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Obama Picks Gen. Eric Shinseki for Veterans Affairs; Banking Chair Dodd Wants GM CEO to Move On; Auto Industry Experts Answers Viewer Email on Bailout
Aired December 07, 2008 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
NAAMUA DELANEY, CNN ANCHOR: Hello, you are in the CNN NEWSROOM.
Declaring that no one is more distinguished, determined, or qualified, President-elect Obama today tapped General Eric Shinseki to be secretary of Veterans Affairs. Shinseki retired from the army five years ago after he publicly differed with the Bush administration over how many troops would be needed in Iraq.
CNN's Elaine Quijano is with the transition team in Chicago.
Elaine, what you've been hearing today?
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Naamua.
Well, at that news conference held today, Pearl Harbor Day, President-elect Barack Obama noted that retired General Eric Shinseki, like himself, grew up in Hawaii and, of course, understands full well the significance of that event, the bombing of Pearl Harbor.
But General Shinseki is perhaps best known for comments that he made back in 2003 just before the Iraq war. It was then as army chief of staff that General Shinseki testified before the Senate Armed Services Committee and said that he believed it would take several hundred thousand troops in order to pacify Iraqi. Well, those comments certainly did not fit well with some of the Bush administration, most notable, then-Defense Secretary Ronald Rumsfeld. And just a few months after that testimony, General Shinseki retired.
Well, today at that news conference, the president elect alluded to those comments in 2003 and the conference that they generated.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT-ELECT: And there is no one more distinguished, more determined, or more qualified to build this V.A. than the leader I'm announcing as our next secretary of Veterans Affairs, General Eric Shinseki. No one will ever doubt that this former army chief of staff has the courage to stand up for our troops and our veterans. No one will ever question whether he will fight hard enough to make sure that they have the support that they need.
(END VIDEO CLIP)
QUIJANO: Now, General Shinseki is a highly-decorated Vietnam War veteran. He served two combats tour and actually lost part of his right foot. President-elect said today in that news conference that General Shinseki understands the needs of U.S. troops and their families -- Naamua?
DELANEY: Now, Elaine, obviously the purpose of this news conference was to announce General Shinseki, but it seemed like questions about the auto bailout almost sort of overshadowed that announcement.
QUIJANO: Well, that's right. As lawmakers in Washington gear up to work out some kind of temporary solution to try and save the Big Three U.S. automakers, President-elect Barack Obama today said Congress essentially did the right thing by taking this approach which he called conditions-based. Let's take a look at what he had to say.
(BEGIN VIDEO CLIP)
OBAMA: I have said repeatedly that to allow the auto industry in the United States to collapse precisely at a time when we are already seeing record joblessness is unacceptable. What I've also said is that it makes no sense for us to shovel more money into the problem if you have not seen an auto industry that is committed to restructuring, restructuring that, frankly, should have been done 10 years ago, 20 years ago, 30 years ago. And so, Congress did the right thing when it rejected a plea for funds without a plan two weeks ago. The automakers have come forward and put a more serious plan on the table.
(END VIDEO CLIP)
DELANEY: So, the president elect there essentially giving his seal of approval to this strategy that Congress is adopting here, and trying to figure out how best to help the U.S. auto industry, saying, look, certainly giving some short-term help is what's need right now, but also insisting that the Big Three auto makers make some very tough business decisions if they do, in fact, get this money -- Naamua?
DELANEY: That's right. He wants to put a lot of responsibility on them.
All right. Elaine joining us live from Chicago -- Elaine Quijano, thank you very much.
Well, should G.M.'s top executive hit the road? That's what a key senator is suggesting. Senate Banking chairman, Chris Dodd, says it is time for General Motors CEO Rick Wagoner to move on. Negotiations are continuing this weekend on a possible Big Three rescue package. Many members of Congress are demanding significant reforms at G.M., Ford, and Chrysler before they will agree to any bridge loans.
So, if the Big Three go out of business, it could have a devastating effect on many families. CNN's Brooke Baldwin visited a Michigan family with deep roots in the auto industry.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: I'm Larry, I'm number 14.
SUSAN BORIS, WIFE OF AUTO INDUSTRY EMPLOYEE: I'm Sue. I'm number 15.
BOB DEMENIUK, RETIRED G.M. EMPLOYEE: I'm Bob. I'm number one.
BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): There's family, and then, there's the Demeniuk -- 20 siblings.
MIKE DEMENIUK, IAC AUTOMOTIVE SUPPLIER EMPLOYEE: Diane, Susie, Larry, Patty, Trisha, Joey, Janice, Risa (ph), Johnny, Greg...
BALDWIN: Mike is number 17. This is his home, his wife and four kids. Twelve of Mike's brothers and sisters rely on the America auto industry to live.
M. DEMENIUK: It's sad to see something like this actually happen. I hope and pray that it turns around and we can, you know, get these people working again.
BALDWIN: People like Kathy's husband, Joe, who was laid off once already.
KATHY NICHOLS, WIFE OF AUTO SUPPLIER: If the industry was just to go under, my husband would lose his job, most of my siblings would lose their jobs and we wouldn't be able to help each other out when needed as families do because we're all in the same situation.
BALDWIN: That is why Susan is watching the Capitol Hill hearings so closely.
BORIS: It's terrible to see how the auto industry is being treated by Congress.
BALDWIN: She says the Big Three CEOs are being humiliated.
BORIS: Well, they're acting like there like they're the bad guys and they've done something terrible and how dare you come here. But the banks were just handed cash. It's terrible.
B. DEMENIUK: They've been discriminated terribly by the Congress and the government.
BALDWIN: Bob, the eldest in the family worked at General Motors for 43 years. His daughter was just laid off from an assembly plant. And this retiree is frustrated to hear some Americans think autoworkers are lazy.
B. DEMENIUK: If the people that say these things and believe that were to take our spot on the line or in the plants for just an hour, they didn't know what it's all about.
BALDWIN: Diane's husband knew. He worked for Chrysler before he died.
DIANE FICA, MIKE'S SISTER: I now am living with my mother-in-law who has Alzheimer's who is retired from Chrysler. And if something happens where she loses her pension, I don't know what's going to happen.
BALDWIN: Uncertainty is running high in Demeniuk family, but these siblings are hopeful the Big Three will survive.
M. DEMENIUK: We're going to rally around each other. And I think we're going to get through the storm.
BALDWIN: Leaning on their faith and family, all 20 siblings for support.
Brooke Baldwin, CNN, Shelby Township, Michigan.
(END VIDEOTAPE)
DELANEY: And our coverage of the auto industry crisis will continue all hour. Automotive expert Lauren Fix will join us in just a few minutes to answer your questions. Tell us what you want to know. Do send your e-mail to us at weekends@CNN.com.
Special election historic results. In Louisiana, a little known Republican attorney defeats nine-term Democratic congressman, William Jefferson. Anh "Joseph" Cao is the first Vietnamese-American elected to Congress. Jefferson has been fighting bribery and money laundering charges. He won re-election two years ago in spite all the scandal.
Cao discussed his victory this morning on CNN.
(BEGIN VIDEO CLIP)
ANH "JOSEPH" CAO, (R) LOUISIANA CONG.-ELECT: I'm very honored. And, at this point, somewhat speechless to be the first Vietnamese- American congressman but I also hope that many of our young people will consider be more politically active and to be more involved in the community because, as you can see, really anything can happen.
(END VIDEO CLIP)
DELANEY: Celebrity company for President Bush tonight. He is heading to the 31st annual Kennedy Center Honors with some big names. Actor Morgan Freeman, actress and singer, director, composer, and producer Barbara Streisand; rock legends Pete Townshend and Roger Daltrey; choreographer Twyla Tharp; and singer George Jones -- all being recognized this year.
Has Barack Obama quit smoking? He failed to give a clear answer to that question on "Meet the Press" earlier today. The president- elect says he stopped smoking but has at times fallen off the wagon. The White House is a no smoking zone. Obama says he won't be violating any White House rules.
Well, check out our political ticker for all the latest news. Just log on to CNNPolitics.com: Your source to all things political.
At least 600 people are dead from a cholera outbreak in Zimbabwe and the international community says enough is enough.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: It's well past time for Robert Mugabe to leave. I think that's now obvious.
(END VIDEO CLIP)
DELANEY: Strategy in Africa.
JACQUI JERAS, CNN METEOROLOGIST: I'm CNN meteorologist Jacqui Jeras. It's windy and cold out there and a big winter storm is developing. We'll let you know where, coming up with your forecast.
(COMMERCIAL BREAK)
DELANEY: The White House says Pakistan must act against extremists involved in the Mumbai terror attacks. Just back from South Asia, Secretary of State Condoleezza Rice says there's evidence Pakistan was the staging ground for the attacks.
(BEGIN VIDEO CLIP)
RICE: This is a very tough problem, and it requires a unity of intelligence and military capability and law enforcement capability that few countries have achieved. And Pakistan needs to do that. But getting back to the Mumbai situation, there are some concrete steps that Pakistan needs to take urgently, quite aside from a lot of restructuring that is going to have to be done.
(END VIDEO CLIP)
DELANEY: Rice did not give a time frame for action but told CNN today the U.S. is waiting for Pakistan to act and soon. She also cautioned India not to strike back despite its frustration and anger. The attacks left 179 people dead including six Americans.
Kenya is calling for the overthrow of Zimbabwe's president, Robert Mugabe, to save Zimbabweans from starvation and disease. They've already, of course, seen an economy wreck. Now they face a cholera outbreak. About 600 people have died from the disease spread by contaminated water and food. It's now spreading across Zimbabwe's borders.
The U.N. estimates more than half of Zimbabwe's population is in desperate need of food and clean water. Kenya's prime minister is saying today it is time for international forces to end what he calls President Mugabe's murderous reign.
And we get more on the humanitarian crisis Zimbabweans are facing from CNN's Rosemary Church.
(BEGIN VIDEOTAPE)
ROSEMARY CHURCH, CNN CORRESPONDENT (voice-over): International condemnation of Robert Mugabe's failed leadership has now reached fever pitch, as cholera kills more people in Zimbabwe. More than 600 have died and an estimated 13,000 are infected.
GORDON BROWN, BRITISH PRIME MINISTER: This is a blood-stained regime. It's now not just a national emergency. It's an international emergency. And there's a tragedy that for a disease that is avoidable and controllable, because of the breakdown in systems in Zimbabwe, more than 500 people have already died.
CHURCH: So, what does the British prime minister plan to do about it?
BROWN: And now is the time for the humanitarian aid to be let into the country. At the same time, we will do everything we can. My message to Zimbabwean citizens is, we will do everything we can to help them. But this cannot go on. And I think the whole world is now saying "enough is enough."
CHURCH: But just how far is the international community willing to go?
RICE: It's well past time for Robert Mugabe to leave. I think that's now obvious.
CHURCH: Rice is calling on African nations to take the lead.
RICE: If this is not evidence to the international community that it's time to stand up for what is right, I don't know what will be. And frankly, the nations of the region have to lead it.
CHURCH: Nobel laureate, Archbishop Desmond Tutu says Mr. Mugabe should be threatened by prosecution or even military force if he doesn't step down.
DESMOND TUTU, ARCHBISHOP NOBEL LAUREATE: The world must say, "Look, you have been responsible with your cohorts. You have been responsible for gross violations and you are going to face indictment in The Hague unless you step down.
CHURCH: But time may be running out for the people of Zimbabwe as they also deal with a failing of economy, a promised unity government that's yet to materialize, and stall talks with opposition parties. All this after a disputed presidential election spawned months of violence.
But President Mugabe appears you be moved. He has hinted he may form a cabinet without the opposition and may even call early elections. This as international leaders work with African leaders to press Mr. Mugabe to resign.
Rosemary Church, CNN, Atlanta.
(END VIDEOTAPE)
DELANEY: Well, from one provocative topic to another, we have been getting tons of e-mails from you with questions about the auto bailout loan proposal. Right, Josh? JOSH LEVS, CNN CORRESPONDENT: Yes, no kidding. You know, here's what we're doing. Well, basically they are flocking in. And we got dozens and dozens coming. And we're grabbing them and throwing them up on the board. And coming up -- we have an expert that's going to be joining us.
So, folks, this is your opportunity to get your questions asked on the air to our experts. Send them to us Weekends@CNN.com. Anything about the auto bailout that you feel has not yet been answered. Some angle out there or some way that it applies to you, let us know what you want to know right now -- Weekends@CNN.com. Stick with us throughout the hour. Because I guess a couple times, Naamua, I'll jump in and we'll present those questions that we have here (ph).
DELANEY: Yes, absolutely. And we know, Josh, that people are just bursting with questions. So, we are looking forward to answering some of them.
Also, day four of a sit-in inside an Illinois factory that was forced to shut down suddenly.
(COMMERCIAL BREAK)
DELANEY: It is the big "if" on Capitol Hill these days. If Congress puts together a bridge loan to bail out the ailing Big Three car companies, will it be enough to keep them from collapsing?
Now, car industry expert, Lauren Fix, is joining us from New York. And, of course, we've got our Josh Levs over in the newsroom.
Hey, there, Josh, we are going to get back to you in just a moment.
But first, let us say hello to Lauren. Thanks for being with us.
LAUREN FIX, CAR EXPERT: Hello. How are you?
DELANEY: I'm very well. Thank you. A lot going on this weekend. We obviously got House and Senate committee staff meetings to write this bill to provide $20 billion to $25 billion to help the automakers. We know it is less than the $34 billion that they were asking for.
So, what is this? Is it a stop-gap measure and how long will it allow them to survive?
FIX: Well, really what it is, if you remember back in September when they slid through this through the energy bill, this is a $25 billion loan that was originally designed for upgrading equipment, so that they could use it for electric cars or hybrid-type vehicles. And so, they are going to take some of that money that was allotted and they are going to loan it, not give it. They are going to loan it to the auto manufacturers that need it at a low interest rate to be paid back. And that's what President-elect Obama was talking about, is they have to be accountable by giving that back. So, this is what we're looking at. You see -- I know that Senator Shelby is going to try and stop the flow of that happening, but there's a lot of other things happening at the same time.
DELANEY: All right. And, of course, we've had this awful news, Lauren, about the state of our economy, about the fact that half a million jobs were lost in November, and a lot of members of congress have really cited that as a reason why action is now absolutely necessary. Is it necessary for the health of the auto industry and the wider economy?
FIX: Oh, it's true, Naamua. Let me tell you that if this does not happen, if they say this is not passed and we leave it in the hands of the automakers, there are a lot of people that, you know, look at the books and they say, "Hey, according to what I've learned and what I have worked with, they will just restructure now and everything will be fine."
I'm telling you that it's going to be very bad for the economy if all three automakers fail, because what's going to end up happening is people won't buy their cars. Right now, one in four cars are a General Motors vehicles that sold. They sell cars one car at a time. It could be very bad for the economy.
So, the goal is to try and get the economy going again and that means that we have to buy cars and we have to keep people in jobs. And that may mean that we're going to have to restructure. Everyone is going to have to take a haircut.
DELANEY: Yes, that's one of the tough things, is actually getting people to want to buy cars in this very difficult environment. What about the taxpayers? I mean, you were emphasizing that, Lauren, that this is a loan. It's not a bailout.
FIX: Right.
DELANEY: And there have, you know, been a lot of people talking about the importance of protecting the taxpayer. Will we get our money back?
FIX: Well, that's what they are trying to put in place. I think the biggest mistake is to have one person as the "car czar" because I know what will end up happening is we'll be driving beige Tauruses, they get 100 miles to the gallon. And that's not what we want to do.
We all want to drive fun cars. As Americans, we choose our vehicles, whether it be a truck, a sports car, or convertible. And because we want those choices, there needs to be a panel of people that look at it from a business perspective that guide the fact that we get our money back, that the taxpayers get their money back. They did it before with Chrysler. It can be done again this time. It just has to be structured properly.
DELANEY: All right, Lauren. Well, no surprise that taxpayers, of course, are very interested in this conversation. And Josh Levs has actually been reading viewer e-mails.
So, Josh, I know you've had a lot of e-mails. What's the first one that you have for us?
LEVS: Yes. I'll show you. We got it on the screen right here behind me. And, Lauren, you know, I really appreciate that you're doing this.
Let's zoom in right here. I want to show you this first question. "Has anyone asked the employees whether they would do the same job for substantially less pay and/or fewer benefits in order to be able to keep the plant open?"
And I'll tell you, Lauren, look -- I mean, we've heard a lot of heartbreaking stories about people who work there, how difficult it would be. You also hear questions about unions and their roles. So, tell us about that. How -- who's asked what kind of a sacrifice these employees would make and what would they make?
FIX: I don't know if the employees have been asked. That's something that the union has been trying to work with the UAW. I know that Ron Gettelfinger has really been talking to them and they really put up a lot. In 2010, there's going to be a lot of changes. They've made new agreements with Ford and G.M. and Chrysler.
But in the meantime, I think that most people would be willing to take a little bit of a cut in order to keep their jobs to have something coming in. And I believe, as they used to say, there's a pie, do you want some of it or none of it? I'd like to have some of it and most people would, too. So, I'd take a small cut in pay rather than lose my job completely and watch their plant fold because it affects my whole community, and as voters, it affects who we put in office as well.
LEVS: Right. So, Jackie can know there are some answers that might be ahead, depending what happens with the union. Thanks for that.
FIX: Thanks, Josh.
LEVS: Naamua?
DELANEY: All right. Thanks ever so much, Josh. There was definitely a sense, Lauren, that we are all in this together. So, Josh and Lauren we will be back in just a few minutes with more of your questions. So, send them to us at weekends@CNN.com.
Well, that sit-in continues at a Chicago factory. Hundreds of laid-off workers are occupying the Republic Windows & Door slots. The Reverend Jesse Jackson is meeting with them. The workers had just three days notice before they've lost their jobs. Jackson says he is trying to get the Bank of America to restore the plant's credit line so it can reopen.
The wreckage of two small planes that collided near the Everglades yesterday has been found. All three people aboard were killed. The names have not been released. National Transportation Safety Board agents are at the scene, investigating.
Today marks the 67th anniversary of the Pearl Harbor attacks. More than 2000 World War II veterans and other observers gathered on the spot where the bombs dropped. More than 2,000 Americans were killed on December 7th, 1941 when Japanese planes bombed the Hawaiian port. Twelve naval ships sank. Nine others were heavily damaged.
Work on a subway is being blamed for creating a huge crack on a Boston landmark, the Old South Church. The subway project is now on hold while contractors try to figure out how to fix the damage. The church dates back to 1875.
A terrifying confrontation for a nine-year-old boy and his six- year-old brother. They were snowboarding at this Denver area golf course when a coyote appeared.
(BEGIN VIDEO CLIP)
TONY SANDLIN, FOUGHT OFF COYOTE: They (ph) saw a coyote out there but I didn't. I wasn't screaming really loud but I was screaming "Toby (ph), help me," and he started running circles around me.
(END VIDEO CLIP)
DELANEY: The coyote lunged at the nine-year-old but the boy used his snowboard to chase the animal away. Wildlife officers later found the coyote and killed it. The boy is taking a series of rabies shots.
It seems every time you see Barack Obama walk to a podium lately, you are watching history unfold. Who is the latest choice for his cabinet? Plus, Josh Levs and car expert, Lauren Fix, back with more of your questions about the auto bailout loan plan. Send them to weekends@CNN.com.
(COMMERCIAL BREAK)
NAAMUA DELANEY, CNN NEWS GUEST ANCHOR: Here's a look at what is happening right now. A week and a half after that deadly rampage in India, the city of Mumbai is honoring 20 heroes. 179 people died in the attack, but officials say acts of heroism prevented the death toll from being much higher.
Senator John McCain says the situation in Afghanistan will get harder before it gets easier. He is visiting there today. He will report back to President-elect Obama.
The Justice Department is expected to unveil charges tomorrow against five former Blackwater security guards. They are accused in the death of 17 Iraqi civilians. Sources tell CNN the guards will surrender tomorrow in Utah.
Retired Army General Eric Shinseki promises to work every day for America's veterans. President-elect Obama unveiled Shinseki as his choice for secretary of veterans affairs. Shinseki, a former Army chief of staff, is a decorated Vietnam veteran. (BEGIN VIDEO CLIP)
GEN. ERIC SHINSEKI, SECREARY OF VETERANS AFFAIRS NOMINEE: I can think of no higher responsibility than ensuring that men and women who have served our nation in uniform are treated with the care and the respect that they have earned. As you have said, these brave Americans are part of an unbroken line of heroes that stretches back to the American Revolution. And yet, even as we stand here today, there are veterans who have worried about keeping their health care or even their homes, paying their bills or finding a good job when they leave the service.
(END VIDEO CLIP)
DELANEY: Shinseki retired from the Army five years ago after he publicly disagreed with the Bush administration on how many troops would be need in Iraq.
And joining us with a closer look at the Shinseki pick, CNN political analyst, Bill Schneider.
Bill, good to see you. What are your thoughts on this choice?
BILL SCHNEIDER, CNN POLITICAL ANALYST: Well, he spoke the truth. Speaking the truth is not always rewarded. And the Bush administration did not treat General Shinseki very well after he said he thought hundreds of thousands of troops would be needed to run Iraq after the initial invasion. Well, it turns out what he said is now considered the truth. It was that they were need. He spoke it early and he paid a price for it, but now Obama has named him to his cabinet. And that's really a thumb in the eye of Donald Rumsfeld.
DELANEY: Sounds, Bill, like Obama has yet another strong-minded person in his cabinet aiding to Gates and Clinton and many more.
SCHNEIDER: That's right. He does not appear to be fearful of naming people with strong independent opinions.
DELANEY: Absolutely. All right. Let's move on to a Senate spot. We are wondering how likely it is that Caroline Kennedy will be getting the vacant New York Senator spot being vacated by Hillary Clinton.
SCHNEIDER: Well, we can't be certain. She has expressed interest, it has been reported by Robert Kennedy Jr., her cousin. She has spoken to Governor Paterson who will make the appointment. If she takes it, it will be seen as a really breakthrough for a number of reasons. Her uncle, Senator Ted Kennedy, is encouraging her to do this. He wants to see this happen because he wants the Kennedy legacy to continue. There will be a Kennedy in the Senate. Her --Governor Paterson wants to keep this New York Senate seat in the hands of Democrats. She seems well qualified to do it.
She would have to run in 2010 and again in 2012. But she should be able to raise the money. She has some of her own money. Obama can help her. And I think she wants to be part of the Obama movement, which she endorsed very early and encouraged. She wants to be part of this.
DELANEY: So we have got eyes on New York and also eyes on Louisiana. Bill, I'm wondering if you were surprised by the fact that a relative newcomer has unseated a nine-term Democrat there.
SCHNEIDER: Not really considering the charges and the indictment of Representative Bill Jefferson who was turned out of office by his constituents yesterday in Louisiana. There were embarrassing revelations. There were charges of theft. There were stories that his family may have benefitted from his wrongdoing.
He was an embarrassment. He was an embarrassment to Democrats in Congress and to his constituents, who did return him to office in 2006, the initial vote he faced after the charges surfaced. But now it looks like enough is enough, and they voted for a Republican to replace him. It was a low turn out election, but even there 15 percent of African-American voters voted for a Republican of Vietnamese dissent rather than Representative Jefferson.
DELANEY: All right. Big change there in Louisiana.
Bill Schneider, thanks very much.
SCHNEIDER: Sure.
DELANEY: One of the key Senators in the big three rescue negotiations wants G.M. to replace its CEO. Senate Banking Chairman Christopher Dodd says it is time for current CEO Rick Wagoner to move on. He made the comment as Congress and the White House continue to work on a possible loan package.
CNN's Kate Bolduan has the detail details.
KATE BALDUAN, CNN NEWS CORRESPONDENT (voice-over): After weeks of deadlock over Detroit, Democratic leaders are calling Congress back to try to hammer out a deal and offer ailing auto makers a life line.
SEN. CARL LEVIN, (D), MICHIGAN: Last month we lost, what, 500,000 jobs in this country? So the economic impact would be terrible if any of the big three go under. And there's that recognition I think that is growing across the countries and here in Washington.
BOLDUAN: Friday Democratic leaders reluctantly agreed to allow money from an existing loan program meant help auto makers fuel efficient vehicles to use a loan a plan the White House is pushing. Staff worked through the weekend to prepare a rescue package. Sources tell CNN it could total between $15 and $17 billion to help the car makers survive through March, a much smaller amount than the big three's request of $34 billion.
Lawmakers say the loan will come with a price, restructuring and oversight.
SEN. CHRISTOPHER DODD, (D), BANKING CHAIRMAN: I'm not forgiving these companies any money at all short of real commitments to restructuring reorganization, and putting someone like a czar or a board with real power to make decisions.
BOLDUAN: Senate Banking Committee Chairman Chris Dodd says one condition should be a change in leadership.
DODD: If you are really going to restructure this, you've got to bring in a new team to do this, in my view.
UNIDENTIFIED SHOW HOST: So what you are saying about G.M. is the Rick Wagoner, the chairman, has to go?
DODD: I think he has to move on.
BOLDUAN: Despite growing consensus among Democratic members of Congress, Republicans with the power to block the bill remain divided.
Some like Alabama Senator Richard Shelby continued to oppose a bailout saying bankruptcy is the better option.
SEN. RICHARD SHELBY, (R), ALABAMA: This has been 30 years in the making. This so-called bridge loan to nowhere will be the first down payment of many.
(END VIDEOTAPE)
BOLDUAN: A Democratic leader says the goal is to finalize the auto rescue package, to vote by the middle of the week, but it remains unclear if they have the votes and the support to pass it.
Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
DELANEY: This auto bailout loan has been a very provocative topic and you have been sending in your e-mails.
Right now, we want to bring back in our auto industry expert, Lauren Fix.
Hello to you, Lauren.
LAUREN FIX, AUTO INDUSTRY EXPERT: Hello, again.
DELANEY: We also want to bring in Josh Levs.
Hey, Josh. You have got loads of your questions.
JOSH LEVS, CNN NEWS CORRESPONDENT: They keep on coming. It's kind of amazing. They are just coming at us by the dozen. Should we just jump into it?
DELANEY: Yes.
LEVS: Yeah? All right, Lauren, let me talk to you. We are getting so many questions. The ones I'm going to show you now are the ones similar to what dozens of people out there are saying.
FIX: All right.
LEVS: Let's zoom in. Take a look at this. "If the U.S. bails out the big three and any of them later go into chapter 11, after that, wouldn't the taxpayers lose what was loaned?"
That's an angle I haven't thought about. If they do end up declaring bankruptcy later on, what happens to that money?
FIX: Well, that's true. That is part of the problem. Who gets paid back first when you go Chapter 11, it's not a bankruptcy where they are dissolving a company. Chapter 11 is a restructuring. And who gets paid back first will be the government because they are going to be the top of the heap. And then you are going to have to pay back all those suppliers.
There's a lot more to this than what meets the eye. A lot of the suppliers have supplied to General Motors and Ford and Chrysler get insurance policies on that. When those no longer being issued or are being revoked, which is what the situation we are in now, now the suppliers are also at risk. So we have to consider that when looking at these big three doing Chapter 11, it will affect not just one like we have been saying all along. It will affect many.
LEVS: Let me jump to another here. This is really helpful. Thanks. Let's zoom back in.
"Why should we trust the same CEOs to turn the failed business record around when for the past several decades they have continued to produce vehicles that still do not set the standard for liability and efficiency?"
What it really boils down to is, if the officials at the top of the companies, let things get this bad, why should people trust the same guys to lead with taxpayer money?
FIX: When it comes to Ford, they have done a great job. Mulally's a very smart man. They are in really good position of the three manufacturers.
Wagner is also a very smart man. Unfortunately, the deals he has made are deals made because of people before him. So letting him go, a smart man that's got a lot to offer, may be the only option. That does happen. It's that one bad apple case.
When it comes to Nardelli, he's a smart man as well. But merging he companies and trying to restructure things, the best thing is sometimes we have to let some people go. It might be Wagoner or Nardelli. But there's a lot more variables into that as to who owns what.
LEVS: Lauren, and you understand where that e-mail of George Walker is coming from. People are hearing about billions of dollars in taxpayer money. They're wanting to know who am I trusting with this money that will eventually add to the nation's debt.
And I'll tell you, people can still e-mail us weekends@CNN.com. And they are coming and coming and coming by the dozens. We will be back again with more questions.
FIX: All right.
DELANEY: This has been one of those most provocative topics, hasn't it?
(CROSSTALK)
DELANEY: We still know that there's time to send in your questions, so do please take advantage of that. As Josh just told us, the e-mail address is weekends@CNN.com.
Another indication of just how hard the economy has been hit.
(BEGIN VIDEO CLIP)
AUSTIN COOK, OREGON RESIDENT: I never really wanted to get financial assistance of any kind.
(END VIDEO CLIP)
DELANEY: Food stamp offices overwhelmed.
JACQUI JERAS, CNN METEOROLOGIST: And snow removal budgets have been closing down a little bit as well. Unfortunately, the snow is still on the way. We will talk about a major winter storm headed for the Midwest, coming up.
(COMMERCIAL BREAK)
DELANEY: Winter is still about two weeks away. But it looks like it is arriving early in iReporter, Nick Swann's, neighborhood. Look at that beautiful photo he sent us from Rochester, New York. He took the picture yesterday when it was about 26 degrees outside. The falling snow makes the area look like a Norman Rockwell picture.
And we are staying with that theme as well as a sort of warmer looking shot there.
Hey, Jacqui Jeras in our weather center, looking at our good and bad picks of the day.
JERAS: It depends on what you like, right? If you like the snow.
DELANEY: Well, if you want to feel the four seasons, I think that's something if you live in a more temp rat climate. Sometimes you miss out on that, the changing of leaves, the snow falling at Christmas.
JERAS: A little bit. But 1 below would be the wind chill in Minneapolis right now.
DELANEY: That's a little too cold for anybody, I think.
JERAS: A bit on the chilly side. There you can see a lovely picture and a lot of snow still on the ground.
(WEATHER REPORT)
DELANEY: Good, if you want to be making snowmen. Not so good if you want to be actually getting anywhere.
JERAS: Exactly.
DELANEY: All right, Jacqui, thanks so much.
JERAS: Sure.
DELANEY: The ailing economy has triggered a growing demand for food stamps in Oregon. The state can hardly keep up with requests.
Amanda Burden, with affiliate KGW, reports on what lawmakers are doing about it.
(BEGIN VIDEOTAPE)
AMANDA BURDEN, KGW REPORTER: 21-year-old Austin Cook fills out a form for food stamps.
COOK: I never really wanted to live on financial assistance of any kind.
BURDEN: But when gigs with his catering company became few and far between, he need a little extra dough to eat.
COOK: A lot of bread.
BURDEN: With his Oregon Trail Card, Austin gets $170 a month. Because of the economy, more and more people like Austin are showing up at DHS offices all over Oregon and waiting for food stamps.
EBONY CHESTERFIELD, OREGON DHS: We will have a line out the door.
UNIDENTIFIED DHS EMPLOYEE: 51, 52, 53.
BURDEN: It can take up to ten days to get an appointment here at the southeast Portland branch.
CHESTERFIELD: There's only four desks here so we can only do what we can do. We have a lot of people. We need more workers.
BURDEN: Most nights workers stay late to keep up with the crowds.
DENNIS SULLIVAN, OPERATIONS MANAGE, DHS: They are overwhelmed. They're overwhelmed.
BURDEN: But help is on the way. Friday the legislature OK'ed a request by Governor Kulongoski to hire 60 more food stamp workers throughout the state.
DHS operations manager, Dennis Sullivan, says the extra hands can't come soon enough.
SULLIVAN: It's going to relieve the pressure and we will be able to serve people faster.
BURDEN: People like Austin who, with a little help, hopes to be back on his feet in no time.
COOK: Yeah, I don't want to be on food stamps forever. I want to make enough to support myself completely.
(END VIDEOTAPE)
DELANEY: Well, the salaries of those 16 new state workers will be paid for with more than $3 million in federal money.
Well, some say that if there is no auto industry bailout, what you just saw in Oregon is just the beginning.
So we want to know, Josh Levs, what are you hearing from viewers in their e-mails?
LEVS: Right now, we are processing dozens more. We are going to keep processing dozens more all along for the remaining few minutes we have in this hour.
Send us your questions, weekends@CNN.com. Anything you want to know about this auto bailout, we are going to present those questions to our expert coming up.
DELANEY: We are looking forward to it, Josh.
Also ahead, when an auto plant closed in suburban St. Louis, the pain was deep for the unemployed left behind. How they healed the emotional scars.
(COMMERCIAL BREAK)
DELANEY: When a car plant closes, a surrounding community can take a big economic hit. Case in point, Hazelwood, Missouri. Ford began cutting shifts and laying off workers there in 2002.
Kasey Joyce, with CNN affiliate KSDK, tells us how the city is recovering.
(BEGIN VIDEOTAPE)
KASEY JOYCE, KSDK REPORTER (voice-over): In 2002, this 7-Eleven was sitting on prime real estate, right across from the Hazelwood Ford plant.
JIM HESSEL, 7-ELEVEN EMPLOYEE: This place was booming. We would be prepared for them, take care of them and send them back to work.
JOYCE: Then came the layoffs.
You could pretty well tell when they were walking in the door. They were the ones with the heads down, looking pretty sad.
JOYCE: Ford cut one shift after another. City officials started working on a plan to keep Hazelwood's economy afloat.
T.R. CARR, MAYOR OF HAZELWOOD, MISSOURI: When they announced we're going to close, we wondered what we were going to do.
JOYCE: They courted developers and international corporations, and created Park 370, the site of what is now the St. Louis Mills Mall. And Hazelwood's economy started to rebound.
CARR: We're still in a period of recovery, you know. I understand that, that the city is not flush with dollars. But we have been able to maintain the level of city services we had.
JOYCE: Some Hazelwood businesses are still hurting.
HESSEL: It became pretty well deserted at this end.
JOYCE (on camera): Construction crews are now working to demolish the old Ford plant. That influx of new workers has stimulated nearby businesses, but it's been a slow process.
(voice-over): Mayor Carr thinks it will be much more difficult for other cities like Wentzville and Fenton to bounce back.
CARR: The employees that were at Ford were able to find other jobs. Today, the economy is much more uncertain. There's going to be a period of recovery. Now we'll be turning to national leadership.
JOYCE: In the meantime, Carr and Hessel agree, it's time for those communities to do whatever it takes to keep the economy from stalling.
HESSEL: We're going to have a rough go of it, the businesses around it. Some will survive. Some won't.
(END VIDEOTAPE)
DELANEY: And right now, we won't to bring in auto industry expert, Lauren Fix.
Lauren, you've been talking about the impact of the proposed bailout. Now we're looking at these scenes in Missouri of plants closing and the devastation that that causes. Are we going to see that spreading across the country?
LAUREN FIX: Unfortunately, if this bailout or, as people call it -- it's not really a bailout -- this bridge loan, doesn't happen, that may be what we're going to start seeing. There's a lot of people that are going to have to restructure their cities or possibly they'll be like ghost towns.
DELANEY: We hate to hear that. This has been a very provocative topic.
Josh Levs is with us.
Josh, you've been getting tons of e-mails for Lauren, right?
LEVS: Are you kidding. He's the last ones we're going to get to right now. But we have gotten so many e-mail questions.
DELANEY: It affects everybody.
LEVS: It does. We have an expert that has answers for everybody, or almost everybody, right?
DELANEY: Well, you go ahead.
(LAUGHTER)
LEVS: Lauren, I want to start off with this. "How much authority can Congress have over the car companies?" This is from Julie in Los Angeles. "And given our breakdown in America, capitalist society, private company, how much power in the end could Congress really affect on these companies?"
FIX: They could really affect it in such a negative way. It happened that way in Britain back when the -- Britain and the Leland Group came together and they ended up putting their whole car industry out of business. And they do not produce -- they produce cars there, but there are no British-owned car companies, hence Land Rover, Jaguar. So we definitely don't want it to be too stringent. Just a little bit of guidance would be best.
LEVS: Kind of going down that same lane, I'll ask you this, a lot of people are asking us how much of the money that gets put out would not be used in America. Would it end up going to plants in other countries? In Mexico, for example?
FIX: That was one of the stipulations stated by Congress. They want this money to stay here in this country, and that needs to be one of the requirements. We need the jobs here in the U.S.
LEVS: OK. Let me toss in one more since we've got a little bit of time.
FIX: OK.
LEVS: Then we'll tie it up from there. "If and when the auto industry gets bailed out" -- this is from Lawrence White -- "Will the American people have enough money to buy enough cars to keep these companies in existence any way"?
FIX: Like I've always said, if you're building cars for a manufacturing and you're working, you're going to be loyal to that manufacturer. Even if that's Honda -- you used to work at Chrysler, now you're working at the Honda plant, and you're going to be loyal to them. So the idea is that the more we buy cars, the more it's going to help the economy. Just like everything else, you want to keep buying American. Make sure you check inside the door tag or on the window sticker and make sure you're purchasing American. LEVS: All right.
DELANEY: I guess that's why the access to credit is so important. If people can't borrow, they didn't buy cars.
LEVS: There's just so many dominos in this line, the mortgages and everything else. Let's just hope it gets fixed.
DELANEY: Well, we all do.
Josh, thank you very much for sharing the e-mails with us.
LEVS: Thank you.
DELANEY: And, Lauren, thank you for hanging out with us this past hour to answer all of those questions.
FIX: I enjoyed it. Thank you.
DELANEY: And I'm Naamua DeLaney, in for Fredricka Whitfield. Don Lemon is up next with more of the day's headlines, including workers in Chicago, mad, and not taking it. They lost their jobs in a sudden plant shutdown. Their struggle is gaining national attention.
And the Virginia millionaire making a difference and bringing the people to the inauguration.
(COMMERCIAL BREAK)
DON LEMON, CNN NEWS DELANEY: Hello, everyone, I'm Don Lemon live here at the CNN world headquarters in Atlanta.
Laid off workers unite. They have taken over their factory. People are taking notice, including a noted name. And attention is shifting to the bank at the center of this shutdown.
