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Obama's Economic Team; The Obama Money Team; When Cupboards are Bare
Aired November 24, 2008 - 11:59 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. I'm Tony Harris. And here are the headlines from CNN for this Monday, the 24th day of November, 2008.
The president-elect unveils his money team this hour. Live coverage straight ahead. We will ask our guests what the chosen ones bring to the table in this time of crisis.
More and more people lose their jobs and turn to food banks for help, but nowadays you can count food banks among the needy.
Zimbabwe refuses to let a former president and other VIPs into the country on a humanitarian mission. Jimmy Carter talks to CNN International -- in the CNN NEWSROOM.
All right. Introducing his money team. We are standing by for a news conference by President-elect Barack Obama. He will officially name the members of his economic team and discuss his plans for dealing with the country's financial mess.
Ed Henry is in Chicago covering the president-elect. He joins us live.
Ed, good to see you again.
We'll get introductions, I'm sure. But also, will we get an opportunity for folks like you to ask some questions here?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That is the big, most important question, will we get to ask questions? We're being told there may be an opportunity for a few questions after the president- elect lays out officially his economic team, and after they make some opening statements about what they hope to do in the days ahead, and perhaps a few questions after that.
Obviously, a lot of people want to ask about some of the details of his economic plan. Over the weekend, there was sort of a tantalizing tease from the president-elect about how he wants to create 2.5 million jobs over the first two years of his administration, but he really did not give a lot of details beyond saying he wants to increase the number of infrastructure projects, create some more of those so-called green jobs through renewable energy and whatnot. So we want to flesh out the details on that, but also how he's planning to pay for this large economic stimulus plan that they're now talking about. You'll remember during the campaign, Barack Obama spoke about a stimulus plan in the neighborhood of $175 billion. Now some senior Democrats on the Hill and elsewhere are suggesting maybe the price tag will be anywhere from $500 billion to $700 billion over two years as this financial crisis deepens.
We're obviously trying to press for more details on how much it will cost, but also how they'll pay for it. On top of all these other bailouts we're hearing about, from Citigroup on to that big $700 bailout, all the ones that have come before -- and also, don't forget about the auto bailout.
HARRIS: That's right.
HENRY: That's still on the table, has not gone through. But in the neighborhood of $25 billion. There's obviously a lot of debt piling up -- Tony.
HARRIS: OK, Ed. Just give us a heads up when you get word that the president-elect and his team, that they are on their way.
Ed Henry in Chicago for us.
Now let's turn to the CNN money team for some insight on the players and their roles -- CNN's Christine Romans and Chief Business Correspondent Ali Velshi.
Good to see you both.
And Susan Lisovicz live from the New York Stock Exchange.
OK, Christine and Ali, let me start with you.
What does this new team -- and maybe we can go through some of the names here -- take a couple of minutes here, talk about the team members that we are aware of right now, and talk about what this team needs to do. We hear anything from a $500 billion to $700 billion stimulus package.
Does that sound like the right approach to you?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: At least $500 billion to $700 billion is what my sources are telling me. I mean, they say that we're going to have to spend an awful lot of money in the very near term to get out of all this trouble the economy is in. And then longer term, they've got to step back and figure out how to get us out of it.
Geithner, Timothy Geithner, at 47, relatively young, but he's a real grownup. He's somebody who knows how to work with a lot of the people in the room. Larry Summers, brash, but brilliant. He says what he thinks and sometimes gets himself in trouble for it, but he is seen as a preeminent economist in this country. He's got history, you know, as a former treasury secretary in 1999 to 2001.
He and Geithner both worked at Treasury under Clinton, and Geithner...
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: And he was Geithner's boss.
ROMANS: That's right.
VELSHI: He was Geithner's boss at Treasury. And, by the way, Geithner has been involved in every one of these weekend marathon sessions with a bank where we've talked about bailing them out. So he's often seen as a guy who is intricately connected to Wall Street, and yet not of Wall Street.
HARRIS: Well, let me ask you, does he have -- we just received the two-minute warning here.
Does Timothy Geithner have the right experience? It's hard to imagine someone getting this job, leading Treasury, without a doctorate degree in economics. But he doesn't have that, but he has a lot more on his resume than you might think.
What do you think of his qualifications?
ROMANS: He's got a lot of international experience.
HARRIS: Yes.
ROMANS: He's got a lot of experience going through crises before at his term at Treasury, for the international experience he had. There were all kinds of things that were going on.
VELSHI: Yes.
(CROSSTALK)
ROMANS: There was the Mexican peso crisis. Lots of things have happened.
VELSHI: He also intimately knows all the players involved in this thing. He has no learning curve. He can get right up to speed.
So at this point, there might be more pragmatism involved. I think you look for three things in a treasury secretary. You look for ability, pragmatism, and creativity.
We don't know where he is on the creativity side because we don't know as much about him, but we do know that he's got pragmatism and he's got ability given his experience. He is the president of the New York Federal Reserve, which has been the conduit between sort of the money that's coming from the Fed and the New York banks. So he knows exactly what has been going on. That might work to his disadvantage in a confirmation.
ROMANS: Right. Right.
VELSHI: You know, you were there when all this was going on. HARRIS: That's right. So I'm imagining the scene behind the president-elect and his financial team, and some might wonder, is it time for that team to actually move into place? And I'm thinking about Timothy Geithner.
So, Secretary Paulson signals hands off, I'm not spending anymore money. That was a week or so ago. The markets tanked. Citi, as you know and we've reported, crashes a bit.
Is it time for Timothy Geithner, for this financial team, to take more of a hand in the shaping of -- I guess the question, is there a vacuum forming here?
ROMANS: No, there isn't, because Timothy Geithner has been involved all this year on this crisis, and that's one thing that Wall Street really likes. They like the fact that there's no, as they call it, transition paralysis.
This is the guy this weekend who's helping craft the Citigroup rescue who's now going to be Obama's treasury secretary. There is no vacuum.
And a quick point I want to make, too, is that, you know, the treasury secretary today, Paulson, he can still go back and spend more money. He has got to ask Congress for it. And last week, he certainly signaled that he wasn't going to. But something big and ugly happened...
And do you agree with me on this?
VELSHI: Yes.
ROMANS: Something big and ugly happened.
VELSHI: They're still the folks in charge.
ROMANS: Yes. There's more money for them to deploy. And they will if they have to.
VELSHI: But it's going to be very easy for Henry Paulson to work with Tim Geithner as he comes in because they've been working together all the time.
HARRIS: Yes.
VELSHI: So I think at this point what you'll see is you'll see Geithner being added to the group of decision-makers here. And he's been a decision-maker already so far. So I think that's what you need right now.
What this country needs is some continuity of thought. I think there's some people who don't like the way this Treasury has been dealing with things, but at least we have continuity for the moment.
HARRIS: And let's bring in Susan Lisovicz. Susan, in this news conference that's about to start shortly here, the president-elect wants to do what, assure investors that he is working, that his team are working, reassure investors that we are on the case? We are seeing a nice rally here, a 300-point-plus rally here for the Dow.
Is that part of what we're seeing here as the team members walk on to the stage? The optics are important here?
SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: No question about it. It comes at the most sensitive time.
Here we are, the worst financial crisis since the Great Depression, and you have an outgoing president, incoming president, two long months in which many, many things can happen. You're starting to get answers. And Tim Geithner, as an example, to be the most pivotal member of the economic team, was...
HARRIS: Awesome. And Susan, let's take everyone to Chicago and we'll talk to you again shortly.
(JOINED IN PROGRESS)
BARACK OBAMA, PRESIDENT-ELECT: The news this past week, including this morning's news about Citigroup, has made it even more clear that we are facing an economic crisis of historic proportions.
Our financial markets are under stress. New home purchases in October were the lowest in half-a-century. Recently, more than 500,000 jobless claims were filed, the highest in 18 years.
And if we do not act swiftly and boldly, most experts now believe that we could lose millions of jobs next year.
While we can't underestimate the challenges that we face, we also can't underestimate our capacity to overcome them, to summon that spirit of determination and optimism that has always defined us, and to move forward in a new direction to create new jobs, reform our financial system, and fuel long-term economic growth.
We know this won't be easy, and it won't happen overnight. We'll need to bring together the best minds in America to guide us, and that is what I've sought to do in assembling my economic team.
I've sought leaders who could offer both sound judgment and fresh thinking, both a depth of experience and a wealth of bold, new ideas, and most of all who share my fundamental belief that we cannot have a thriving Wall Street without a thriving Main Street, that in this country we rise or fall as one nation, as one people.
Today, Vice President-elect Biden and I are pleased to announce the nomination of four individuals who meet these criteria to lead our economic team: Timothy Geithner as secretary of treasury; Lawrence Summers, as the director of our National Economic Council; Christina Romer, as chair of the Council of Economic Advisers; and Melody Barnes, as director of domestic -- the Domestic Policy Council. Having served in senior roles at Treasury, the IMF, and the New York Fed, Tim Geithner offers not just extensive experience shaping economic policy and managing financial markets; he also has an unparalleled understanding of our current economic crisis in all of its depth, complexity and urgency.
Tim will waste no time getting up to speed. He will start his first day on the job with a unique insight into the failures of today's markets and a clear vision of the steps we must take to revive them.
The reality is that the economic crisis we face is no longer just an American crisis; it's a global crisis. And we will need to reach out to countries around the world to craft a global response. Tim's extensive international experience makes him uniquely suited to do that work.
Growing up partly in Africa and having lived and worked throughout Asia, having served as undersecretary of the treasury for international affairs, one of the many roles in the international arena, and having studied both Chinese and Japanese, Tim understands the language of today's international markets in more ways than one.
OBAMA: Tim served with distinction under both Democrats and Republicans and has a long history of working comfortably and as an honest broker on both sides of the aisle.
With stellar performances and outstanding results at every stage of his career, Tim has earned the confidence and respect of business, financial and community leaders, members of Congress, and political leaders around the world. And I know he will do so once again as America's next treasury secretary, the chief economic spokesman for my administration.
Now, like Tim, Larry Summers also brings a singular combination of skill, intellect and experience to the role he will play in our administration. As undersecretary, deputy secretary, and then secretary of the treasury, Larry helped guide us through several major international financial crises and was a central architect of the policies that led to the longest economic expansion in American history, with record surpluses, rising family incomes, and more than 20 million new jobs.
He also championed a range of measures, from tax credits to enhanced lending programs to consumer financial protections, that greatly benefited middle-income families.
As a thought leader, Larry has urged us to confront the problems of income inequality and the middle-class squeeze, consistently arguing that the key to a strong economy is a strong, vibrant, growing middle class. This idea is at the core of my own economic philosophy and will be the foundation of all of my economic policies.
And as one of the great economic minds of our time, Larry has earned a global reputation for being able to cut to the heart of the most complex and novel policy challenges. With respect to both our current financial crisis and other pressing economic issues of our time, his thinking, writing and speaking have set the terms of the debate.
I'm glad he will be by my side, playing the critical role of coordinating my administration's economic policy in the White House, and I will rely heavily on his advice as we navigate the uncharted waters of this economic crisis.
As one of the most expert people in America on economic crises and how to solve them, my next nominee, Christina Romer, will bring a critically needed perspective to her work as chair of my Council of Economic Advisors.
Christina is both a leading -- both a leading macroeconomist and a leading economic historian, perhaps best known for her work on America's recovery from the Great Depression and the robust economic expansion that followed.
Since 2003, she's been co-director of the National Bureau of Economic Research Monetary Economics program. She's also a member of the bureau's Business Cycle Dating Committee, the body charged with officially determining whether a recession has started and ended, experience which will serve her well as she advises me on our current economic challenges.
Christina has done groundbreaking research on many of the topics our administration will confront, from tax policy to fighting recessions. And her clear-eyed, independent analyses have received praise from both conservative and liberal thinkers alike. I look forward to her wise counsel in the White House.
Finally, we know that rebuilding our economy will require action on a great variety of fronts: from education and health care to energy and Social Security. Without sound policies in these areas, we can neither enjoy sustained economic growth nor realize our full potential as a people.
So I am extraordinarily pleased that Melody Barnes, one of the most respected policy experts in America, will serve as my director of domestic -- the Domestic Policy Council, and that she will be working hand in hand with my economic policy team to chart a course to economic recovery.
An integral part of that course will be health care reform, and she will work closely with my secretary of health and human services on that issue.
As executive vice president for policy at the center of -- at the Center for American Progress, Melody directed a network of policy experts dedicated to finding solutions for struggling middle-class families.
She also served as chief counsel to the great Senator Ted Kennedy on the Senate Judiciary Committee, working on issues ranging from crime to immigration to bankruptcy, and fighting tirelessly to protect civil rights, women's rights, and religious freedom.
Melody's brilliant legal mind and her long experience working to secure the liberties on which this nation was founded, as well as to secure the opportunities for those who've been left behind, make her a perfect fit for DPC director.
OBAMA: I am grateful that Tim, Larry, Christina and Melody have accepted my nomination, and I am looking forward to working closely with them in the months ahead. And that work starts today, because the truth is, we do not have a minute to waste.
Right now, our economy is trapped in a vicious cycle: the turmoil on Wall Street means a new round of belt-tightening for families and businesses on Main Street, and as folks produce less and consume less, that just deepens the problems in our financial markets.
These extraordinary stresses on our financial system require extraordinary policy responses. And my administration will honor the public commitments made by the current administration to address this crisis.
Further, beyond any immediate actions we may take, we need a recovery plan for both Wall Street and Main Street, a plan that stabilizes our financial system and gets credit flowing again, while at the same time addressing our growing foreclosure crisis, helping our struggling auto industry, and creating and saving 2.5 million jobs, jobs rebuilding our infrastructure, our roads, our bridges, modernizing our schools, and creating the clean energy infrastructure of the 21st century.
Because at this moment, we need to restore both confidence in the markets and restore confidence of middle-class families, who find themselves working harder, earning less, and falling further and further behind.
I've asked my economic team to develop recommendations for this plan and to consult with Congress, the current administration, and the Federal Reserve on immediate economic developments over the next two months.
I've requested that they brief me on these matters on a daily basis. And in the coming weeks, I will provide the American people and the incoming Congress with an overview of their initial recommendations.
It is my hope that the new Congress will begin work on an aggressive economic recovery plan when they convene in early January so that our administration can hit the ground running.
With our economy in distress, we cannot hesitate and we cannot delay. Our families can't afford to keep on waiting and hoping for a solution. They can't afford to watch another month of unpaid bills pile up, another semester of tuition slip out of reach, another month where, instead of saving for retirement, they're dipping into their savings just to get by. And I want to repeat: This will not be easy. There are no shortcuts or quick fixes to this crisis, which has been many years in the making, and the economy is likely to get worse before it gets better. Full recovery will not happen immediately.
And to make the investments we need, we'll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices, as well, something I'll be discussing further tomorrow.
Despite all of this, I am hopeful about the future. I have full confidence in the wisdom and ingenuity of my economic team and in the hard work, courage, and sacrifice of the American people.
And most of all, I believe deeply in the resilience and the spirit of this nation. I know we can work our way out of this crisis because we've done it before. And I know we will succeed once again if we put aside partisanship and politics and work together. That's exactly what I intend to do as president of the United States.
With that, I'm happy to take a few questions.
QUESTION: (OFF-MIKE) wondering if you could give us some details (OFF-MIKE) stimulus package, how much it's going to cost, where the money's going to come from, and when do you want to see it enacted?
OBAMA: I want to see it enacted right away. It is going to be of a size and scope that is necessary to get this economy back on track.
I don't want to get into numbers right now. Part of the task of this economic team behind me is to help to shape the details of that plan, in consultation with Congress, the Federal Reserve, and businesses, and -- and thinkers across the country.
But I think the most important thing to recognize is that we have a consensus, which is pretty rare, between conservative economists and liberal economists, that we need a big stimulus package that will jolt the economy back into shape and that is focused on the 2.5 million jobs that I intend to create during the first part of my administration. We have to put people back to work.
Now, that runs in parallel with making sure that our financial system is stable. And so we're going to have to do more than one thing at a time.
But across the board, people believe that this stimulus is critical.
OBAMA: And the first job of my economic team is to shape that economic stimulus package so that it is delivering on the 2.5 million jobs that we talked about and is also providing a down payment on the long-term strategies we need in terms of making this economy work for all Americans.
That means we have to invest in clean energy. We're going to have to invest in the systems in our -- in health care that can reduce costs for families and for businesses. It means that we're going to have to invest in the education system to ensure that we're competitive over the 21st century.
So not only do I want this stimulus package to deal with the immediate crisis, I want it also to lay the groundwork for long-term, sustained economic growth.
QUESTION: (OFF-MIKE) question is about taxes. Will you let the Bush tax cuts expire at the end of 2010 or will you use legislation to repeal them before that?
OBAMA: Well -- well, I said during the campaign that my plan represented a net tax cut. And that's important to remember: 95 percent of workers in this country would receive a net tax cut under my plan.
Now, the reason that's important is not only is that good for families who are struggling, but it's also part and parcel of what we need when it comes to stimulus.
We're going to be putting money into people's pockets so that they can spend on buying a new computer for their kid's school, so that they can, you know, make sure that they are able to deal with heat and groceries and all the other strains on family budgets.
Now, what I've also said during the course of this campaign is we've got to restore some balance to our tax code. And the Bush tax cuts were disproportionately targeted towards the very wealthiest Americans. Those who are making more than $250,000 a year can afford to pay a little bit more.
And it is important, if we're going to help pay for some of these expenditures that are absolutely necessary to get our economy back on track, that those who are in a position to pay a little bit more do so.
Whether that's done through repeal or whether that's done because the Bush tax cuts are not renewed is something that my economic team will be providing me a recommendation on.
But the basic principle is that we're going to provide tax cuts to the vast majority of Americans, the middle class that have been struggling over the last eight years, that those who've benefited disproportionately over the last eight years, the very wealthiest among us, will pay a little bit more in order for us to be able to invest in the economy and get it back on track.
QUESTION: Mr. President-elect, I'd like to ask a follow-up on the size of the stimulus package. Senator Schumer said yesterday up to $700 billion was needed. Today, investor Barton Biggs said as much as $1 trillion. Could you give taxpayers a range of -- of the figure that you're thinking of?
OBAMA: I'm not going to discuss numbers right now, because I think it's important for my economic team to come back with a recommendation. But what I want to emphasize is that there is a consensus among across the political spectrum that we need a stimulus, and we have to make sure that the stimulus is significant enough that it really gives a jolt to the economy, that it is putting people back to work, that it is making investments, that it is restoring some confidence in the business community that, in fact, their products and services are going to have customers.
And so we are going to do what's required to jolt this -- this economy back -- back into shape.
Now, it's going to be costly. And one of the things that we know already is that, even if we did nothing further for the remainder of this year, that we're going to see a substantial deficit next year, bigger than we've seen in a very long time.
And so I think American taxpayers are understandably concerned, if we already have a big deficit, and now we're added an additional stimulus, how are we going to pay for all that?
The right answer is that we have to first focus on getting the economy back on track. We've got to first focus on making sure that we're creating those 2.5 million jobs. We've got to make sure that the investments are made to sustain economic growth over the long term.
OBAMA: And then what we also have to do as part of this package -- and this is going to be one of the major charges to my economic team -- is that we reform how business is done in Washington and how the budgeting process works, how projects are done, so that we have a path towards a sustainable and responsible budget scenario down -- down the line.
So the way to think about it is short term, we've got to focus on boosting the economy and creating 2.5 million jobs, but part and parcel of that is a plan for a sustainable fiscal situation long term, and that's going to require some reforms in Washington. And I'm going to be discussing that more tomorrow.
QUESTION: Thank you, Mr. President-elect (OFF-MIKE) has been criticized in some quarters for taking an ad hoc approach to financial rescues. Can you describe how your new team's approach might differ from the approach that we've had for the last year?
OBAMA: Well, I don't want to look backwards. I think that -- as I said, we've had an unprecedented crisis.
I mentioned in my "60 Minutes" interview that I'm sure there are some things that didn't work exactly the way Secretary Paulson intended. He'd be the first to admit that. Some things have obviously helped in terms of stabilizing the financial system.
But what I want to make sure is that, moving forward, we are clearly articulating for the American people and the business community what our end goals are. Where are we going? What are we trying to achieve? And that there's clarity and transparency to our plan. That doesn't mean that there aren't going to be adjustments over the course of weeks or months to respond to changing situations, but I think part of what we've seen is, is confusion on the part of the markets sometimes in terms of what the overall direction might be. And we want to make sure that we're providing as much clarity as possible.
The other point I would make is that, even as we are doing whatever's required to stabilize the financial system -- and I think that's a commitment that exists currently in the administration and is going to be a top priority for me during the transition, as well as once I take -- once I'm sworn in as president.
Even as we focus on making sure that the financial system is stable, that we also recognize that a strong Main Street will reinforce and help a strong Wall Street and that we can't separate those two things.
And a working principle for me is going to be, are we looking at, for example, home foreclosures in a systematic way and addressing some of the struggles that are taking place outside of Wall Street, not only because it's good for working families, but also because it'll help stabilize the financial system?
QUESTION: Thank you, Mr. President-elect. I was wondering if you saw the auto hearings last week. I wonder if you think the automakers made a convincing case for some kind of rescue package from Washington. And how do you want to see Congress proceed on that issue?
OBAMA: The auto industry historically has been the backbone of America's manufacturing base. And it's not just the auto industry. It's not just the big three. It's also all the suppliers, all the businesses that in one way or another are part of our auto industry that are at stake here.
So I've said before -- and I will repeat -- we can't allow the auto industry simply to -- to vanish. We've got to make sure that it is there and that the workers, and suppliers, and businesses that rely on the auto industry stay in business.
What I also have said is that we can't just write a blank check to the auto industry. Taxpayers can't be expected to pony up more money for an auto industry that has been resistant to change.
And I was surprised that they did not have a better-thought-out proposal when they arrived in Congress. I think Congress did the right thing, which is to say, "You guys need to come up with a plan and come back before you're getting any taxpayer money."
OBAMA: And my attitude is that we should help the auto industry, but what we should expect is that any additional money that we put into the auto industry, any help that we provide is designed to assure a long-term sustainable auto industry and not just kicking the can down the road.
QUESTION: (OFF-MIKE) OBAMA: Well, the -- I think that the auto industry needs to present us with some clarity in terms of the dollar figures that they're talking about, but more importantly, are they describing for us an auto industry that is focused on retooling, understands that we're entering into a new energy economy, that is going to be competitive globally?
That's the kind of plan that the American people I think want to see. Nobody wants to see more job loss. And I think Americans take great pride in the history of the American automobile industry.
But taxpayers don't want to see more money wasted, so we need to see a plan. And when we see a plan, we're going to, I think, be able to shape the kind of assistance package that makes sense.
All right, I'm going to take one more question.
QUESTION: (OFF-MIKE) Mr. President-elect, how should the (OFF- MIKE) having talks with Secretary Paulson and other members of the administration on that?
OBAMA: Well, I spoke with President Bush today. I spoke with Chairman Bernanke today. And let me repeat: We have to do whatever is required to keep the financial system working and capital flowing.
That's not important just for the banks. It's important for our entire economy. It's important for small businesses and large businesses alike. It's important for their employees. It's important for retail sales.
So my commitment is to do what's required so that our financial system works and credit flows. President Bush has indicated that he has the same approach, the same attitude.
A lot of authority has already been provided to the administration, to Secretary Paulson. Chairman Bernanke has authority, as well. And we need to make sure that that authority is used forcefully in the coming weeks to stabilize the current situation.
I will make further assessments about whether it's necessary to draw down additional TARP money, as the administration and Treasury Secretary Paulson and Bernanke provide me more real-time information.
But I think what's most important for the American people to understand is that we are united in making sure that the financial system works and operates the way it needs to.
OK. All right, thank you, guys. Appreciate it.
HARRIS: President-elect Barack Obama in Chicago introducing the members of his money team and taking some questions on his plans for the economy. We will analyze the picks and the policy with members of the CNN Money team who are standing by. We will talk to them next.
(COMMERCIAL BREAK) HARRIS: So you just heard from the president-elect about his plans for his economic team. Let's turn to the CNN Money team for some sight, some straight talk here. The players, their roles. CNN's Christine Romans, and chief business correspondent Ali Velshi, Susan Lisovicz from the New York Stock Exchange.
All right. And I want to sort of tee this up and I want you guys to take it for the next couple of minutes and talk to all of us about what you heard there, what was important, what was maybe trivial, whatever. But let's get to the important stuff. They look like decent enough people there with nice resumes, but for many in America, let's face it, they are names of resumes.
Give me a reason to be impressed with these choices. I'm particularly interested in Geithner and Summers.
VELSHI: All right. I'm going to start with this, because I know Susan's going to appreciate this one. I'm a season ticket holder to the Yankees for the last two years. Looks like the Yankees. Great team. He's put together an all-star team, but the Yankees haven't be able to sew it up for the last couple of years.
HARRIS: There you go.
VELSHI: The issue here is, what's the strategy? What's the game plan? There are a whole bunch of people who say, what is this whole Citigroup thing? We thought they got $25 billion two weeks ago. Where's the program? The team is in place. Can they play together and can they win the pennant? That's what I think this is about.
LISOVICZ: Well, you know, hey, Ali, I'm just going to have to say, why didn't you talk about the New York Giants which won the title last year and continues to do really well this year. you know, the market rallied on the strength of just the reports about Tim Geithner because Tim Geithner has been a player in these unchartered waters since the Bear Stearns deal went down.
And one of the thing that the president-elect said was, he said he needs people on his team who could offer both sound judgment and fresh thinking. Both a depth of experience and a wealth of bold, new ideas. And let's face it, that is what is necessary at this time. If you think about what happened with AIG, Citigroup, Bear Stearns, they were all different solutions, all rescues, but all different solutions to a problem that continues to plague this U.S. economy.
CHRISTINE ROMANS, CNN CORRESPONDENT: You know, both of these guys are grownups and what I'm getting from a lot of people is they really are delighted with this choice. They're delighted about putting Summers in this role where he can use all of his experience and kind of craft policy and craft the stimulus going forward. And they're delighted that Geithner has already had so much experience with this crisis and knows exactly what's happening on the ground. But there's also baggage to both of these, don't forget. I mean Summers can be very brash. And also Geithner has been here the whole way with this crisis and some would say, you know, there have been mistakes that have been made. It's been an ad hoc kind of responses so far to the crisis and that's kept us behind the ball.
But one thing is that, you know, Tony said on paper they look so great. And they really do. I mean on paper it looks like a good team, most people are telling me. But does anything really prepare you for this? Does anything really prepare you for waking up one morning and seeing the headlines of the paper that Citi just got another humongous bailout or that one investment bank went down or that we've got all this money that we have to spend in the very near term just to get, you know, the economy off the respirator? I mean it's -- we just won't know until it's all said and done whether these guys have what it takes to pull it off.
VELSHI: And the it. What it takes has to do with the fact that you just heard Barack Obama say millions more jobs could be lost. Millions. We've lost 1.2 million. Probably be close to 2 million by the end of the year. And what we didn't hear is a, here's my team and here are how things are going to change. He did say that the vast majority of Americans will still get tax cuts under his plan, the wealthier Americans will still get taxed.
But the fact is, we are, right now, in a different environment than we were on election night and we're in a different environment than we were months ago. So what is changing? I think that's what the market wants to know. And that's why the market was up more than 300 points when we went into this discussion and now it's up about 200 because where's the plan, where's the meat, where's the strategy. The team looks solid.
ROMANS: Here's the big challenge for all of them. They have to recognize in the very near term that a lot of money has to have been spent at the right time and properly to, as he says, jolt the economy. But longer term, I mean, longer term, we haven't paid for all the spending and all the tax cuts we've already given. So longer term, they have to figure out how to pay for all of this. Here's the rub. You're paying for a problem based on bad debt and too much spending by borrowing more money and adding to the debt. That's his longer term problem.
LISOVICZ: Yes, but I think the president-elect did tip his hand that, yes, there is going to be a massive deficit spending stimulus plan. You know, he didn't give the scope, but he said it would be massive. And the estimates out there range from half a trillion to a full trillion dollars. And he did talk about things that we really haven't seen in a case where we are, you know, involved in two wars and this financial crisis, which is there's going to be attention paid to roads and new energy and education and health care. So, yes, there are a lot of questions, but the fact is that the big stimulus package is on its way.
HARRIS: So these people are going to add billions. This team that we saw behind the president-elect are going to add billions to the budget deficit, add perhaps more unfunded mandates for the states and saddle our children with even more debt. Isn't that the truth here, in the short term at least, right?
VELSHI: Yes. ROMANS: Yes, that's the truth, in the short term. But if you don't do that, you have even a bigger debt because the economy just sinks and it costs even more money. So that's the question, right, guys? I mean they don't have another choice.
VELSHI: But there's the problem with Citigroup, right? People are saying to me, again, is everything to big to fail? What happens if we let it fail? Well, if you let a bank fail, if you let Citigroup fail, the government's on the hook for that money one way or the other through the FDIC and other ways in which it ensures these things. So at this point the government's backed into a corner on almost every decision it makes in that, are we going to get saddled with this at the other end? We might as well try and get saddled with it at this end and try and fix it. And that's the same problem with debt and deficit and a stimulus package. You know, we have a lot of people who are opposed to these things who say we don't have the money to spend. And the response at this point is that the government's going to have to spend it one way or the other, so what's the smartest way to spend it.
LISOVICZ: Yes. And, you know, and one of the members on his team . . .
HARRIS: Last word on this, Susan. Go ahead and take it.
LISOVICZ: One of the members on his team, Christina Romer, is yet another authority on the Great Depression. So here's Larry Summers, who was Treasury secretary during a time of record surpluses. Christina Romer, Great Depression. One of the things you need to do, is you need to get jobs. People can't buy homes. You can't get -- they won't spend if they don't have jobs. And that's certainly something that I think she's going to bring to the table, along with Bernanke, who is also an authority on it.
HARRIS: Terrific. Wonderful discussion, as always. Thank you all so much. Susan, Christine and Ali in New York.
Just who are the members of the Obama economic team? A closer look. That's next.
(COMMERCIAL BREAK)
HARRIS: The Obama money team comes with distinguished backgrounds to be sure. Who are the people behind the sterling resumes? Let's ask Victoria McGrane, an economic reporter for politico.com.
Victoria, good to see you.
VICTORIA MCGRANE, ECONOMIC REPORTER, POLITICO: Great to be here.
HARRIS: Hey, they look like a decent enough people. They have these outstanding resumes. But let's start with Tim Geithner. Who is Tim Geithner?
MCGRANE: Well, Tim Geithner is somebody who's been in the civil service for most of his career. He entered the Treasury Department in the '80s and he kind of worked his way up and was something of a protege of Larry Summers, who is also going to be part of the economic team.
HARRIS: Yes. Well, does he have the right stuff? And I'm not sure what the right stuff is at this point to handle this kind of a crisis.
MCGRANE: Right.
HARRIS: But does he have the right stuff, the right education? Hard to imagine that a person going in as Treasury Secretary wouldn't have a doctorate in economics. He doesn't have that. But he has other things.
MCGRANE: Right. Well, you usually see somebody who has either a doctorate in economics, like Larry Summers, or someone who was on Wall Street, like Rob Rubin, or on -- in a major corporation. And Geithner doesn't have either of those things. But he does have the unique experience of being right in the middle of this mess and the government's reaction to it. And there's no learning curve. And that's what Wall Street really likes about him. That's what -- that inspired so much confidence in the markets, because this guy knows (INAUDIBLE).
HARRIS: Is it the idea of stability? Maybe someone who will be clear and transparent and consistent? Is that what they like about Timothy Geithner?
MCGRANE: Yes, some of that. Though something that has yet to be seen with Geithner is a big criticism of Paulson is that he hasn't been very good at communicating with the public and with the markets and with Congress. And Tim Geithner has never held a position in which he's had to use the bully pulpit or be in the spotlight, be a chief spokesperson if you will. So we'll see if he's that much better at it than Paulson was.
HARRIS: And Larry Summers. What should we know about Larry Summers? Anything curious about maybe the position that he's taking?
MCGRANE: Well, it certainly gives him Obama's ear and it definitely sort of confirms reports that I had heard that the Obama people really like Summers. And they really -- some of them really wanted to see him as Treasury Secretary. But he does have this baggage. His confirmation hearing, while he probably would have been confirmed, would have lead to some sort of excruciating TV moments that kind of would have run counter to Obama's message.
HARRIS: Yes.
MCGRANE: He had these run-ins while Harvard president.
HARRIS: Yes. Let me see if I can squeeze one more in for you, Victoria. Will this team be recommending a bridge loan for the big three automakers? I thought it was a slam dunk until I heard the president-elect say he was surprised by the lack of a plan put forth by the big three last week. MCGRANE: Right. You know, that is just a question that's out there. Congress showed last week that a lot of people are just really frustrated and angry with a automakers. And there's not an overwhelming consensus that we should help them. Given President- elect Obama's past statements, it's probably going to give them help. But we'll have to see on that one.
HARRIS: Victoria, good to talk to you. Thanks for your time.
MCGRANE: Good to be here.
HARRIS: Victoria McGrane is a economic reporter for politico.com.
All right. When the economy turns sour, Americans turn to charities. But more food banks are struggling to keep up.
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HARRIS: The sputtering economy is hitting home for many Americans. Bills keep growing. Paychecks are shrinking or disappearing. Now food banks are also struggling to keep their cupboards from going bare. CNN's Thelma Gutierrez has that story.
(BEGIN VIDEOTAPE)
THELMA GUTIERREZ, CNN CORRESPONDENT: Early morning at the Mend Food Bank in Pacoima, California.
UNIDENTIFIED MALE: Only one lane, OK.
GUTIERREZ: The lines begin to form before the doors even open.
MARIANNE HAVER HILL, EXECUTIVE DIRECTOR, MEND: Every week we seem to be breaking new records as far as the number of people served.
GUTIERREZ: It's the same concern at food banks across the country.
UNIDENTIFIED MALE: Yes, there will be a hard time coming.
GUTIERREZ: You don't have to look far to find people who recently have turned to charity to feed their families.
SHERYL GUTHRIE, FOOD BANK CLIENT: And I never thought I'd be in this position that we're in now. I never thought that things would get this bad.
GUTIERREZ: The downslide happened fast for Greg and Sheryl Guthrie and their three kids. Six months ago, Greg was laid off as a forklift operator. When his unemployment benefits ran out, the Guthrie's had to live off of Sheryl's disability checks.
The math tells the whole story. She gets $1600 a month. Their rent is $1,350. That leaves the family $250 for fuel, food and everything else. GREG GUTHRIE, FOOD BANK CLIENT: It's a humbling experience being a man going in there, you know, saying that I really need help. My family can't stand right now.
GUTIERREZ: Judia Cox (ph) had to leave her job working in a prison kitchen to care for her sick mother. Now the family's finances are collapsing and it's taking a toll on her daughters.
DIAMOND MCCLAIN, 15 YEARS OLD: It's just been really hard. I've shed so many tears. It's just crazy. It's unbelievable.
GUTIERREZ: Stacy Ortiz is also new to the food bank system. She lost her job as a county worker and is now cleaning homes. But that work isn't steady enough to help her get back on her feet.
STACY ORTIZ, FOOD BANK CLIENT: We rent a room and the utilities are including, but we're a little behind on the rent, you know. So we're making it, but it's real tight. Everything's real tight.
GUTIERREZ: With more than 10 million Americans now out of work and companies struggling in the economy, experts say food banks may have a tougher time finding donors.
GEORGE RUOTOLO, NON-PROFIT CONSULTANT: And given what has happened with our economy over the past eight to 10 weeks, there are some challenges ahead.
GUTIERREZ: Regional food banks like Second Harvest in San Bernardino, say corporate donations haven't stopped yet. They now feed 250,000 people a month. But the number is going up, so there may be less food to go around. For now, Greg Guthrie gives thanks for the help he's receiving.
Thelma Gutierrez, CNN, San Bernardino, California.
(END VIDEOTAPE)
HARRIS: Oh, man.
All right. Let's get to Jacqui Jeras in the weather center.
And, Jacqui, we know it's going to be tough for a lot of families this Thanksgiving holiday but, boy, we also know a lot of folks are going to be on the road trying to get home for hugs and meals.
It's good to see you, Jacqui. It's been a while.
(WEATHER REPORT)
HARRIS: You know, as the holidays near, more ways to help you save money from the coupon mom. That's next.
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HARRIS: So, you know, the cost of Thanksgiving dinner can really add up if you're not careful. But, you know, it really doesn't have to. In fact, coupon mom says you can actually feed eight people for under $30. Whoa. She talked with CNN's Betty Nguyen earlier this morning.
(BEGIN VIDEO CLIP)
STEPHANIE NELSON, "THE COUPON MOM": I was able to take $75 at regular price and reduce it to $28 by combining not only the sale prices but also by using coupons.
BETTY NGUYEN, CNN: So you got an entire Thanksgiving dinner for $28?
NELSON: That's right. And, you know, the bit savings was, well, as I said, coupons. Coupons from the newspaper. But also coupons you can print online. So I realize it is just a few days away from Thanksgiving. For folks who haven't done coupons, you can still go online to get printable coupons. They also have new electronic coupons that go right on your store discount card.
NGUYEN: OK. But where do you go for that because a lot of times when I go online and check this stuff out, you have to register for something to actually get the coupon.
NELSON: That's right. I think there are good sites where you don't have to register. At couponmom.com we have those. You can also go to smartsource.com and coupons.com. You do have to download a printing device. But it's safe and you don't have to register to print coupons.
NGUYEN: Gotcha. Now, at this late stage of the game for Thanksgiving, would it save you even more, say if you waited until Wednesday night? Your turkey may not thaw out in time but ---
NELSON: I would say no.
NGUYEN: No, OK.
NELSON: The prices are low as they're going to go right now. You will save half if you get a frozen turkey instead of a fresh turkey.
(END VIDEO CLIP)
HARRIS: OK. So here's the thing. If you want more information, you can just to Stephanie Nelson's web site. It's couponmom.com.
What are you -- CNN NEWSROOM continues right now with this lady, Kyra Phillips. Before we both get into jail and get e-mails.
KYRA PHILLIPS, CNN ANCHOR: Sorry about all our inside jokes.
HARRIS: Yes.
