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Rescue Plan for Auto Industry; Obama Cabinet Choices; Interview With Lansing, Michigan, Mayor Virg Bernero

Aired December 19, 2008 - 11:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DON LEMON, CNN ANCHOR: Hello, everyone. It's the top of the hour.
I'm Don Lemon. You're in the CNN NEWSROOM.

Tony Harris off today.

Here are the headlines from CNN for Friday, December 19th.

General Motors and Chrysler getting a jumpstart from the White House. Reaction from Detroit on a new auto rescue plan is announced today.

Also, crank up the old snowplow and grab your shovel. A cold, snowy blast hitting parts of the nation, and it is moving east. Your early holiday travel plans could take a big hit.

Weather and the auto bailout our big stories today.

Auto companies on the brink of collapse get help from the White House. Today President Bush announced a rescue plan that would give GM and Chrysler more than $13 billion in short-term loans. The CEO of GM expressed gratitude to the government.

(BEGIN VIDEO CLIP)

RICK WAGONER, CEO, GM: On behalf of the entire GM team, I want to thank the administration for extending a financial bridge to the U.S. auto industry and to our nation's economy. This action will help to preserve many jobs and support the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on our company and our industry.

(END VIDEO CLIP)

LEMON: In a statement, Chrysler's CEO Bob Nardelli said, "We intend to be accountable for this loan, including meeting specific requirements set forth by the government, and will continue to implement our plan for long-term viability."

Ford President and CEO Alan Mulally says, "Ford is in a different position. We do not face a near-term liquidity issue and we are not seeking short-term financial assistance from the government. But all of us at Ford appreciate the prudent step the administration has taken to address the near-term liquidity issues of GM and Chrysler."

Barack Obama has talked about the dilemma facing the auto industry, and CNN's Brianna Keilar is in Chicago, and she joins us now with the reaction from the plan.

My mouth isn't working quite right.

BRIANNA KEILAR, CNN CORRESPONDENT: That's OK, Don.

LEMON: Maybe it's the cold weather.

KEILAR: I think -- well, yes, maybe it is. Not so much in Atlanta.

But a statement officially from President-elect Barack Obama of support saying this was a necessary step to make sure that the auto industry didn't collapse and send reverberations through the greater economy. But he went on to say, "The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that it absolutely required to save this critical industry and the millions of American jobs that depend on it."

We're learning a little bit more about the interactions between the Bush administration and the incoming Obama administration. According to a transition team, the Obama team was briefed by the Bush administration about the different avenues that the Treasury Department was considering in this package. However, according to this aide, the Bush administration did not ask for Obama's approval or even his opinion on exactly the package or any of the specifics they were considering in it.

This aide pointing out that Obama, back on November 10th, in that historic Oval Office meeting between Obama and President Bush, that he urnged President Bush to make sure that the auto industry didn't fail, and to prop up the auto industry. As CNN has reported in the past from officials who were briefed on that discussion, President Bush was actually skeptical at the time of having a bailout of one industry when there had already been bailouts of other industries. So, obviously, while you see that Barack Obama's supports this move by the Bush administration, we're also hearing from this transition aide, pointing out that Barack Obama was on board from the very beginning, when this idea of an automaker bailout was being floated -- Don.

LEMON: And Treasury Secretary Henry Paulson says this is the largest government bailout program in history. Enormous.

Brianna, talk to us about -- the president-elect will hold a press conference, 2:15 Eastern today in Chicago. What's expected there?

KEILAR: Yes, that's right. You know, we've seen him do press conferences every day, and today is the same.

We're going to be hearing, as we understand, a couple cabinet-level announcements of picks for not only secretary of transportation, which we first reported yesterday -- we hear today Republican Ray LaHood, a congressman from Illinois -- but as well, we're expecting to hear the announcement of Obama's pick for secretary of labor.

Congresswoman Hilda Solis, she is a Democrat from California, she's serving her fourth term in the House of Representatives. She was actually the first Latina on the House Energy and Commerce Committee, the first Latina elected to the California State Senate back in the mid-1990s.

She has been very critical of the Bush administration's labor policies. And when this word of her announcement became public, you had labor unions just coming out en masse. Very happy about her being Barack Obama's pick.

She's also someone, Don, who brings kind of a personal perspective that certainly is going to enlighten how she leads the Department of Labor. She is the daughter of two union members who were also immigrant laborers -- Don.

LEMON: Wow. Very interesting. OK. We look forward to that, Brianna. Thank you very much.

And of course, CNN will bring the president-elect's news conference from Chicago this afternoon, 2:00 p.m. Eastern. 2:00 p.m. Eastern. You don't want to miss that.

Let's talk more about the details of the auto rescue plan and the strings attached to that plan.

CNN's Kate Bolduan joins us now live from the White House to give us information on that.

Hi, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Don.

Well, we've been talking a lot about this loan that the president announced this morning, and we have kind of a breakdown of what each of the companies, GM and Chrysler, would be getting, rather than the big pot of money they're talking about.

As it breaks down, as administration officials tell us, is GM, if they get all of the money that they're talking about in this loan, they would get $13.4 billion and Chrysler would get a smaller amount, about $4 billion. Acknowledging there that GM is in a much tougher situation than Chrysler in terms of how much cash they need and how little cash they have left.

Now, as I said, President Bush made the announcement earlier today, and when he made the announcement, he said this was not a decision he wanted to be making. He's a very big free market advocate. But he said really what it came down to was there really was no other option.

Listen here.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There's too great a risk that bankruptcy now would lead to a disorderly liquidation of American auto companies. My economic advisers believe that such a collapse would deal an unacceptably painful blow to hard-working Americans far beyond the auto industry. It would worsen a weak job market and exacerbates the financial crisis.

(END VIDEO CLIP)

BOLDUAN: Now, as we're learning more about what's all involved in this administration plan, they say it's a three-year loan, but there are some very short and tight time constraints that the automakers will need to meet. March 31st, Don, we've talked about it quite a bit this afternoon, this morning, is the deadline, where automakers are going to have to show that they are on a path toward long-term viability.

They're going to need to show by that date that they're cutting costs, that they're getting revenue up, that they in the short term will be profitable. Not necessarily on exactly that date.

And also what comes with that, some very strict conditions. They're going to have to open up their books, they're going to have to let the government in to see their financials. They're going to have to cut executives compensation, and they're going to have to give up some of those perks like those corporate jets we've been talking so much about -- Don.

LEMON: Transparency and accountability, Kate. Thank you very much.

BOLDUAN: If we could have just done that a little while ago.

LEMON: Yes. If we could have done that, we wouldn't be in this mess.

Thank you very much for that, Kate.

BOLDUAN: Of course.

LEMON: Stay warm outside of the White House.

BOLDUAN: Thank you.

LEMON: The president of a local United Auto Workers Union in Lansing, Michigan, says the rescue plan would not only help the industry, but other workers as well. We spoke by phone with Mike Green just a short time ago.

(BEGIN VIDEO CLIP)

MIKE GREEN, PRESIDENT, LOCAL UAW 652: I think it's a lot better than what we had yesterday. I mean, any way you look at it.

You know, I'm glad that this has been extended to us. I don't believe that the American autoworker will let them down. And let's not forget, this is just more than autoworkers. This is middle class America, and all the jobs that are attached to this. And I think that a party should be able to sit down and put something together that -- I have faith in Ron Gettelfinger that what's good for one will be good for all.

(END VIDEO CLIP)

LEMON: Of course, we want to hear from you on the latest plan to save the auto companies. You can contact us as our Facebook page, or get in touch with Veronica De La Cruz on Twitter.

Many companies with close ties to the auto industry have been holding their breath as the financial crisis unfolds. The mayor of Lansing, Michigan, is one of them, and he will join me in just a few minutes to talk about this morning's rescue plan announcement. If you know him, he does not mince words.

(COMMERCIAL BREAK)

LEMON: A peaceful setting becomes the scene of a deadly tragedy this morning. Details are unfolding in that bridge collapse at the Atlanta Botanical Garden.

(COMMERCIAL BREAK)

LEMON: OK. The auto rescue plan is a relief to the towns and cities that depend on the industry, especially ones that border it really closely. One of those towns, Lansing, Michigan.

And joining us now is Mayor Virg Bernero.

Thank you so much for that.

You know, I said you don't mince words, and that's a good thing. What do you think of this plan?

MAYOR VIRG BERNERO, LANSING, MICHIGAN: Well, we've very heartened by this, Don. We're very encouraged.

This is a wonderful gift. It's the gift of peace of mind to autoworkers around this country, here in Lansing, but around the country.

You know, people were on pins and needles. And look, this is a bridge to the future. It's a bridge loan; we know it's temporary. But this allows us to get through this period and bridge to the next administration. And really, this is an incredible thing.

This is really historical when you think about an outgoing Republican president really in agreement with the incoming Democratic president that this industry is too important to allow to fall by the wayside. I'm very encouraged. We're very heartened here in Lansing and hopeful about the future of the automotive industry.

LEMON: Mayor, let's talk about the people in your community, directly in your community, obviously suffering right now. A lot of people are, especially with the economy. But the auto industry isn't doing well, laying people off.

Talk to us about how this is affecting people in your area, and if this offers maybe a glimmer of hope for them.

BERNERO: No question about it. Look, we're a GM town, and proudly so. These are the folks that make the Cadillac CTS, the Motor Trend Car of the Year. There are a lot of layoffs. We're heading toward a shutdown in January, where everything will be shut down. So people are scared, no question. And people are on pins and needles.

This really provides a great measure of peace of mind knowing that we've got the hope that we will be fighting for the future next year. This -- again, it's a bridge, and people are grateful.

Look, we're grateful to the president for realizing the gravity of the situation and stepping in where Congress tried but couldn't, and this gives us that opportunity. So it's a huge -- there is a huge sigh of relief today in Lansing, Michigan, for this. And, again, it gives us a chance.

We want to be building the cars. We know we've got the quality, we've got the great products, and we want to be building those plug-in vehicles, those hybrid vehicles to export to the world.

LEMON: You make a very good point. Hold that thought, because I want to talk to you again -- I want to mention -- we're going to get back to that.

We're talking about the people in the Lansing area the last year or so. Especially the last couple months. What's life been like for them?

BERNERO: It's been very difficult. It's been very difficult.

This is, you know, 6,000 direct employees, and then a huge spin-off economy. You know? Suppliers, where their lives have been in an upheaval.

There are foreclosures. We've got a lot of home foreclosures. We've got people really on the edge economically. And then even if there is help, you know, unemployment benefits and so on, there's the fear when people don't know what the future holds. It's agonizing to not know if your industry, you know, what you've been trained for, what you've been doing, if it's even going to be around.

And so there have been -- there's been a lot of heartache, a lot of difficulty. And I'm just -- that's why I'm so grateful today. We've done the best we can to extend hope, and not false hope, because this is a great industry with great people who are making wonderful products, but the industry has been in transition and there has been right-sizing and closures anyway.

LEMON: And Mayor, you know, I want to get to think, but this is -- thank you for that, and, you know, we feel terrible for everyone in the country, of course, who is without a job or has been laid off, especially when it's close to your area.

Tough love, though. You mentioned the Cadillac CTS, the Motor Trend Car of the Year. You talked about electric cars and all of that.

You know, we have grown in America used to these big cars, these cars that aren't fuel efficient and cars that look a certain way. And maybe we're not right on with that, because other countries are not really having this huge problem with their car industry.

Is there some tough love there for the auto industry and for -- even for the workers that we need to build different kinds of cars that are more viable for the world right now?

BERNERO: Don, you know, I agree with you in some parts, but in some ways I disagree with the premise.

Look, Toyota -- they're all hurting right now. The Prius is 42 percent down, the sales. They just stopped building a plant in Mississippi. So everybody's having trouble in this economy. As far as the cars they're building, you know, Toyota and the others were rushing to build big cars and trucks to compete with GM.

LEMON: Everybody's having problems, but not everybody is being bailing out.

BERNERO: Well, that's correct, although China is considering a bailout for their automotive industry.

So we have to look at how we -- when we talk about competitiveness and fairness, it's not just about workers' wages and so on. They're building a different car, Don. This not your father's automobile company.

LEMON: Right.

BERNERO: The fact is, the Chevy Malibu was the North American Car of the Year. It's a smaller vehicle and it's a beautiful vehicle, and its sales are good.

LEMON: OK.

BERNERO: But the economy right now is hurting.

I think we are fully capable of paking the cars of the future. We've been making cars, great cars now. I encourage people -- you know, have a little patriotism. Give the American cars a chance. You know, if you're driving a foreign car and you haven't driven an American car in a while, I tell you, this is not the American car of a decade ago.

LEMON: Hey, we certainly hope so. I mean, we certainly hope things get better for you.

Just want to make sure people are thinking, it's going to change, so you need to be ready to change with the future.

BERNERO: Absolutely.

LEMON: Thank you, Mayor.

BERNERO: Thank you so much.

LEMON: We appreciate it. Happy holidays to you. Merry Christmas.

BERNERO: Happy holidays. LEMON: And thanks for joing us.

BERNERO: My pleasure.

LEMON: A deadly collapse to tell you about in Atlanta this morning. One person was killed and 15 others injured. All of them were working on this pedestrian observation bridge at the Atlanta Botanical Garden. An Atlanta fire captain says scaffolding used to pour concrete for the bridge failed, causing the structure to come down.

And the Botanical Garden is adjacent to Piedmont Park. It is popular for schoolchildren and Atlanta residents alike.

(WEATHER REPORT)

LEMON: There's been a lot of talk about stimulating the economy through big investments and infrastructure, but some of the projects being proposed are raising red flags.

(COMMERCIAL BREAK)

LEMON: OK. So, mayors throughout the country recently asked Congress to hand over $73 billion in emergency federal funds for ready-to-go infrastructure projects, projects the mayors say that will create jobs and stimulate the economy. But is it really that simple?

Special Investigations Unit Correspondent -- Special Investigations Unit Correspondent Abbie Boudreau uncovers why critics are calling some of these projects, Abbie, a joke and a waste of taxpayer money.

What is this all about?

ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Well, Don, if you actually read these 800 pages...

LEMON: I'm surprised you could pick that up. My gosh.

BOUDREAU: ... report from the U.S. Conference of Mayors, you'll see that some of these ready-to-go projects include rebuilding roads, waterways and schools. But we discovered other projects that are now raising red flags.

(BEGIN VIDEOTAPE)

BOUDREAU (voice-over): You usually don't think a nearly five million dollar polar bear exhibit in Rhode Island would help turn around the economy. But the U.S. Conference of Mayors sure thinks so. It is one of more than 11,300 ready to go infrastructure projects proposed by 427 cities, at a total cost of $73 billion.

PETE SEPP, NATIONAL TAXPAYERS UNION: To the people supporting them, these proposal aren't a joke. But to the tax payers funding them, yes, it will be a joke to them, only they won't be laughing.

BOUDREAU: Just this month, Miami Mayor Manny Diaz, the president of the U.S. Conference of Mayors, and other big city leaders, went to Capitol Hill to make the case for the list of critical projects.

MAYOR MANNY DIAZ, PRESIDENT, US CONF. OF MAYORS: Our plan calls for investments that will stimulate our economy by quickly creating jobs.

BOUDREAU: Mayor Diaz even held up the report, saying the projects weren't a bailout, but a build-out to put Americans back to work.

(on camera): Did you have a chance to even read the report?

DIAZ: Well, I read through a lot of it. Obviously, I didn't sit there and look at all 11,300 projects that were submitted.

BOUDREAU: Why is that?

DIAZ: Why is that? I didn't have time.

BOUDREAU (voice-over): If he made the time, he would have found projects like a 20 million dollar Minor League Baseball museum, $42 million for improvements to zoos, three million for murals, and even $1.5 million for a new water park ride.

DIAZ: You can't simply say that because something sounds like it isn't right, that it isn't in fact right.

BOUDREAU: A new ride at a water park?

DIAZ: Again, I'd have to look at that particular project and try to understand why that city feels that it is an important project. But, again, we're talking about 11,300 projects, not just one.

BOUDREAU: The new ride at the water park is in your city. So, what is your response? I'm asking you as a mayor. I'm surprised you didn't know about the new ride at the water park.

DIAZ: Well, we had a number of projects and I don't know which one you're referring to. But we just built the new water park and it may be related to that water park or it may be outside of that city.

BOUDREAU: $1.5 million for a new ride at a water park.

DIAZ: The point is, part of investing in infrastructure also includes parks.

BOUDREAU (voice-over): While there were plenty of roads and bridges and water treatment projects on the list, we also found plenty of other interesting multimillion-dollar projects, like skateboard parks, museum and zoo renovations, aquatic centers, bike and horse paths, a dog park, even programs beyond infrastructure, to help prostitutes get off the street, and buy thousands of tasers for police departments. The total cost, more than $300 million. And many of the proposals in the report don't create jobs.

Pete Sepp of the National Taxpayers Union says it smells like pork.

SEPP: It is impossible for any normal tax paying American to read this and not come away scratching your head and saying, wait a minute, this isn't about infrastructure. This is about political power grabs, money grabs.

BOUDREAU (on camera): To the average American, doesn't this sound like pork?

DIAZ: I don't know. You'd have to ask the average American.

(END VIDEOTAPE)

BOUDREAU: Now, Mayor Diaz says he would hope that the members of Congress would read the entire list of project his group has submitted to make sure they're legitimate before handing over billions of dollars. He was also telling us that by the end of the month, more cities are going to be adding their proposed projects. So the list continues.

LEMON: Yes. And this is -- I mean, seriously, look how big that is. That is ridiculous.

BOUDREAU: Well, yes. It's about 800 pages. I mean, we're talking about a ton of projects. And if you look carefully, you'll see some of the ones that we brought up in our report.

LEMON: Good reporting, Abbie.

BOUDREAU: Thank you.

LEMON: Thank you very much.

We want to go now to a developing story that's happening right here in Atlanta. We're talking about the collapse of a bridge -- really, workers were injured in this -- at the Atlanta Botanical Garden.

It happened this morning. We're told one person is dead and up to 17 people injured. We saw a press conference at the hospital, Grady Memorial, just moments ago.

Of course, our very own Dr. Sanjay Gupta, our chief medical correspondent, a surgeon at that hospital. I'm not sure Sanjay is on the way or if he is there, but he joins us now to talk about this.

Sanjay, because hearing in all of this, there are back, arms, legs, spine and one liver injury, but also some brain injuries in this. Talk to us about that, Doctor.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Crush injuries are one of the things that happens in situations like this. You have a lot of people with a lot of force on various parts of their body. The brain is obviously an area of interest, and as well as the spine, as you mentioned, ,but lots of abdominal injuries can also occur in a situation like this.

What happens, Don, as you've seen, as you've been reporting, these patients are stabilized at the scene, but then taken to, in this case, Grady Memorial or Atlanta Medical Center, which are two trauma hospitals in the area. These are the types of injuries that you typically see when you have a circumstance like this. You know, on full disclosure, as you mentioned, I am one of the trauma neurosurgeons for this city. So I was called in as well, and, you know, it wouldn't be appropriate to talk about the specific types of injuries that I'm seeing, but there are some serious things that are requiring all the various specialties within Grady to be involved -- Don.

LEMON: OK. Yes, and very interesting that you're on your way there. Right, it would not be good to talk about it, unless the hospital says that you can in all of this.

So we're hoping that these people are OK. And Sanjay, if you get more information, please call us.

This is a very sad story to happen at this time of year. As I said, Doctor, and to our audience here, it's sad any time it happens. But one family now during the holidays dealing with a death, and at least 17 other families and hundreds of people probably on top of that dealing with some injuries.

Doctor, thank you very much for that.

He was a shadowy, central figure in the scandal that brought down a presidency. Mark Felt, known to the world as years simply as "Deep Throat," he has died. And that's according to his family. Felt admitted in 2005 that he was "The Washington Post's" source for many of its stories on the Watergate affair during the early 1970s. He spoke with CNN's Larry King about it. That was back in 2006.

(BEGIN VIDEO CLIP)

LARRY KING, CNN'S "LARRY KING LIVE": What about all of this attention that occurred? You had to know it would be happen, didn't you?

MARK FELT: Yes.

KING: Were you surprised?

FELT: Well, I was -- I was surprised in how effective the program was. But I wasn't surprised in the fact it had to be done.

KING: Were you surprised that it was a secret for so long?

FELT: Yes, I guess I was.

KING: Did you like being called "Deep Throat"?

FELT: Well, yes. Some ways I do. I'm proud of everything "Deep Throat" did.

(END VIDEO CLIP)

LEMON: Mark Felt was 95 years old.

(COMMERCIAL BREAK) LEMON: All right. Want to show you what's happening on Wall Street right now. In the positive territory. The Dow hovering around the 33 mark. And also Nasdaq up 16. So positive. Good news. Let's hope it ends on positive note.

Meantime, we have been talking to you about this auto bailout. A lot of people have been responding. A lot of people want to know how it's going to be divvied up, how it's going to affect them. And for more reaction on that, we go to CNN's Veronica De La Cruz. She's been watching the web this morning and this afternoon for the reaction to the auto worker -- or the automaker, I should say, rescue plan.

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Right, the rescue plan.

LEMON: FaceBook, Twitter, MySpace, all these social networking sites. What are they saying?

DE LA CRUZ: Yes, all these social networking sites.

LEMON: I know it's buzzing.

DE LA CRUZ: Well, people definitely have something to say, that's for sure. And we've been receiving a ton of feedback. So, Don, let's go ahead and get started with Twitter. Chuck Colby, he disagrees with the plan. He writes, "I think the automakers should have gone through Chapter 11 with the government backing the cleanup loan. Now very little changes."

And Dave Lewis, he also had something to say. "It's sad that it has come to this in the auto sector and elsewhere. I hope this will bring a moment of sobriety to the industry."

And we got this tweet in from Dave Benjamin who writes, "the president had no choice but to give the auto industry money. The industry is too expansive and affects too many jobs. It is the last manufacturer we have."

And John Lancer (ph), he has this perspective. He says, "it's funny how folks get angry about the automaker loan, which is a product they know, but say less about the Wall Street bailout, which is a less known product.

And then in response to that, let's go ahead and take a look at FaceBook. Jeff Cloidt writes this. He says, "most Americans can relate far more to the auto industry than the financial industry because it produces tangible products made by hard-working Americans. Even if you think union members are overpaid, it's nothing compared to the bloated, top-heavy, obscenely compensated financial industry, which seems to exist mainly to find every possible scheme to suck more money out of the average person's shrinking income and, in return, adds nothing of real value. Even if this is only a temporary fix, it's a drop in the bucket compared to what Wall Street is getting and a far more worthwhile endeavor."

Then take a listen to this, Don. This is from Darrell Kahoalii (ph) who asks, "what I'd like to know is, who will be buying the cars? The 2.1 million people who are unemployed? I hardly think so. The foreign automakers will survive the economy crisis, but GM, Ford and Chrysler will eventually fail. The history books will so the inept decisions of this administration. Someone please throw another pair of shoes."

LEMON: Well, the shoe part, Veronica, not good. But that's a good question. Who will be buying these cars in this environment with people being laid off?

DE LA CRUZ: You're right. You're right.

LEMON: That's a very good point.

DE LA CRUZ: And that's why the discussion is all over the web. You're right, the web has been abuzz. If you want to go ahead and join in, go ahead and search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris. That's FaceBook. You can also follow us on Twitter. I'm at veronicadlcruz. Don Lemon's on Twitter too at donlemoncnn. So you can go ahead and give us a shout-out and let us know your thoughts.

LEMON: Oh, gosh now, yes, I love the Twitters. The tweets.

DE LA CRUZ: Yes, I do too.

LEMON: So I'm going to have to go on now because I'm sure it will be buzzing. That and MySpace and FaceBook. If you really want to know, you've got to go on those, Veronica, because those people, no holds barred. They say what's on their minds.

DE LA CRUZ: Yes. Yes.

LEMON: Thank you.

DE LA CRUZ: Got take a look.

LEMON: Good seeing you.

DE LA CRUZ: Nice seeing you too.

LEMON: You know what, it seems as though everyone wants a piece of the bailout pie. GM and Chrysler are getting theirs. As it turns out, if you ride a bicycle to work, you can get some of the bailout money, too. All right, that got my attention. Alison Kosik has our "Energy Fix" from New York.

Alison, I have two bicycles. Does that I mean I get double the money?

ALISON KOSIK, CNN CORRESPONDENT: Well, listen to what I have to say first and then consider that, OK, Don?

LEMON: OK.

KOSIK: Buried within the bailout legislation is a $20 a month benefit for anybody who bikes to work on a regular basis. Cyclists can use the money for things like tires, tune-ups and bicycle parking. But there are a couple of problems with this. First, very few companies are ready to implement this benefit, even though it's available January 1st. Employers aren't sure how to structure the program. Is it a straight reimbursement or a pre-tax deduction from your paycheck? Many are actually waiting for guidance from the IRS before making the benefit available to employees.

Second, there's a big potential down side for commuter themselves. If you use the bike benefit, you can't get any other transit benefits your company may offers, like money for your monthly bus or train pass. And that's often worth a lot more than $20 a month. So people who bike to the bus or train station probably won't sign up, Don. So what do you think of it now?

LEMON: You know, any incentive, I think, is good. Especially to get people to stop driving so much. Bicycles, mass transportation, walking. I think it's all good. The auto industry is great, but I think we need to, you know, look at the alternatives.

KOSIK: Sure. Sure.

LEMON: OK. So how many people actually, you know, ride their bikes to work? I know Chicago's a huge bike-riding city. Bike lanes almost on every street. Not every city has that. But how many people actually do ride their bikes to work?

KOSIK: Yes, biking's a big deal here in New York, too. But, you know, we don't have any hard numbers. But we do know it became a lot more popular last summer when gas prices were soaring. We can't forget that. The city saw a huge jumps in the number of people bringing bikes onto buses. Places like Denver, Houston and Fairfax County, Virginia, reported increases of 75 percent to 100 percent.

But now that the price of gas has dropped to an average of $1.67 a gallon, it's hard to say whether the trend will keep up, especially with winter here. But the League of American Bicyclists thinks it will. As they told us, once you start cycling, you know, it's hard to go back to being stuck in traffic. We all hate that.

And for more "Energy Fixes," check out cnnmoney.com.

Don, back to you.

LEMON: Alison, great information. Love the "Energy Fix." Thank you very much.

KOSIK: Sure. My pleasure.

LEMON: Mortgage rates dropping. Is it time for you to make a move?

(COMMERCIAL BREAK)

LEMON: You know, amid all the bad economic news, a piece of good news for some home buyers. Mortgage rates dropped to their lowest level in decades. Who benefits from this? I think it's you, the consumer. I was talking to a real estate agent. He goes, this is the mack daddy of all bargains for people who are looking to buy or refinance. JOSH LEVS, CNN CORRESPONDENT: Yes, but who's the mac daddy of all bargains for? That's what we've got to break down.

LEMON: Oh, OK.

LEVS: I wish I could say it -- you're just saying, oh, because I used the word mack daddy, which he knows I'm probably never going to say again.

Take a look at this. This is it right here. Mortgage rates fall to a 37-year low. That's what our folks at CNN Money are reporting.

Unfortunately, that does not necessarily mean big opportunities for everyone. I spoke with some experts today, including one from bankrate.com. I'm going to break it down for you right now. Let's start with this.

In order to benefit from this at all, first you have to have equity in your home. That's a requirement to finance at one of these new low rate. Now a lot of people, Don, as you know, owe more than their homes are now worth, so they won't be helped.

And next, you've got to have good credit. And with people losing jobs, facing consumer debt, struggling with mortgages, a lot of trouble, borrowers don't have that kind of good credit that they need to get this. And also you need money. You've got to have that money ready for a down payment. And also, that applies to new home buyers, too. You've got to have good credit and money put away for a down payment.

Don.

LEMON: All right. So do analysts believe this will be the help that the housing market needs, Josh? Look at me. I'm over here.

LEVS: Well, hey, what's up? How you doing over there?

LEMON: Look at me when I'm talking to you. Um, do they think this is gong to be the help really?

LEVS: They want it to be. I mean I'm sure that there are some people who think this is actually going to make a big difference. And the truth is, it might for some people. For example, the analyst I spoke with at Bank Rate said it really could. There are a lot of people out there who have been in their homes for long enough, 10 years, maybe 20 years. They've got good credit. They could refinance under one of these deals.

On the flip side, I spoke just now with the Neighborhoods Assistance Corporation of America. They provide loans and advocate against predatory lending and they are not happy with this. The CEO told me. I pulled up his quote. He said, "very few will benefit from this because the bottleneck, he says, is not the interest rate," Don, "it's the restrictions." (INAUDIBLE) still there.

Now if you think you might qualify, discuss it with your mortgage adviser. And if you fit the criteria we talked about, Don, it might be time for those people to take action. So you see what I'm saying. There's some people who could do great with a mack daddy deal.

LEMON: A really nice deal.

LEVS: Not everybody.

LEMON: Sorry to kind of scold you. I'm in, you know, parent mode. My mom is in. So she goes, look at me when I'm talking to you, son.

LEVS: I've got a two-year-old. I'm kind of there (ph).

LEMON: You got it. You got it. All right. All right, Josh, good information, as always.

LEVS: Thank you, Don.

LEMON: Thank you very much for that.

You ever see a homeless person and wonder what you might do to help that person out? One man thought of something outside the box that we truly found inspiring.

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LEMON: You know, we're kicking off a new segment today. It's called "Inspiring Minds." And every Friday Tony Harris will take a look at the folks who, instead of turning a blind eye to the problems of the world, are really making a difference. And today it is a Hollywood producer who is helping the homeless. You've seen the numbers. Nearly 2 million people lost their jobs this year alone. And that means the homeless population is growing in America. Peter Samuelson was sick and tired of seeing folks living in cardboard boxes. So he did something about it. KTLA's Chip Yost has the story.

(BEGIN VIDEOTAPE)

CHIP YOST, CNN CORRESPONDENT, (voice over): Look around the streets of L.A. County long enough and you know . . .

UNIDENTIFIED MALE: That I have -- got blankets. She's got that down. Then I put this in here. Then I fold my chair up and I put it in there and we lay down and go to sleep.

YOST: Homelessness is a problem. A problem that could be getting worse.

ANDY BALES, UNION RESCUE MISSION: We've had more families show up in the first three days of our winter shelters in Burbank, west L.A. and Culver City and downtown. Them we had all of last season for 3.5 months.

PETER SAMUELSON, MOVIE PRODUCER/PHILANTHROPIST: Here's how you push it. Pretty maneuverable.

YOST: Enter movie producer Peter Samuelson, the movie producer known for hits like "Revenge of the Nerds," has an invention that rolls like a shopping cart and pops up like a tent that he thinks could make life on the streets a little more bearable. It was an inspired creation.

SAMUELSON: My epiphany was that I met a woman. And when I was doing my interviews, I asked her, where do you sleep at night, my dear. And she said, come with me. And she took me by the hand. And over the 409 freeway, behind the bushes, there was a huge cardboard box with some plastic draped over it. And it had been raining and it was disgusting, and it stank, and it was awful.

YOST: But Samuelson's creative solution isn't without its detractors. In an "L.A. Times" story, one legal scholar says some law enforcement types are worried the EDAR, as it's known, could be considered a dwelling and police would need a search warrant to get inside it. Others have raised, not in my backyard concerns, that the rolling tents could pop-up everywhere. An argument Samuelson dismisses.

SAMUELSON: Don't tell me that someone has to sleep on damp concrete. It's absurd.

(END VIDEOTAPE)

LEMON: Movie producer and philanthropist Peter Samuelson joins me now with our first "Inspiring Minds."

Thank you very much for joining us.

SAMUELSON: Merry Christmas.

LEMON: Yes, merry Christmas to you. I was just going to say, the right sentiment for this time of year.

You talked about it a little bit it in the report that we saw from KTLA. But, really, why? Why do you care? You're a Hollywood, you're a movie producer. You could make millions doing movies. Why do you care so much about the homeless?

SAMUELSON: It's Christmas in six days. Christmas celebrates a family that couldn't get into a building. They had a little baby. They ended up in a stable with straw on the ground. And the baby slept where the food usually goes for the animals.

I think it's absurd that 2,000 years later, I spent yesterday, part of the day, with a lady who's training at night to be a nurse. She's living in an EDAR with a small child on skid row. We have a man out next to Pacific Coast Highway sleeping in an EDAR near the bushes. He spends 10 hours a day going around trying to get a job. There aren't any.

What are we? We're defined by our weakest link. I think we have to do something. It would cost, just in Los Angeles, $3 billion to house all the homeless. Nationwide, it's hundreds of billions of dollars. I think we should burn all the EDARs. I'll light the first match on the day that we've got beds available. But until then, why do we have human beings sleeping on damp concrete? What is that? LEMON: There are those who say -- in the report it says there are detractor -- but there are people who say, and even doctor, Mr. Samuelson, that some of these people want to be on the street. And unless he want to get off the street, there's really no way you can help them.

SAMUELSON: Well, that argument fails until we offer an alternative. While there are four homeless people for every one bed that's available off of the street, I don't think we can ethically even dare to ask that question.

LEMON: Is this just one step in the approach -- I think you would agree to that, it's finding someone a place to sleep. But there are other things that, you know, there's mental and physical things that you need to take care of with these folks as well.

SAMUELSON: Of course. And we work in partnership with clinics, with shelters. You've showed the Andy Bales, Reverend Bales, at the Union Rescue Mission. They've got 17 so far. They understand their clients and their special needs. They use the churches and the shelters, use the EDARs to create stickiness of relationship. That's how they develop a loop with those which are a small minority, actually, who want to be on the streets.

LEMON: OK. So, you know, real quickly here because I want to get this one point. You know, you understand the, not in my backyard. People say that all the time and they touched on that. Do you think in any way that you may be encouraging people by providing them with these sorts of things, instead of other places, or maybe helping out at a hospital or at a shelter? Maybe building a shelter?

SAMUELSON: These are American citizens. They have the right to exist. What's the point of having a country, a society, a civilization, if we don't take care of people who are unable to take care of themselves? I think they define us. Especially on Christmas. And, of course, we should build shelters. I think we absolutely should. And then let's throw all of these EDARs away. But until then, why have we got women with small children in the year 2009 sleeping on -- behind freeway pillars? It's absurd.

LEMON: All right. Well, movie producer and philanthropist Peter Samuelson. We applaud you. It was very kind of you. And again, Merry Christmas to you, sir.

SAMUELSON: EDAR.org. Thank you very much.

LEMON: Thank you very much. As part of our continuing series here, CNN NEWSROOM with Tony Harris, it's called "Inspiring Minds."

Fathers-to-be can miss out on things like the unborn baby's first kick. One man has invented a high-tech belt to keep dad in the loop. And it has to do with a social networking site. Unbelievable. Wait till you see this.

(COMMERCIAL BREAK) LEMON: The miracle of birth. The joy of pregnancy. We found and expectant dad in New York who's turned his graduate school project into a high-tech bonding tool for a father and for child. Lolita Lopez's of WPIX explains.

(BEGIN VIDEOTAPE)

COREY MENSCHER, EXPECTANT FATHER: So when she was wearing it yesterday, for the first time we go some kicks in. She goes, ooh, like this and then all of a sudden it showed up on the prono (ph).

LOLITA LOPEZ, CNN CORRESPONDENT, (voice over): No way.

Way, Lolita. This elastic band with two sensors connected to a micro controller have brought the karate movements in the womb from mommy to daddy via text message. Meet expecting parents Corey and Ellen Menscher. Daddy-to-be created the Kick Bee as a project for his NYU graduate school class.

C. MENSCHER: Because she works and I'm in school, we couldn't be always together. So I had the idea to be able to feel the kicks from a distance.

LOPEZ: When a kick is strong enough, the vibrations find its way wirelessly to a sever server -- in this case the micro bloging site Twitter -- which then sends a text to Corey's cell phone. It happened right during our interview.

So it says, I kicked mommy at 5:19 p.m. on Thursday, December 18th. So fun.

C. MENSCHER: And it also acts as a data log, so we could go back and show the baby and say, look how active you were in the womb. Or it could be -- another application could be written to show a graph and it could be used to show the doctor how active the baby is.

LOPEZ: Practical indeed. And to think, Corey's project, part of the university's ITP winter show, took two months to build.

Has it dawned on your that this could really be like an invention for the future?

C. MENSCHER: Well, yes, I mean, I guess. Again, judging from the reaction, people have really been positive about it.

LOPEZ: Is it comfortable?

ELLEN MENSCHER, EXPECTANT MOTHER: Yes, it is. It's super light. And it's really soft. And it feels kind of like a back support.

LOPEZ: At eight months' pregnant, Ellen is happy she can share just how active their little bee is.

As much sharing as going on, will you be sharing in the diaper duties as well?

C. MENSCHER: Yes, I will be sharing.

E. MENSCHER: Yes.

(END VIDEOTAPE)

LEMON: Lolita Lopez reporting.

The next hour of the CNN NEWSROOM with Kyra Phillips starts right now.

KYRA PHILLIPS, CNN ANCHOR: A little roadside assistance from Uncle Sam, pumping GM and Chrysler's tank with $13 billion in change. And enough strings to fill a couple of Suburbans.