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New Tact to Thaw Frozen Credit Markets; Obama & the Economy; Paulson versus Geithner; Black Friday Shopping: Will Consumers Come Out?
Aired November 25, 2008 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: It is Tuesday, November 25th. And here are the top stories we're following for you this hour in the CNN NEWSROOM.
The federal government tries a new tact to thaw the frozen credit markets. The bottom line, another $800 billion to jump-start lending.
President Bush live this hour from Fort Campbell, Kentucky. Live pictures here. A pre-Thanksgiving lunch with the 101st Airborne.
And this...
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If you need to cheat, just do it very discreetly.
(END VIDEO CLIP)
HARRIS: How to cheat on a test. Students have come a long way since crib sheets. A step-by-step cheaters guide at the click of a mouse.
Good morning everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.
If banks won't unchain lending, then the government says it will to the tune of $800 billion. Washington took steps today to make it easier for you to get a car loan, credit card, even a mortgage. The Fed will buy mortgages and bundled mortgage securities, not toxic mortgages, but good ones.
Cost? Up to $600 billion. That move is designed to reduce the cost of mortgages and make them more available. What a number there.
And the Treasury Department announced a separate program that in effect sets up a government bank. You, the consumer, won't get the loan directly. Rather, it will go to investors who buy securities backed by car loans, student loans and credit cards. That plan is expected to cost as much as $200 billion.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: It's going to take a while this get this program up and going. And then it could be expanded and increased overtime.
It could be expanded to include new commercial mortgage-backed securities that are highly rated, or new highly rated residential mortgage-backed securities. It can be expanded to just be bigger within the asset classes we've laid out. But the first thing is to get it up and going.
And to get to your question in terms of timing, I wish, and I know you all wish, that there was just sort of one action we could take and all of this would end and the economy would turn around and the financial system would be in the kind of shape we'd like it to be. But that's not the world we live in today.
(END VIDEO CLIP)
HARRIS: All right. Let's drill down on this. Personal finance Editor Gerri Willis is in New York.
And Gerri, we're talking about $200 billion for consumer credit, $600 billion for mortgages. Let's start this way. Where is all the money coming from, Gerri?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, that's a great question, Tony. That's a whole lot of zeros, right?
We talk so much about how so far, the current administration hasn't been helping individuals. Well, this is to answer, in part, that question.
The $200 billion that you first mentioned goes to auto loans, credit cards, really consumers' day-to-day debt, that is a loan from the New York Federal Reserve bank of New York to folks who hold this kind of debt on their books. So this, again, is really going to banks and other financial institutions, but it's really to free up those market so that those folks begin to lend again.
Now, the $600 billion, this is money we're going to borrow. This isn't money from TARP. This isn't money that, you know, the Treasury is getting from some -- this is money that we're actually going to borrow. And this, again, will be to buy up not toxic mortgages, but other mortgages that are healthier to get the mortgage market going again, because it has come crashing to a halt as well. So the goal here is to really get money flowing to consumers again. And to do that, they're really going to have to go after those intermediaries, those banks, give them cash, lend them money, so that they can start lending to consumers.
HARRIS: OK. So, Gerri, this is really, what, $800 billion dropped on the market? Tell me how this helps me in theory if I'm looking for a new mortgage, if I'm looking for a car loan. For example, I've got a 750 credit score. Can I get a loan today that I couldn't get yesterday?
WILLIS: Well, today is just raw (ph). OK? I mean, you just heard the treasury secretary say it's not going to start tomorrow.
HARRIS: Sure.
WILLIS: It's not going to start until February.
HARRIS: But you understand the question in theory?
WILLIS: Yes, I understand the question in theory. I want people to understand that this is not a tomorrow kind of thing.
HARRIS: Sure.
WILLIS: This is going to take some time. This is going to take not weeks, but months to get put into place so that money really starts flowing freely.
But yes, ultimately, with a 750 credit score you should be able to get whatever kind of mortgage you want if you have enough money to put down. So it should move in the right direction. It's just going to take some time.
HARRIS: OK, Gerri. Appreciate it. Thank you.
Gerri Willis, our personal finance editor.
As Gerri just mentioned, home prices took a record plunge in the third quarter. The Case-Shiller Index fell more than 16 percent compared with the same period just a year ago. The 20-city index is off almost 22 percent from its high reached in July of 2006. Put another way, home prices are on average back to where they were in early 2004.
And another strong sign the economy is indeed, as many fear, in recession. The gross domestic product, the broadest measure of economic activity, shrank a half a percent in the third quarter. That is the steepest decline in seven years.
He is calling for big spending to jolt the economy, but today President-elect Barack Obama focuses on budget tightening. We will bring you his news conference live next hour.
Ed Henry joins us now. He's in Chicago with a preview.
OK. Ed, another news conference from the president-elect in just about an hour. What are we likely to hear?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Tony.
What's fascinating about this whole debate as the crisis deepens is the fact that the markets already seem to be treating the president-elect as if he's the president. We've seen the Dow essentially climbing ever since Friday, when the president-elect was indicating that he'd be picking Tim Geithner as Treasury secretary, Lawrence Summers, National Economic Council chairman. And Barack Obama, for some time, has been saying there's only one president at a time, but clearly there's a leadership vacuum right now with President Bush as a lame duck, and this week, for the first time we've really seen the president-elect sort of try and fill that vacuum a bit.
Yesterday, officially rolling out his money team. Today we're going to see him bring in his budget chief, Peter Orszag. And he's going to be talking about belt-tightening, as you say, sacrificing the federal budget.
But it's important to note that even as he talks about sacrificed budget cuts, so far we've learned almost no detail about exactly how the president-elect plans to back up his promise over the weekend that he'll either save or create 2.5 million new jobs. Largely, that should be coming from a stimulus plan, but he has not laid out how much it's actually going to cost.
Various Democrats are saying it could be up to $700 billion. But again, we've heard no details from the president-elect, and also no details about how he plans to pay for that.
Let's not forget, that $700 billion, if it reaches that high, will be on top of the $700 billion bailout he voted for as a senator this fall that's already on the books. You saw the Citigroup bailout added on yesterday.
There's a lot of federal money debt, frankly, that's just piling up because of all these bailouts, because of -- this would, of course, be the second stimulus package. There already was one just in the last year -- Tony.
HARRIS: Hey, Ed, another question here. The briefing from the treasury secretary last hour, we know the incoming treasury secretary, provided he's confirmed, was right there at the table framing this new package from the New York Federal Reserve. To the extent this latest plan announced last hour is viewed as another bailout for the financial sector and the investor class -- hang on, I'm almost there -- doesn't the criticism that the Treasury has done too little for people facing foreclosure now stick to Tim Geithner?
HENRY: It could. I mean, obviously you heard the president- elect yesterday when he unveiled Tim Geithner officially, trying to play it as look, he's been in the room with Secretary Paulson, he knows the problems. He's been dealing with the crisis already, so he's very experienced.
The flip side of that, of course, as you mentioned, is Tim Geithner may end up owning some of this crisis since he's been in the room.
HARRIS: Yes.
HENRY: And if you look at "The New York Times" editorial today, it's pretty blistering in charging that Tim Geithner has been in the middle of a sort of a herky-jerky response to this financial crisis, specifically letting Lehman Brothers fail, for example, and not bail them out, saying there had been enough bailouts, and then a few days later Tim Geithner, Henry Paulson and the others involved said, OK, we need to bail out AIG now.
And so "The New York Times" essentially calls it in their editorial page, you know, a herky-jerky response to all of this.
HARRIS: Yes.
HENRY: So that's going to be interesting. You heard how the president-elect believes it shows he's experienced. On the other hand, he may end up owning some of this crisis -- Tony.
HARRIS: Probably a good question for some intrepid reporter next hour.
HENRY: Hey, that's a pretty interesting idea.
HARRIS: Thank you, Ed. See you next hour.
HENRY: Thank you.
HARRIS: Take care.
And we will be bringing you that news conference live in the next hour of CNN NEWSROOM.
All right. You're looking at live pictures now of Fort Campbell, Kentucky. President Bush on post. He is scheduled to speak in just a few minutes to the members of the 101st Airborne Division.
We will bring you his remarks live right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Once again, President Bush is in Kentucky this hour meeting with members of the 101st Airborne Division. He is being introduced right now, and we will get back in just a moment to his remarks.
In Washington, there may be no job less enviable than treasury secretary. President-elect Obama's pick will inherit the biggest financial mess since the Great Depression. So is treasury nominee Timothy Geithner a better choice than the current secretary, Henry Paulson?
CNN Senior Correspondent Allan Chernoff takes a look.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice-over): At a time of economic crisis, President-elect Obama's pick of Timothy Geithner to be treasury secretary is highly celebrated.
PROF. JEFF FRANKEL, HARVARD UNIVERSITY ECONOMIST: Tim Geithner is the right guy. I mean, he has long experience with dealing with financial crises.
CHERNOFF: "New York Times" columnist Thomas Friedman even suggested Geithner take over Treasury early. THOMAS FRIEDMAN, "NEW YORK TIMES" COLUMNIST: We're supposed to sit around now for two months and wait for the new administration to get in position? This administration has kind of checked out.
CHERNOFF: That sentiment reflects frustration with current Treasury Secretary Henry Paulson's flip-flopping through the financial crisis. Paulson lobbied hard for Treasury to gain $700 billion to buy troubled mortgages from bank, then abandoned the plan. That accelerated the crisis facing Citigroup, a major owner of mortgages, and helped force today's bailout of the bank. Geithner, economists say, should know better than to cause such uncertainty for the financial markets.
AMITY SHLAES, SENIOR FELLOW, COUNCIL ON FOREIGN RELATIONS: Secretary Paulson was -- was making it up as he went along, wasn't very clear about the rules.
CHERNOFF: Another contrast: Paulson spent his career at Goldman Sachs, rising to chief executive. Geithner has no allegiance to any Wall Street firm. He's a product of the Treasury Department, where he spent years handling financial crises around the globe.
Even Secretary Paulson expressed admiration of Geithner saying today, "I have great confidence in his understanding of markets, his judgment, and leadership."
(END VIDEOTAPE)
HARRIS: President Bush on post, Fort Campbell, Kentucky, home of the Screaming Eagles, the 101st Airborne Division.
Let's listen.
(APPLAUSE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Thank you. Please be seated, unless, of course, you don't have a seat.
(LAUGHTER)
I am honored to be here at Fort Campbell.
(APPLAUSE)
I'm honored to be with the Screaming Eagles of the 101st Airborne, the Night Stalkers of the 160th, the Green Berets of the Fifth Special Forces Group, all members of the Fort Campbell community. You are part of the finest -- the finest military in the world. I have one word for you: rah!
AUDIENCE: Rah!
BUSH: I also bring greetings from another man named Bush, America's only skydiving president. He said, "Pass on these two words: air assault." In recent weeks this post has been the scene of heartwarming family reunions. Many of you recently finished deployments to Iraq. You performed with courage and distinction on the front lines of the war on terror. You have returned on success.
On behalf of a grateful nation, I'm proud to welcome home the Bastogne Brigade, the Stryke Brigade, the Rocket (ph) Brigade.
(APPLAUSE)
Job well done.
I want to thank General Townsend for his service. Proud to be with his wife Melissa.
I thank General Schloesser's wife Patty. I appreciate Maria McConville (ph). I want to thank Theresa Vale (ph).
These women represent the military families who have sacrificed just like our military has on behalf of an incredibly grateful nation. I extend our heartfelt thanks and our respect to the military families here on Fort Campbell.
(APPLAUSE)
I think Governor Beasher who is with us, the governor of the Commonwealth of Kentucky.
I want to thank the two Congress folks that represent this important base, Congressman Ed Whitfield from Kentucky, Congresswoman Marsha Blackburn from Tennessee. And I also want to thank Congressman Zack Wamp from Tennessee as well for joining us.
I appreciate all the local and state officials who are here today. I particularly want to point out one person, Staff Sergeant John Forbiss (ph). I had the honor of meeting John at the base of Air Force One. He was severely wounded in a helicopter crash in Iraq in 2003. Yet, despite his wounds, he volunteers in the Fisher House.
I'm proud of those of you who not only serve our nation by wearing a fabulous uniform, but serve our nation by feeding the hungry and providing houses for the homeless, for loving your neighbor just like you'd like to be yourself, just like Sergeant Forbiss (ph) has done.
I want to thank very much those who made this event happen. I mean, it's not easy to host the president.
(LAUGHTER)
Thanks for coming out.
You know, we're getting ready to celebrate Thanksgiving. I'm looking forward to it.
The day before my first Thanksgiving as your president, guess where I was? Right here at Fort Campbell. For those of you who weren't here, I can only say that watching a bunch of Screaming Eagles tear into turkey is quite a sight.
(LAUGHTER)
And Thanksgiving came shortly after the worst terrorist attack in our nation's history. The war in Afghanistan had just begun. The (INAUDIBLE) were the first conventional brigade to join the battle.
AUDIENCE: Hoorah!
BUSH: That November day, I said, once again, you have rendezvous with destiny. And today there's no doubt you have upheld this motto, you have done your duty, and you have defended the United States of America.
(APPLAUSE)
Over the past seven years folks from this base have done exactly what they were trained to do. The Screaming Eagles, the Night Stalkers, the Fifth Special Forces Group have gone on the offense in the war against these killers and thugs. You have taken the battle of the terrorists overseas so we do not have to face them here in the United States.
(APPLAUSE)
You have helped counter the hateful ideology of tyranny and terror with a more hopeful vision of justice and liberty. You're part of the great ideological struggle of our time. And with the soldiers of Fort Campbell out front, the forces of freedom and liberty will prevail.
The war on terror, the war against people who would do us harm again, is being waged on two main fronts, Afghanistan and Iraq. In Afghanistan, we removed an oppressive regime that harbored the terrorists who planned the attacks that killed 3,000 folks on September the 11th, 2001. Because of our men and women in uniform, more than 25 million Afghans are free.
Afghanistan is a democracy, an ally in the war on terror. And as a result of your courage, the American people are safer.
In recent weeks, the members of the Thunder Brigade have begun to deploy to Afghanistan for a new mission. You'll replace the Wings of Destiny Brigade and join a powerful coalition of forces including the Care Keys (ph), members of the Life Liners (ph). You'll join Major General Schloesser and his division headquarters.
Together, you will help the people of Afghanistan defend their young democracy. Together, you will ensure that a noble goal is achieved, that Afghanistan never again becomes a safe haven for those who want to plot and kill American citizens.
The other main front in the war on terror is Iraq. In that country, we removed a dictator who murdered his own people, paid the family of suicide bombers who threatened America's security.
As the regime crumbled, the dictator's sons tried to run and hide. They could not hide from the United States military. They met their fate in Mosul at the hands of the Screaming Eagles. Because we acted, the dictator, his sons and their regime are no more.
More than 25 million Iraqis are free, and a young democracy has taken root where a tyrant once ruled. Removing Saddam Hussein was the right decision then, and it is the right decision today.
(APPLAUSE)
With Saddam gone from power, a mission turned into helping the Iraqi people defend their freedom against violent extremists, including al Qaeda. In 2006, our efforts were faltering, so I reviewed our strategy and changed course. Instead of retreating, I ordered more troops into Iraq, and to lead the surge I chose a former commanding general of the 101st Airborne, the man formerly known as Eagle 6, General David Petraeus.
(APPLAUSE)
Our troops conducted this surge with resolve and with valor, and nobody knows the impact better than the Screaming Eagles. When the Bastogne Brigade deployed to Saladin (ph) last year, the province was struggling to recover from the bombing of the famous Golden Mosque. But you partnered with the Iraqis to restore security.
Schools and businesses are now open. The Golden Mosque is being rebuilt. And throughout the province hope is returning. The terrorists are being driven out. The Iraqi people have the Screaming Eagles to thank.
Across Iraq, the surge has produced similar results. Since the surge began, violence and sectarian killings have fallen dramatically. Iraqi security forces have taken responsibility for 13 out of Iraq's 18 provinces. Slowly but steadily, economic and political progress is taking place. And Iraqis are working together for a more hopeful future.
As conditions on the ground continue to improve, we will further reduce American combat forces in Iraq. It's a strategy I call Return on Success.
So far, we brought home a Marine expeditionary unit, two Marine battalions, six Army brigades without replacement, including the (INAUDIBLE). By the end of January, we'll have brought home more than 4,000 additional troops.
As conditions on the ground continue to improve, we're also making progress toward completing a strategic framework agreement and a security agreement with the Iraqi government. These landmark agreements will pave the way for a future of economic and diplomatic and military cooperation between our two countries.
Iraqi lawmakers in Baghdad are now debating these agreements through the democratic process. It's a good sign that Iraq has become a strong and vigorous democracy. And it's a testament to the success of our men and women in uniform.
The war in Iraq is not over, but we're drawing closer to the day when our troops can come home. And when they come home, they will come home in victory.
(APPLAUSE)
The work you have done and are going to do is historical work. You see, the consequences and success in Iraq with resonate far beyond that country's borders. It will resonate when your children and grandchildren begin to study the history of peace.
Success will frustrate Iran's ambitions to dominate the region. Success will show millions across the Middle East that a future of liberty and democracy is possible. Success will deny al Qaeda a safe haven for launching new attacks. Success in Iraq will mean that the American people are more secure at home.
In Iraq, Afghanistan and beyond, our men and women in uniform have done everything we have asked of them and more. You've earned the thanks of every American.
You know, this is going to be my last Thanksgiving as president. Sometimes I am asked what I will miss most about the job. Well, above all, I'm going to miss spending time with men and women who have volunteered to serve the United States of America, the fine men and women who wear the uniform.
We are blessed to have defenders of such character and courage. I'm grateful to the families who serve by your side, and I will always be thankful for the honor of having served as the commander in chief.
(APPLAUSE)
So Laura and I wish you and your families a safe and happy Thanksgiving. We join you in praying for our troops spending the holiday far from home. We pray for those who have been wounded in battle and for all who love and care for them.
We hold in our thoughts and prayers the brave men and women who have given their lives and the families who mourn for them. We ask the almighty to watch over everyone who puts on the uniform and has volunteered to serve this great land.
It's an honor to be with you today. May God bless you, and may God continue to bless the United States of America.
(APPLAUSE)
HARRIS: How about that? You've been watching President Bush addressing the 101st Airborne Division at Fort Campbell, Kentucky. The president thanking the military personnel who have recently returned from the Iraq, Afghanistan, for their service, in front of their families, military personnel, some 7,500 invited guests. A little later, the president will have lunch with a group of 150 soldiers, many of whom who have just recently returned from Iraq and Afghanistan.
Still to come in the NEWSROOM this morning, the store ads are out, the wish lists edited. Do you have your Black Friday shopping plan ready to go? Personal Finance Editor Gerri Willis has your top tips.
That's next.
(COMMERCIAL BREAK)
HARRIS: All right. Gerri Willis time. Black Friday discounts are expected to be deep this holiday season, that is because consumers are short on green. Personal finance editor, Gerri Willis, is back.
Hey Gerri, you know I'm thinking of buying one of those humongous flat screens, not because I need it, but because my vision is getting so bad these days. I'm just wondering if there are deals --
WILLIS: Is that the excuse men are using now? I didn't know that.
HARRIS: That's excuse today at least.
Are there some deals available for me?
WILLIS: Well, it's funny you mention that. Electronics are actually the big area for the best deals this year. HDTVs, just like you mentioned, GPS devices, digital cameras, they are all hot item categories. And if you want to find the best deals, check out -- we've got a few Web sites here, techbargains.com.
And when it comes to buying those electronics, you may want to steer clear of buying gift cards for Circuit City which recently filed for bankruptcy. Avoid that.
Don't forget to scan the web to find out what those deals are even before you leave the house. So you want to compare between retailers. Here are some places to go -- bfads.net and blackfriday.gottadeal.com -- what a mouthful.
OK, and of course don't forget to check out the retailer's Web sites too, this way you'll be able to see if the product is stocked and available before you even go out and battle those crowds. But you should be in -- with a little bit of luck this year because they are heavily discounted.
HARRIS: I'm just wondering, and maybe you just covered it, is there anything more we can do to make sure we get the very best discounts?
WILLIS: Hello, coupons. Yes, if you're shopping online you may see a space that asks you to put in that promotional code or coupon number when you're buying something online. That's a big clue. There are coupons, do you have one?
You can get discounts of up to 50 percent off in some cases. And to find these, here are some Web sites again. It's all about the web.
HARRIS: Nice.
WILLIS: Retailmenot.com or promotionalcode.com.
And here is another idea if you can't find one, just Google the item and the word promotion or coupon.
HARRIS: Oh, I like that.
WILLIS: Then you'll get a coupon.
HARRIS: I like that.
How can you make sure that you have gotten the absolute, rock- bottom price here, Gerri?
WILLIS: Well, OK, get this, many large stores provide price matching guarantees in electronics, some consumer goods. You may see some signs at your local retail store.
Now, generally these retailers, they match the price of a local competing store and even some online Web sites will match a lower price offered by the same store within 30 days. So look, even after you've gotten your deal, keep an eye out because you could get another deal on the same goods. It's tricky, but it's worth it because you can save a whole lot of dough.
E-mail me --
HARRIS: Sounds like -- yes, sounds like it --
WILLIS: Gerri@cnn.com.
HARRIS: That's the web address. Do we have it? Let's put it up for everyone. Top tips -- gerri@cnn.com.
Gerri, great to see you. See you tomorrow.
WILLIS: Thank you, Tony.
HARRIS: Take care.
WILLIS: OK. Bye-bye.
HARRIS: And as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advise, answers. Check out our special report, "America's Money Crisis." We update that often for you. That's at CNNMoney.com.
And a reminder that President-elect Barack Obama will be holding a news conference in less than 30 minutes. We will bring it to you live from Chicago. Making sure kids make better grades. It's what every parent wants? But does it include cheating?
(COMMERCIAL BREAK)
HARRIS: Memo to the president, save our schools. President- elect Barack Obama made education a focus during the campaign. National correspondent Jason Carroll looks at areas in the need of immediate first aid.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Mr. President, before you hear from the experts on how to improve education, listen to what New York City public high school students have to say.
UNIDENTIFIED FEMALE: President Obama, I just think that the security needs to be better in the school.
UNIDENTIFIED MALE: I think we need more teachers.
UNIDENTIFIED MALE: We don't get as much funding, and that leads to bad students coming to our school.
CARROLL: Lack of funding, overcrowded classrooms, that's just for starters.
PEDRO NOGUERA, NYU STEINHARDT SCHOOL: It's a big mess because the -- our economic crisis is directly related to our educational challenges.
CARROLL: Education experts say three areas need immediate attention. Early education: a dozen states still don't fund preschool. College costs: one survey found 66 percent of adults say tuition is too much. And what to do about the No Child Left Behind program?
JOSEPH VITERITTI, HUNTER COLLEGE: It's the big elephant in the room. Politically, people don't know what to do with it.
CARROLL: It is the Bush initiative requiring schools to test students annually in reading and math. Under the law, all children must be proficient in those subjects by 2014 or their schools face sanctions. The problem? Too many schools aren't on schedule. And a recent study shows students haven't improved much in reading since the program started.
MICHAEL PETRELLI, FORMER BUSH EDUCATION OFFICIAL: If we do not make investments and make reforms to our system, we're going to get to the point where we simply cannot compete with other countries.
CARROLL: In education, U.S. students rank 18th among 36 nations. Experts argue over the value of accountability through testing, but few debate the need for more money. A new study shows two-thirds of school administrators say their districts are inadequately funded and are forced to cut back anywhere they can.
JUDITH JOHNSON, SUPT. PEEKSKILL CITY SCHOOLS: Keep it going.
CARROLL: Superintendent Judith Johnson may cut staff, but says for other schools nothing is off limits, even kindergarten.
JOHNSON: Kindergarten is an integral part of a public education system. Guys, kindergarten could go.
CARROLL (on camera): Well, so much for early education. Bottom line, even though the country is dealing with two wars and an economic crisis, education is not something this country can afford to put on the back burner.
Jason Carroll, CNN, New York.
(END VIDEOTAPE)
HARRIS: New ways to ace the exam. Students are watching videos online to find ways to cheat. Veronica De La Cruz joins us now with what you're seeing.
Veronica, what's going on here?
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Well, we just saw schools cutting back, right? Now students cutting corners. And you know you might really be surprised to see how many different videos, Web sites, there are dedicated to cheating on school tests.
For example, let's go and Google this right now. More than 420,000 results is what you get if you Google this right now.
HARRIS: Well what do you Google? What is it actually that you Google?
DE LA CRUZ: How to cheat on a school test brings up a bunch of articles, Web sites, videos. If you do a search through YouTube, Tony, you find -- what -- 2,680 results. That's nearly 3,000 videos dedicated on how to cheat on a school test. So like I said, kids trying to cut corners here.
I want to go ahead and show you one. It's going to show you how to put your test answers on the label of a bottle of Coke. Check this out.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I've gone ahead and removed all the nutrition facts and I'm going to replace them with my favorite physics notes.
(END VIDEO CLIP)
DE LA CRUZ: So this is a video found on YouTube and it has been viewed more than two million times, Tony.
HARRIS: The time it takes to do all that, why don't you just take the hour and study?
DE LA CRUZ: I know. I know. You'd probably learn the material.
I want to show you another one, it features a girl who doesn't even try to hide her identity, you see her on camera using her real name, teaching you how to store your test answers in a clear pen. Check this out.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: What you need is a pen that has a clear thing to it like this. It has a tube in it. And you can see through it very well.
(END VIDEO CLIP)
DE LA CRUZ: So there are about 3,000 of these videos found on YouTube that kids have been looking at.
Also want to show you a Web site, this is called teachopless.org (ph), it offers numerous ways to cheat. It's posted actually for teachers to alert them to the various ways that kids have been cheating -- using a digital watch with a databank, to using programmable calculator with all the answers stored inside. And I guess we don't have that Web site, but trust me it's out there.
And we've been asking people on our Facebook group whether or not they're shocked by any of this. Are they surprised?
Christopher Bishop who is a student at Georgia Perimeter thinks that teachers should be changing their priorities. He says, "We really need to be focusing on making sure that students understand the material they are supposed to be learning. If we do that, students won't feel the need to cheat on a test in order to pass."
And then Stacey Smith, who is a school teacher, says that she actually uses the web to catch cheaters. And she says, "All I have to do is type in one sentence of their paper, the whole paper comes up from the original source."
So you can use the Internet either way.
HARRIS: Are you kidding me?
DE LA CRUZ: And of course we want to continue the discussion on Facebook. Go ahead and search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris. You can also follow me on Twitter at veronicadlcruz.
But like you just said, it takes way too much effort. You're right, that --
HARRIS: Just take the extra hour and study.
(CROSSTALK)
DE LA CRUZ: ... Instead of wasting your time transferring information onto a label of a Coke bottle.
HARRIS: That's insane. All right, Veronica, thank you. See you next hour.
Financial security. When you can't make it on your own, find some ways, maybe some different ways, to make ends meet.
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HALA GORANI, CNNI ANCHOR: There's one person whose story touched me deeply and immensely. And that is Saad Eskandar. He's an Iraqi man who is the head of the National Public Library and Archive of Iraq. He is one of the last guardians of secular culture in Iraq.
SAAD ESKANDAR, DIR. IRAQ NATL. LIBRARY & ARCHIVE: We are divided along sectarian lines. It's extremely important to have this common factor to unite our people.
GORANI: He's had staff killed and kidnapped. He's protected this building that was looted, that was burned, that was flooded, that was used by insurgents as a fighting base, just with the power of his words.
ESKANDAR: I'm not one of those people who believe that you bow and that will end your -- all troubles. You have to stand up and fight to the very end.
GORANI: These books, these ledgers, these papers that are the history of the heart and the memory of that nation are safer because of people like him.
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HARRIS: And another reminder for you to join Anderson Cooper Thanksgiving night to see all of the CNN heroes and meet the CNN hero of the year.
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HARRIS: What do you say we check in now with Rob Marciano in the weather center?
Rob, some tricky weather in parts of the country for folks trying to get home for Thanksgiving.
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HARRIS: Hey, what do you think -- we're going to squeeze you back tomorrow and put all that information on travel?
ROB MARCIANO, AMS METEOROLOGIST: Oh we're going to do the L thing, we've got people who are traveling. We'll --
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MARCIANO: ... All day long.
HARRIS: I don't usually like to read my television. But it's so much good information, it's helpful.
MARCIANO: Sometimes it is, especially when you turn the volume down. I think people like that.
HARRIS: Thanks, Rob. Appreciate it. Thank you.
MARCIANO: See you, buddy.
HARRIS: A quick reminder that at the top of the hour we will take you live to Chicago. President-elect Barack Obama will be holding a news conference concerning the nation's economy. Stay right here in the CNN NEWSROOM.
OK, food prices are up, donations down, and Thanksgiving is this week. In today's Impact Your World, focus on hunger, Josh Levs joins me now to talk about struggling food pantries.
And Josh, I love your that our partners at Impact Your World are focusing on hunger this week.
JOSH LEVS, CNN CORRESPONDENT: And they should be. This is the time when so many people are looking forward to their feast, right.
HARRIS: That's right.
LEVS: I know you probably are.
It's particularly heart-wrenching right now to see that more and more people are turning to food pantries every day. And some of those pantries are struggling to keep up.
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CORY BROWN, CFR CLIENT: I am college educated, I have a BS in criminal justice and I also have a law degree.
LEVS: But Cory Brown has found herself turning to food pantries for help.
BROWN: It's just been very difficult to manage to find long-term stable employment in this market and in this climate. Because there's no such thing as financial security, and I think we all have to depend on each other to get through these tough economic times. We're all interdependent and interrelated right now.
LEVS: Like Cory, more and more around the country are beginning to rely on food pantries to cope with rising food prices during hard economic times. Cory, who moved to the Atlanta area from New Orleans, after being displaced from hurricanes Katrina and Rita patronizes this food pantry in the Atlanta suburb of Marietta.
DEBBIE ABERNATHY, CFR BOARD MEMBER: There's been a great increasing need. And there are a lot of people that for the first time are having to ask for help. People that are employed. People with families. LEVS: Debbie Abernathy serves on the board of the Center for Family Resources Food Pantry. And in addition to feeding those in need, they're pressing for Thanksgiving.
ABERNATHY: Last year we served about 1,100 families with Thanksgiving food baskets. This year we set to help 1,488 families. That's a 35 percent increase. And there are more out there that need help.
LEVS: The economic downturn has put a strain on food pantries across the country, depleting many of their resources.
ABERNATHY: The food pantries have been hit hard.
LEVS: These food pantry volunteers believe they're making a difference.
JACK LAWSON, CFR VOLUNTEER: It's the greatest thing you can do is try and help somebody else. It's really quite moving and it's a good experience.
LEVS: Cory sums it up this way.
BROWN: The situation has no name, no face, no economic status. You know? Anybody any day can lose their job. More of us should be more giving of whatever we have. We don't have to have money. But maybe you can give somebody a word of advice. Maybe you can give someone a word of encouragement. You know? Something.
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LEVS: You know, it really is wild. We obviously talk a lot about the challenges the middle class is facing. A lot of people facing even worse challenges out there. This is part of our impact series, Tony. We're just talking about.
Let's zoom in on the board for a second, I want you to see it. CNN.com/impact is focusing on hunger right now. So many great resources. One thing it leads to is this story.
One in eight Americans went hungry last year. Those are the stats from the Agriculture Department. And folks, that's last year. Before some of the worst, including close to 700,000 kids last year. We also link to you ways to help. For example, this feedingamerica.org. We also take you over here to the World Food Programme.
Speaking of which, on a lighter note, Tony, how jealous am I? World Food Programme. You are going to be interviewing the one and only, Drew Barrymore, about that.
HARRIS: How about that?
LEVS: You're going to have her tomorrow. About some of her great work that she's done over there. We'll keep an eye out for that. HARRIS: I'm really looking forward to it.
LEVS: Me, too.
HARRIS: All right, Josh, appreciate it. Thank you.
LEVS: Thanks, Tony.
HARRIS: You know, before you travel to Grandma's make sure you have a top-rated vehicle. The safety list is out.
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HARRIS: Well, the U.S. auto industry fares better in a new insurance industry list of the safest cars and trucks.
Jessica Doyle reports.
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JESSICA DOYLE, CNN CORRESPONDENT (voice-over): This may not look good. But it could be a lot worse. The 2009 GMC Acadia is among a record number of vehicles receiving a top safety pick award from the Insurance Institute for Highway Safety.
RUSS RADER, INSURANCE INSTITUTE FOR HIGHWAY SAFETY: We have 72 winners for 2009. And that's a dramatic increase. Just three years ago, for example, we only had 13.
DOYLE: The top safety pick award goes to vehicles that receive the insurance institute's highest rating from front, side and rear impact crashes. Vehicles also have to come equipped with state-of- the-art safety technology designed to help drivers avoid crashes altogether.
RADER: Electronic stability control can break individual wheels. And in cases actually reduce the throttle to help keep the vehicle going in the direction you want it to go in.
DOYLE: For the 2009 model year, the biggest bragging rights go to Ford and Volvo division with 16 awards. Honda and its Acura subsidiary won 13 awards. The insurance institute says Chrysler is the only major auto maker that didn't score a top pick, falling just short in rear crash tests.
So, will you have to pay more for safety?
RADER: You can buy a Ford Fusion, for example, with its optional stability control, and get the same level of safety that you would in a car costing twice as much.
DOYLE: The lesson there, you don't have to pay luxury prices.
In Washington, I'm Jessica Doyle.
(END VIDEOTAPE) HARRIS: Getting the nation's economy moving and growing. The President-elect is just minutes away from talking about it. We'll bring it to you live, right here in the CNN NEWSROOM.
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