already won. He doesn't necessarily need to please Hillary Clinton supporters. And what some transition officials are saying is that Barack Obama really wants a heavyweight as secretary of state, and she is someone who would carry real clout on the international stage.
Also, Barack Obama previously has talked about the book "Team of Rivals," about Abraham Lincoln bringing rivals into his cabinet. And one person close to the transition just told me that this would show Barack Obama to be big, that he could bring in a rival like this and have a real clash of ideas within the cabinet, especially on a big issue like foreign policy.
The potential downsides, of course, are real as well. First of all, Hillary Clinton could end up overshadowing Barack Obama a bit on the international stage. And secondly, it would bring in the potential baggage of the Clintons. Not just Hillary Clinton, but Bill Clinton and some of his international dealings. All of that would get scrutiny.
Let's remember, we were just talking yesterday about that long, you know, 50, 60 questions in that questionnaire...
HARRIS: That's right.
HENRY: ... that potential Obama nominees have to fill out. Bill Clinton would then, and Hillary Clinton, they would have to put a lot of things on the table that maybe did not come up, such as some of the money that's gone to the Clinton Library, the presidential library, for example. Has that come in?
There's been a lot of speculation about foreign governments like the Saudis putting money into that library. All of a sudden, some of that stuff would have to be disclosed -- Tony.
HARRIS: Well, but the bottom line is, if Hillary Clinton wanted to squash all of the speculation, there was her moment to do that. Correct?
HENRY: That's right.
HARRIS: OK.
HENRY: And that's why the point and I think the bottom line is that the door is open. HARRIS: Absolutely.
HENRY: It doesn't mean she's going to get the job, but the door's open. Barack Obama is open to this possibility, but he's looking at other people like John Kerry, looking at Bill Richardson, the New Mexico governor. So there are other options out there.
HARRIS: Yes.
HENRY: But you're right, she could have just slammed the door...
HARRIS: Absolutely.
HENRY: ... and she didn't. And in fairness to her, she's kind of in a no-win position right now. If she says to us, "Hey, I'm interested," then we start saying she's angling for.
HARRIS: That's right.
HENRY: If she says, "I'm not interested," then it looks like she's sort of short-circuiting the process that her former rival is going through. And so she does need to be somewhat deferential to the president-elect -- Tony.
HARRIS: OK. And let me pivot here quickly here, very quickly here, to John McCain. John McCain meeting with the president-elect. Is it next weekend?
HENRY: That's right. Monday, John McCain will be coming here to Chicago. Their first post--election meeting with Barack Obama.
I think partly, this is showing the influence of the incoming White House chief of staff, Rahm Emanuel. He's been close to Lindsey Graham, one of John McCain's closest friends. They sort of brokered this post-election meeting, we're told.
And what's interesting is, obviously, this is a good chance for them to try to put their differences aside. And look, both men spoke on election night about coming together. And so we expect they'll talk about issues likes global warming, where they do have some agreement -- Tony.
HARRIS: Ed, thanks for responding to all my e-mails. I know I'm wearing you out.
HENRY: No problem. No, I appreciate it.
HARRIS: Ed Henry in Chicago.
All right, Ed. Appreciate it. Thank you.
The Obama/Clinton relationship, we'll look at their past and their possible future.
Randi Kaye examines the good, the bad and the ugly. Her report ahead this hour. Now to the front lines of the financial crisis.
The White House says President Bush will nominate a special inspector general to help oversee the $700 billion bailout plan. His name, Neil Barofsky. He is an assistant U.S. attorney for New York and chief of the Mortgage Fraud Group.
Fed chief Ben Bernanke hints another interest rate cut may be possible, and he warns that markets remain under serious strain. And lawmakers demand answers from the man heading the government's rescue plan.
(BEGIN VIDEO CLIP)
NEEL KASHKARI, TREASURY DEPARTMENT: Legislation that we asked for, we asked for to try to stabilize and prevent a complete financial collapse of our financial system. And that was not to help Wall Street. That was to help every American -- please, sir. Please.
REP. ELIJAH CUMMINGS (D), MARYLAND: No, no. Let me tell you something. I understand that. That's why I voted for it.
KASHKARI: Yes, sir.
CUMMINGS: But let me tell you, when we gave them money, when we gave the banks money, they still weren't loaning any money.
KASHKARI: Let's talk about that, because we are passionate about getting the banks to loan money in our communities, to help our small businesses, and to help our homeowners. First of all, we allocated $250 billion for banks of all sizes across the country, and just about half the money is out the door today. I think we're going to approve another 20 banks today, large and small, across the country.
Potentially, thousands of banks are applying, and it's going to take a few months to process the thousands of transactions to get the money out the door. So we're working as fast as we can, we're working around the clock, process all these, to get the money in our community banks.
(END VIDEO CLIP)
HARRIS: OK. Man, that's tough.
All right. Looking at the global economic turmoil, leaders of the world's most powerful countries getting ready to meet in Washington.
Our Kathleen Koch joins us from the White House.
Kathleen, good to see you.
What are the expectations for this summit?
KATHLEEN KOCH, CNN CORRESPONDENT: Tony, the White House is downplaying those expectations. These world leaders, they have been arriving here in Washington all morning, from all corners of the globe. And many of them with very high hopes and high expectations for major reform, for major changes in the world's financial systems.
However, the White House is really pushing back on that, predominantly because they don't want to box the Obama administration in, really force it in any way to commit to major financial reforms it doesn't agree with. So White House Press Secretary Dana Perino says what they're looking for out of this weekend summit is agreement on principles, on a way to move forward, as well as looking back at measures that are currently in place to see whether they're working.
(BEGIN VIDEO CLIP)
DANA PERINO, WHITE HOUSE PRESS SECRETARY: We've always said that this is going to be a series of summits, nothing is going to be solved overnight. But we're going to get a long way towards moving the ball down field tonight and tomorrow afternoon.
(END VIDEO CLIP)
KOCH: But certainly the United States could be facing quite a severe credibility problem, as it tries to play quarterback and move that ball down the field, because many countries, privately, or in the case of Russia, publicly, blame the U.S. for the global financial problems. So President Bush, in the summit this weekend, obviously he's going to be greeting the world leaders here at the White House tonight, speaking with them. This will be a working dinner. Then they'll have several sessions tomorrow.
But the president plans to push back on this, say that the U.S. free market system is the best in the world, that it does work, and that it shouldn't be thrown out. It just needs to be reformed. Tweak it.
Mend it, don't end it, Tony, as they say.
HARRIS: Boy, hard to make that argument when you're passing a $700 billion bailout plan.
KOCH: Very tough.
HARRIS: All right. Kathleen Koch at the White House for us.
Kathleen, thank you.
KOCH: You bet.
HARRIS: You know, we've heard what Washington is trying to do to solve the economic crisis. Here's something you can do to help your own wallet.
The holidays are coming up. And if you're thinking about giving gift cards, you'll want to hear this report from our Christine Romans.
(BEGIN VIDEOTAPE) CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT (voice-over): Still holding on to that gift card from the Sharper Image or Bombay Company? Too late. Out of business.
How about Linens & Things? Better move fast. It's closing shop and liquidating.
Consumers will lose $100 million this year on worthless gift cards from restaurants and stores that have gone belly up. It's tough out there for retailers.
Mervyn's is going out of business for good. CompUSA has closed most of its stores. Starbucks is shutting down about 600 stores. Circuit City has filed for bankruptcy.
Todd Marks writes a blog for "Consumer Reports" called "Tightwad Tod.
TOD MARKS, "CONSUMER REPORTS": What I would suggest people do, if they have a gift card from a Circuit City or another store that happens to be in Chapter 11 right now, I would say, run, don't walk to that store, and buy something quickly. Because you just don't know when the plug may be pulled.
ROMANS: For now, your Circuit City gift card is safe. A judge Monday said the retailer could continue to accept them and even issue more cards while it reorganizes.
And the big retail trade lobby says, have no fear.
ELLEN DAVIS, NATIONAL RETAIL FEDERATION: Most gift cards in this country, regardless if a retailer has declared bankruptcy, are perfectly safe and can be redeemed.
ROMANS: In many cases, the bankruptcy court allows retailers to accept gift cards even though the company is in Chapter 11.
(END VIDEOTAPE)
HARRIS: And that was CNN's Christine Romans.
California homeowners are watching closely as fires rage through their neighborhoods. The afternoon hours particularly dangerous, potentially here. We will get the latest on the threat in a moment.
(COMMERCIAL BREAK)
HARRIS: Boy, a breathtaking scene in southern California today. Fire crews struggling to knock down flames in the hills of Santa Barbara County. One hundred homes, many of them mansions with ocean views, have been lost. Hundreds more are at risk.
Live now to the scene. CNN's Chris Lawrence is in Santa Barbara County, California.
And Chris, I understand there is a briefing going on right now at a different location from where you are. We're going to try to turn some of the information from that briefing around in just a couple of minutes. But give us the latest as you know it right now.
CHRIS LAWRENCE, CNN CORRESPONDENT: Yes. We just heard some of that briefing, Tony. We just got an update from fire officials. And they're saying at this point, they're not even talking about containment. But what they are trying to do is to pinch this fire from the east and the west and to push it up into the mountains.
Right now the winds have died down to almost nothing, but we know that is going to change later in the day. It's going to be about 85 degrees, higher winds, hot air. That's a bad combination.
When we got here overnight, it was -- it's hard to describe what we saw. With my own eyes, I saw dozens of multimillion-dollar homes just completely engulfed in flames, burning right down to the foundations.
The firefighters were doing just a heroic job trying to save some of these homes and make sure people were out, but, I mean, these winds were gusting at about 60 miles an hour and higher. It was just pushing walls of flame on to these homes, and you could see these embers just jumping a few hundred feet at a time. Huge pieces of flying fire.
You know, I have seen a lot of fires, and I've seen fires that have burned literally for days that didn't do the kind of damage that this one did in just a matter of hours -- Tony.
HARRIS: Chris, I understand that, boy, people are really paying attention to the evacuation orders. They are moving out in a very orderly way. And from that standpoint, firefighters are really getting an opportunity to do the best that they can, although this is obviously a tough situation.
LAWRENCE: Well, you said it. I mean, the firefighters' first priority is always going to be saving lives.
HARRIS: Yes. Yes.
LAWRENCE: So the more people that are around, you know, that's going to be their focus, is to make sure that people are OK. They're not going to be so much fighting the actual fire, they're going to take care of the people first.
HARRIS: Yes.
LAWRENCE: When the people are gone they can trade all their efforts on knocking down that fire. And the last word that we heard was about 5,000 people were evacuated from this area. I think some of it may have had to do -- when you see these awful, horrible image, it's really a wake-up call to say, you know, my god, this is a very serious thing, you know, I've got to get out of here.
HARRIS: Yes. All right.
Chris Lawrence on the scene for us there in Santa Barbara County, California.
Chris, appreciate it. Thank you.
Take a look at this, this iReport from former Associated Press photographer Dan Lindsay.
Dan, thanks for the iReport.
Dan says this is the scene near Oprah Winfrey's house in Montecito. He was about four miles away when he snapped this photo.
Again, send along your iReports if you are in the Santa Barbara area. Be safe, of course.
And later this hour, Veronica De La Cruz will join me to share a few more of our iReports coming in from you.
Thank you.
(WEATHER REPORT)
HARRIS: All right. Let's gets to our "Energy Fix" here.
The people have spoken, and they want change when it comes to energy and transportation.
CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.
There's a pretty famous song that says give the people what they want. If they want an energy fix, let's give it to them, Poppy.
POPPY HARLOW, CNNMONEY.COM: Yes, give the people what they want.
Hey there, Tony. Happy Friday to you.
HARRIS: Thank you.
HARLOW: People from Missouri to California to Honolulu, those voters approved ballot measures last week that will mean some big changes for their communities. You see those wind turbines there? They're talking about alternative energy and alternative transportation in Missouri.
While the president's vote still hasn't been called (ph), some voters approved more alternative energy by a 2-1 margin. In Missouri, the proposal calls for a 15 percent change in the state for renewable energy.
What you're looking at now is a light rail that is being proposed to be built from San Francisco to Los Angeles. See that thing trucking along there? It goes about 220 miles an hour. It's expected to save Californians about 12 million barrels of oil per year.
In Seattle, another big, big amount of money approved, $18 billion approved to provide 34 miles for a light rail service. You see it right there in Seattle. In Honolulu, voters approved, Tony, more than $4 billion for another light rail project. Pretty neat, especially in times when there's not a lot of money to go around.
HARRIS: Well, and that's my question. I mean, think about it, $4 billion, $10 billion, $18 billion. I mean, these are big numbers.
HARLOW: Yes.
HARRIS: Big projects considering the economic crisis that we're in now.
HARLOW: That's exactly right. I bet a lot of people are scratching their heads. How are we going to pay for this? But you know what? The voters are demanding it. It looks they're still concerned about a return to $4 a gallon gasoline.
One of the selling points for one of the projects in California, it is expected to create 450,000 new jobs, something we certainly need right now. The projects, they come at a cost. Some are financed with sales tax, or property tax increases. Others are funded by bonds. And perhaps some voters factored in what it would mean to their wallet, their bottom line if they didn't have to drive as much, Tony.
So, some neat energy fixes, lots of money going into these. We should see them in the coming years -- Tony.
HARRIS: Awesome. Thank you.
Poppy, good Friday to you. Good weekend.
HARLOW: You, too.
HARRIS: All right. Breaking through the brass ceiling. We have got a military milestone to tell you about.
(COMMERCIAL BREAK)
HARRIS: A military milestone to tell you about, the first woman to become a four-star Army general elevated to that post today.
Senior Pentagon Correspondent Jamie McIntyre now.
You know, Jamie, a lot of people out there probably saying, you know what? It's about time.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: You know, a long time in coming, Tony.
HARRIS: Yes.
MCINTYRE: In fact, that's what the Army's chief of staff, General Casey, said. Something that probably should have happened before now, the first elevation of an Army officer to the highest rank in the U.S. Army, four-star general. And it was really quite a journey for Ann Dunwoody, who began her Army career thinking she was just going to do two years out of college and then go into a career of fitness and raising a family. And she's had a career of firsts now.
Defense Secretary Robert Gates was on hand to note her trailblazing achievement.
(BEGIN VIDEO CLIP)
ROBERT GATES, DEFENSE SECRETARY: As opportunities for women expanded, individuals like Ann Dunwoody have risen to the challenge and excelled. History will no doubt take note of her achievement in breaking through this final brass ceiling to pin on a fourth star, but she would rather be known and remembered, first and foremost, as a U.S. Army soldier.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
GEN. ANN DUNWOODY, U.S. ARMY: And even though I thought I was only coming into the Army for two years, I now know from the day I first donned my uniform, soldiering is all I ever wanted to do.
(END VIDEO CLIP)
MCINTYRE: You could hear her voice cracking a little bit with emotion there. It was quite a ceremony in the Pentagon auditorium, filled, by the way, with a constellation of four-star, three-star generals, all onhand to witness this historic moment.
And again, one of the things it underscores is the fact the reason there hasn't been a woman promoted to four star, is generally to do that you have to come up through the ranks of the combat ranks. And women are still barred by Congress from direct combat, even though we all know, as the wars in Iraq and Afghanistan have shown, that women are in direct combat every day.
HARRIS: Boy, Jamie. You know, you've covered the Pentagon for quite a while. How have attitudes toward women changed?
MCINTYRE: Well, you know, tremendously. I recall when I first got to the Pentagon, one of the things that happened during the (INAUDIBLE) administration was they opened up the cockpit of fighter jets to women, and the then Air Force chief of staff, when I asked, "How do you feel about this?" because he was opposed to it, he said, "You know, there's a small chance I might have been wrong." And he really felt that way.
I mean, one of the things people thought was that America wasn't ready to see their daughters dying in combat, being captured, tortured, perhaps. And what these -- the experience of the last few years have shown is that women can and do every aspect of combat, and America can take it.
HARRIS: Boy. What a wonderful day. Man.
All right. Senior Pentagon Correspondent Jamie McIntyre for us.
Jamie, thank you.
Since when did Hillary Clinton and Barack Obama get so chummy, friendly? During the campaign, we never would have pictured her serving in an Obama administration. Would we?
(COMMERCIAL BREAK)
HARRIS: Let's get you to the New York Stock Exchange now and look at the Big Board here. I tell you what, the big run-up in stocks yesterday, you need to know that this market giveth and taketh away in the blink of an eye.
Look at this. The Dow off of session lows, I believe. But we are still down over 300 points. Three hours into the trading day, the Nasdaq at last check down 71. We'll get a market check with Stephanie Elam. Not this hour, but certainly throughout the day right here in the CNN NEWSROOM.
Car trouble: Lawmakers on Capitol Hill wrangling whether to bailout the auto industry. Senior Correspondent Allan Chernoff reports on the desperate times at General Motors and whether the automaker can survive without help from taxpayers.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): New Jersey Caddie dealer Craig Ploetner believes Americans have to lend money to General Motors, because millions of jobs are at stake.
CRIAG PLOETNER, TOWNE CADILLAC: It's a temporary loan to get ourselves back on our feet so we can get this market motivated, sell more vehicles.
CHERNOFF: A few miles away Congressman Scott Garrett argues a taxpayer bailout would simply throw good money after bad.
REP. SCOTT GARRETT, (R) NEW JERSEY: They're simply going to simply burn through this money at a rapid pace and very they'll be likely coming back to Congress once again.
CHERNOFF: Opponents of a bailout say GM is a bloated company that failed to change with the times. Relying too much on selling gas guzzlers, paying auto workers more than foreign carmakers paid and granting generous retirement packages when it could ill-afford them. So, they question, why should taxpayers have to pay for management's mistakes?
GARRETT: The taxpayers asking, where does it end?
CHERNOFF (On camera): You don't see an end?
GARRETT: I don't see an end. CHERNOFF (voice over): Fact is, GM is restructuring to save billions in expenses, it is cutting manufacturing capacity, reducing inventory of raw materials and plans to have an independent trust fund retiree health benefits. But the full cost savings won't be in place until the end of next year.
KENNETH ELIAS, KELLER & ASSOC.: The problem with General Motors has been it's always been a day late, a dollar short.
CHERNOFF: Can GM survive? Auto experts say yes, but not without federal loans; billions this year and probably billions more next year. And, they say, GM still needs radical restructuring to shrink the company.
ELIAS: They need to cut brands and refocus on a couple core brands, for example, Chevrolet and Cadillac and cut a lot of fluff out.
(END VIDEOTAPE)
HARRIS: Well, have you heard the rumors? Hillary Clinton mentioned as secretary of State in the Barack Obama administration? You know, considering the fierce fight for the Democratic presidential nomination, some might see that as an odd choice. Here's CNN Randi Kaye.
(BEGIN VIDEOTAPE)
RANDI KAYE, CNN CORRESPONDENT: If it's true and President-Elect Barack Obama is considering Hillary Clinton for secretary of State, my, how far they've come. Remember this?
SEN. HILLARY CLINTON, (D), NEW YORK: Well that hurts my feelings.
(LAUGHTER)
UNIDENTIFIED MALE: I'm sorry, Senator. I'm sorry.
CLINTON: He's very likable. I agree with that. I don't think I'm that bad.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: You're likable enough, Hillary. No doubt.
CLINTON: Thank you. I appreciate that.
KAYE: That was back in January in a New Hampshire debate not long after Clinton welled up at the diner and ran away with the primaries. It got a lot uglier from there.
After Obama took South Carolina a few weeks later Bill Clinton compared the victory to Jesse Jackson's primary victory there years earlier. Critics said the former president was injecting race into the race. Then Clinton accused Obama's campaign of playing the race card for political gain. The gloves really came off in February, just days before the Ohio primary. The Obama campaign sent out mailings detecting Clinton on universal health care and the North American Free Trade Agreement. That prompted this. A visibly angry Clinton in Cincinnati.
CLINTON: So shame on you, Barack Obama.
KAYE: In April, at another debate, Mrs. Clinton didn't hold back on Obama's relationship with William Ayers, an accused domestic terrorists who said in an interview published on September 11th, he wished he'd set off more bombs years ago.
CLINTON: If I'm not mistaken, that relationship with Mr. Ayers, on this board continued after 9/11.
KAYE They were just getting warmed up. Two weeks later, Clinton unloaded about Obama's former pastor, Reverend Jeremiah Wright, during an interview on FOX.
CLINTON: I think it's offensive and outrageous.
KAYE (On camera): In June Obama sealed the nomination and promised to help Clinton pay off her debts and all was honky dory, kind of. Both sides needed some time to thaw out.
(Voice over): Then, this show of unity, in Unity, New Hampshire. He was the candidate. She was his ally. He needed her.
OBAMA: I know firsthand how good she is.
KAYE: By the time the Democratic convention rolled around in August, Clinton was onboard big time.
CLINTON: We are on the same team. And none of us can afford to sit on the sidelines.
KAYE: Come January, if Clinton joins Obama's administration she won't be sitting on the sidelines either. Randi Kaye, CNN, New York.
HARRIS: OK, this next bit should be really good. CNN founder Ted Turner says he a big fan of Barack Obama. He appeared on "The Situation Room" with Wolf Blitzer yesterday; Turner just coming out with his book "Call Me Ted." Wolf asked him about Obama's election, and how he would fix the nation's economic crisis.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR, THE SITUATION ROOM: Let's talk a little bit about this historic moment in our country right now, as the son of the Deep South, how do you feel about an African-American elected president of the United States?
TED TURNER, FOUNDER OF CNN, AUTHOR, "CALL ME TED": Well, I think it's terrific. And it's terrific for the United States, and it's terrific for people of color all over the world. You can do anything you want to. The barriers are down now completely, and it's high time. It's a wonderful time to be alive, to see this historic event occur. BLITZER: You have ever met with Barack Obama personally?
TURNER: I have.
BLITZER: What do you think about him?
TURNER: Sharp at a tack.
BLITZER: Yeah? Give us a little insight, give us a little insight into this man.
TURNER: In all fairness, I only spent a few minutes with him. It was at a fund-raiser. We chatted for probably three or four minutes. So I don't really know really much more about him than the rest of America, but obviously we all like what we saw, and what we see. He's got a very big road to climb with financial problems, but hopefully he can do it without getting too distracted from the major things he wanted to do, like energy and nuclear disarmament.
BLITZER: Those are some of -- your causes that you're so involved in. If you could give him one piece of advice on one pacific issue that is dear to your heart right now, Ted what would you want him to focus on?
TURNER: I think that the way, the best way out of the financial mess that we're in is to put our shoulder to the grindstone and really build a new - a new energy infrastructure across the country, somewhat to the federal highway program. And to put, put our energies and our resources into solar, wind, geothermal, probably biofuels, but clean, locally produced energy. That will produce jobs. Millions of jobs right here, good paying, high-tech jobs, keep the money here in the united states rather than shipping it overseas for, for oil.
BLITZER: Are you among those, Ted, who say that taxpayers should spend nowhere $25 or $30, or $40 billion to bail out the big automotive manufactures in the United States?
TURNER: No. The more I think about it and the more I hear about it, the less I'm inclined to do it.
BLITZER: Why is that? Because so many millions of jobs potentially --
TURNER: I know.
BLITZER: are at stake.
TURNER: Those jobs need to be transferred over, it's a smokestack industry that's dying. Certainly the large-car business is dying. And Detroit made the decision years ago to stick with the large cars, and anybody -- I could see they were headed for catastrophe.
BLITZER: You see this basically as good money going after bad? Is that what you're saying?
TURNER: That's the way I see it. Where do you stop? How much ever money you give them they'll run out of it in six months.
BLITZER: Well, we just spent $700 billion to bailout the financial sector. A lot of people say, why not bail out the manufacturers of cars?
TURNER: Look at AIG. We gave them $100 billion and they're coming back already a month later for another $40 billion. You know? I mean, I just don't think we really know what we're doing. I think Congress is over its head. And even Paulson, you know, he had this bailout program for the financial industry, and he changed it yesterday. Made a major change in it, and nobody understands why. And it's not very good for -- for people's sense of well-being to have this program changed before it really got under way.
(END VIDEOTAPE)
HARRIS: CNN founder Ted Turner with our very own Wolf Blitzer.
Roger, let's see these live pictures of the Montecito fire in Santa Barbara County California, another house on fire right now. This is a Tea Fire, the Montecito Fire that we've been following throughout these hours here in the CNN NEWSROOM.
And 5,400 homes have been evacuated, 100 homes, we are aware of, have been burned. Maybe this is 101. I don't know. But this is the latest that we can show you here from our affiliate there, KABC in Los Angeles. About 2,500 acres burned, and there is real concern about the afternoon hours when the winds pick up again. It is very hot right now. We are going to keep an eye on this situation, as you are. You are really keeping tabs on the fire in Montecito and sending along your I-Reports. We'll take a look. That's next.
(COMMERCIAL BREAK)
HARRIS: Well, I want to tell you, this is some expensive real estate out in Southern California, Santa Barbara County, Modesto, California. Are you kidding me? Take a look at these homes. Millions -- what did I say? I didn't I say Montecito? Oh, I'm sorry. Montecito, my apologies. But the story is the same. Very expensive homes here, a mansion, million dollars, plus, easily. And fire crews are struggling, as you can see here, trying to knock down flames in the hills of Santa Barbara County.
You've been helpful, as you always are, sending in your I- Reports. They really do help us tell the story a little better. Veronica De La Cruz joining us now.
Veronica, what are you getting from our I-Reporters?
VERONICA DE LA CRUZ, First of all, Tony, I know why you set Modesto.
HARRIS: Why did I say that?
DE LA CRUZ: I was born there and I can tell you --
HARRIS: Oh, come on is that what you - you think I was channeling?
DE LA CRUZ: That's why you said it. Exactly.
HARRIS: OK.
DE LA CRUZ: I can tell you the houses in Modesto did not look anything like the houses we see there in Montecito, California.
HARRIS: Appreciate it. Thank you. Thank you for explaining my thought process. Get out of my head now. OK?
DE LA CRUZ: All right. Let's go ahead and get you to these I- Reports.
You're right. They have been busy capturing images for us. We want to go ahead and start with these photos from 16-year-old Tynan Daniels. Tynan says he saw the fire break out last night. He was able to capture these snapshots. He was able to take these images nearby from the town of Galita.
And Galita, Tony, is about 10 minutes away from Montecito, Santa Barbara County.
Tony, I've also been scouring the web. We wanted to go ahead and search for some resources for those that might be affected by the blaze. Here's what you'll find on our affiliate KEYT's web site. There is a warning for residents to conserve water. KEYT is reporting local reservoir levels dropped dangerously low because of fire crews using that water to fight the blaze.
Also, if you scroll down the page. You find information on evacuation shelters for both residents, animals, there are school closures, road closures. Also call centers listed there.
And check this out, Tony, a blogger by the name of Mark B., has been live blogging the fire on DailyKOS.com. Here he explains why so many out of town fire trucks on the scene, citing the mutual agreements that Santa Barbara has in place with other agencies.
HARRIS: Mutual aid, yes.
DE LA CRUZ: Exactly. This is where he talks about that. Also provides some very useful links, other resources as well, on his blog. Something to check out there. Another blog we wanted to show you. We were just talking about these homes threatened by this Tea Fire.
HARRIS: Yes.
DE LA CRUZ: Being worth millions. Tony, this blog says if you Google Santa Barbara real estate you find the median home price in the area is $842,500. Yeah.
HARRIS: That's pricey.
DE LA CRUZ: Pricey. Nothing like Modesto, where I grew up. Let me tell you that.
The blog goes on to say Oprah Winfrey has a home there. John Travolta. Do a search, you find Rob Lowe, Carol Burnett, Steven Martin, Jonathan Winters, many more live in the area. Good resources on there on the web.
We also want to remind you, just in case you do live in the area, logon to Facebook, search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris, post your comments and send us an I-Report. And, please, be careful in the process.
HARRIS: Yes, but we love getting the I-Reports. You really do help us tell the story. Veronica, appreciate it.
DE LA CRUZ: Of course.
HARRIS: Good Friday and good weekend to you, thanks.
This next story is just horrible. Just days after the nation elect add black man to the White House, a charge of murder against a Ku Klux Klan leader. Authorities say the killing happened at a KKK initiation. CNN's Tom Foreman has details.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice over): All around this town the alleged Klan members called home shock and alarm. The sudden violence, the arrest, the rogues, reminders of the past many blacks and whites hoped was gone.
UNIDENTIFIED MALE: Terrible. Terrible. There shouldn't be Ku Klux around here, anyway. Nobody should be prejudiced.
UNIDENTIFIED MALE: But yes, that does surprise the hell out of me, you know?
FOREMAN: Authorities say from Ray Foster's home his group reached out through the Internet to like-minded recruits. They found one, Cynthia Lynch, in Oklahoma. They invited her to come here to be initiated in the Klan. But at a remote camping spot the ceremony went awry and authorities say Foster gunned her down. Sheriff Jack Strain:
SHERIFF JACK STRAIN, ST. TAMMANY PARISH: Foster, we believe, immediately removed a knife from his pocket and rolled over the victim and began a process of trying to remove the bullet from her body.
FOREMAN (On camera): Because he didn't want to be connected to this?
STRAIN: That is exactly it. Because he was trying to destroy evidence, where law enforcement would not be able to piece these things together.
FOREMAN: However when two bloody group members were spotted in town, the hunt was on. After all eight suspects were rounded up and the body discovered, detectives searched Foster's home where they say they found extensive records of Klan rules, application forms, loyalty oaths sealed in blood and evidence of ongoing recruitment.
(On camera): So these weren't just a disorganized bunch of guys?
UNIDENTIFIED MALE: Oh, no. Not whatsoever, not whatsoever.
FOREMAN: The Southern Poverty Law Center, famous for tracking hate groups says it's been watching Foster seven years. That he was previously the national grand wizard of four chapters of the Klan in four states. Foster is now charged with second-degree murder, the others with obstruction of justice.
(On camera): Authorities are clearly pleased they broke up this group before it had a chance to spread much beyond this house, possibly becoming much bigger and maybe more dangerous, too.
STRAIN: So I'm confident that not only did we cut the snake's head off but we destroyed his body at the same time.
FOREMAN (voice over): But for many, it is disturbing to know the specter of the Klan still haunts rural America. Tom Foreman, CNN, Bogalusa, Louisiana.
(END VIDEOTAPE)
HARRIS: You know, we are all having to tighten our belts these days, but if that's a problem because you've got, yes, too much around the waist -- look, I've got more bad news for you.
(COMMERCIAL BREAK)
HARRIS: Let's talk about dangerous mid-sections. How did I get roped into this? We all know being fat is really bad for your hearth, and it turns out that where that fat is makes a pretty big difference. Medical Correspondent Elizabeth Cohen is here to explain.
OK, we'll explain how I got roped in on this a little later. Good to see you.
(LAUGHTER)
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Not you. Because you are so slim. You know how some people, when they gain weight, they gain it in their rear end?
HARRIS: Yes.
COHEN: Or, they gain it in their arms.
HARRIS: That's right.
COHEN: But some people gain it in their belly. It turns out that there really is a difference.
HARRIS: Where it is?
COHEN: The weight in the belly is the worst. As a matter of fact, this new study out of Europe, it was a big, old study. They found for every extra two inches, like put a tape measure around that guy's belly. Every extra two inches raises early death by 13 percent to 17 percent. We have two guys here.
HARRIS: Yes.
COHEN: That we are going to use as an illustration, OK?
HARRIS: You're not going to use me? Good.
COHEN: No, we're not going to use you. Because I can't write on you. You're not - it doesn't work that way. All right.
This guy over here, he's got a 34-inch bell. That is how big that belly is around. This guy over here, his belly is 40 inches. This guy right here, he is twice as likely to die an early death.
HARRIS: Are you kidding me? Twice as likely?
COHEN: I am not kidding you. And you know what's funny. Is that our little imaginary guys, they actually weighed the same. Just carries his weight in his belly.
HARRIS: Oh, the distribution of the weight.
COHEN: The distribution. That is exactly it.
HARRIS: Why is the belly fat so -- sorry. Why is the belly fat so dangerous?
COHEN: It is believed to be dangerous because there are molecules in this fat to seem to excrete a chemical that make it difficult for insulin to do its job. Your body doesn't work well with insulin and that makes you more likely to get heart disease, diabetes, high blood pressure and all sorts of bad things. All fat is not the same.
HARRIS: Got you. So, what do we do about it? This guy, in particular? What's the best RX for this guy? It is just sit-ups? You have to change the diet, too?
COHEN: I'm going to tell this guy, right here, to go to CNN.com/health.
HARRIS: Nice.
COHEN: Because the Mayo Clinic has some great advice specifically about how to get rid of belly fat. There are specific exercises you should do, daily moderate exercise, but do it every day. And also strength training, use weights and that will help, too. And also a healthy diet specifically for your belly. Again, CNN.com/health.
HARRIS: I'm doing OK. I could do better, but -
COHEN: You're doing fabulous. You're more than OK.
HARRIS: Wait. I wanted the camera to be on us.
I'm doing OK!
COHEN: You're doing fabulous.
HARRIS: I'm doing fabulous?
COHEN: Yes, flat. Look at that flat. Flat, flat. You're great. Well, yeah, if you -
HARRIS: That's what I'm talking about.
COHEN: Now you look a little pregnant.
HARRIS: Ah, thanks Elizabeth. Good Friday, good weekend to you.
COHEN: You, too.
HARRIS: You know, for some, the election process was all consuming. Now we're back to eating and big bellies again. What happens now that it's all over?
(COMMERCIAL BREAK)
HARRIS: Do you create clogs, hoping Joe the Plumber will arrive? Do you hope for a 3:00 a.m. phone call? Is life laugh-less without a weekly dose of Tina Fey? If so you probably have election withdrawals. Here's CNN's Miles O'Brien.
(BEGIN VIDEOTAPE)
MILES O'BRIEN, CNN CORRESPONDENT (voice over): After a two-year campaign, a lot of people are ready to get away from it all. But it's so hard.
DR. JOY BROWNE, PSYCHOLOGIST: Just figure out what about it you loved.
O'BRIEN: Her name is Dr. Joy. But her listeners aren't feeling much of it these days. The radio psychologist is offering a lot of free advice for PEBS, post-election blues syndrome.
UNIDENTIFIED MALE: Well, we won. Which was wonderful, but taking down the signs the other day was like taking down the Christmas decorations.
BROWNE: We have a kind of a perfect storm of withdrawal, if you will. On one hand, ultimate high then all of a sudden, gone.
O'BRIEN: Making matters worse, the nonstop coverage turned on a sound bite from a historical political high to an equally epic economic low. Maybe we all need an emotional bailout.
(On camera): Two weeks ago we talked to election obsessed I- Reporters. Turns out when it comes to PEBS, well the Is have it.
UNIDENTIFIED MALE: I went from breathing, living, talking nothing but politics, and now it's been kind of - went down to nothing.
O'BRIEN: And obsessed Emily Richard drove halfway across the country to volunteer for Obama.
UNIDENTIFIED FEMALE: Like a national intimacy and now we're all going through relationship withdrawal.
O'BRIEN: And pity the poor comedy industry. It could be next to demand a bailout.
UNIDENTIFIED FEMALE: We now continue our coverage of the terrible aftermath of Barack Obama's victory which has left Obama supporters across the nation with nothing to talk about.
O'BRIEN: And let's not forget the elephant, or is it a donkey, in the room. Poor, pitiful us.
ALEXANDER MOONEY, CNN POLITICAL WRITER: It is a letdown. I mean, this is what we've been doing it for two years.
CANDY CROWLEY, CNN POLITICAL CORRESPONDENT: Am I sad the election is over? I know these sound bytes have to be short. Let me just put it this way: No.
O'BRIEN: But it is a long, off season -- or is it?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: The beauty of our business is we're already talking about 2012.
O'BRIEN: There's always that Minnesota Senate election if you're in critical condition. Maybe Dr. Joy knows best.
BROWNE: Ah, get a life.
O'BRIEN (On camera): So, what you need do to get a life, maybe find another hobby.
I think I found the perfect thing for me.
(TAKES PUTT-PUTT GOLF SHOT)
(END VIDEOTAPE)
HARRIS: Get a real golf course? Come on, man!
T.J. HOLMES, CNN ANCHOR, CNN NEWSROOM: He's putt-putting.
HARRIS: It's putt-putt.
Oh, man, I'm with Candy. Glad it's over so I can work off this belly fat that Elizabeth was pointing at.
HOLMES: I kind of wish it would keep going. I don't know what we're going to talk about for the next two hours. I don't know how you feel.
HARRIS: I've seen your rundown.
HOLMES: Oh, yeah? There's stuff going on.
HARRIS: You're packed. Yeah. CNN NEWSROOM continues right now with this man, T.J. Holmes in for Kyra Phillips.
HOLMES: OK.
HARRIS: Absolutely.
