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Alternative Loans for Big 3?; UAW President Holds News Conference; Bailout Progress Report; Federal Judge Orders Release of Five Terror Suspects at Gitmo
Aired November 20, 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: And hello again, everyone. I'm Tony Harris in the CNN NEWSROOM.
Your disappearing money -- let's get started with issue #1, the economy.
Stocks are wandering today between positive and negative territory. A day after sinking to a five-and-a-half-year low, worry about the auto industry. And Congress' unwillingness to bailout Detroit testing investors, it seems.
With the Big Three bailout plans stalled in Congress, senators from states that rely on the auto industry scrambling today to come up with an alternative plan for the Big Three.
CNN's Kate Bolduan on Capitol Hill for us.
And Kate, what is being discussed now? I know Senator Carl Levin is hard at work on something.
KATE BOLDUAN, CNN CORRESPONDENT: They are hard at work. There's a bipartisan group of senators that come from auto-supporting states, and they're really working, they're scrambling, as you said. They're trying to broker a deal, get something that kind of takes a little bit from each side here, that Democrats would be happy with, that Republicans would be happy with. They both would be making concessions, trying to get something. As Carl Levin said to me yesterday, they need to find common ground because they don't want to leave this week without a deal.
Having said that, I spoke with an aide that's close to the negotiations, aware of what's going on. They said negotiators worked late into the night, they're still working today. No idea yet if they'll unveiling anything in the coming hours. But I have to say, the prospects, no one's ruling out the fact that maybe a last-minute deal could come, Tony. But I have to tell you, the prospects of that happening are fading, and fading fast as the day continues, because they are planning to leave at the end of this week for the Thanksgiving holiday.
HARRIS: Boy, hard to imagine how they get that done in that short amount of time.
All right. Our Kate Bolduan on Capitol Hill for us.
Kate, appreciate it. Thank you.
BOLDUAN: Of course, Tony.
HARRIS: We've got some breaking news we want to share with you right now. A federal judge has ordered the release of five terror suspects currently being held at Guantanamo Bay in Cuba for seven years. Seven years without charges.
So, again, here's the headline. We are going to reach out to our Justice Correspondent Kelli Arena for more on this, but the headline is that a federal judge has ordered the release of five terror suspects held at Guantanamo Bay for seven years without charges. We will pass along any additional information and contacts on this story as we get it for you.
New claims for unemployment benefits last week soared to levels not seen since 1992 -- 542,000 new applications were filed, more than Wall Street expected. The House has approved a bill to extend unemployment benefits for many people, and the Senate is expected to vote today. President Bush says he will sign the measure.
Let's take you now to Detroit. We told you last hour that we were anticipating a news conference from that man right there, Ron Gettelfinger, who heads up the UAW. Let's listen in.
(JOINED IN PROGRESS)
RON GETTELFINGER, PRESIDENT, UAW: ... the auto industry.
Allow me to begin, first of all, by introducing our secretary/treasurer, Elizabeth Bunn. Bob King, as you know, is our vice president over at Ford. Cal Rapson, General Motors. And General Holyfield's over at Chrysler.
You know, we did have a couple of exciting days in Washington. I don't know if any of you were able to make it, but it was quite an experience. But we really appreciated that opportunity, the opportunity to go there and to tell the story of the auto industry, because there is a lot of misconceptions out there. But the purpose of us gathering here today is simply to say that it's critically important that the Bush administration and Congress reach some agreement to take action to provide immediate assistance to the domestic auto companies.
Both the Bush administration and congressional leaders agree that immediate assistance is needed, and that the cost of not acting could be devastating both to workers and retirees in the industry, and to millions of other workers and retirees across this country, and to our entire economy. And while there have been disagreements about the precise mechanism for providing assistance to the auto industry, surely it should be possible to work out an agreement on how to proceed.
Inaction is simply not an option. Without immediate assistance, we could see, and I stress "could see," a collapse of one or more of the domestic auto companies by the end of this year. The costs that would flow from this are simply too great.
You've heard the numbers, three million jobs. We have a million retirees and spouses and dependents that would be losing possibly their pension and/or their health care benefits.
The federal government would be saddled with huge pension and health care costs. Thousands of other businesses, suppliers, dealers and others that depend on the auto industry would be in trouble. The current recession that we're in would be made much worse, with revenues to federal, state and local governments dropping, forcing cuts and vital public programs.
And to prevent these devastating consequences, the Bush administration and Congress needs to act now, today, to provide an emergency bridge loan to the domestic companies, to at the very least enable these companies to continue operations until the Obama administration can put in place a long-term plan to move the industry forward. Congress must not adjourn without an agreement with the Bush administration to move forward with an emergency rescue plan for the domestic auto companies.
Allow me to say that during the debate we heard in Washington, we've heard a lot about competitiveness. We haven't heard a lot about people.
We throw out the figure, the impact, on three million people. But let's go to the competitive piece of it, first of all.
Since 1992, states where we have plants located have put in over $3 billion in incentives. And I would point out that that's the money that the state settled for. And I want to go specifically to Alabama, if I could, for a minute.
We have Hyundai Motor Company that got $252.8 million in incentives. Toyota there got $29 million in incentives. Honda, $158 million. And Mercedes, $253 million in incentives.
It just seems odd to us that we can help the financial institutions in this country, that we can offer incentives to our competitors to come here and compete against us, but at the same time, we're willing to walk away from an industry that is the backbone of our economy. And while I read these figures to you, which is the actual figures that we've been able to dig up, I want to go to one particularly, and this is the plant in -- the Mercedes plant in Alabama.
As it turned out, as I said, Alabama offered $253 million, but the state offered to train the workers, clear and improve the sites, upgrade the utilities, buy 2,500 vehicles, and it's estimated that that incentive package totaled somewhere around $175 million. On top of -- or, excuse me, $175,000 per employee to create those jobs there. And on top of this, the state gave this automaker a large parcel of land, around $250 million to $300 million, that was the same price or cost to them of building a facility.
So we can support our competition, but we can't support an industry that's in need. And this need was not brought about because of what the industry's done.
I've heard some clamoring for management to resign. OK. Let's just go back and look at the facts.
First of all, will that fix the problem? I don't know. If it does, then let Congress put that as a stipulation.
But I would only call your attention to the fact that we concluded negotiations last year with General Motors. Their stock was over $42 a share. What's happened since?
We saw what happened in the subprime mortgages. We saw what's happened to the credit crunch. We've watched a volatile stock market. And I'm not here to defend the CEOs.
My only question is, if that will fix the problem, do away with it. But how has that driven their stock all the way down from $42 to where it's at today? It just -- that, to me, becomes a distraction here.
We talk about the number of vehicles that General Motors has as an example that gets over 30 miles to the gallon. We've just got a lot of well-kept secrets here that we haven't been able to get out.
And we understand that people want to move forward with advanced technology vehicles. We worked so hard with the industry to make that happen, and that's where we come up with the advanced technology vehicle manufacturing incentive program that was approved by Congress last year, and then the money appropriated this year.
But it's not an easy tank out here. It's a rough economy, and the industry's caught up because the consumers are caught up.
Consumers cannot get loans that are -- have reasonable interest rates on them, and if we can't get people in the showrooms to buy automobiles, we've got a huge problem. We've got a huge problem in this country.
Our fear is that if one of these companies goes over the cliff, that for sure it could take at least one of the other's, if not both, with them because of the way that the supply base is interlaced with the companies. So we're here appealing to Congress and to the administration to take action.
Now, let me mention to you a bit about the contract. Again -- and this is one thing that we were ready defend in Washington. And I would simply say in this particular area, Channel 7 gave the UAW men and women Newsmaker of the Year. "Automotive News" did the same thing.
Then we go to the "Detroit Free Press," and Michiganian of the Year is passed on to the UAW. And why was that done? It was done because everybody said the UAW sat down with management and worked out a transformational agreement.
Well, we've been transforming for a long time. It is not our fault that the economy's in the tank, that consumer confidence is low. And what we need is a low-interest bridge loan to get us through this very difficult economic time in our country.
So the people end of it -- it's one thing for us to talk about the number of Americans that are impacted. It's another thing to see the worry that exists in active and retired members' faces, to know that their job's in peril, that they have a danger of losing it. And last year we received a letter following negotiations, and I've read it quite a bit, and I'm going to -- in speeches along the way, but I want to just go to the very heart of it.
We have a woman named Rita Pelfrey (ph), and she's drawing a surviving spouse option. And she's also drawing her pension. She lives in Toledo, Ohio. She gets a combined total of $322 a month pension from General Motors.
Last year, our vice presidents here were able to work out some bonuses for our retirees. And I want to say to you -- read a paragraph -- that her son, Jim Oppermann (ph), wrote.
He said, "I cannot express how elated she was when she found out that the retirees were going to receive a bonus check in December of 2007. She received that check for $452, and proceeded to donate 10 percent to charity, kept $100 for Christmas, and deposited the other $300 into a newly-formed emergency account that we began for her."
Now, that's what this is about. This is about a young family who are counting on these jobs so that they can provide for their children and perhaps have an education for their children in the future. It's about retirees like Rita who worry every day about whether or not that pension check is going to keep coming in. And I just hope that one of the things that we haven't lost here is the impact of a bankruptcy on the part of any of these companies.
So with that I want to conclude, and we'll be glad to entertain any questions that you have.
QUESTION: (OFF-MIKE)
GETTELFINGER: I think there's a lot of misinformation out there, and I wasn't really surprised at it. And some of it we anticipated would come. But also, think I was a little bit surprised at the recognition that we got for the agreement that we put in place.
HARRIS: All right. You've been listening to Ron Gettelfinger, who is the president of the United Auto Workers. And you heard him stressing the need for what he calls immediate help right now for the American auto industry.
Gettelfinger pushing the Bush administration and Congress to get something done now, saying that, "Inaction is not an option." Gettelfinger suggesting that one or more of the automakers could fail by the end of the year.
We're going to take a quick break right now. Is that what we want to do, Joe? OK. Again, the president of the United Auto Workers, Ron Gettelfinger.
You know, people want to know how the bailout money is being spent right now. Some are even wondering why some of it isn't going to the auto industry in the form of a bridge loan.
Well, the man running the $700 billion rescue effort says the government's actions have stabilized the financial system and prevented a financial collapse, but Neel Kashkari says not everyone can get some of the bailout billions.
(BEGIN VIDEO CLIP)
NEEL KASHKARI, INTERIM ASSISTANT TREASURY SECRETARY: My phone is ringing off the hook. People around the country, businesses, communities, are calling saying, hey, we need help, can we apply for TARP?
And if we took the $700 billion and went to everybody individually who needs help, it wouldn't be enough. And so our focus is, take the $700 billion, put it into the financial system, stabilize the financial system, get credit flowing, and that is how we will help everybody around the country who needs it, including the housing market.
(END VIDEO CLIP)
HARRIS: So the man controlling the $700 billion bailout purse says the government's actions are having an impact. Well, let's check for some evidence on that.
Live to our Christine Romans in New York.
Christine...
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there.
HARRIS: ... hey. What have you found? You know, the very straightforward question would be, is the TARP working?
ROMANS: Well, we know the people are still lining up for it.
HARRIS: Yes.
ROMANS: GMAC, the auto financing arm of GM, lined up today and said they want to become a bank holding company, they would like some of that money, too. And they promised that none of that money would go to the 49 percent of the company still owned by GM.
Is it working? Is the bailout working? I mean, is the $700 billion doing what it's supposed to?
Well, about half of it has been spent. You know, the idea was to prevent the collapse of the financial system. So has that worked? Well, the verdict is, so far it's worked. I mean, the Treasury secretary, Neel Kashkari, Ben Bernanke on the Hill this week, saying so far the initial intent of this has worked to prevent the collapse of the financial system. So they also wanted to get banks healthy and get them lending, increase lending.
Has that worked? Barely. In some case, yes, but there are a lot of criticisms that they're not lending enough, and that maybe they're using some of that money to buy other banks, sort of hoard the money.
OK. How about stabilizing the stock market? Has that worked? Well, hardly.
HARRIS: Yes.
ROMANS: I mean, the Dow was down 427 points. Now, a critic would say, well, it was never meant to stabilize the stock market, it was meant to stabilize the financial system. That's something different, but they are related.
OK. How about unemployment? If you're looking at the unemployment rate, and you're looking at where we've come since the bailout, well, it gets worse by the day. But again, when they sold this to us, Tony, they never said it was going to prevent people from losing their jobs, they never said it was going to prevent the stock market from falling down a bit.
They just said they had to stabilize the financial system. And so, so far they have, but a lot of those other measures were just -- we just don't know. It's just too soon.
They keep saying, you know, wait. It's too soon. It's got to work. It's starting to work. We're seeing it start to unthaw. But a lot of people are skeptical.
The Project on Government Oversight, Tony, wrote a letter to Congress today saying, you've got to do more. We are begging you to have better oversight of this whole process...
HARRIS: Yes.
ROMANS: ... and that Congress needs to act now to ensure that the ongoing expenditures of billions, even trillions -- think of it. Trillions of the taxpayers funds are subjected to extraordinary scrutiny.
Too few questions are being asked about the how and even the why behind these enormous undertakings. Even when questions get raised, at recent hearings, for example, numerous important questions go unanswered.
HARRIS: Well, we need to keep asking, and thanks for your help on this, Christine.
ROMANS: Sure.
HARRIS: Because you know I'm going back and forth. And thank goodness you're there to answer some of these questions.
ROMANS: Well, when the answer is maybe, I don't know if it helps anybody, but, you know, we will keep trying to keep them honest and hold their feet to the fire.
HARRIS: It helps to be able to talk about it, that's for sure.
ROMANS: You're right.
HARRIS: All right. Christine Romans for us in New York.
Christine, thank you.
A quick break here. But before we go, we want to update the breaking news from just a couple of moments ago.
A federal judge has ordered the release of five terror suspects held at Guantanamo Bay for seven years without charges. Our Justice Correspondent Kelli Arena has additional information. She's next, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: We don't have a lot of information on this. I'll give you what we have right now. But these new pictures, pretty dramatic into the CNN NEWSROOM of a train derailment in Memphis, Tennessee.
No word of any injuries at this point, but you can see a couple of cars on the side. Not sure what's in those cars, what's being carried by that particular train.
We know that emergency teams are on the way. We're not sure if that includes hazmat teams as well. Again, no word on any injuries at this time, but we will keep an eye on this developing situation, a train derailment in Memphis, Tennessee.
And also, we want to get to our Justice correspondent now, Kelli Arena.
Kelli, we have a bit of breaking news here. A federal judge has issued a ruling concerning detainees at Guantanamo Bay. What more can you add to this?
KELLI ARENA, CNN JUSTICE CORRESPONDENT: That's right. Tony, this is very important.
HARRIS: OK.
ARENA: This is a major blow to the government. Major. OK? Here's what's going on.
You had six detainees who were held at Guantanamo Bay. They contend that their detention is unlawful.
HARRIS: Yes. ARENA: The Supreme Court back in June ruled that detainees held at Guantanamo Bay did have a constitutional right to challenge their detention. OK? So this judge looked at all the information and decided that five of those men, that the government did not have enough evidence to hold that, that they were not going to take up arms against the United States or allied forces, as the U.S. government claimed.
Now, there was another man who was part of that group. The judge did not order him released, saying that there was evidence supporting that he was supporting al Qaeda.
Now, these men are all Algerians who were living in Bosnia. They are still at Guantanamo Bay. They listened to the ruling from Gitmo over a telephone connection.
HARRIS: OK.
ARENA: Now, originally, they were arrested in Bosnia back in 2002. The government said that they were suspects in a plot to blow up the U.S. Embassy in Sarajevo.
Then the government dropped that suggestion saying, no, they were actually planning to go to Afghanistan to take up arms against the United States. But they based that information on one source. The judge said he did not think that that source was credible.
Tony, there are 200 similar cases that are pending with district court judges here in Washington. This is just the tip of the iceberg.
HARRIS: Well, that was my next question. It makes me wonder, what's the latest on the numbers here? How many are being held now at Guantanamo Bay? And I'm curious, will they all get an opportunity to -- through the habeas process to challenge their detention?
ARENA: Right, if they choose to challenge their detention.
Now, a guy like Khalid Sheikh Mohammed, who's sitting over at Gitmo...
HARRIS: Sure.
ARENA: ... has said, yes, you know, I'm a member of al Qaeda, and I want to be put to death. So is he going to make a habeas corpus challenge? Probably not. But there are 250 men still at Guantanamo Bay. There are hundreds of cases that are pending in district court.
But, you know, it's not like these guys are going to leave today.
HARRIS: Right.
ARENA: I mean, the government is going to appeal this decision. You know, this will go on in the courts for a while. But this is what the government did not want to hear.
The government said these guys are enemy combatants. We went through the process, we declared them enemy combatants. The judge said, it didn't work for me.
HARRIS: Yes.
ARENA: I don't see the evidence. You've got to let them go.
HARRIS: This really does sound like a big deal and big breaking news for us.
Kelli, appreciate it.
Our Justice Correspondent Kelli Arena for us.
Nice job of breaking that down for us.
ARENA: Thanks.
HARRIS: Whether Senator Hillary Clinton becomes secretary of state is very much up in the air, but the possibility of her taking a key role in the new administration, in her husband's shadow, has analysts talking about the strength of the power couple.
Here's CNN's Tom Foreman.
(BEGIN VIDEOTAPE)
(MUSIC)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): When Bill Clinton was running for his first term and under attack over his personal life, Hillary Clinton famously declared she was not just standing by her man.
(CHEERING AND APPLAUSE)
FOREMAN: But the Clintons have stood by each other, through good times and bad, ever since -- his agreement to open up some of his foundation's donor records the latest evidence.
HILARY ROSEN, EDITOR-AT-LARGE, THEHUFFINGTONPOST.COM: I think that Bill Clinton would do anything that Hillary Clinton asked. You know, this is really a partnership.
WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: When you think of Hillary, think of our real slogan: Buy one, get one free.
(CHEERING AND APPLAUSE)
FOREMAN: The Clintons have been married for 33 years. Through a governorship, a presidency, eight years in the Senate, their dynamic duo approach has made them one of Washington's all-time premier political couples.
(BEGIN VIDEO CLIP)
CHIEF JUSTICE WILLIAM REHNQUIST, U.S. SUPREME COURT: The question is on the first article of impeachment.
(END VIDEO CLIP)
FOREMAN: When he struggled in his presidency, her support never wavered. When her campaign was staggering...
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: I just don't want to see us fall backwards.
FOREMAN: ... he pushed on to the bitter end.
W. CLINTON: My family's not big on quitting. You have probably noticed that.
(CHEERING AND APPLAUSE)
FOREMAN: All of it built both their reputations among friends and foes.
ROSEN: Hillary Clinton got 18 million votes in the primary. They are both still young. This couple is going to be around in the American political life for a long time.
FOREMAN: They have certainly become twin powers in politics.
(on camera): In this most recent campaign, a late summer poll that, while Bill Clinton remains wildly popular with voters, they now like Hillary Clinton even more. You could call it one more win in the wake of their toughest loss.
(voice-over): No wonder one political opponent suggested, if politics were a sport, our top team might be the Clintons.
Tom Foreman, CNN, Washington.
(END VIDEOTAPE)
HARRIS: So the question now is, what's going on behind the scenes with the Clintons? Will Senator Clinton become our next secretary of state, or not? And what role, if any, might her husband play?
Special Correspondent and former CNN Washington bureau chief Frank Sesno joins us.
Frank, good to see you, man.
FRANK SESNO, CNN SPECIAL CORRESPONDENT: Hi, Tony.
HARRIS: So what -- in your view, what gives here? What is holding up the announcement of the Hillary pick to State? We know they met. We presume they talked about this.
What's going on here?
SESNO: Well, I don't know. I'm not a fly on the wall, though I'd like to be on the inside and hear exactly what the horse trading is all about. But the vetting is a very complicated and very difficult process, and there are both political considerations, power considerations and, of course, this very complicated weave that her husband has put together. Because Bill Clinton, whether you like it or not, even though she might be secretary of state or whatever she's going to be, will be part of the package, just as you heard in Foreman's piece.
HARRIS: Yes.
SESNO: They are still buy one get one free.
HARRIS: Well, I've got to ask you, so is the Obama campaign -- campaign -- is the Obama transition team asking for too much now, too much disclosure from Bill Clinton, in your view? What do you think on this?
SESNO: No, I don't think so, Tony.
I think what's really important to realize in this, and we see it again and again and again here in Washington, is it is often the perception of issues that can define somebody. And when it comes to the Clintons, there is, you know -- we may have a budget surplus, but we got -- I mean a budget deficit, but we got a surplus of perceptions when it comes to the Clintons. Where his money has come from. Who's he connected to. The degree to which she has been involved in soliciting any of that or just holding someone's hand as the check or the agreement has been handed over. These all become perceptual. And if they are perceptual, they can become real.
She would need to be effective in that job. She would need to have President-elect Obama's confidence and support in that job. And she would need to be able to travel around the world and feel that there isn't some kind of lurking ghost, perceptual or real, that's going to spring out and become a problem. That's what they're most likely doing. And that is very complicated stuff.
HARRIS: Do you see this as a good position, it would be a good move for Hillary Clinton to make here, if this job, in fact, is being offered? I'm just trying to think about what she would have as part of her portfolio in the Senate? And it looks like Tom Daschle and Senator Kennedy will be running health care. I'm just wondering if this wouldn't make a lot of sense?
SESNO: You know, sure, it would, in many ways. I mean if you look at the career trajectory, she goes from sort of first lady of Arkansas, to first lady of the United States, to senator, to secretary of state, if that's what happens. Those earlier jobs are advisory, first lady, arguably. She was very influential in the health care debate. I spent a lot of time with her during the '90s when she was helping to fashion the health care debate. Enormously influential. But she wasn't an elected official. She didn't have anybody reporting to her. She didn't have any real power. It was sort of managing power.
The Senate is a debating chamber. They vote. She's one of 100. She's the junior senator. She doesn't have any major chairmanships. And there may not be any pending any time soon.
She goes to the secretary of state, especially at this time in America's history, economy, globalization, climate change, Middle East. Think about the things that she could potentially shape, as long as she has the confidence of the president of the United States.
HARRIS: Is it a little untidy -- sort of last question for you, Frank. Is it a little untidy from an appearance standpoint, and you mentioned that earlier, to have a name floating out there like this one. A name of this kind of stature. The Obama team members sort of confirming this. And it really taking so long for some kind of a decision to come down on this?
SESNO: Well, they're a little over their skis, the Obama campaign. I don't, you know, keep their balance maybe. I don't know how long it really takes, you know, in the overall scheme of things. This is a parlor game in Washington. We love this in the news media. People love it. Who's up? Who's down? Who's going to be in the new cabinet? Obama's actually moving pretty quickly here. And this name, while it's being floated out there, is not exactly igniting gigantic controversy. It's more a waiting game than anything else.
So I think it's how it's managed. One clearly has the impression that the president-elect is prepared to move in this direction. If this is just a trial balloon, then it's very untidy and show a campaign that doesn't have its act together. There's no indication that's the case, though.
HARRIS: Awesome. Thanks, Frank. Good to see you again.
SESNO: Thanks, Tony.
HARRIS: You know, you've got a lot to say about the carmakers flying private jets to Washington. We're checking in with our I- Reporters.
(COMMERCIAL BREAK)
HARRIS: OK. On Wall Street, stocks trying to rally right now. A day after the major stock averages plunged, closing at levels not seen in more than five years. Susan Lisovicz is at the New York Stock Exchange right now with a check of all the action.
And, Susan, I'm wondering, and we've talked about this. Where's your camera going? There we go.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hello.
HARRIS: Hello.
What is behind all of the volatility over the last few days here? And I'm wondering if it's tide at all to the back and forth over whether or not there will be some kind of assistance to the Big Three automakers?
LISOVICZ: Well, you've nailed it on the head, Tony. The market hates uncertainty. And there is a great deal of it at a very critical time. The fate of Detroit, you were just listening, we were all listening to UAW President Ron Gettelfinger making his case. Whether you think that Detroit should be bailed out or not is almost irrelevant. The fact is, if one or two of these companies fail, it will increase unemployment. It will make a bad situation worse.
So we don't know what's going to happen. We do know that it look like Congress is going to leave town without giving assistance to the automakers. So that's of great concern on Wall Street.
But also there's a lot of concern about this federal bailout program. You heard yesterday on Washington -- in Washington, Secretary Paulson talking about half of it is going to be reserved for President-elect Obama. Well, you know, that's an eternity at a time like this, you know, on Wall Street.
And then, Finally, who's the Treasury secretary going to be? Again, at a critical time. Those are the kind of things that are really pressuring stocks. And right now we're seeing a bit of a rally. But given the losses we've seen, that's -- it's not exactly the most convincing of rallies. You know, one trader said to me earlier today, he said, you know, I bought a cafe latte earlier this morning. He said, it's like I could get two GM shares for the equivalent.
HARRIS: Oh!
LISOVICZ: I mean, yes. I mean that's kind of where it's at.
HARRIS: Kind of gallows humor now, huh?
LISOVICZ: We're seeing -- yes, it's historic lows, not only for GM but for lots of stocks. Citigroup, for instance, right now, you know, it actually hit $5 a share earlier today. $5 a share for one of the nation's largest financial companies. And this after an infusion from savvy Prince Alwaleed. You know, so the sentiment is distinctly negative.
HARRIS: Makes you wonder where the bottom is on all of this.
Susan, a great analysis. Thank you. Thank you.
LISOVICZ: You're welcome.
HARRIS: You know, outrage over the auto executives and their private jets. And there's plenty of it. When the heads of the big auto workers flew to Washington to ask for taxpayer bailout money, they took their private jets. It's corporate policy. That's how the executives travel. Now many of you have something to say about that. Our Josh Levs has been reporting on this story and he is monitoring your reactions.
Pretty hot, Josh?
JOSH LEVS, CNN CORRESPONDENT: They're coming in like crazy. Check it out, Tony. Let's zoom in on the board. I want everybody to see this. This is the story that we posted. It talks you through what happened. Big Three auto CEOs flew private jets to ask for taxpayer money. We have something called Sound Off. And if you scroll way down you see all of this, Tony. It just keeps coming in by the minute. Look, every single block you're seeing is another reaction. It's in the thousands at this point.
I pulled out a few just to give you a sense what we're getting. Let's start off with this first one here from someone named Tony who says this, "how dare they dismiss this issue as a 'big to-do' when it so accurately illuminates their complete inability to grasp the waste and mismanagement that has led them to near-bankruptcy?"
Let's go to Jayne now. She says this. "That is why they can't make good business. Don't bail them out! Or take their jets and benefits and in exchange."
One more attack (ph) here says this. "Not only do the 'Big Three' not get it, but Congress doesn't get it either." That's from Sandra Davis.
And finally, let's go to this one, Mike, who has a different take. He says, "I think it's rather stupid for people to make a big deal out of the private jets when almost every CEO of a major corporation does that. But it is ridiculous how much a lot of CEOs get paid. That would be a very good place to trim expenses." So he's saying, this one issue go, but, obviously, there's something to look at in general.
You can weigh in here, cnn.com. Or, of course, as you note, ireport.com. Send your photos, videos, stories. Whatever you think on this issue. We're keeping in interactive. We're going to keep up this conversation in the coming days until we see what happens with this potential bailout -- Tony.
HARRIS: Yes, way to go.
OK. Appreciate it, Josh. Thank you.
LEVS: Thanks.
HARRIS: If one or more of the domestic automakers fail, the consequences could be many. One you might not have thought of, lost technology. Could this kill the electric car again? CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.
Good to see you, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, Tony.
Well, you know what, it might just kill the electric car again. But we know right now, the Big Three automakers, they are looking for money from Congress. So far, none has come their way. As a result, Nobel Laureate Dr. Barton Richter told me yesterday, he fears if the automakers fail, the U.S. could lose critical technology to its overseas competitor. He points out, in particular, GM's Chevy Volt. It's a plug-in hybrid due to be released in 2010. Take a listen.
(BEGIN VIDEO CLIP)
DR. BARTON RICHTER, CHAIRMAN, APS ENERGY EFFICIENCY STUDY GROUP: The Chevy Volt is a very important product. It's important not only to the auto industry, but it's important to our energy security. It's supposed to be a plug-in hybrid with a 40 mile electric range. If the entire vehicle fleet in the United States were all 40 mile plug-in hybrids, our gasoline consumption would drop by 60 percent.
(END VIDEO CLIP)
HARLOW: Impressive statistic. You heard it, 40 miles without using a single drop of gas. After that, it become as hybrid electric. So it just uses a small amount of gas. And Richter says the battery used in a Volt is not only different, but he says it's better than the competition. He says it would be a shame to pull the plug on GM just before what he's calling a revolutionary product hits the market -- Tony.
HARRIS: Well, Poppy, many people have seen the documentary, who killed the electric car. GM had a plug-in near lay decade ago, correct?
HARLOW: That's exactly right.
HARRIS: But they got rid of it. Many might see that as another reason against the bailout. And maybe the straightforward question is, why bail them out now?
HARLOW: You know, we asked -- we asked Dr. Richter that exact question. Here's what he had to say, not only about GM's CEO, but also about the company's EZ1 electric car.
(BEGIN VIDEO CLIP)
RICHTER: Look, I talked to Rick Wagoner about the electric car. I told him not to get rid of it. They made the wrong decision. And I believe Rick Wagoner said last year, earlier this year, that was one of the worst decisions he ever made.
(END VIDEO CLIP)
HARLOW: Well, that's not the only criticism of the Big Three. For years, they have been pushing big SUVs. Remember, GM makes the Hummer. They also fought against raising fuel efficiency standards. That makes the current bailout request of $25 billion a steep uphill climb.
By the way, the man who made the documentary, "Who Killed the Electric Car?," they're coming out with a new film called "Revenge of the Electric Car." But with automakers on the verge of collapse, Tony, the future of any electric car is in serious doubt. Today, oil prices way down around $51. That's not helping the cause either -- Tony.
HARRIS: All right, Poppy, appreciate it. Thank you.
Quickly now we want to get to Kate Bolduan on Capitol Hill.
Kate, I believe you have some news, at least the very latest developments on efforts to come together on some kind of a bridge loan for the Big Three automakers.
What do you have?
BOLDUAN: Right, Tony. You know, we've talking about this group of senators that have been working, trying to scramble together, trying to broker a deal and get a compromise that would bridge the divide between the two sides on this auto bailout issue. Well, what we've learned from aides to these senators that they have reached and agreement among this group of senators, which includes Senator Carl Levin, Senator Bond, Senator Voinovich of Ohio, and Senator Stabenow of Michigan. We're told that they've reached a deal and they're going to come out and talk about the details of this deal.
Our congressional producer, Ted Barrett, he's heard that it's not substantially different from the guidance that we've been working on, Tony, which would includes billions of dollars that would come from existing loan programs. That money was meant to help automakers retool and produce more fuel-efficient vehicles. But the flip side of that is, that they would promised to restore that fund once the automakers were given this bridge loan.
But he's the kicker. We're not sure, haven't heard exactly what the details are and we're not sure if this plan, when it comes out, will even get a vote, because the Senate leadership has made it clear that they don't want to put anything out there that they don't -- without knowing that it has enough support in the Senate the House, for that matter, to pass. So it may be a step -- a slight step forward, a glimmer of hope for people trying to bridge this gap. We'll just have to see how it plays out.
HARRIS: Well, you know what, let's take a break and we'll reset here and we'll come back and talk about this more.
Kate Bolduan for us on Capitol Hill. We'll take a break and come back with more CNN NEWSROOM in a minute.
(COMMERCIAL BREAK)
HARRIS: All right. California Supreme Court says it will hear argument over Proposition 8. That voter approved amendment nullified the court's decision last spring allowing same-sex marriages. The cases will go before the court in March. The San Francisco mayor, Gavin Newsom, talked with CNN's Anderson Cooper about the legal process.
(BEGIN VIDEO CLIP)
MAYOR GAVIN NEWSOM, SAN FRANCISCO: Something was legal in the state of California. As legal as my ability to get married to my wife. And that was simply stripped away and taken away by a simple majority vote. Leaving the courts with what? If you change the law, that's one thing the courts adjudicate the constitutionality of that law. But if you change the Constitution, what role does the court have now in terms of adjudicating whether or not that's constitutional?
(END VIDEO CLIP)
HARRIS: And how about this? A new tune for e-Harmony. The matchmaking Web site will now provide services to same-sex couples. Our Veronica De La Cruz joins us now with details and some reaction.
What do you have, Veronica?
VERONICA DE LA CRUZ, CNN CORRESPONDENT: OK. Well, Tony, this all started back in 2005 when Eric McCinly (ph) was looking to be matched with another man. He was turned down for a subscription. He file a complaint with a New Jersey division on civil rights. Now, as a result of the complaint, Tony, e-Harmony will be starting this new service.
They have until March 31, 2009, to launch their new site. They're going to be calling it CompatiblePartners.net. Now the settlement that was reached does make clear that e-Harmony was never found in any violation of the law.
And we've been gauging all the reaction on our Facebook group. Geene Overton in Tennessee is not happy with the outcome and writes, I think "...it is completely ridiculous that a private Christian-based company be forced to comply with such rules. All of e-Harmony's research was based on heterosexual people and does not account for variability in homosexuals. There are plenty of other sites that match that demographic. If they don't like e-Harmony's policies, then go elsewhere."
Jack Waters in Los Angeles writes, "I don't agree with their former policy of not accepting same-sex matches. It is a free market. If they choose not to cater to you, then go to another company that does. Or better yet, form your own. It is their loss."
Kaye Berjot writes, "It's about time. I am not sure if other sites do it or not, but the fact that e-Harmony has made this offering public represents a step in the right direction towards acknowledging the needs of a particular target audience. No on Prop 8."
And then finally, Tony, Alli Bachmann writes, "If we enforce this lifestyle, don't worry about our children -- or our children's children -- because if everyone were allowed to marry someone of the same sex, then the world would be extinct. It is not a way of life. There is your evidence."
So again, more spirituous debate and more spirit and discussion on our Facebook group. Go ahead and join in. Just go ahead and search for Veronica De La Cruz in the CNN NEWSROOM and Tony Harris. You can also follow me on Twitter at veronicadlcruz.
Don't you love those pictures, Tony? HARRIS: I got in trouble for commenting about it last hour, so I'm just going to roll on.
Thank you, Veronica. See you tomorrow.
DE LA CRUZ: Well, if you don't like that picture . . .
HARRIS: Yes.
DE LA CRUZ: Check out the ones on our Facebook group.
HARRIS: Oh, my.
DE LA CRUZ: People posing pictures for you.
HARRIS: Oh, Lord, we've got to shut that thing down.
Thanks, Veronica.
Help for frequent fliers coming to an airport near you.
(COMMERCIAL BREAK)
HARRIS: Want to tell you a little bit about a project runway. Not the TV show. We're talking about expansions taking place at three of the nation's busier airports. Seattle-Tacoma, Chicago, O'Hare and Washington, Dulles. Their new runways opening today just in time for the holidays. Airline officials hoping to break up some of the congestion from all of you holiday travelers. But the forecast from experts remains the same. If the weather is bad, flying will be bad, new runways or not.
Can you get a college scholarship at age five? Meet one precocious baller who may actually tempt a few coaches.
(COMMERCIAL BREAK)
HARRIS: So you think you've got game. Well, you just might get schooled by a five year old. Josh Levs is back to give us all a look at this viral video.
LEVS: You seen this? You seen this?
HARRIS: This is pretty hot.
LEVS: It's so hot.
HARRIS: Yes.
LEVS: This is a five-year-old girl who I think could out dribble anyone in this room . . .
HARRIS: Please.
LEVS: In the NEWSROOM. Let's take a look. Just go straight to it. HARRIS: Oh, yes. Look at this.
LEVS: All right. Now in a minute they're going to give her a third ball. She's going to keep going. Let's keep watching. This is five-year-old Yulan Simon Tuttle (ph). This was taken -- I called the place today. This was taken at a Triple Threat Academy, by the founder, Tony Pesario (ph). He shot this. She's amazing. He posted it online. Now just -- I hope the WNBA is watching.
What do you think, Kyra?
HARRIS: Yes, I mean she's awesome.
KYRA PHILLIPS, CNN ANCHOR: WNBA? She could play in the NBA.
HARRIS: With handles like that. Look at that.
LEVS: But don't go away, because I want you guys to see what happens when she gets to the next ball. I mean she has got some serious game over there. There you go. And she gets them all going.
HARRIS: Oh, come on.
LEVS: Look at that. Look at that. Look at that. She is in control. Five years old. I don't even know how that's physically possible.
HARRIS: That would make her a preschooler, right? Maybe first grade, pre-school.
LEVS: Kindergarten age, yes.
HARRIS: Yes. That is awesome. Right hand, left hand.
LEVS: That is so awesome. She can do it all. She can do it behind her, under the legs.
HARRIS: I've been telling my kids for years.
LEVS: Hey, Yulan, give us a call. We want to talk to you.
Seriously. That girl's amazing.
HARRIS: Get her a contract.
LEVS: Yes, get her a contract.
HARRIS: Way to go. Time to go.
PHILLIPS: Oh, she's got the leg moving there.
HARRIS: Isn't that great.
LEVS: She's got it all.
PHILLIPS: The only dribbling I did at that age was the applesauce on the right side of my mouth. But that's a whole other story.
HARRIS: CNN NEWSROOM continues right now --
LEVS: Thanks for that.
HARRIS: -- with Kyra Phillips.
