Return to Transcripts main page

CNN Newsroom

Awaiting Obama's Cabinet Appointments; Will Congress Bailout Big 3?; Homeless Man & Wealthy Art Dealer Provide Hope for Others; Fire Crews Still Working to Contain Southern California Flames

Aired November 17, 2008 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: It is Monday, November 17th. I'm Heidi Collins. You are in the CNN NEWSROOM.
Fire crews are making gains, but say they could be battling the fire storm in Southern California for a few more days. The largest fire, called the triangle complex, is only about a fifth contained. Nearly 24,000 acres and more than 100 homes have burned. This are fire still racing through parts of the San Gabriel mountains. Some residents going back this morning to sift through what is left of their homes. One woman says if only she can find one broken piece of one dish.

Meantime, investigators are calling the fire that roared through Montecito late last week suspicious. That fire is well in hand. CNN's Thelma Gutierrez is in Yorba Linda this morning.

So Thelma tell us a little bit more about how firefighters are feeling today and the progress that they're making.

THELMA GUTIERREZ, CNN CORRESPONDENT: Well, you know, Heidi, a really good sign. Just a few minutes ago we saw a half dozen engines pull out of this area. Firefighters heading out to get something to eat. People are very, very calm in comparison to the last few days. One reason is because that red-flag warning was called off, and the winds are now calm.

Now many of the people in Yorba Linda and in the Anaheim Hills, we're talking about 22,000 that were evacuated over the last couple of days, are now going to be allowed to return home. That evacuation order was lifted. Take a look right behind me, you can see many of them are returning home to scenes like this. 200 homes in the triangle fire were completely destroyed. This is what some of those people will be looking at right now.

There are two fires that are active that are cause for concern. And one of them is up in the Angeles National Forest which is above the town of Sylmar. It's a rugged, steep terrain. The good news is that there are no homes threatened in that area, but firefighters are keeping an eye there. They're also keeping an eye on an area south of Los Angeles, in the community of Diamond Bar. Engines are positioned throughout the neighborhood making sure that there are no flare ups in the area so they can protect those homes but further south also in the community of the Sayyr fire. That is an area where they actually sent out dogs to sift through the rubble to make sure that there were no human remains. They went through 30 percent of that rubble yesterday. They found no human remains. They've asked people to come forth, to check in with authorities so that they can have a count of, you know, who exactly might have been left behind. We're really hoping that nobody has been left behind and that all the people are accounted for, Heidi.

COLLINS: Yes certainly. Hopefully that will help if people come forward and contact some of the firefighters there. They must know that they're OK. All right. CNN's Thelma Gutierrez for us this morning in just what is left of some of the parts of Yorba Linda.

I want to head over to Rob Marciano now who is standing by to show me a little bit more about where these flames are because even though they're be getting a break. We also hear it's going to take several days to get this thing completely contained.

And is that the right word? Because I you've been looking into something --

ROB MARCIANO, AMS METEOROLOGIST: Well, contained. We're at in some cases 40 percent containment. So you need obviously 100 percent to get your arms around it. But firefighters will tell you it's never really under control, even when it's contained. So we really need the winds to help out. So this is what we call motor satellite. The satellite actually measures the heat, Heidi.

COLLINS: Yes.

MARCIANO: So every little flame that you see here is a signature that the satellite is picking up. And so it gives you an idea in this triangle complex which has covered over 23,000 acres just how many little hot spots there are and how difficult it is to get your hands around it. And there's a (INAUDIBLE) a little bit farther to the north and west. That has burned 10,000 acres. That's at 40 percent containment but they lost over 600 structures with that and obviously a lot of this terrain.

COLLINS: Yes. We've also been hearing how quickly those structures and homes are just wiped out.

MARCIANO: Yes.

COLLINS: I mean usually you'd think it usually takes some time and they just went like that in a matter of a couple of hours.

MARCIANO: It doesn't take much. As hot as it has been as well. And it's going to continue to be hot, but the winds aren't going to be as bad. We will continue to have these off shore winds today. They will be gusting some of the canyons but we don't have a red flag warning up. You don't any counties that are called in there and we don't have a fire weather watch. So today is definitely an improvement. I think tomorrow and Wednesday we'll start to see more of an onshore flow. We'll get these arrows going the other way, that will bring in some cooler temperatures and higher humidity.

COLLINS: Perfect. All right. You have more to show us?

MARCIANO: That's about it. I think so.

COLLINS: All right. We'll get the rest of weather across the country.

MARCIANO: You want a break. What are you doing now?

COLLINS: I'm talking more about the economy and issue #1. A lot of people still very very worried about that as well. Your money, your worries. Fears of a global recession grow even more ominous. Japan, the world's second largest economy now says it's in a recession. In the U.S. investors are bracing for a week-long drip of bad news. A look at Wall Street's big board now show as you can see there. Down triple digits still, about 133 points down for the Dow Jones industrial averages. Nasdaq down as well.

Also, late word this morning Citigroup slashing more than 50,000 jobs. The financial giant is announcing the cuts to employees in a town hall meeting today. Let's get straight to CNN's Richard Roth now, who is live outside Citigroup in New York.

Richard, good morning to you.

RICHARD ROTH, CNN CORRESPONDENT: Good morning, Heidi.

We're here on Park Avenue, the home of corporate capitalism in America. And bad news that Citigroup, the nation's second largest bank by assets announcing that it is slashing jobs by 50,000 people, bringing it down from 350,000 staffing levels to 300,000. This is a bank that lost $20 billion with bad bets in the housing industry, mortgage-backed securities. Viewers are probably familiar with the bad-backed story.

Very few Citigroup staff members would like to talk. No surprise here on this cold bitter Monday morning outside the corporate headquarters here. Nobody wanted to talk. They said they haven't been given approval to talk. Many were in no mood to talk. This town hall meeting that was for this morning where the chairman of Citigroup was laying out the problems ahead, the CEO. There's been rumors the chairman would be on his way out. He denied that last week.

Citigroup's stock lost about 68 percent before trading opened today. In recent weeks just one of the bank titans that had been humbled in the stock market and investment banking collapse.

Back to you, Heidi.

COLLINS: Certainly going to be a very tough day for the folks working there at Citigroup.

All right. Richard Roth, thanks for that.

Now to our Christine Romans who is in New York this morning to break all of this down for us to even further. And Christine, you mentioned a little bit earlier today that last week there were 14,000 job cuts across the board. And when you hear the number coming from Citigroup this morning, more than 50,000, boy it just blows that number out of the water.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It really does. And it just shows you how dramatic this move is by Citigroup. And the management team of Citigroup has been under pressure to do something dramatic after four quarters of troubled year and after worsening conditions for the industry, all year and in fact the stock has just been hammered. So a lot of people in the financial services business are concerned about their jobs, and those folks at Citi this morning are waiting to find out what divisions, what departments and what kinds of jobs will be laid off.

The company's presentation on page 16 has a titled that says "getting fit fast." Well, you know outlining that all those things is going to do to try to get the corporation fit. Among them is it's going to reduce its head count from 375,000 at peak of end of last year to 300,000 or so. That's a 20 percent decline in their levels. And for the people who work there they don't feel like it's getting fit fast. They feel like they're getting hit fast. That's for sure.

Last week 14,000 job cuts were announced by different industries, everything from Nortel Networks to U.S. steel to Fidelity investments, all different kinds of companies. Well wait to see if there are more banks that announce their job cuts in the near term but again this is something this management had been under pressure to do something big. And it looks like it's out there trying to tell investors, trying to tell employees, look, we're in good shape. When we get all of our house in order we'll be in good shape.

And they say their underlying business remains strong. Revenues have been stable. They're going to cut expenses, they're going to cut their head count, and that means cutting jobs.

COLLINS: All right. As we said, it's going to be a rotten day for an awful lot of people there.

CNN's Christine Romans. Thank you, Christine.

Big trouble also for the Big Three. The nation's top automakers all in a fight to survive. This week Congress debates whether to offer the industry a bailout with your money. CNN's Kate Bolduan is on Capitol Hill this morning to give us the very latest.

Good morning to you, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Good morning, Heidi.

Well in general there's a sense that lawmakers as well as the White House want to do something to help the auto industry. But where that help comes from and what money is -- and where the money comes from is where the division lies and where the fight will be centered around this week.

(BEGIN VIDEOTAPE)

BOLDUAN (voice-over): One final round for Congress and President Bush. In a lame duck session set to be a showdown centered on the hemorrhaging auto industry.

SEN. CARL LEVIN (D), MICHIGAN: One out of 10 jobs in this country are auto-related, 20 percent of our retail sales are auto- related or automobiles. So this is a national problem.

BOLDUAN: Michigan Democrat Senator Carl Levin is drafting the bill the Senate version of the auto industry lifeline. The bill could see a key vote as early as Wednesday and it could include $25 billion in loans to the Big Three. The money would be carved out of the $700 billion financial bailout package. In attempting to win more support for the plan, the bill is also expected to include an extension of unemployment benefits. But this is no easy sell to Senate Republicans or the Bush administration.

CARLOS GUTIERREZ, COMMERCE SECRETARY: There's a list of companies awaiting the Treasury just to see if they can get their hands on those $700 billion. That's for the financial system. It's to stabilize the financial system. That should not be used.

BOLDUAN: Senator Richard Shelby is the top Republican on the Senate banking committee. He says the Democrats' plan would reward poor management at GM, Ford and Chrysler and calls it money wasted.

SEN. RICHARD SHELBY (R), RANKING BANKING CMTE. MEMBER: They would be in a lot of people's judgment, a lot better off to go through chapter 11, where they could reorganize, get rid of the management, get rid of the boards. The people who brought them to where they are today.

(END VIDEOTAPE)

BOLDUAN: Now Republican leaders along with the Bush administration are pushing an alternative plan. This is a plan that would pull money from existing $25 billion loan program that was already approved. But this loan program was meant to help automakers produce more fuel-efficient vehicles. So there's going to be a lot of back an forth on where this cash should come from -- Heidi.

COLLINS: Meanwhile, Kate, a lot of new faces on Capitol Hill today to tackle these old problems. I'm sure that picture -- we hope we get to see it here -- probably had to happen quickly.

BOLDUAN: Yes, well, it's like the first day of school. The new members, the House members as well as the new senators, they are on Capitol Hill. They're coming for their new member orientation as well as committee assignments. You can see those are House members right there getting their class photo earlier this morning. But these new members, they are here for orientation. The members that are -- this is a little confusing. But the members of the 110th Congress, the members right now, they're going to be the ones voting on this bailout legislation if it comes to that. These new members they're not going to have any vote until they're brought in January. COLLINS: Got it. Understood. Appreciate that. The photo looks great either way.

Thanks, Kate. Appreciate it.

BOLDUAN: Of course.

COLLINS: Issue #1, solutions, ways to save and survive. That's our day long focus. And our money team has what you need to know. We got ways to make it through the economic crisis.

The man who will be president and the man who would be president. What we can expect from today's Barack Obama and John McCain meeting.

(COMMERCIAL BREAK)

COLLINS: Three days left to vote for your favorite CNN hero. Just go to cnn.com/hero to see their stories. Vote and then join Anderson Cooper Thanksgiving night to find out who will be CNN's hero of the year. Vote now at cnn.com/heroes, only three days left.

A busy start to the week for President-elect Barack Obama. A big meeting with a former foe. Suzanne Malveaux keeping her ear to the ground in Chicago.

So Suzanne, a lot of people very interested in how this will go. Everybody wants to be a fly on the wall. What have you heard?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, we hear there are not going to be any major announcements coming out of this meeting. But what is going to happen is that these two are going to sit down for the first time face-to-face since the last debate. Really a chance to talk about some things and at least at the very least to talk about things that they believe they have in common that they can work together.

As you know, Senator John McCain and the Republicans as well as the Democrats on climate change or ethics reform. One of the interesting things that Barack Obama said in his interview yesterday was that he does feel when it comes to listening to economists on both sides. Republican leaning, Democratic leaning that there is one consensus that seems to be true which is that they believe spending is important to really kind of stimulate the economy. Not to worry so much about the deficit in the short term over the next couple of years. But to prevent a deepening recession from happening in this country.

So that is something they could also talk about, the global financial crisis. Because obviously, Heidi, Barack Obama and the Democrats they don't have that filibuster proof Senate that they need. So they're going to reach out to those moderate Republicans and hopefully cooperate on some of those key issues -- Heidi.

COLLINS: In fact Barack Obama reaching out to a lot of people trying to get his cabinet squared away. Tell us what you know and where things may stand with Hillary Clinton. MALVEAUX: Well we do know that last week Hillary Clinton and Barack Obama met secretly here in Chicago. He asked if she would be interested in a Secretary of State position, what her feelings would be, just kind of banter about that.

The offer has not been made, but it has been taken seriously enough that they're vetting not only Senator Hillary Clinton but also her husband Bill Clinton who has a philanthropic organization. He has relationships with world leaders with foreign countries. They want to make sure that there's no conflict of interest there and what Hillary Clinton would do under an Obama administration, what Bill Clinton is doing on the side. So clearly they're taking this seriously, Heidi.

COLLINS: All right. We'll be waiting around for any appointment that he ends up making. Suzanne Malveaux live in Chicago this morning.

Thanks, Suzanne.

So how confident are you the president-elect will pick the right people to help him run the government? We'll see what a new poll found out a little bit later this hour.

A sign of the troubled economy. The buying power of your paycheck shrinks and your bills pile up. All day, CNN's money team looks for solutions, ways to save and survive. Our focus right now, three ways to get out of debt. Personal finance editor Gerri Willis is part of CNN's money team and is joining us now from New York.

Good morning to you, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Heidi.

COLLINS: How do you know if you're really, really in trouble and you have to take it very seriously?

WILLIS: Well, first of all you have to know the warning signs. We have a lot of debt about $2.6 trillion. That's according to the Federal Reserve. But you know not all of that debt is bad. Mortgage debt, if you haven't overbought and you're paying less than a third of your income for a roof over your head. Hey that's good debt. But that's because you had a big fat tax deduction for owning your home.

Other debt has no benefits. The primary culprit is credit card debt. At their essence, credit cards are simply 30-day loans that should be paid back in full. Here are some warning signals if you have too much credit card debts. If you have to use cards to make your monthly budget, that's bad. Worse if you have to borrow to pay off credit cards. Even if you're borrowing from yourself, from say your 401(k), your spending is out of control.

COLLINS: Yes, no question. In fact, the first thing you say is people should start by getting a handle on their spending.

WILLIS: Right.

COLLINS: How do they do that?

WILLIS; Well, you might be amazed at how much we're spending each month. One way to curb that spending is to consider the value of money. One good rule of thumb here, add a zero to the price tag of whatever item it is you're thinking of buying. That's what you have instead of purchasing of the item, you saved the money for 30 years and earn 8 percent.

For example, a $1,000 designer handbag in other words is $10,000 of retirement savings. A $40,000 car is equivalent to $400,000 in savings. Get a small notebook, write down everything you spend for a month. You can keep track on a computer, too. Using software like Quicken or MSN Money. Find places to cut back and or pare spending and keep new spending off of those credit cards.

But a good rule of thumb there Heidi, if you're trying to figure out am I spending too much money?

COLLINS: Yes, absolutely. And you mention credit cards. You can't go through all this without continuing to mention credit cards. When you're ready to start paying them down, what's the best way to start?

WILLIS: Well, first ask your credit card issuers to lower your interest rate. You can do that if you're far in debt, you might need professional help from a credit counseling agency. Check out the National Foundation for Credit Counseling. It's NFCC.org. You find a reputable credit counselor who can help you. They negotiate with credit card companies to lower your interest rates, work out a payment plan.

You want to start paying off those higher straight credit cards or loans first more than the minimum. You know, the mantra here pay more than the minimum. Pay them down. Pay them down fast. When you do pay off that the credit card, you got the balance down to zero. Don't close the account. Because you actually lower your credit score. Keep that account open.

And if you have questions for us on debt. If you're concerned about how much debt you have, e-mail us. E-mail me, gerri@cnn.com.

COLLINS: All right.

Gerri, thanks so much. Personal finance editor, Gerri Willis at CNN. Thank you.

WILLIS: My pleasure.

COLLINS: Smoke from the wildfires. It's not just a danger to those fighting in the front lines but hazardous on the home front, too.

(COMMERCIAL BREAK)

COLLINS: The California wildfires. You are helping us tell the story. We asked for your i-Reports, and the images are nothing short of breathtaking. Check this out now. This photo from Yorba Linda, California. The i-Reporter says the smoke was so thick he had trouble breathing as he snapped the photo. He lives out of the immediate fire danger zone, about 10 miles away.

Boy, and this photo from Yorba Linda. It was snapped by i- Reporter Josh Grier. He captured a homeowner who climbed onto his roof as the flames approached and sprayed it down with a garden hose.

We are weighing in today about how people may be suffering in those fires. And there's certainly some medical risks to be talking about in California. People who are inhaling smoke and fumes hanging in the air from the fire. CNN's medical correspondent, Elizabeth Cohen, is here now with some more answers on that.

All right as we see this incredible video coming in and you see all that thick smoke, you know people are there what sort of risks are we talking about?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: You know what the risks are connected to the stuff you can't see. Little tiny particles just a couple just micron small that you inhale, and they lodge into your lungs. That's the concern. Now let's take a look. I just got off the phone with the California state official who says here in Diamond Bar, California. They did a monitoring. And they found 200 microns per cubic inch, of these tiny particles. And that the federal health standard of what is supposed to be in there is 35. All right. That is a huge difference. Anything over 35 is considered unhealthy. And they have 200.

COLLINS: My goodness. So what are we talking about? What is actually in there? Carcinogens? What are the particles?

COHEN: All sorts of stuff. Soot is in there. Ash is in there. Formaldehyde is in there which you wouldn't think about but that's what is in the stuff that's burning. Because remember it's not just trees burning, it's houses and mobile homes and all sorts of stuff. Insulation. So all of that ends up in the air that people are breathing.

COLLINS: Yes and we see video right now. Some of the firefighters actually wearing masks.

If you can get a hold of a mask, you know as a resident, are there one thing that you should be wearing that are better than other ones.

COHEN: Yes, if you really look. He's gripping it right now. If you look at this guy, he's got a mask with an actual filter on it. That is not just a paper mask. And that's very important to remember. So the paper masks can sometimes be useful. But if it doesn't form a seal around you mouth, all that air is just getting in on the sides. So it's the ones that have those filters on the side that experts consider to be the best.

COLLINS: Yes, just get out of there if you possibly can. COHEN: If possible. I was there last year for the wildfires. I felt the need to get out of there. You can really get a headache. You actually feel ill from it.

COLLINS: And you can actually see, too, the soot on your face when you're trying to breathe. It usually collects under your nose and chin.

COHEN: Oh sure. Yes sometimes.

COLLINS: All right. Elizabeth Cohen, good information. Thanks.

COHEN: Thank you.

COLLINS: Appreciate it.

The Big Three auto makers on the road to ruin or recovery? Congress considers a bailout with your money.

(COMMERCIAL BREAK)

COLLINS: Racing across and around Orange County, California. The huge triangle complex fire is still very much out of control, already burning nearly 24,000 acres. Now, the first one in Montecito, late last week, now being called suspicious. Hundreds of homes destroyed there. Hundreds more in the community of Sylmar.

Kara Finnstrom has the story.

(BEGIN VIDEOTAPE)

MICHAEL YNEQUEX, SYLMAR, CALIFORNIA: When you live right here and then see your own place not there anymore, going on fire, you know, for everything burning, it's devastating.

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Emma and Michael Ynequex and about 100 of their neighbors know they can't get near what were their homes. They came back, first to find and embrace each other. And then to peer over the wall for a glimpse of what the fire left.

EMMA YNEQUEX, SYLMAR, CALIFORNIA: We can see it from here that it's gone. Everything is gone. But, we have each other and we have family. And we just wanted to come here and have closure.

FINNSTROM: Closure after a terrifying evacuation Friday night, with some homeowners escaping moments before a firestorm barrelled through the park. There were about 600 mobile homes here. The fire destroyed nearly 500. Emergency crews fear not everyone may have gotten out.

DEP. CHIEF MICHAEL MOORE, LOS ANGELES POLICE: And if you're a resident of the park, we want to talk with you. We want to know that you're safe. We want to know where you're at.

FINNSTROM: Outside the park, a sign made by one man still trying to connect with loved ones who lived here. Inside, crews with cadaver dogs are searching lot by lot.

JUDITH NAPOLITANO, SYLMAR RESIDENT: It looks like a war zone.

FINNSTROM: Judith's Napolitano's home was on one of the few blocks somehow spared. But, she's still not sure she'll ever come back.

NAPOLITANO: Right now I don't want to stay. I really don't think I will ever feel safe here.

FINNSTROM: Emma and Michael say they got away with the only things that really matter.

E. YNEQUEZ: It's a blessing in a strange way. You know, it's -- when you have everything just taken from you. But, you still have faith and you have each other. It's the most amazing thing.

FINNSTROM (on camera): But, firefighters here are still working to keep others safe. At this point they say the fire is about 30 percent contained. Winds have died down significantly. But, they say this fire is far from under control.

In Sylmar, California, Kara Finnstrom, for CNN.

(END VIDEOTAPE)

(WEATHER REPORT)

COLLINS: Some time this week possibly, President-elect Barack Obama may announce a cabinet choice or two. And a new national poll suggests most Americans think he'll pick the right people. 77 percent of those surveyed by CNN and the Opinion Research Corporation say they are confident Obama will make the right choices. 23 percent are not as confident.

As for which appointment will matter most, 41 percent say Treasury Secretary. A quarter of them say Secretary of State. Another quarter, Defense Secretary. Eight percent named the Attorney General. The poll has a sampling error of plus or minus three percentage points.

And try as he might, CBS newsman Steve Kroft couldn't get more than a hint from the President-elect on any choices.

(BEGIN VIDEO CLIP)

STEVE KORFT, CBS CORRESPONDENT: How close are you to settling on a cabinet?

BARACK OBAMA (D), PRESIDENT-ELECT: Well, I think that I've got a pretty good idea of what I'd like to see. But, it takes some time to work those things through.

KROFT: When are you going to make your first announcement?

OBAMA: Soon. KROFT: Next week?

OBAMA: Soon.

KROFT: You met with Senator Clinton this week.

OBAMA: I did.

KROFT: Is she on the short list for a cabinet position?

OBAMA: You know, she is somebody who I needed advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you're not getting anything out of me, Steve.

KROFT: Will there be Republicans in the cabinet?

OBAMA: Yes.

KROFT: More than one?

OBAMA: You're not getting more out of me.

(END VIDEO CLIP)

COLLINS: I thought he did a fabulous job, try as he might. For those of you counting, there are 64 days now to the inauguration.

(BUSINESS HEADLINES)

COLLINS: Now, lawmakers return to work on Capitol Hill this weekend. At the top of their agenda, a possible bailout for the nation's auto industry. Debate is partisan, but the crisis undeniable. The Big Three, fighting for their very survival.

CNN's Brooke Baldwin explains.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Michael is a third generation Ford employee.

MICHAEL CANDELA, FORMER FORD EMPLOYEE: There is life outside of the the Big Three, believe it or not.

BALDWIN: But, after 10 years of service at one of the car company's plants in Michigan, Candela called it quits.

CANDELA: I just knew that things were changing in the industry. And it wasn't necessarily the company that my grandfather moved here from Italy to work for. And my dad worked for.

BALDWIN: Candela settled for a buyout, opting to pack up his previous profession to run his own business instead. And as Detroit's Big Three teeter on collapse, other auto workers are considering shuffling careers as well.

RICHARD DUPREE, FORD EMPLOYEE: I work on assembly line.

Reporter: With layoffs looming, Richard Dupree, along with dozens of others autoworkers is pulling double duty, dealing cards at night at this local casino.

DUPREE: If full-time is offered to me at the casino, it's something I would have to consider it.

BALDWIN: Three million Americans would be forced to consider a career change as they would lose their jobs if one of the Big Three were to fail. That us according to a recent study conducted by the Center for Automotive Research in Ann Arbor. Dr. David Cole served as the study's lead author.

DAVID COLE, CENTER FOR AUTOMOTIVE RESEARCH: I don't like the idea of government involvement. But when you consider the size of this industry, the importance in the economy and the fact that the cost of prevention HERE is much lower than the cost of calamity, it is the right thing to do in terms of what's best for this country.

BALDWIN: Not everyone agrees it's the right thing. Critics say the Big Three burned through billions, backing gas-guzzling vehicles. And as politicians point fingers at auto executives, the industry blames the economy. This former Ford employee has advice for American autoworkers.

CANDELA: If you're going to leave, you have to have a plan. Don't take the money and think you're going live forever off of it.

BALDWIN: Brooke Baldwin, CNN, Detroit.

(END VIDEOTAPE)

COLLINS: Looking for some financial relief? Well, look no further than the local gas pump. CNNMoney.com's Poppy Harlow has our Energy Fix now from New York.

Good morning to you, Poppy. This is pretty undeniable.

POPPY HARLOW, CNNMONEY.COM: It is. It's a remarkable milestone. They have now fallen -- gas prices have fallen for 61 straight days. Every day for two months.

The national average now stands at $2.09 a gallon. Take a look at these numbers here. Prices are down $1.77, or 46 percent over just two months. 17 states have an average of below $2.00 a gallon right now. Lucky folks. The national average is half what it was in July, when we saw gas hit a record high of $4.11. And while there are plenty of financial stresses on families right now, Heidi, one place where it's not so bad, is the gas pump.

COLLINS: Yes, no question. But, it is November, though. Obviously getting colder in many places. We should probably talk about heating costs.

Sounds like they'll be lowered too, then? HARLOW: They certainly will. One reason gas prices are falling, it all has to do with tumbling oil prices. Oil impacts the price of propane and of course, home heating oil. What the Energy Department says now is that home heating prices are expected to be 17 percent lower than they were last year. Propane prices should be 10 percent cheaper.

Not as good news for people who use natural gas or electricity to heat their homes. The price of natural gas, that will be up about 2 percent. The price of electricity, that will be up 6 percent. Some energy companies though, are considering a rate cut due to the financial stress on a lot of people right now.

So, here are your tips on how to save and how to survive if you're facing financial difficulties right now. It's not a time to buy an alternative heat source for your home. Not right now. Use the system you have. Heating costs have leveled off. They are lower than what they were expected to be this summer.

On the other hand, if you have some savings, you're in good financial shape, this might be a good time to make that investment, make your home a bit more energy efficient. So, down the road, if and really when a lot of people say we see energy prices spike again, you can save a lot. More tops on saving and surviving in this tough environment. Right there, CNNMoney.com.

COLLINS: All right. Very good. A lot of people have been checking that out. I know, for sure.

Poppy Harlow, appreciate it.

HARLOW: You're welcome.

COLLINS: A soldier who feared dead after being hit by a roadside bomb.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Justin was blown 90 foot in the air. It was like he jumped off a nine-story building, landed straight on his feet. Landed inside the engine compartment. The thing was blazing.

(END VIDEO CLIP)

COLLINS: He broke his back, his hips and lost his legs. But just months later, he was doing that. Rodeo riding.

(COMMERCIAL BREAK)

COLLINS: He lost his legs in a roadside bombing. But not his will to get back in the saddle. One veteran's amazing story from KIII, affiliate reporter Katy Kiser.

(BEGIN VIDEOTAPE)

KATY KISER, KIII REPORTER (voice-over): At a nighttime arena in Orange Grove, Texas, where cowboys practice roping, laugh freely and still pray --

UNIDENTIFIED MALE: God, we just thank you once again --

KISER: There's one cowboy who stands out.

UNIDENTIFIED FEMALE: Very proud of him. We all are.

JOHN ROKOHL, JUSTIN'S FATHER: There was that time we didn't know that he was going to live. There was a time we didn't know if he's walk again, ride again, rope again.

KISER: For Justin Rokohl, it's been about injury. Then, independence.

LANCE CPL. JUSTIN ROKOHL, U.S. MARINE CORPS: I knew I'd be able to do it. But they were telling me it would you know, be a year or so. I did it in a little over a month, just to spite them I guess. I don't know.

KISER: Back in June, the 21 year-old Marine almost died during a roadside bomb attack in Afghanistan.

JOHN ROKOHL: When they hit that I.D., Justin was blown 90 foot in the air. It was like he jumped off a nine-story building, landed straight on his feet. Landed inside the engine compartment. The thing was blazing.

KISER: Justin broke his back, his hip, and he lost his legs.

JUSTIN ROKOHL: Plus 10 toes. Let's not forget the toes.

KISER: He didn't lose his mischievous sense of humor.

JUSTIN ROKOHL: It was funny. Out there in Bethesda, everyone was calling my mom, my wife or my sister. Now, this is ridiculous.

KISER: And as we witness, he didn't lose his sense of adventure.

JUSTIN ROKOHL: I have a lot of big friends, top. They all pick me up and put me on the horse. And a lot of people didn't want me to ride because I'd be strapped in. And if my horse were to take a fall, you know, everybody -- well, my dad he could jump out real quick. (INAUDIBLE). But, you just got to go out there and say hey, if it's going to happen, it's going to happen. I'm not going to live in a hole.

KISER: It hasn't even been five months since his injury and Justin's already competed in about a half a dozen Texas rodeo competitions.

(on camera): (INAUDIBLE) incredible? Do people tell you that?

JUSTIN ROKOHL: Yes, ma'am.

KISER (voice-over): He's modest, says his father. JOHN ROKOHL: The thing about Justin. And I want to make sure this gets out. Justin does not, nor has he ever considered himself a hero. He's never looked back. He's just glad to be alive.

KISER: And glad to be riding.

JUSTIN ROKOHL: I just go out there and do it. Try to forget about it. (INAUDIBLE).

(END VIDEOTAPE)

COLLINS: Justin Rokohl and his dad John, are now joining us from San Antonio, to talk more about this. Thank you for being here, guys. And of course, Justin, we sure do appreciate your service to this country.

I want to ask you, as I look at that video of you horseback riding and doing all the rodeos, when you look at it, what do you think?

JUSTIN ROKOHL: I don't know. I just -- I guess it's pretty cool. I knew I'd be able to do it. Like I said, I just didn't know that I'd be able to do it that fast. I got a lot of people that help me out. Everybody in Orange Grove's real helpful with me. Everything's going really good.

COLLINS: Wow, I know that you are getting some treatment at the Brooke Army Medical Center and Center for the Intrepid down there that specializes in rehabbing amputees. What do those people mean to you? Because I've been there myself, and I know what kind of facility it is. And you already mentioned how much they've been helping.

JUSTIN ROKOHL: They're great. Like I said they're real knowledgeable.

I mean, I've only been there four months and the other day I walked a good amount with no canes or nothing. So they know a whole lot. I had a prosthesis doctor. He came a four-hour trip and watched me rope for an hour.

COLLINS: He watched you rope for an hour?

JUSTIN ROKOHL: My prosthesis doctor, yesterday, he made a four- hour round trip and came and watched me rope for about an hour.

COLLINS: What did he have to say about that? I bet he was pretty impressed.

JUSTIN ROKOHL: Oh, yes. He was real happy to be out there, him and his kids. We went and rode a little bit before we roped. So it was pretty cool.

COLLINS: And dad, I know you're sitting there next to Justin.

John, how do you feel when you see him back in the saddle, as we've been saying, doing what he loves and has been doing for his entire life in the condition that he's in now? He has lost his legs.

JOHN ROKOHL: It's just amazing, but it's not surprising. Justin has always had the ability to adapt and overcome. We're just so grateful that he's alive. He's such an inspiration to everybody. We're just very, very proud of him. He's our hometown hero. He's my son and he's my hero.

COLLINS: And what's amazing is we so often hear that these men and women who come back, wounded from either Iraq or Afghanistan, never seem to consider themselves heroes, but certainly do, as you mention, talk to other people and try to inspire other people.

If you have a moment, Justin, what would you tell others who have been wounded?

JUSTIN ROKOHL: Just keep at it. Find something you like doing and don't let anything bring you down. Just cowboy up.

COLLINS: Cowboy up. How did I know you were going to say that?

JUSTIN ROKOHL: I don't know.

COLLINS: Lance Corporal Justin Rokohl and his father, John, thank you so much. And again, thanks for your service.

JOHN ROKOHL: Thank you, ma'am.

JUSTIN ROKOHL: Thank you.

COLLINS: One lived his life in luxury, the other lived his life on the streets. Now they're living together, giving hope for the homeless. An inspiring story you don't want to miss.

(COMMERCIAL BREAK)

COLLINS: They're from different places, but two men now have one common path, giving the homeless hope. Our T.J. Holmes has the story.

(BEGIN VIDEOTAPE)

RON HALL, CO-AUTHOR: ... I want to introduce to you my best friend, who is now the "New York Times" best selling author, if you can imagine that. A man who did not know how to read and write four years ago has now become a "New York Times" best-selling author.

T.J. HOLMES, CNN CORRESPONDENT: Denver Moore and Ron Hall are an unlikely pair of best friends. Denver, born into a Louisiana sharecropping family, lived his life in prison, homeless shelters, and on the streets of Fort Worth. Ron was an international art dealer living a life of luxury.

HALL: I became wealthy as an art dealer, but Denver is the one who made my life rich.

HOLMES: Ron's late wife Debbie first approached Denver at a homeless mission where she was a volunteer. She kept after him, taking great pains to convince him that he was loved and there was no real difference between them.

HALL: She refused to call a homeless person a homeless person. She refused to call a vagrant or street person anything other than God's people. She said, Ron, these are children of our most high king and the world is treating them like trash. She said, they are not trash. They are God's people, and we're going to treat them with dignity and respect.

HOLMES: After Debbie died from cancer, Ron and Denver decided to help fulfill her dream. Through their best-selling book about their friendship, "Same Kind of Different as Me," and Denver's art works, they are raising money and awareness globally. And they are traveling cross country, visiting homeless shelters and trying to give hope to the destitute.

DENVER MOORE, CO-AUTHOR: And don't be scared to challenge the world. Don't be scared. You're very important to America because you've been homeless and you've been in school. And it's time for you to do something with yourself because all of you mean something to the world. All of you have something special. There's no two people on earth whose the same.

HOLMES: Denver and Ron's friendship is uniting people from all walks of life in a common cause.

UNIDENTIFIED FEMALE: I think that people stop and the human element of that story is actually getting people to stop and to think about it and to say, hey, you know, Denver is just like me.

MOORE: Because we must understand that the only thing that we keep forever is the things that we give away. And the more you give, the more you get. We'll never know whose eyes God is watching you out of.

HALL: We have basically one message that we like to stick with. And that is that one person can make a difference.

HOLMES: T.J. Holmes, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: I'm Heidi Collins. I'll see you again tomorrow morning at 9:00 a.m. Eastern.

CNN NEWSROOM continues after a quick break with Tony Harris.

(COMMERCIAL BREAK)