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Big Three Battle Bankruptcy Fears; California Looks to Increase Renewable Energy Sources; Does President Clinton Hold Key to Hillary's Spot as Top Diplomat?
Aired November 18, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
KYRA PHILLIPS, CNN ANCHOR (voice over): Big Three carmakers in an uphill battle on Capitol Hill, begging for billions to motor on. But a bailout could stall in Congress, We'll hear from one of the CEOs on why his company deserves some clutch help.
UNIDENTIFIED MALE: The most critical phase of a disaster is the first few days. That's when you have the find the people who are in desperate need.
PHILLIPS: Our CNN hero helps rescuers get to those people; 12 months a year Tad Agoglia lives on the road, traveling to disasters, and a look at this incredible guy's calling.
Plus, some littler heroes.
UNIDENTIFIED MALE: It is kind of nice to help a kid out. I mean, it means if they don't have any toys, that is so bored out.
PHILLIPS: Can't let that happen. Kids give so generously to a little boy whose family lost almost everything in the California fire.
(END VIDEOTAPE)
PHILLIPS: Hello, everyone, I'm Kyra Phillips live in the CNN World Headquarters in Atlanta. And you are live in the CNN NEWSROOM.
Well, you have to draw the line somewhere and after you draw it, you sometimes have to defend it. That is what brought the Treasury secretary and Fed chairman back into Capitol Hill today where they insisted the bank bailout is paying off and shouldn't be use on car companies -- and maybe not homeowners, either.
Well, U.S. banks have turned a corner, says Treasury Chief Henry Paulson. But an hour from now, the heads of the Big Three U.S. automakers will tell a Senate panel they are on the road to ruin unless the Congress steps in. CNN's Dana Bash is on Capitol Hill.
Dana, from here, it looks like the critics of an auto bailout are not about to budge?
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: It certainly seems that way. What is so interesting, Kyra, about this, is that there seems to be pretty broad consensus -- and not everybody -- but broad consensus on both sides of the aisle, and on both sides of this debate about the need to help these auto companies. But, there is a really big deep divide about where the money should come from and that really is what the debate is here, if you want to call it that. But what the debate here is all about.
But as you said, the chiefs of the Big Three are going to appear in about an hour before the Senate Banking Committee. And with them is going to be one of the senators from the state of Michigan, which of course represents the car companies. I want to play a little bit for you of the kind of thing we will hear from her, and this is Debbie Stabenow, Democrat from Michigan. The argument she's making for why it is so crucial to help these companies.
(BEGIN VIDEO CLIP)
SEN. DEBBIE STABENOW, (D) MICHIGAN: When we talk about one auto company going bankrupt and not paying the bills to their suppliers, those same suppliers supply aerospace, they supply the Army, all of our defense operations. It is all connected. Frankly, it is also connected to middle-class jobs throughout the economy. One out of 10 jobs in America are directly or indirectly affected by the auto industry.
(END VIDEO CLIP)
BASH: So there you hear the basic argument that she makes, and probably what we will hear from the heads of these auto companies in about an hour, is that it is not just their particular companies, it is the industry and, more specifically, the kind of impact -- negative impact, they say -- it will have for the automakers to go down and potentially collapse, on the economy, by and large.
But the problems that they have here is that to be honest, there is not a lot of goodwill among several, many members of Congress, towards the auto industry, particularly because many of them think that they simply mismanaged their companies. And that is how, in part, they got into the mess, and partly because many members of Congress have been pushing them to modernize, and many feel they have been resistant to doing that. So it should be quite an interesting hearing to watch with these Big Three pleading their case, and many members of Congress really trying to get more information on why the government should foot the bill for these companies to get out from under.
PHILLIPS: Dana Bash, on the Hill, we'll be tracking it, of course, in less than an hour now.
Don't tell a CEO of Ford that a government loan would only postpone and, not prevent, the industry's collapse. Ahead of his appearance in Congress, Alan Mulally appeared on CNN's "AMERICAN MORNING" with John Roberts.
(BEGIN VIDEO CLIP)
ALAN MULALLY, CEO, FORD MOTOR COMPANY: The automobile industry is absolutely essentially to the United States economy. We are in an economic situation now, with the credit crisis with the financial, and the banking issues, that we really more than ever, the automobile industry needs to be part of the solution. And the only thing that we are asking for is to set up a bridge loan mechanism, and that if the economy continues to deteriorate in the near term, that we could access that, so we can continue to invest in the products that people really do want and value, and help to be part of the economic recovery.
(END VIDEO CLIP)
PHILLIPS: Well, Mulally says that Ford's future won't be hitched to the gas-guzzling SUVs and pickup trucks that had until this summer had cushioned its bottom line.
(BEGIN VIDEO CLIP)
MULALLY: The consumers love -- that need that vehicle, and they absolutely love the 150, but we are complimenting that now, just like you mentioned, with the small and medium-sized cars and utilities, all of which will best in class on fuel efficiency. We want to be there with a full portfolio that the consumers really do want.
(END VIDEO CLIP)
PHILLIPS: Well, if you can't sell your products, you sometimes have to sell your assets. Ford says it will raise hundreds of millions of sorely needed dollars by selling most of its stake in the Japanese carmaker Mazda. Today Ford owns just over a third of that company. Tomorrow it will own 13 percent. Yesterday, GM announced it was selling of its stake in Suzuki.
Now, back to the bailout. Six weeks and a quarter trillion dollars into the process, the Bush administration's point men are defending the spending as well as a change in tactics that Congress never signed off on. Instead of buying up bad assets from struggling banks, the Treasury decided to invest in banks directly. Secretary Paulson told a House committee today he'll leave half the bailout funds untouched, for the Obama administration to use as it sees fit.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: We assessed the potential use of remaining TARP funding against the backdrop of current economic and market conditions. It is clear that an effective mortgage asset purchase program would require a massive commitment of TARP funds.
In September, before economic conditions worsened, $700 billion in troubled asset purchases would have had a significant impact, but half of the sum in a worse economy simply is not enough firepower. We have therefore determined that the prudent course at this time is to conserve the remaining funds available from the TARP providing flexibility for this, and the next administration.
(END VIDEO CLIP)
PHILLIPS: And for more on what Paulson and Fed Chief Ben Bernanke said on Capitol Hill today, let's get to Susan Lisovicz. She is at the New York Stock Exchange with the latest
Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.
Well, that change of course on TARP was a big deal for legislators. But Secretary Paulson defended the decision, saying simply, there is no playbook for what is being done. It is crucial that the administration be nimble in assessing changing conditions and adapt accordingly.
So, basically, he is warning that things may change once again. Paulson says that the actions so far may have turned the corner as far as stabilizing the financial system and preventing an utter collapse. Although he acknowledged more needs to be done. And he was very much stressful on the point that the rescue was not intended to be a stimulus package. That it was unrealistic to expect that it would reverse the damage that had already been inflicted by the severity of the crisis at the time that the legislation was passed.
But we did have some sparring in terms of the general direction of this program. Sheila Bair, the chair of the FDIC, says that she does think that some of this money should be used to help homeowners avoid foreclosure. She says 4 to 5 million mortgage loans will enter foreclosure if nothing is done.
So the big question is, where is this money going? Billions of dollars? Well, nearly $160 billion has gone to two about dozen banks and they are big names, Kyra. Wells Fargo, JPMorgan, Citigroup, Bank of America, Goldman Sachs, Merrill Lynch, and others; $40 billion went to AIG, the only non-bank recipient. About $150 billion is left to allocate, of that first $350 billion. Then, of course, as you mentioned earlier, the other half, the $350 billion will be reserved for Obama administration, Kyra.
PHILLIPS: All right. Susan Lisovicz, thank you so much.
LISOVICZ: You're welcome.
PHILLIPS: Well, Bill Clinton could hold the key as to whether Hillary Clinton takes charge of America's next top diplomat. We going to find out what Barack Obama's transition team is looking at as they vet the New York senator and the former president.
And Barack Obama wants Democrats and Republicans working together in his administration, but can he really make that work in Washington? Our Carol Costello will take a look.
(COMMERCIAL BREAK)
PHILLIPS: Well, Hillary Clinton as Barack Obama's secretary of state, that decision on whether or not she gets the job could hinge on one factor, Bill Clinton. The Obama transition team is vetting not only the New York senator but the former president as well, focusing primarily on his financial and post presidential dealings. CNN's Ed Henry joins us now from Chicago.
So, Ed, what do you know right now? Break some news.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, we are waiting for the word obviously. Everyone wants to know who the secretary of State will be. There are some other prominent Cabinet posts, as well. But this one obviously a lot of attention on it because of Senator Clinton's name being attached to it and now the former president as well.
As you noted, that is what we know at this hour, which is that Obama transition officials are going through as much information as they have right now on the former president. And they have been seeking more records as well to get a handle on just what kind of contributions have been coming in to his charitable foundation, to his presidential library, to get a better handle on whether or not there maybe some potential conflicts of interests.
For example, just this past weekend, the former president was in Kuwait giving a speech to receiving a large sum of money. They want to get an idea of whether that kind of activity could then conflict with Senator Clinton serving as secretary of State. But I want to stress that a lot of people in Obama's inner circle point out that they believe that there is a lot of good work that the former president has done with his charitable foundation.
They don't want anyone thinking that there is something nefarious going on. They think, for example, his battles against HIV-AIDS in Africa has been quite good and has helped save a lot of lives. They just want to try to get as much as possible on the table now, so they can deal with potential conflicts down the road, Kyra.
PHILLIPS: Well, Ed Henry, what do you know about the information that Bill Clinton is disclosing about the foundation?
Well, there has been some information disclosed in terms of his speaking engagements and what not through Senator Clinton's financial disclosure forms with the United States Senate, but there has been very little disclosed in terms of the donors that have gone into his foundation, and the donors that have gone in to help fund the presidential library in Little Rock.
During the presidential campaign, there was some resistance to disclosing that. But Senator Clinton said at the time if she won the Democratic nomination, she would actually disclose a lot of that information. She obviously did not win the nomination, but since she potentially could get the nomination to secretary of State, we are expecting at least some of that information now to be disclosed, first to the Obama transition team, and then potentially to the public, Kyra.
PHILLIPS: We'll follow the story with you, Ed Henry. Thank you so much.
Well, President-elect Obama vows to make his plans to make his administration truly bipartisan, but can he truly do that?
Here is CNN's Carol Costello in Washington with our "Memo to the President".
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice over): I don't know if you caught it, but a line in Barack Obama victory speech was similar to a line uttered by what George W. Bush after he won.
BARACK OBAMA (D), PRESIDENT-ELECT: I may not have won your vote --
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I will need your support.
OBAMA: -- I need your help.
BUSH: I will do all I can do to deserve your trust.
COSTELLO: Both men in victory promising to be president to everyone, Democrat, Independent and Republican, but today America is more partisan than ever. So president-elect, how to keep that promise?
BOB GRAHAM, (D) FORMER U.S. SENATOR: I hope that President Obama has picked up the phone on more than one occasion and talked to John McCain.
COSTELLO: And President-Elect Obama has reached out to John McCain, inviting him to talk face to face. But former Senator Graham says that's not enough, interaction between the two ought to be consistent. That way McCain will be more willing to persuade Republicans to work with Obama on issues like global warming and alternative energy ideas, and he says reaching out consistently to McCain and other Republican rivals will demonstrate respect for the other side. Some certainly not on display in today's Congress.
UNIDENTIFIED MALE: This is a bone-headed idea.
JOE BIDEN, (D) VICE PRESIDENT-ELECT: That is brain dead.
UNIDENTIFIED MALE: Standing here does not solve the problem.
BIDEN: Stop this. Stop this. Stop this.
COSTELLO: Both Democrats and Republicans say it is vital that civility returns to Capitol Hill. Some say that the president-elect can do that if he finds a way to be centrist without alienating his liberal base.
SUSAN MOLINARI, (R) FORMER CONGRESSWOMAN: He has the rule from the center and take leadership positions on the center so he can make the nation, and our elected officials, feel comfortable that he can in fact bring parties together on some very difficult issues.
COSTELLO: Like what to do about Joe Lieberman.
SEN. JOE LIEBERMAN,(I) CONNECTICUT: I know it is unusual for a Democrat to be endorsing a Republican. COSTELLO: One of the first things Democrats tried to do after the election was to strip the Democrat-turned-Independent of his powerful Senate chairmanship for supporting John McCain for president. Both Graham and Molinari says forcing him to give it up the top spot on the Homeland Security Committee would be a horrible partisan mistake.
GRAHAM: I don't think it is a sign of strength to hold grudges and be vindictive and take actions that are clearly contrary to the long term interests that you want to advance.
(END VIDEOTAPE)
COSTELLO: And get this, Kyra, this morning, Senate Democrats voted that Joe Lieberman could keep his powerful chairmanship of that Homeland Security Committee. And they were all talking in a beautiful bipartisan way. In fact, Joe Lieberman said after the vote, he said, "It is a resolution of reconciliation and not retribution, and I appreciated this."
Of course, that came about Kyra, because Barack Obama intervened and said, I hold no grudges against Lieberman, maybe we should keep him in the Democratic caucus. And it worked.
PHILLIPS: Not just bipartisan way, but beautiful bipartisan way, Carol?
COSTELLO: Weren't those beautiful bipartisan words, "reconciliation".
PHILLIPS: Well, are these just beautiful symbols, or a beautiful good first start?
COSTELLO: Well, it is probably a beautiful good first start, because when you get into the heat of battle, in Congress or Senate, and you are battling for something that you feel very strongly about and your constituency is at stake, things can get pretty nasty. So I guess we will see. It is a good first start, though, right?
PHILLIPS: Yes, it is. And you are beautiful. Thanks, Carol.
(LAUGHTER)
PHILLIPS: Well, the Senate race in Alaska between incumbent Republican Ted Stevens and Democrat Mark Begich is still up for grabs. Begich has a narrow lead of just over 1,000 votes right now. And because of that Senate Republicans today decided to delay a vote on a resolution to kick Stevens out of the GOP conference and strip him of his committee assignments. That move, prompted by Stevens' corruption conviction last month.
Another undecided Senate race is one currently held by Minnesota Republican Norm Coleman. He is leading Democrat Al Franken by a mere 213 votes. Elections officials are expected to start recounting the ballots beginning tomorrow. Would you pour your life savings into helping total strangers? That is exactly what our CNN Hero did. You're going to meet the man who shows up when disaster strikes.
And call it operation evergreen, some of Santa's little helpers are planning to make Christmas a bit more jolly for U.S. troops. And guess what? You can get involved.
(COMMERCIAL BREAK)
PHILLIPS: More than 550,000 votes have already been cast for the CNN Hero of the Year. And we will announce the top honoree Thanksgiving night in an all-star tribute right here on CNN. These are amazing people, and we will meet one of them in just a moment, but first, a quick look all 10 finalists.
(BEGIN VIDEOTAPE)
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 and 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'm bringing literacy to the children of Ethiopia.
ANNE MAHLUM, COMMUNITY CRUSADER: We use running to help the homeless move forward.
DAVID PUCKETT, MEDICAL MARVEL: I bring artificial limbs and braces for those in need, to Mexico.
LIZ MCCARTNEY, COMMUNITY CRUSADER: I am helping families rebuild in St. Bernard Parish.
CAROLYN LECROY, CHAMPIONING CHILDREN: 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 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 CNN Hero of the Year. Vote now, CNN.com/heroes.
(END VIDEOTAPE)
PHILLIPS: If a tornado rips up a town or a flood swamps city streets, chances are CNN Hero Tad Agoglia will be here to help clean up the mess for free. He started the First Response Team of America with money that he began saving when he was 12 years old. In the past year and a half, his team has helped thousands of people clean up the mess in the aftermath of disaster. Tad joins me now live from New York.
Tad, great to see you.
AGOGLIA: You, too.
PHILLIPS: All right. Saving money since you were 12. What? Explain this to me. I thought I was the only dork that did that.
AGOGLIA: No. I started working when I was 12, pumping gas. And as the years went by, I began to mow lawns, and wax cars, and just about anything I could do as growing up in Long Island and working hard.
PHILLIPS: Well, I know that your dad was a tremendous influence on you, and truly, your hero. And he got you saving those pennies when you were 12, opening up a bank account. What was it about your dad that just adds to your compassionate nature and in wanting to do what you do for others?
AGOGLIA: Well, in growing up, I had many years to just observe his life. I remember one time as a very young boy going to a hospice to visit people. I said, dad, who are these people? Do we know these people? And he said, no, no, Tad, these are just people who are near the end of their lives. And they don't have any family or friends, and we are just going to visit them and cheer up their day. That was the example I grew up with for many years.
PHILLIPS: So he inspired you to do the work that you do?
AGOGLIA: Most definitely. He inspired me to live a life for others, and that would be the greatest investment I could make with my life.
PHILLIPS: Wow. You have proven that for sure. Tell me why you have chosen disaster victims?
AGOGLIA: Well, there was a few reasons, but probably the one that really stands out to me is the need. The need within the United States for this type of disaster response. I sometimes still wonder why isn't this being done in the country? Why isn't there heavy equipment and specialized equipment, and technology responding to disaster on day one? I -- I just knew that something needed to be done about it. I knew there was a need, and I decided to be the one to meet that need.
PHILLIPS: Well, I remember, in particular, you talking about the Iowa tornado of this year, and that it hit you really hard. Why did that particular disaster tug at your heart strings so strongly?
AGOGLIA: Well, when we responded to Parkersburg, Iowa, it was destruction like we have seen before, but there was something that day that I have never done in my life before, and I never thought that I would actually do, and that was, that was join with my team and with local high school kids and dig graves.
And, you know, it is very interesting people ask me sometimes, how do you deal with so much destruction everyday of your life of seeing these destroyed communities? And homes can be rebuilt, and cars be built again. But the one thing, though, that I never get used to is the loss of life. And to be quite honest with you, I hope I never get used to that.
PHILLIPS: Well, I know there was a moment when you were watching some of the funeral processions, and let's go back to that day for a second in 2008 in Iowa.
(BEGIN VIDEO CLIP)
AGOGLIA: You can't see, but as they are going by, they are giving us thumb's up, you know.
UNIDENTIFIED MALE: A lot of people are waving.
AGOGLIA: (INAUDIBLE) and I, a couple of days ago I helped to dig the graves for these people. That is a lot of people, man. Look at that.
(END VIDEO CLIP)
PHILLIPS: And just looking at those funeral processions and hearing what you said at that moment, the Tad, how has that humbled you? How has that - I don't think you need any more humility, actually. You're a pretty amazing man. Just living your life, now, that was a first for you. How has it changed you?
AGOGLIA: Well, being with people in a very critical time is important for me. I feel that if I can spend the rest of my life being with and there for people that are experiencing these tragedies and helping them, you know, we can't take away all of the pain. We can't make everything new, but we can help. That is what we can contribute to these people and to this life, we can simply help.
PHILLIPS: I know your dad passed away six years ago. But I tell you what, I know he is looking down on you and he is extremely proud. Thank you so much, Tad, for sharing your time with us. I want to plug your Web site, too, firstresponseteam.org. For those that log on, how can they get involved with you?
AGOGLIA: Well, what we do is very specialized. We are in dangerous situations often. We don't actually use volunteers, but people can get involved by donating, and most importantly on this last day people can vote and show their support to us.
PHILLIPS: Tad, thank you so much. AGOGLIA: Thank you.
PHILLIPS: Well, there is only two days left to vote for your favorite hero so go to cnn.com/heroes. Anderson Cooper will announce the hero of the year on an all-star tribute, right here on CNN, Thanksgiving night.
It's 2:29 Eastern Time, right now. Here are some of the other stories we are working on in the CNN NEWSROOM.
Pirates off of the coast of East Africa are having a heyday, now, in what one expert calls an unprecedented wave. They have now hijacked seven ships in 12 days and one of their biggest prizes is a Saudi-owned oil tanker with a crew of 24 and a cargo worth about $100 million.
A flood of foreclosures helped to drive home prices down. A record 9 percent in the third quarter, and the National Association of Realtors says that the median price of a single-family home fell in four out of five states, and is now just over $200,000. That is down nearly 3 percent from the second quarter of last year.
Should the federal government bail out American car makers? Even if you don't live in Michigan, you'll have something at stake if the cars stop rolling off the line.
Hard times or not, it is a deal you might find hard to turn down. Buy one, get one free. We're talking cars by the way.
(COMMERCIAL BREAK)
PHILLIPS: Well, it won't be easy for GM, Ford and Chrysler to ask Congress for billions of dollars in emergency aid, and it will be even harder to get it. We're about half an hour away from a Senate hearing that could change the course of the U.S. auto industry.
Supporters of a bailout say the alternative would likely mean bankruptcy and certain doom. Critics say a stint in Chapter 11 might do wonders. Let's get the facts now from our friend Paul La Monica of CNNMoney.com.
Paul, what exactly are the automakers asking for?
PAUL LA MONICA, EDITOR, CNNMONEY.COM: What they are asking for is $25 billion in funding alone essentially to help them to get 2010, survive until then, because a lot of people think that if they can make it until then, they'll be in better shape because that is when some of the new parts of union contracts will kick in that will make it less expensive for them to operate. And there is also the hope that by 2010, this economy will improve and people will actually be buying cars again.
PHILLIPS: All right. Well, how many jobs are at risk if the automakers go under? Can you give me exact numbers?
LA MONICA: Yes, I mean, when you look at the Big Three -- if you add up the U.S. workers for Big Three companies, for GM, Ford and Chrysler, combine that with people who work for dealerships and suppliers, you are looking at more than 1.6 million people, Americans, whose jobs could be at risk. And then if you add to that, also, to 1.6 million, there is estimates of another 1.4 million to 1.7 million of kind of indirect jobs related to auto, such as people who work for newspapers or local TV stations that depend heavily on auto advertising or retailers in a lot of the towns where there are many plants.
PHILLIPS: Well I imagine restaurants and shops that stay in business because of all the people there as well.
LA MONICA: Exactly. There would be a major ripple effect throughout the economy if one or more of the Big Three were to actually fail and go out of business.
PHILLIPS: All right. So finally, what happens if there is no bailout? I mean, obviously, that is not going to happen, right? I mean, but is it fair to ask that question? I guess anything can happen.
LA MONICA: It is very fair to ask that --
PHILLIPS: Really?
LA MONICA: -- because I don't think it's certain at all that there will be a bailout. I think the odds are higher because of the incoming administration, and President-elect Obama has clearly indicated a willingness to help out Detroit's Big Three. But some argue, as you mentioned in the intro, that Chapter 11 bankruptcy might be helpful. We have seen companies in other industries, like steel, airlines, that have gone through bankruptcy and survived. The problem is that some people think that -- would anyone be willing to buy a car from a bankrupt automaker?
It is one thing to fly on an airline, everyone understands that airlines go into bankruptcy all the time, the planes keep flying. I think people might be concerned -- do I really want to buy a car from someone who is bankrupt and may not make it by the time I want to resell the car or actually need to get repairs done on it?
PHILLIPS: CNNMoney.com's Paul La Monica -- thanks for the insight, Paul.
LA MONICA: Thank you.
PHILLIPS: Talk about amazing deals. Get a load of this one. Fork out 40 grand for Chrysler Pacifica and a Chicago dealer will throw in a used PT Cruiser for one buck. You heard that right, $1. The dealer says the motivation is simple, with the economy struggling, he is trying to generate publicity and business at his car lots. No word on how many he has sold or if he'll extend the deal to other cars once the Pacificas are all gone.
Well it could be a silver lining in the ailing economy. If you are driving to grandma's house for Thanksgiving, you'll have more room on the road. AAA says that 600,000 fewer motorists will be joining you. That is the first decline in six years.
And if you are flying, you may get there a little fastest than you otherwise might. For the second year in a row, President Bush is opening up military airspace for commercial flights. Last year he opened two corridors on the East Coast. This year he is adding the West Coast, Midwest and Southwest, but only for the holidays.
Remembering the troops this holiday season. Volunteers around the country getting the trees trimmed. About 16,000 donated Christmas trees will be shipped to troops overseas and to 40 military bases in the U.S. The trees you see here are headed to Iraq and Afghanistan.
(BEGIN VIDEO CLIP)
DOUGLAS DUNCAN, PRES. AND CEO, FEDEX FREIGHT: Not only will we be sending trees, but holiday greetings, Christmas cards, banners, poems, essays, just letting the troops know that we still remember them, we are proud of them and we hope they come back to us very soon.
(END VIDEO CLIP)
PHILLIPS: Well, this is the fourth year of the Trees for Troops campaign. If you want to know how you can help out, just logon to treesfortroops.org to find out what is being done in your area.
California's governor has never shied away from the spotlight. Now Arnold Schwarzenegger hopes to put California center stage as a leader for greener nation.
Everything they owned consumed by fire except a cherished keepsake. A California family counting its blessings today.
(COMMERCIAL BREAK)
PHILLIPS: Indiana roads closed by ice and accidents. Lake-effect snow piling up with another storm bearing down. Chad is watching it all for us in the weather center.
(COMMERCIAL BREAK)
PHILLIPS: Governor Arnold Schwarzenegger is pumping up his state's energy plan. A bold new proposal would require the state to use more alternative energy than any other state. CNNMoney.com's Poppy Harlow has our Energy Fix from New York.
Hey, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, Kyra.
Well, you know what? If Governor Schwarzenegger has his way, California will get one-third of its energy from renewable sources by the year 2020. Schwarzenegger this morning also kicked off a two-day climate summit. It is the boldest move -- this announcement -- to date in terms of renewable energy standards.
The state of California is already committed to getting 20 percent of its energy from renewables by the year 2010. The new proposal would need approval of course from the state legislature, a lot of convincing needed there. Twenty-four states -- I think we have a map we can pull up for you -- including the District of Columbia have mandatory renewable standards. Another four have some nonbinding goals.
We heard on Election Day, Missouri voters approved an alternative energy plan. And then some boldest moves we've seen. New York State -- they want 24 percent of their energy to be renewable by the year 2013. In Oregon, Kyra, they want 25 percent to be renewable energy by the year 2025.
Still, though, it pales in comparison to this bold move by California. We'll see if it gets approved.
PHILLIPS: Well I assume it is more expensive to get alternative energy, right? So who pays for it?
HARLOW: Great question. It is more expensive, and California already is greatly in debt.
Schwarzenegger -- what he wants to do, he wants to raise utility rates except for low-income families. He thinks the whole state is going to benefit because he thinks this move will bring a lot of jobs in. Of course, he says, there are those environmental benefits.
Some, though, say plans like this are risky, especially right now when we have such economic stress in this country. California, as I mentioned, it has a $28 billion estimated deficit through 2010. It is hoping, though, to be a leader in terms of climate change for the world. The world may have a problem with that price tag though.
What we're going to see next month is the U.N. Climate Change Committee -- they're going to meet in Poland. They're going to discuss extending the Kyoto Treaty. You can bet they will discuss whether or not economies around the globe right now can afford to use anything except for the cheapest energy sources.
Of course, we know that the U.S. and China, the biggest emitters of greenhouse gases are not a part of the treaty. As it stands, Kyra, California is apparently trying the do its part to change that -- Kyra.
PHILLIPS: All right. Poppy Harlow, thanks so much.
HARLOW: You're welcome.
PHILLIPS: A paradise under siege. In southeast Asia, the island of Borneo is losing millions of acres of rain forest through excessive logging and burning of trees. A "National Geographic" photographer brings us his inside look at the devastation in today's "Planet in Peril" segment.
(BEGIN VIDEOTAPE)
MATTIAS KLUM, PHOTOGRAPHER, "NATIONAL GEOGRAPHIC": My name is Mattias Klum. I'm a filmmaker and photographer from "National Geographic." I have just come back from one of my recent assignments in Borneo.
It is such a vast island, Borneo. And the diversity of plants, birds, snakes, frogs, et cetera, is just mind boggling. But what is happening at the moment is that what you hear more and more often are chain saws and bulk site (ph) mining, other things that are just breaking the silence.
One of the richest environments on the planet is being cut down, leveled, burned, to put up one monocrop, the oil palm. When you go to Borneo these days and when you fly over it in the helicopter, as far as you can see, there are these palm trees. What happens is that there are islands of rain forest in the middle of the wastelands in the oil plantations and burned areas. And animals are then caught on these islands. For example, female orangutans with the young. And when they run out of food, they go into these desolate wastelands and usually the female orangutans then get killed. And the babies are usually kept as pets.
Last trip I did now was just to be really close to these orphaned orangutans and see how traumatized they are, some of them, after they have seen their mother being slain. So it is a very, very powerful meeting.
This is a very complicated balancing act. Because obviously, they need to use their land, they need to use their forest, but we must make sure that it is used in a sustainable way. What is happening right now is that it has become one of the most tragic ecological disasters in history. And just in a few year's time, we will have no more lowland rain forests on Borneo.
(END VIDEOTAPE)
PHILLIPS: You can watch the worldwide investigation, "Planet in Peril: Battlelines," coming December 11th. You can also go to CNN.com/planetinperil for a behind the scenes look at the making of that special.
Firefighters hard at work out West, and they are making progress. We will have an update on those massive California wildfires.
(COMMERCIAL BREAK)
PHILLIPS: Picking up the pieces. Californians driven out by fire are getting their first chance to see the damage and to see what survived.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It is just amazing. You saw how this thing was through all that -- the whole house is burned except for this.
(END VIDEO CLIP)
PHILLIPS: Teddy bear makes it through the devastation yet again, stuffing intact.
(COMMERCIAL BREAK)
PHILLIPS: Ah, look at that. He looks so -- take your gum out, Rick. I caught you! Caught you. Yes, smacking your gum over there.
RICK SANCHEZ, CNN ANCHOR: Oh, my goodness.
PHILLIPS: You're pretty (INAUDIBLE) tell you that that's not right to do on TV.
SANCHEZ: Do you know, is there ever anything that you've thought that you haven't said?
PHILLIPS: No. I usually say anything that's on my mind. And that's why I always get into trouble.
SANCHEZ: You're fabulous.
PHILLIPS: So are you. Fix your mic, too. It's kind of hanging out of your jacket here.
SANCHEZ: Well, I was getting ready. I was putting this show together.
PHILLIPS: All right. Sit up, fix your mic. What's going on next hour.
SANCHEZ: Here's what's going on.
First of all, the Big Three are going to be sitting down today with members of the Senate. And they're going to be explaining to them or -- I suppose that the word begging might work here. They want $25 billion. It's a bridge loan. It is not a bailout they'll tell you.
And all four of them, the head of the UAW, the head of Ford, the head of Chrysler and the head of GM, are going to talk to them about exactly what it is they want.
So we're going to carry that live as it's happening. We've assembled a panel of everything from a guy who started with the UAW who's been making cars since 1947. To experts from Harvard, who are going to be taking us through this and saying, he's telling the truth, that's true, that's bogus, that's B.S.
So together we're going to go through it. But, I got to tell you, the story that I think is probably the most fascinating one going on in the world right now is this situation with this huge tanker, the size of an aircraft carrier, off of Mogadishu, in Somalia, where they've essential -- just pirates have taken over the ship. So, we're going to be all over that, as well. As a matter of fact, Mr. Clancy, from CNNI, you know, foreign correspondent for like 100 years, he's going to be sitting next to me and going through this for me.
I can't believe you're laughing over there. PHILLIPS: You know, where is Clancy? You two (INAUDIBLE) for 100 years?
SANCHEZ: Go ahead. Get a shot of Clancy.
PHILLIPS: Poor Clancy. Totally dissing him.
SANCHEZ: Look. I mean, look. He's hiding over there in the corner.
PHILLIPS: He's not that old by the way. And he's a hell of a lot smarter than you and me put together.
SANCHEZ: She says you are not that old and you're a hell of a lot smarter. Well done.
PHILLIPS: By the way, too. The cargo ship, it's pretty much the size of two aircraft carriers --
SANCHEZ: No, we checked.
PHILLIPS: Are you sure?
SANCHEZ: I'm positive.
PHILLIPS: The one carrying the oil that's worth like $100 million?
SANCHEZ: Yes, we checked. And actually, thanks to Dave over here --
PHILLIPS: Dave Johnson.
SANCHEZ: Dave Johnson --
PHILLIPS: Fact checker.
SANCHEZ: He did a fact check on that. It's actually a little bit smaller than the newest aircraft carrier out there right now, which is the Ronald Reagan, only by about 12 feet.
So essentially, the safest thing to say is it's the size of an aircraft carrier.
PHILLIPS: Well, it is still -- I missed what you just said because someone was talking to me.
SANCHEZ: I got you.
PHILLIPS: Did you say something about size?
SANCHEZ: It's the size of an aircraft carrier. Not twice the size, but it's the size of.
PHILLIPS: Thank you. Thank you very much.
SANCHEZ: Correctly put. Love you.
PHILLIPS: See you soon. Love you more.
SANCHEZ: Bye.
PHILLIPS: Well, a messy taste of winter today around the Great Lakes and parts of the northeast. Several counties in Indiana, have been hit with 8, 10, 12 inches of snow. Upstate New York also socked by the lake effect. North of Chicago, icy roads have been causing problems. Even now, the temperatures down around freezing.
And picking up charred photo albums or any keepsake that they can find, returning evacuees to ground zero of the California wildfires are searching through rubble for their belongings. But many are leaving with only the clothes on their backs. The three wildfires in southern California have destroyed nearly 1,000 homes, apartments or trailers charring 65,000 square miles. The causes of all three are under investigation. At least one of the fires, a massive blaze in Santa Barbara County, is suspected to have been arson.
Now the story of a tiny survivor of the California fires. A stuffer survivor. This teddy bear was one of the few possessions remaining in the rubble of one family's home. But, as you'll find out, this bear is more like a cat, one with nine lives.
Michelle Gile, of our affiliate KCBS, has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: People just keep walking up the street, people are driving by and saying, we saw your son on TV. Can we give you something.
MICHELLE GILE, KCBS REPORTER (voice-over): One day after four year old fire victim Andrew Stanley told our TV audience that he'd lost everything in the wildfire at his Anaheim Hills home --
ANDREW STANLEY, LOST TOYS: And I had a lots and lots of toys. And I had books.
GILE: Neighbors Andrew never knew, strangers, too, are coming to the rescue.
UNIDENTIFIED FEMALE: I hear you like books? Yes?
GILE: We were with Brian Stanley, his wife Michelle and Andrew, Sunday, when they poked their head into the burned out shell that was once home. The Stanleys got a thrill when they spotted this.
UNIDENTIFIED FEMALE: Your teddy bear!
BRIAN STANLEY, TEDDY BEAR SURVIVED FIRE: My teddy bear's still here.
GILE: A teddy bear more than 60 years old, originally Stanley's mothers in England, which survived World War II and now the November firestorm. The teddy bear's survival is a gift during a time of tremendous loss. Are there are so many gifts delivered for young Andrew today, from children who want to help.
UNIDENTIFIED GIRL: We gave -- we went through our rooms and we have, we got tons of books for him.
UNIDENTIFIED MALE: Well, it's just kind of nice to help a kid out. I mean, if they don't have any toys, they're going to be so bored out.
(END VIDEOTAPE)
PHILLIPS: Oh. Well, the Stanley family wanted to thank firefighters not just for the bear, but mom and dad's wedding album, as well.
(WEATHER REPORT)
Well, quite a bit of work to do today's first space walk of the Endeavor mission. Live pictures right now. We're going to see what the astronauts are up to.
(COMMERCIAL BREAK)
PHILLIPS: Well, high above us, as we speak, live pictures right now, two Endeavour astronauts working hard on some hardware. They have stepped out on the first space walk of the shuttle mission, the main goal, clean and lube a joint that rotates a solar panel on the International Space Station.
It has been gunked up for over a year with metal shavings. And once it is fixed, well, that ISS will be able to produce more power.
Speaking of power, hour of power with Rick Sanchez starts right now.
