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President Bush Signs Bill Extending Unemployment Benefits; Fannie and Freddie Get in the Holiday Spirit
Aired November 21, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: All right. Hello again, everyone. I'm Fredricka Whitfield in today for Tony Harris, and you're in the NEWSROOM.
Here are the headlines. This Friday, the 21st day of November,
President Bush heads for his last scheduled trip overseas as the U.S. leader. Before he goes, help for Americans who are out of a job.
And, a scare for the attorney general: Michael Mukasey collapses during this speech in Washington. We're checking his condition today in the NEWSROOM.
The pink slips are piling up and holiday is right around the corner, but help is on the way for millions of out-of-work Americans. Today, President Bush signed a bill extending unemployment benefits before heading to a summit in the Peru.
White House correspondent Elaine Quijano joins us live now with details on this -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, Fredricka, President Bush's decision and this move this morning to sign that bill comes on the heels of some bad economic news earlier this week. It was just yesterday, in fact, that the government reported 542,000 Americans last week alone filed for unemployment insurance. Now, that is the highest level in 16 years. So, against that backdrop the president signed that legislation, an extension that would give people an additional seven weeks of jobless benefits, more if they lived in a state, if they live in a state that qualifies as particularly high- unemployment state.
Now, the president did sign that legislation before he left the White House, on his way to the annual APEC Summit taking place this year in Lima, Peru. APEC, a significant bloc here. The 21 nations of APEC, the Asia-Pacific Economic Cooperation forum, together make up nearly half of the world's trade.
Now, this year's meeting is coming on the heels of that International Financial Summit here in Washington that took place just last weekend. That was when we saw the leaders of the so-called G-20 nations, the 20 developed and developing nations coming together. They, in the end, came up with a statement of broad principles. Principles that are meant to shape not only the country's responses to the current financial crisis, but also how these countries might enact any kind of financial reforms in the future. Now, in an interview yesterday, President Bush said that this APEC Summit taking place this weekend will be an opportunity for those APEC countries to decide if they want to get behind that statement of principles put out by the G-20, or if they have some disagreements, that will be a place for them to express their views. So, President Bush, Fredricka, now on his way to Lima, Peru. He returns here to Washington on Sunday -- Fredricka.
WHITFIELD: All right. Elaine, thanks so much.
All right. Well, Congress sends auto executives with a homework assignment. Go back to Detroit, chart your future course to profitability. Lawmakers say they'll reconsider a bailout package then.
CNN's Kate Bolduan is on Capitol Hill -- Kate.
KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Fredricka.
Well, we just heard from House Speaker Nancy Pelosi in her weekly press conference that she, along with the Senate majority leader, Harry Reid, are preparing a letter to send to the Big Three to offer them specifics on what they're looking for when the Big Three send back their detailed plans that Democratic leadership has requested. Now, she didn't go into the specifics herself of what they're looking for, but in general, some of the questions that they want answered are: What are you going to spend the money on? Where are you going to put this loan, these loan funds if we give them to you?
Also, the House speaker mentioned that they wanted to know how the Big Three plan to invest in new technologies in order to be competitive in the industry. Just some of the questions that they are hoping to get some more clear answers from, from the Big Three.
Listen here to a little from the House speaker herself from the press conference.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI, (D) HOUSE SPEAKER: And I'm very optimistic and hopeful that they have gotten the message, that they just can't come and say, give us this, and maybe that, and when we (ph) changed our mind, we want that. What are they going to do with the money? And how do we tell the American taxpayer it was worthwhile to put this in, not as a life support for a few more months and they're back again, but as an investment in their viability.
(END VIDEO CLIP)
BOLDUAN: The deadline as the Democratic leadership has set it for the Big Three is December 2nd. Now, if these detailed plans that they are expected, or they're asked to send back if they pass muster, then we're told, the leadership says they will bring Congress back to take up and consider giving them these bailout funds that we've been talking so much about, Fredricka. Now, the Republicans -- Senate Republican leaders, Senator Mitch McConnell, he spoke a little while ago, and he, himself, called this whole week "bizarre and confusing" in these bailout discussions. He also went on to express some doubt that Congress and the current administration will be able to reach a consensus before President Bush leaves office. So, there's clearly still a ways to go here.
WHITFIELD: Yes. It sounds like everybody's got a homework assignment. Lots of work still ahead.
BOLDUAN: You, too.
WHITFIELD: Yes. All right. Kate, thanks so much. Appreciate it.
BOLDUAN: (INAUDIBLE)
WHITFIELD: Well, it's not a done deal yet, but aides to President-elect Barack Obama say Hillary Clinton is on track for the job of secretary of state.
Our Jessica Yellin is covering the Obama transition team. She joins us now from Chicago.
So, what would be the holdup? Is it him or is it her?
(LAUGHTER)
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Well, right now, it sounds like the holdups are very few. The holdup could be deciding if she wants the job and getting the rest of his cabinet together for any kind of announcement. What we're told by aides with the Obama transition is that they believe a nomination could come after Thanksgiving, that Senator Clinton has cleared key hurdles in the vetting process. Until now, that was the holdup.
But former President Bill Clinton agreed to extraordinary concessions, including removing himself, volunteering to remove himself from day-to-day responsibility for his foundation, which has a lot of international partners, should his wife become secretary of state, and that would eliminate a possible conflict of interests. He also agreed to a number of other options for the team to vet, his donors and future speeches, et cetera.
So, that seems to clear the way for this announcement or this release by the Obama Team last night, letting everybody know that this is on track. The big question is: Does Senator Clinton really want this job and when will she decide? We've also learned that Senate Democrat are prepared to offer her a new leadership role in the Senate should she decide to stay. Interesting that that would come out at the very same time she's debating the secretary of state role. So, clearly, she has some choices to make and the ball does seem to be in her court -- Fredricka.
WHITFIELD: Yes, interesting timing. But, oh, how nice to be in demand like that, right? (LAUGHTER)
YELLIN: That's her high class problems.
WHITFIELD: Right. All right, let's talk about President-elect Obama's cell phone. A little clarification, it's not necessarily that somebody was listening in on his conversation but instead kind of going where they shouldn't in terms of his records, right?
YELLIN: Exactly. The Verizon Company has released a statement explaining that employees improperly looked at his cellphone records -- meaning, they've looked at the numbers he has dialed in the past, and they could have taken down the names and numbers of people that he talks to.
But his aides tell us that this is not his current phone. It's from an old phone that he no longer uses. And as far as they know, any investigation into this is purely internal at Verizon. Verizon does say anybody who is responsible will be let go -- Fredricka.
WHITFIELD: Yes, that was a big oops. All right.
YELLIN: Yes, it's not good.
WHITFIELD: All right. Jessica Yellin -- all right, thanks so much.
The nation's attorney general is expected to be back at work today after a medical scare last night. We have an update on his condition.
(COMMERCIAL BREAK)
WHITFIELD: Laid off? Want to pay lower interest rates on your credit cards? Are you considering bankruptcy? Well, stick around. Our personal finance editor, Gerri Willis, has the answers to your money questions.
(COMMERCIAL BREAK)
WHITFIELD: U.S. Attorney General Michael Mukasey says he feels fine today after collapsing last night during a speech. He is expected to leave the hospital soon in Washington, and head back to work actually sometime today.
Let's go to our Jeanne Meserve who is in Washington.
You were outside of the George Washington University Hospital for a while, and now, we've got a clean bill of health for Mukasey.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Yes, which is quite remarkable if you saw the video from last night.
WHITFIELD: Yes.
MESERVE: He was speaking in front of the Federalists Society, which is a conservative legal group at a hotel in Downtown Washington. And if you watch the video, you can see him begin to struggle for words, begin to slur his speech. Eventually, he sort of leans into the podium and then falls to the ground. His Secret Service detail, you'll see in just a moment, runs in to administer to him as did a doctor on the scene. Then, of course, emergency rescue teams came in, they took him to George Washington university hospital where he underwent a battery of tests.
And the word this morning is -- everything looks pretty good.
WHITFIELD: Gosh. And it's amazing that he's heading back to work already today. I mean, you'd think, you know, take the afternoon off?
MESERVE: Nope, he's not going to do that, he's not going to do that. He, in fact, we're told, that at about 10:00 o'clock this morning, the deputy attorney general came over to the hospital to discuss business with him. But, you know, he went through a CT scan, he went through an MRI, he did a stress test, the stress echo cardiogram.
The Justice Department spokeswoman says everything looked fine, everything looked normal. What they think was going on here was perhaps a fainting spell.
WHITFIELD: Gosh.
MESERVE: He'd been working long hours. It was pretty late. He was under hot lights and they think all of that might have contributed.
WHITFIELD: Well, let's hope he takes it easy, at least today and heading into the weekend.
All right. Jeanne Meserve, thanks so much. Appreciate it.
MESERVE: You bet.
WHITFIELD: A holiday reprieve for 16,000 homeowners facing foreclosure. Fannie Mae and Freddie Mac, now both controlled by the federal government told mortgage services to halt foreclosure sales on owner-occupied homes. That moratorium is good from next Wednesday through January 9th. Fannie and Freddie want the service companies to make payments more manageable for homeowners -- kind of an early holiday gift.
The Salvation Army, well, they're trying to do something new to get you to donate. Take a look at this -- a credit card scanner that you're about to see, at one of the Army's red kettle donation stands -- yes, believe your eyes. No cash needed, just an open heart, and a willingness to help others. The scanner is set up in the Dallas-Fort Worth area and the cashless stands are at actually 12 locations through Christmas Eve.
All right. It is crunch time for a lot of folks. And so, we've got plenty of questions, too, during this time of economic crisis. CNN personal finance editor, Gerri Willis, has some answers. Again, great questions from a host of people.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Absolutely.
WHITFIELD: Let's begin with our first one saying, "One year ago, I took a personal loan out for $12,000 and have been paying on it for the past year. The interest rate is high, however. Can I move it to a lower rate credit card that I don't have a balance on?" That's from Chris.
WILLIS: Well, Chris, absolutely, yes. That can be a smart move. But what you want to look out for is high balance transfer fees. More and more issuers have increased their balance transfer fees. So, if your credit card has a balance transfer fee of, say, 3 percent, and you transfer $12,000, you'll be paying a privilege of $360 for the rollover.
WHITFIELD: Oh, boy.
WILLIS: Make sure you get all the fine print before you do a balance transfer. And as soon as you can -- as soon as you can, attack the debt.
WHITFIELD: All right. This from Eddie: "I'm considering bankruptcy. However, I was wondering if I should speak with one of those agencies to help reduce the debt?" Kind of similar to that question in the last hour, but a little different, too.
WILLIS: You know, a little different, too. Bankruptcy, I just want to say, we didn't say this last hour, it's always a last resort. It's a massive blemish on your credit history. It makes it difficult to lend, borrow, and get a job for up to 10 years. And there's some debts that you can't discharge in bankruptcy like student loans, back taxes you owe, child support payments.
Bankruptcy doesn't come cheap. You could spend thousands of dollars on filing fees and the attorney. So, your first move here should be to go to the National Foundation for Credit Counseling at NFCC.org. They have a telephone, 1-800-388-2227. You can have a one- on-one meeting with a credit counselor who may recommend you to a bankruptcy lawyer if that's what your situation calls for.
WHITFIELD: All right. And, Gerri, take a pause for a minute. We got one more question but we're also getting some new images right now. OK, never mind. Not yet.
Let's go on with our next question, our last question. This from a person who says, "I was laid off this week. I'm getting around $25,000 for our package. Should I use this to pay off my credit card debt and higher interest rates or invest it somewhere since it's such a big lump sum? I owe about $15,000 in all on a few credit cards."
WILLIS: Boy, (INAUDIBLE), I should say dump the credit card debt, especially if it's high interest, that's where your money is going go the furthest. If you have a credit interest rate, say, a 14 percent, that return is a lot better than what you'll get in the market right now. So, since you've just lost your job, perhaps you should also put some of that money towards emergency savings. Take care of the debt, get some savings going. You'll be in much better shape -- Fred.
WHITFIELD: Yes. You still want to be able to pay that rent or mortgage, too.
WILLIS: That's right.
WHITFIELD: OK. Good advice. Thanks so much, Gerri.
Oh, and you know what? You got "OPEN HOUSE" this weekend. What should we expect?
WILLIS: Nine-thirty a.m. Saturday morning, right here on CNN. We're talking deep, deep car discounts. Faith and foreclosure -- a story about ministers in the country, what they're doing with foreclosure crisis, and what we all want to do -- avoid holiday debts.
WHITFIELD: Yes. I kind of like the advice and question of one of the last e-mailers who said, "You know what? If I have cash, and then I'll get a gift for someone, but otherwise, I'm not putting it on a credit card."
WILLIS: There we go.
WHITFIELD: A pretty smart advice. All right.
WILLIS: Great idea.
WHITFIELD: Gerry Willis, thanks so much. Appreciate it.
WILLIS: Thank you.
WHITFIELD: Well, as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice and answers, of course. Check out our special report "America's Money Crisis" -- CNNMoney.com.
All right. Now, new images right now, Attorney General Michael Mukasey leaving there, the hospital, George Washington University Hospital. See there -- waving and seemingly very peppy there in his steps.
He, in a statement, that was also released last hour, saying that he feels great. That his results from all of those tests were good, and that he feels fine, and he says he's also heading back to work at the Justice Department presumably as he gets into the vehicle there, heading right back over to the Justice Department to get back to work for a job he says he loves, as the U.S. attorney general.
Glad to hear that he has checked out OK after that very scary collapse last night. Some are saying was just a fainting spell last night while speaking to a legal group.
All right. Flooded by Katrina and a wave of violence, homicide detectives are trying to clean up the streets of New Orleans one crime at a time.
(COMMERCIAL BREAK)
WHITFIELD: It's a company that handles medical prescriptions for about one in every six Americans, and if you're among that group, be on guard. The company is being targeted by a shakedown and your personal information may be at stake.
Here now is CNN's Brian Todd.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT: An attempted shakedown of a company that handles about 500 million drug prescriptions a year for some 50 million people -- one out of every six Americans. Express Scripts, third largest processor of pharmacy prescriptions in the U.S. says, one or more extortionists are making an explicit threat if the company doesn't pay a certain amount of money.
UNIDENTIFIED MALE: This criminal has threatened to expose millions of patient records, and we're taking that very seriously. And we're doing everything we can to support our clients and our members in this situation.
TODD: An Express Scripts official sell tells us the extortionist as if to show they mean business sent the company a letter last month with the personal information of 75 members -- names, dates of birth, Social Security numbers, in some cases, prescription information. Letters were then sent to some of Express Scripts' clients.
The St. Louis based company handles prescriptions for entities like unions, employers, and health management companies. Express Scripts won't reveal what the letter said, won't say how much money the perpetrators want, but says it has no intention of paying.
RAY DICKENSON, INTERNET SECURITY EXPERT, AUTHENTIUM: I applaud them for not paying the ransom, and going public, and getting this into the hands of law enforcement, and informing their customers so each of their customers can do something about protecting any further damage from this breach.
TODD: Security experts say many companies do pay these ransoms.
Express Scripts tells CNN it's not sure how much data is actually been stolen, but doesn't have evidence yet that any personal information has been publicly exposed or otherwise misused aside from being included in those letter. Express Scripts says it's cooperating with the FBI in the case, and conducting its own investigation. The FBI won't comment.
(on camera): A company official says they're not ruling out the possibility of an inside job and they won't say if they think this information was stolen electronically. But Internet security experts say it's a safe bet that this material was hacked.
Brian Todd, CNN, Washington. (END VIDEOTAPE)
WHITFIELD: It's been more than three years since Hurricane Katrina wiped out law and order in New Orleans. The city still hasn't recovered. It has the highest murder rate in the nation and many residents are simply too afraid to return.
Our Soledad O'Brien spent time with some of the homicide detectives trying to clean up the streets one crime at a time.
SOLEDAD O'BRIEN, CNN CORRESPONDENT: Fred, our latest documentary focuses the spotlight on the city of New Orleans, a city that I love. And we had the opportunity to follow New Orleans police detectives as they try to deal with the crime problem there.
(BEGIN VIDEOTAPE)
O'BRIEN (voice-over): April 17th, Brian McEwen (ph) is murdered in broad daylight just one block from an elementary school. He had just turned 20.
On a big case like this, lead detective Harold Rashan (ph) and his partner, Anthony Pardo (ph), can expect to work a 30-hour shift.
UNIDENTIFIED MALE: The item number for the signal 30.
O'BRIEN: Signal 30, cop lingo for homicide.
UNIDENTIFIED MALE: He was shot multiple times.
UNIDENTIFIED MALE: Got it. Here we go.
O'BRIEN: There are witnesses, and plenty of evidence. AK-47 and 9-millimeter pistol rounds are scattered across the crime scene.
UNIDENTIFIED MALE: Whoever finds him first, we just got take him down.
O'BRIEN: Detectives Rashan and Pardo hope to make an arrest tonight. They go house-to-house in search of a murder weapon.
UNIDENTIFIED MALE: Could be a crack house, that could be a crack house.
UNIDENTIFIED MALE: Police.
UNIDENTIFIED FEMALE: Police.
O'BRIEN: Open doors lead nowhere. Around 3:00 a.m. -
UNIDENTIFIED MALE: It's over for tonight.
There are specific things that we need to do that can't happen tonight. It can only happen in the morning, and so we go home and refuel.
O'BRIEN: Rashan and Pardo run into a wall of silence.
(on camera): So, how many eyewitnesses would you estimate you had on this block?
UNIDENTIFIED MALE: For the information we received, that's probably maybe 15 people outside, 20 people.
O'BRIEN: Fifteen, 20 people?
UNIDENTIFIED MALE: Nobody will say anything.
O'BRIEN: Really? What do they tell you?
UNIDENTIFIED MALE: Didn't see anything.
O'BRIEN: Why do you think they are reluctant to talk?
UNIDENTIFIED MALE: Fear.
O'BRIEN: Yes. Retaliation?
UNIDENTIFIED MALE: Absolutely.
(END VIDEOTAPE)
O'BRIEN: Fred, the city has a new inspector general and much focus now, I think it's fair to say, on trying to figure how they can get a grip on the crime, really, literally, one crime at a time -- Fred.
WHITFIELD: All right. Thanks, Soledad.
Well, New Orleans may have survived Hurricane Katrina, but now -- crime, corruption, bureaucracy, all of that, threatening to bring it down. This Saturday and Sunday, CNN presents: "One Crime at Time," taking a critical look of the factors that plague New Orleans and endanger that city's future.
Well, American automakers come begging, Japanese carmakers are pushing ahead. It's all about taking a very different road.
(COMMERCIAL BREAK)
WHITFIELD: Today, a bit of much-needed calm on Wall Street. The turmoil hit a new landmark yesterday when the Dow tumbled more than 400 points for a second day in a row. Susan Lisovicz is at the New York Stock Exchange with a look at things.
Hi, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Fredricka.
Well, we've got some dipping of the toes in the water.
(LAUGHTER) LISOVICZ: I mean, not exactly a, you know, resounding rally that we've got here on Wall Street. On the other hand, it could signal a bottom, and a bottom would be very welcome news. I mean the Dow has lost 900 points this week. Last week the Dow closed at just about seven -- at 8,500. And right now we're looking at a level of 76 and change. So, you know, that's how far we've come, you know, so quickly.
One of the weights on the market, there you see the big board. Dow is up 80 points right now. But weighing on the Dow certainly is Citigroup. Once again, Citigroup shares are down 11 percent. There are reports that management told employees today on a global conference call that it won't sell Smith Barney or break up the company.
Let's give you some good news, though. Gap, the retailer, its shares are up 18.5 percent.
WHITFIELD: OK. That is good news. Yes.
LISOVICZ: It beat Wall Street estimates. This is a retailer, folk, and it beat Wall Street's estimates on its quarterly profits. I have to say, not because of improved sales, but tighter inventory controls. But, yes, that's what happens when times get tough.
And let me mention one other bright spot. H.J. Heinz. You know it. You love it. It makes ketchup. It has Ida French fries. Lots of other things. Its quarterly profit grew more than 20 percent. More people are eating at home. That's a company that's benefiting.
WHITFIELD: Interesting. And making that ketchup go a long way by trying to make everything taste good.
LISOVICZ: Nobody's cutting back on ketchup, it would seem, after you look at their quarterly statement.
WHITFIELD: All right. That's good news. I like that. Thanks so much.
LISOVICZ: You're welcome, Fred.
WHITFIELD: A little food for thought there.
All right. Well, with all of that rather grim news, the 2009 Los Angeles Auto Show still opening today, with U.S. car sales coming off their worst month in a quarter century. So what is there to be revved up about anyway?
CNN's Ted Rowlands live from Los Angeles at the convention center there and behind the wheel.
TED ROWLANDS, CNN CORRESPONDENT: Yes. Fredricka, if you can't get revved up about this, boy, you can't get revved up about much. This is a 2010 Ford Mustang.
WHITFIELD: Oh, yes. ROWLANDS: Normal years we'd be going, yes, that thing is beautiful.
WHITFIELD: Yes, it's gorgeous.
ROWLANDS: And normally we'd be going through it and showing you all it has to offer and we'd be talking about how fantastic it is. And people would be coming here talking about how fantastic it is. And that's what Ford is hoping will happen.
But the reality is, there is a huge black cloud over this auto show because you've got the big three asking for money, begging for money, just to stay alive. And that really is the reoccurring theme here. Sort of the underlying sense of doom, really, in the auto industry. And, you know, there's also a sense of, well, the show must go on.
Ford, you can see, has a huge display. GM, on the other hand, really pulled out of this show for the most part. They do have some cars here but they have not had any big unveilings. They haven't done the normal things. The parties. Not the big parties. They don't have all of the extras that normally go along with car shows.
And the L.A. car show is the first of the series of car shows in the year. This is when they really wet the appetite of consumers. Bottom line is, do the consumers have the money or the desire to buy a car in this next year? That's the big question. Experts say, when we break out of this recession, the auto industry's going to be different and you can already feel it, especially here at this car show.
(BEGIN VIDEO CLIP)
PATRICK OLSEN, CARS.COM: Yes, I think that the automakers want to put on their best face. They want to show off their stuff as best as possible. But they're completely cognizant that people are worried about their jobs. People want better gas mileage. And in L.A. they tend to throw out the hybrids and the more fuel-efficient cars. But there's a lot this bit of undercurrent that is, we don't want to make to much noise. We're not handing out trinkets. We're not doing the things we uses to do because we're trying to, you know, rein in the costs.
(END VIDEO CLIP)
ROWLANDS: Fredricka, the things that are making or getting people's attention, the hybrids. Again, driving green. This is the Ford Fusion hybrid. Other cars that are making a bit of an impact, a bit of a splash, include the Mini Cooper, electric Mini Cooper. People really gravitating towards that. But the bottom line, a much different celebration, if you will, here at the L.A. car show. A real sense of impending doom.
WHITFIELD: Yes. And in California, where everybody -- especially southern California -- where everyone relies on a vehicle, you got to wonder, you know, if there are going to be a lot of folks lining up to get into the auto show this year -- unless something different is being offered. More hybrids. More fuel efficiency.
ROWLANDS: Yes. And, you know, and if they deliver with those products, the next question is, will consumers be there to buy them, at least in the short term?
WHITFIELD: Yes, will they have the money, get the loans.
All right, Ted Rollins, thanks so much. Appreciate it.
ROWLANDS: Yes.
WHITFIELD: All right. So while Detroit automakers are asking for a taxpayer lifeline, Japan now is in the fast lane toward the future. Here now is CNN's Kyung Lah in Tokyo.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT, (voice over): Step into Toyota's car theme park and you can see the future now.
PAUL NOLASCO, TOYOTA SPOKESMAN: It kind of represents part of our company's thinking towards what would be the ideal car of the future.
LAH: This is Toyota's IQ. New to the Japanese market this week with an eye to smaller, thinner, more compact, without compromising the space or feel of a real car. A true back seat. And second only to the Prius in fuel efficiency without being a hybrid.
NOLASCO: But it really starts with a way of thinking and looking at limited resources in the future.
LAH: Everywhere you look, creations of Toyota's imagination. A hydrogen car. A clean diesel car that remembers what kind of music you like to listen to. Even the single person Uber (ph) mobile car.
If you think this is far flung, the Prius, if you remember, was once futuristic. Now there's so many hybrids, Toyota could pack this corner and call it a wonderland.
U.S. automakers have drive an different route, building high profit margin SUVs and pickup trucks. Burdened by legacy costs, the big three haven't invested as much in research and development on small, fuel-efficient cars. Analysts say that puts them decades behind Japanese automakers.
KOJI ENDO, AUTO INDUSTRY ANALYST: They never changed basically (ph). That's why they are now facing this tough time. They just kept on keeping their business model. In other words, relying primarily on the SUVs and pickup trucks. Never looking at the small cars.
LAH: It's why even as Toyota experiences historic earnings losses and looks at cost-cutting across the board, research and development won't see cutbacks.
UNIDENTIFIED FEMALE: Even though the stock price is hurting, even though capital is diminishing in the United States, you're still investing?
UNIDENTIFIED MALE: We are investing in the future. Toyota has a very long-term vision. We're thinking decades at times down the road and we want to be at a certain place at a certain time, whether it's 20 or even 30 years from now. We know we have to start now.
LAH: So here's the concept that Toyota is playing with. This is the all-electric car. It drives by itself. It steers. You don't have to accelerate or brake. So is this something that you'll go out and buy tomorrow? No. But does Toyota believe that the research and development into something like this will pay off some day? Maybe.
It's a belief system shared by all Japanese automakers. Nissan continues to build its car that tells you if you're too drunk to drive.
UNIDENTIFIED FEMALE: The sensor has detected alcohol.
LAH: And Honda is pushing forward on mass production of its hydrogen fuel cell vehicle. A business model that's paid off for the Japanese company and one they're betting will pull them through this global economic slowdown and put them on the road to recovery.
Kyung Lah, CNN, Tokyo.
(END VIDEOTAPE)
WHITFIELD: A Louisiana man getting a lifetime of extra minutes from his cell phone. We'll tell you about his close call.
(COMMERCIAL BREAK)
WHITFIELD: A Louisiana man had a close call while mowing his lawn. A bullet, no one knows where it came from, hit him in the chest. Well, he could have been killed, but he's still here because of his cell phone. Here now is Heath Allen of affiliate WDSU.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: A woodpecker, like that.
R.J. RICHARD, SHOOTING VICTIM: When this thing hit me, it hit with such force that I thought it popped up from the lawn mower some kind of way.
HEATH ALLEN, WDSU: As R.J. Richard cut grass, something slammed into his chest. A large caliber bullet.
R. RICHARD: I'm very glad to tell the story, not be the story.
ALLEN: It was the ultimate cell phone wake-up call. That stray bullet him hit squarely in the Motorola. Normally in his pocket, but this day over his heart.
R. RICHARD: They said, if your cell phone wouldn't have been there and if it would have hit you straight on, you'd be totally dead, because that's where my heart is.
MINDY RICHARD, WIFE OF SHOOTING VICTIM: R.J. said, well I've been shot. And I said, don't tease like that. That is not funny.
ALLEN: Wife Mindy drove up shortly after and it took a while for the truth to sink in.
M. RICHARD: I just burst into tears. I could not believe it.
ALLEN: The close call on the eve of this holiday season has the Richards holding on to each other just a bit more tightly these days.
R. RICHARD: It increased my faith. I hopefully am more humble. Hopefully will love my wife more and quicker.
M. RICHARD: He is! Ever since Saturday, he's been doing so much more, right. I can't get over it.
ALLEN: And what better time of year is there, really, for a miracle?
R. RICHARD: We've got a lot to be thankful for this Thanksgiving especially.
(END VIDEOTAPE)
WHITFIELD: Well, here's something that we all thought we might never see again, gas below $2 a gallon. Well, but does this mean that cheaper gas could spell for the end the electric car? Stephanie Elam has our "Energy Fix" from new York.
Hello to you.
STEPHANIE ELAM, CNN CORRESPONDENT: Hello to you, Fred.
Yes, no, it hasn't happened since March of 2005. The national average for a gallon of regular gas is below $2. We all know that and we're all loving it. AAA puts it at just under $1.99 to be exact. That's less than half of what it was last summer. And some energy analysts expect prices to keep on falling. One we talked to said the national average could bottom out at $1.75 and even lower in states like New Jersey and Texas. That's certainly welcome news for the 41 million Americans planning to hit the road this Thanksgiving -- Fredricka.
WHITFIELD: Yes. And now people can say, hey, I can afford to hit the road.
ELAM: True.
WHITFIELD: But then I wonder, I mean just as we're trying to celebrate that, there has been so much talk about getting onboard with the next generation of energy efficient cars, you know, hybrids, et cetera. So now with lower gas prices, does that kind of toss that out of the window? ELAM: Not at all. Definitely not. No, the innovation must continue. But let's just assume that GM survives. The company still plans to bring in the plug-in Chevy Volt to showrooms in 2010. There you go. It's kind of a nifty looking car. It can go 40 . . .
WHITFIELD: Yes, kind of funky.
ELAM: Yes, it's funky. Funky's a good word.
It could go about 40 miles without a drop of gas. And one city is very welcome -- ready to welcome it. The San Francisco Bay area is working with a start-up company called Better Place to get the need infrastructure in place. The city wants to become the electric car capital of the United States.
WHITFIELD: Really?
ELAM: Better placed plants -- I know. That's quite a feat, right? But . . .
WHITFIELD: Were do you park them, you know? Parking's a problem in San Francisco, isn't it?
ELAM: Parking is a problem in the bay area.
WHITFIELD: You're a bay babe. You know that.
ELAM: I am a bay babe. And it's very beautiful, though. So you can handle the weather a little bit better (INAUDIBLE).
WHITFIELD: Yes.
ELAM: But a better place plan to invest $1 billion to install 250,000 charging stations by 2012. So if you can't find parking, hopefully you can find charging. The electric outlets will be near homes, businesses, parking lots and government buildings. And get this, Fred, the company also wants to build hundreds of roadside battery switching stations. That's where drivers . . .
WHITFIELD: (INAUDIBLE).
ELAM: I know. But that's . . .
WHITFIELD: Now it's starting to sound expensive to me. Saving money on one end, but now it's getting a little costly. It's probably just me.
ELAM: It's probably going to be costly. But driving has never been cheap. Driving has never been cheap, Fred. Where did you get that idea?
WHITFIELD: I know. What was I thinking? Walking is cheap.
ELAM: Yes, walking is cheap. And riding a bike is cheap too. But, you know, if you've got a battery in your car, you're going to have to switch it out and get a charged one. So you can do that then. WHITFIELD: Oh, gosh, it's getting way too complicated for me.
ELAM: Yes, I know. It's complicated for a lot of people. But you're not going to be the one actually doing the switching out, Fred.
WHITFIELD: Oh, oh, I see. OK. Well, now I'm onboard again. OK. Thanks.
ELAM: Oh, you're back on? OK. Good.
WHITFIELD: Yes.
ELAM: Well, it could become a reality if GM does survives until the 2010 launch of the Chevy Volt. Of course, if you want more information about this or if you just want to know more about how beautiful San Francisco is, you can always ask me. But you can go to cnn.com, Fred, to get more information on that.
WHITFIELD: Right. Forget the chamber of commerce. Just call Stephanie Elam.
ELAM: Just call Stephanie. I'm a big fan of the bay area.
WHITFIELD: OK. All right. Thanks so much, Stephanie. Appreciate it.
All right. Well this is flying off the grocery shelves. Spam. You may be surprised at how popular it's actually becoming again.
(COMMERCIAL BREAK)
WHITFIELD: All right. Barack Obama talked about change. But before taking the oath, there are signs of business as usual in the nation's capital.
CNN's Drew Griffin tells us about that.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT, (voice over): You may not know Ric Fenton, but you can bet the freshman Democrats in Congress who turned out at Democratic Party headquarters might not forget him. Fenton is a lobbyist who unabashedly showed up at a fund- raiser introducing the newest Democratic members of Congress to how the old boys do business.
Is this cynically buying access?
RIC FENTON, LOBBYIST, KLEIN AND SAKS GROUP: No. Absolutely not. We're just educators. We provide an important function, as an education function.
GRIFFIN: Fenton is a lobbyist who educates members of Congress on mining interests. He was one of a string of lobbyists and political action committee contributors who responded to this invitation to a new member debt retirement reception. There was even a suggested contribution amount from $2,500 to $20,000 and a dance card. So you, the contributor, can make sure you don't miss anyone.
How much money are you giving today?
FENTON: I think we're giving $5,000.
GRIFFIN: To one or a bunch . . .
FENTON: No. To several. We go through that fairly thoroughly.
GRIFFIN: Oh, is that right?
Keeping them honest, we watched who went to the early morning breakfast, which was sponsored by Congressman John Dingell, who didn't talk to us, and Congressman Nick Rahall, who did.
It seems like the same old business as usual. Retire the debt and introduce the new members to the old pac money.
REP. NICK RAHALL, (D) WEST VIRGINIA: Well, do you have an alternative?
GRIFFIN: If this looks, sounds and seems like old-fashioned pay to play politics, that's because Joan Claybrook of the watchdog group Public Citizen says, well, it is.
This is change?
JOAN CLAYBROOK, PUBLIC CITIZEN: Yes, right. This is the old boy network at work. This is all strings attached. They know who gave the money. And when the key issues come up, key bills, key amendments, these members are going to be approached by these special interests and asked to vote with them because they gave them money.
GRIFFIN: Majority Leader Steny Hoyer, with his arm around the newest member of Congress from Michigan, told us it's way overplayed. Members of Congress vote in their donors' interest.
So what do these people who come here with the $5,000 and $10,000 checks, what are they getting if they're not getting access and votes?
REP. STENY HOYER, (D) MAJORITY LEADER: Well, of course they're getting access. Just as a citizen gets access when they go to a town meeting and spend some time there. Or when they volunteer in a campaign. They have an ear that they can talk to. That's true. But the fact is, you'd be surprised at how many people in this room are Democrats first and interest representatives second.
GRIFFIN: No one is saying just how much money was raised.
So did you get a lot of money?
But those new Democrat, who may have come to Washington with change on their minds, at least left the DNC with some change in their pockets, too.
Drew Griffin, CNN, Washington. (END VIDEOTAPE)
WHITFIELD: And while some are out of work, employees at are Hormel plant in Austin, Minnesota, are working overtime. They're working around the clock to meet the increased demand for, of all thing, Spam. Our Veronica De La Cruz joins us with some explanation on this.
Do you like Spam?
VERONICA DE LA CRUZ, CNN CORRESPONDENT: You know, I actually do. I actually do. And, of course, we're not talking about the spam that lands in your e-mail in-box, right, Fred?
WHITFIELD: Right. Of course not.
DE LA CRUZ: Right. Right. And in case you aren't familiar, we're talking about the canned lunch meat. The one that's made by Hormel. And, Fred, like you were just saying, the Hormel factory in Minnesota has been cranking it out. Employees have been working seven days a week four months straight just to keep up with the demand.
WHITFIELD: Wow.
DE LA CRUZ: And, of course, Fred, it's all because of the economy. As consumers trying to tighten their belts. They're looking for cheaper meal alternatives. And Spam is cheap. It comes in an airtight container and it practically lasts forever. Hormel says -- get this. Hormel says you can think of it as meat with a pause button. Hmm. Meat with a pause button. Hmm, sounds good, right? You know, Fred, demand has been so great that one California store says they're having trouble keeping the shelves stocked. And now that they've finally caught up, they're offering Spam recipes with a purchase. Spam recipes with a purchase.
WHITFIELD: OK. Well, that's good. Well, I'm not going to poo, poo Spam. I know I've liked it for a long time. Fried especially when I did like it.
DE LA CRUZ: No, I like it fried too. This is Austin, Minnesota, where the Hormel plant is based. There you find 13 restaurants with Spam on the menus, including this one, Johnny's, seen here on this photo. This is "The New York Times" Web site.
And check this out, Fred. Here's a blogger talking all about the various ways that Spam can be prepared. Spam burgers. There's maybe Spam pizza. That doesn't look to good.
WHITFIELD: That's a harsh picture.
DE LA CRUZ: That doesn't look to good. Yes, I don't think that one looks good.
WHITFIELD: I don't know about that photo.
DE LA CRUZ: There's Spam pizza, which looks a little bit better. Maybe like a Hawaiian pizza, right?
WHITFIELD: OK. Good. Yes.
DE LA CRUZ: And then check that out.
WHITFIELD: Spam sushi?
DE LA CRUZ: Spam musabi (ph). Spam sushi.
WHITFIELD: OK.
DE LA CRUZ: Spam sushi. And there's even a Spam restaurant in the Philippines. It's called Spam Jam.
WHITFIELD: Oh, that's cute. That's cute.
DE LA CRUZ: Check that out. There it is in a mall.
Speaking of which, Fred, it's still a popular breakfast dish in the Philippines. In the morning it's not uncommon to have thinly sliced Spam with rice and eggs. You can have it fried, the way you like it. In fact, lots of Filipinos actually eat it morning, noon and night. And because it was a food that was popular during wartime, so my mom, who grew up in Manila (ph), says, check this out. It wasn't uncommon to find Spam buried in the ground.
WHITFIELD: Of course, in its container.
DE LA CRUZ: Of course. And she says it was because her aunts would say that U.S. troops would bury stashes of it because it would never go bad, right? It's meat with a pause button, if you will.
So let's get back to our Facebook question today.
WHITFIELD: Meat with a pause button. I like that.
DE LA CRUZ: I know, it sounds disgusting, doesn't it? So we're asking you . . .
WHITFIELD: Maybe not really that appetizing.
DE LA CRUZ: I know. But we're asking you, how are you cutting back this holiday season? Maybe it's eating more Spam. Maybe it's just not spend as much on holiday gifts? Of course, you can log on to our Facebook group. Join in on the discussion. Search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris. You can also find me on Twitter at veronicadlcruz.
And, yes, I like Spam. I like it.
WHITFIELD: I liked it too.
DE LA CRUZ: My mom still cooks it when I go home. So it's a home-cooked meal for me.
WHITFIELD: That's nice. A nice tradition. Well, you know, whole new meaning to spamallot. Now it's spamallot again.
DE LA CRUZ: There you go.
WHITFIELD: Get it.
DE LA CRUZ: Got it.
WHITFIELD: All right. Thanks, Veronica. Appreciate it.
All right. Well some people saw it as a presidential snub. You know you did, too. But things aren't always as they seem. Our Jeanne Moos shakes out the truth.
(COMMERCIAL BREAK)
WHITFIELD: All right. You may have seen the video of world leaders seeming to shun President Bush by not shaking his hand. But don't believe everything you see.
Our Jeanne Moos explains.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT, (voice over): This is the story of the snub that wasn't. Take one unpopular American president hosting a summit, surround him with world leaders shaking hands with everyone but him, the next thing you know it's the diss heard around the blogosphere, linked back to CNN.
RICK SANCHEZ, CNN ANCHOR: I want you to look at this video. All right? It seems almost sad.
MOOS: "The Daily Show" played it as the show closing moment of zen. The White House probably wasn't feeling so zen when it heard interpretations like this . . .
SANCHEZ: And he seems like the most unpopular kid in high school that nobody liked. You know, the one with the cooties.
MOOS: Cooties? You can't shrug off cooties.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: How are you doing?
Good morning, my friends.
Stephen, how you doing?
UNIDENTIFIED MALE: Fine.
BUSH: Good. Thank you.
MOOS: Turns out the president had already shaken everybody's hand earlier that same day. In fact, he'd shaken most of their hands twice, starting the day before. Responding to the, where's the love, perceived snub, the White House noted, "the president had already greeted all of those leaders prior to this picture, whereas the other leaders had not had the opportunity to greet each other yet that morning."
When it comes to diplomatic protocol, there is one unshakable rule -- shake hands no matter how much you like or dislike a leader unless you're outright enemies.
The snub that wasn't occurred as the leaders were lining up for a group photo. They took the picture and then had to turn around and do it again because Argentina's first female president arrived late. Oops. Take two.
Despite the snubber and chief talk, there was plenty of back slapping and patting at this summit. As for likening the president to . . .
SANCHEZ: The one with the cooties.
MOOS: Tell that to Italy's prime minister. He and President Bush palled around like a couple of old coots.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: Well, there's no snubbing of my girl, Kyra Phillips. She's (INAUDIBLE).
KYRA PHILLIPS, CNN ANCHOR: And we are not old coots. Let's make that clear.
WHITFIELD: Oh, no. We'll hold hands.
PHILLIPS: Yes, we will.
WHITFIELD: All right. You have a great day.
PHILLIPS: You're such a class act, you know that?
WHITFIELD: Oh, you're such a doll. Have a great day.
PHILLIPS: All right. Here we go. Thanks, Fred.
