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Feeling the Pinch; New Credit Card Rules; Inaugural Controversy
Aired December 20, 2008 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: The next hour of CNN new begins right now.
All right. Hello again. I'm Fredericka Whitfield. Back in the NEWSROOM. Winter doesn't get here officially until tomorrow, but it certainly feels like winter just about everywhere. We have already seen the calling cards. Snow and ice is covering the lower United States today, and more is actually on the way. Well, it may ensure a white Christmas for many folks, it is also making pre-holiday travel a real mess and a hassle. The northwest, the midwest and the northeast are all feeling the impact, everything from slippery roads to delayed flights to power outages. Hundreds of flights in fact were canceled in New York yesterday. We sent CNN's Susan Candiotti to La Guardia Airport to see how things are going today.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Here at LaGuardia and two other metropolitan New York airports, JFK and Newark. Things are much, much better than they were on Friday. On Friday, there were 800 flights canceled among the three airports and they had delays of maybe three to four hours after getting several inches of snow. Today, as we said, things are moving along much better. Delays down to maybe about 15 minutes or so. There are some flights that have been canceled, among 50 in all among the three airports, but because of yesterays's problems, there are difficulties with some planes today being opoverbooked. And that's how we happen to ran into Cynthia Winters appropriately named. She decided to give up her seat. Here's her story.
(BEGIN VIDEO CLIP)
CYNTHIA WINTERS, TRAVELLER: I came in and they said I was one of the last people or the last person to get a seat on the plane that I was taking back to Cleveland. So, and that there were you know did I want to volunteer to give up the seat, but I could still have my seat. I said, sure, I would go ahead and give it up because I didn't have to be in Cleveland until tonight really. And I just stay here and do work and get caught up a bit and have some quiet time. And in- between, you know, to keep the economy stimulated, I shopped in the airport, too.
(END VIDEO CLIP)
CANDIOTTI: So what will Cynthia Winters do with all that extra time, six hours she has to kill? She's got some work to do and she says she'll pay a visit to some of the stores here to pump up the local economy. More bad weather is forecast this weekend, so the area isn't out of the woods just yet. Susan Candiotti, CNN, New York.
WHITFIELD: All right. Christopher Smith in the weather center can attest to that. Bad weather pretty much everywhere you look. If it is not there now, it is going to be.
CHRISTOPHER SMITH, CNN METEOROLOGIST: Yes, I mean, they are just cleaning things up across there across the northeast. And guess what? You are going to get hold of another round as we go along into tomorrow. So more wet weather, more snowy weather is on the way. You can see the delays we have. We have a ground stop right up in Minneapolis, but how about Boston? More than two hours delay, almost three hour delays there. Chicago, you have some snow, some gusty winds moving into your area. You have already seen delays of an hour and a half there. And JFK, you are about an hour and a half as well. So as soon as you are caught up, you're going to get behind again. We're still dealing with some snow showers up towards Boston, up across portions of Massachusetts. You see down here towards New York, things have cleared out now at least for the time being. We do expect a chance for some snow in New York City tomorrow. Probably maybe one to three inches of snowfall. Not a major event for you in the city as we head into tomorrow morning, into tomorrow afternoon. The heaviest of snowfall is going to be up across portions of Maine as you make your way up into the green and white mountains of Vermont and New Hampshire. You're going to see upwards of 10 to 12-plus inches of snowfall. And how about near Springfield, Mass.? You are going to get maybe another six to eight inches of snowfall. Whew! It is rough going up in the northeast of the United States.
Well, where is the snow coming from? Well it's coming from this area right here, up across portions of Minneapolis up towards Minnesota. You are going to be dealing with this storm system that's what's moving into the northeast. Today you are gaining a good bit of snow. Blowing snow is a big issue. You're dealing with windchills minus 20 to 30 below across southeastern portions of Minnesota. You are also going to deal with blowing drifts of snow with winds at 45 miles an hour. Another storm system behind this one, blizzard warnings in effect. You are going to get maybe a little bit of snow up in Seattle. Maybe one to two inches of snowfall there. It's going to be tough up in the higher elevations, eight to 16 inches with blizzard warnings because winds could go upwards of 70 miles an hour, up across the cascade range. You see these snowfall totals there outside of seattle. We are talking close to 20-plus inches of snowfall.
Lots of cold weather that's moving down to the south. You see minus 5 right now in Billings, 23 in Chicago. Watch what happens in Chicago as the cold air begins to move in. You are at 28 for your high temperature today. 4, 7, lows of zero, wind chill factor in Chicago tomorrow going to be into the minues 20 to 30 degree range.
WHITFIELD: Oh, my god.
SMITH: It is going to be nasty, nasty, nasty.
WHITFIELD: Once it's single digits, it doesn't really matter what the number is, it is just bad and miserable.
SMITH: Just stay inside.
WHITFIELD: Yes. All right. Christopher, thank you.
And guess what? More bad weather is expected. In New Hampshire tomorrow but they are still trying to repair damage from an ice storm a week and a half ago. Thousands of electric customers are waiting to have service restored. And many are very angry. In fact, they are so angry that they are taking out their frustrations on the repair crews. Kria Sakakeeny of CNN affiliate WMUR reports.
(BEGIN VIDEOTAPE)
KRIA SAKAKEENY, REPORTER, WMUR: It's a sight that's supposed to bring joy to folks without power but some are so desperate for help that they are taking desperate measures.
BOB SCHOENBERGER, UNITIL SPOKESMAN: We've actually had a citizen drive one of our crews off the road to stop them. We have actually had someone climb onto the back of one of our bucket trucks and refuse to get off.
SAKAKEENY: Bob Schoengberger of UNITEL met with (Cicos) police chief about the growing threat to line crews. They even placed a police officer outside thir Kensington operation center where angry customers have come demanding power.
CHIEF WAYNE SHEEHAN, KENSINGTON POLICE: They were pounding on the door and really, really angry and upset. The officer that I had on duty at that particular time called for a backup unit.
SAKAKEENY: The anger loud and clear from these signs in Exiter were residents have gone eight days in the dark.
UNIDENTIFIED FEMALE: The people are frustrated and angry and impatient. They want some answers.
SAKAKEENY: UNITIL has 35 trucks out there up from the normal seven and crews are working around the clock shift.
UNIDENTIFIED MALE: When you're up for 17 hours and you need seven hours rest.
SAKAKEENY: UNITIL says their goal now and in the future is to make sure that towns are better informed about where and when crews will be working. As Kensington's police chief found, information and lending an ear are the best solution.
SHEEHAN: Near the end of the conversation, the general was near tears, and you can't blame him because he wants his life back to normal.
(END VIDEOTAPE)
WHITFIELD: All right. U.S. automakers - well they are not the only ones getting rescued. Canadian officials announced today that the big three's Canadian subsidiaries will get roughly $3.3 billion in loans. This comes a day after President Bush unveiled the $13.4 billion loan plan for GM and Chrysler. Just as the President's deal comes with conditions and so does the Canadian plan.
(BEGIN VIDEO CLIP)
STEPHEN HARPER, CANADIAN PRIME MINISTER: Today's announcement is not a blank check. Canadian taxpayers expect their money will be used to restructure and renew the automotive industry in this country. They expect all stake holders, and I emphasize all stake holders, will come to the table and work together toward sustainable, long-term solutions.
(END VIDEO CLIP)
WHITFIELD: So just like his American counterpart, the president of the Canadian Autoworkers Union says some of the conditions are simply too harsh on the workers.
All right. President Bush's bailout plan for Chrysler and GM is obviously the news those companies have been waiting for, but it can't ease the sting of the recession. Chrysler is closing all 30 of its North American plants for four weeks. GM is temporarily closing 20 factories for the entire month of January. And Ford, which says it doesn't need any federal cash right now, is closing ten assembly plants for an extra week in January. So car dealers, well, they are also feeling the pinch. One in Portland, Oregon, recently laid off several workers. They went to the dealerships demanding rather that all the pay that they said was coming to them come to them come to them. Well, instead of their salaries, they got booted out. They refused to leave. Finally, the owner agreed to talk with them.
(BEGIN VIDEO CLIP)
JOE KOHRASANI, JOE'S FORD OWNER: All the checks have been printed, I have them, but if I give them to you now, the checks will bounce. First of all, I don't have thOSE beautiful cars anymore. OK. I did buy the blazer tickets last year. And if anybody is interested in buying them, I'm willing to sell those. I understand, we are selling cars at the store? I mean we're struggling for how long? I lost everything at that dealership.
(END VIDEO CLIP)
WHITFIELD: Oh, boy, awkward, painful moments there. Well the owner says he is hoping to pay off all of his laid off workers, eventually.
All right. This weekend, and get a guide on how to recover from the financial crisis. Ali Velshi shows you shows to take control of your finances and grow your money. Don't miss "Gimme My Money Back" tonight and Sunday at 8:00 p.m. Eastern.
All right. Frozen Chicago. Hello sunny Hawaii. Finally, President- elect obama is getting some R&R. He left today for warmer climate with his wife Michelle and their two daughters. They are spending the holidays where Obama spent much of his teenage years before heading off to college on the mainland of Hawaii. Well Officers on President-elect Obama's security detail are taking no chances at next month's historic inauguration. A new strict do not bring list is stirring up a lot of mixed feelings. Strollers, tents even silly string have been banned along the parade route. While many fell that it's a minor price to pay to witness the swearing in of the nation's first African-American president, many are wondering what to do with their kids? Well some senior citizens are backing out because there is no chair rule, so they will be pretty uncomfortable. So the the pomp and circumstance of Obama's inauguration will be huge and will carry a huge price tag. Here's CNN's Kate Bolduan.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT: Washington, D.C., a city that knows inauguration. But district officials say past experience will likely pale in comparison to the historic swearing in one month from now.
ELEANOR HOLMES NORTON (D), DC DELEGATE: Even though we are very practiced at inaugurations and large events, this is one that will rewrite the book on inaugurations.
BOLDUAN: The city is preparing for 2.5 million to descend upon the nation's capitol to witness the start of the Obama presidency. Great news for local restaurants and retail. Hotels are already near capacity.
MAYOR ADRIAN FENTY (D), WASHINGTON: In some ways, this is somewhat of a stimulus package for the city, if you will.
BOLDUAN: But with the good comes the bad, the price tag. Officials are complaining Congress allotted only $15 million to help the city pay for all major events for the entire year. Congresswoman Eleanor Holmes-Norton says they'll need double that amount.
HOLMES-NORTON: This is what Congress did for the republican and democratic national convention, $50 million to each of the jurisdictions to handle what was approximately 50,000 people each.
BOLDUAN: While city officials are coordinating with federal agencies, much of the on-the ground security and traffic control operations for the inauguration will fall on the district. A city that is financially strapped just recently announcing $130 million in budget cuts because of a revenue shortfall.
FENTY: Our police force is about 4,100, which is a lot, and we are going to double that police force for the better part of the ten days surrounding the inauguration. We are doubling the police force and most of them are going to be working huge overtime shifts.
BOLDUAN: No matter the price, D.C.'s mayor sayays they'll be ready.
FENTY: Whatever steps have to be taken to make sure that the police resources, fire resources, transportation resources, et cetera, are available. We will make sure it happens.
BOLDUAN: In the past, part of the National Mall was used as a staging ground for the parade. This time, the entire mall, running about two miles, will be open to accommodate the huge crowd, but that demands extra help from first responders to cleanup. For the (inaudible) hosting history comes at a price. Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
WHITFIELD: All right. Still on the topic of inauguration. So Michelle Obama caught our eye and everybody else's with that red and black dress on election night. Well now fashion insiders are a twitter about the gown that she'll be wearing on inauguration day or at least that evening. Briana Keilar reads the tea leaves about 30 minutes away.
All right. Changes coming to those dreaded credit card bills. What you'll see, what you won't. And inspired or insult, people are talking about the purpose-driven man selected to speak a at the inauguration.
(COMMERCIAL BREAK)
WHITFIELD: All right. New credit card rules are coming your way. They will stop random hikes and interest rates, but hold on. The rules don't actually go into effect until 2010. Scott Bilker is the creator of debtsmart.com and he is joining us from New York. Also joining us Josh Levs, right here in the studio, but before we get to you, Josh, and all those e-mails we've been getting in, to you first, Scott. So a few changes, maybe the most glaring change that folks can get excited about is credit cards companies cannot arbitrarily just change the interest rate like a lot of folks have been experiencing as of late.
SCOTT BILKER, DEBTSMART.CONM: Yes, that's right. And that is definitely the best changes in these rules. Unfortunately, there are still four exceptions to the rules that will allow banks to raise their rates.
WHITFIELD: What are they?
BILKER: Well, the first is they have to disclose off the bat what your rate is going to be, but if that rate expires they can say in a year from now it's going to change, they can change the rate at that time. the second one is going to be a variable rate. So if your rate is linked to the prime rate for example, it's going to change. And the third is that if you miss your payment, your minimum payment by 30 days, then they can also raise your rate. So, it is not like they can't raise your rate anymore. Also, they can raise your rate on New transactions, but the good news here is they have to give you 45 days' notice before they do that.
WHITFIELD: So I guess the key, a portion of these changes is no arbitrarily you know changing of your rate. That's a lesson we take from this.
BILKER: Right. There's going to be a lot more disclosure, but there still have some re ways out of that and they can raise your rates. WHITFIELD: OK. And again, that's not until 2010. So for the next year it could still be kind of tight and scary for a lot of us. How about banks and their rates? Might they be able to make some changes without informing us, just like the conditions that you just set.
BILKER: Before 2010?
WHITFIELD: Yes.
BILKER: Well, until then, they are still going to be able to do what they have always done, which is raise your rate, the penalty rates.
WHITFIELD: So come 2010, then what?
BILKER: Well, the new rules is going into effect and we have to abide by these rules. But banks are already you know punishing card holders and people who revolve their balances. Chase bank, for example, I get e-mails about this all the time, especially in this case. Chase is charging people $10 a month as a fee if they are revolving their balance. That's just a brand new fee. I feel that although I like these new changes and pray for consumers that they're going - the banks will just adapt and find new ways to charge us.
WHITFIELD: All right. Scott, you know we're going to have you back within the hour. I want to ask you something about the advantages and the disadvantages of all these changes. But for now, let's go to our Josh Levs here in the NEWSROOM, fielding a whole lot of e-mails. Folks want to know, because the majority of Americans are kind of strapped by credit card debt and how to get out of it. What do you do?
JOSH LEVS, CNN CORRESPONDENT: It's incredible. I mean, billions of dollars in debt in this country, consumer debt. And a lot of the people really feeling that kind of pinch big time. And you've been daily getting tehse questions. Scott, I'm going to starting off with a couple for you right now.
This one comes to us from Angela. "Is it possible that with the long- time to implement this, credit card companies will retaliate? She means basically an advance, raise rates now and act unfair before 2010?"
I also want to show you what another person is saying which is very similar. "Did you say this takes effect in 2010, what's wrong with now? It looks like another excuse to milk us to the last cent while basically acting as though they are doing something about it."
Scott, do people expect some real unfair treatment not before these things take effect?
And he is gone, after that whole dramatic question.
WHITFIELD: Oh, man.
LEVS: He has disappeared. The setup was so dramatic.
WHITFIELD: It was good.
LEVS: He disappeared from us. I know we're not going to repeat that later. We'll just going to replay me saying it and then he can answer it.
WHITFIELD: Well, the interesting thing here is you know, folks have a lot of you know questions about what this means in the next year. I mean that's a legitimate question. Kind of one of those I was leaning toward him a moment ago. OK. What happens in the interim. In 2010, all these changes are going to happen, and they are to our advantage, consumers, what can happen in the next year is scary.
LEVS: These are major - these are huge changes that could really help consumers, but because there's so long before that, the question is now they can take advantage of the fact that they have that time to try to make some money now for what they will lose later on. That's what he'll answer for us.
WHITFIELD: We're going to consider this a tease.
LEVS: OK. That was a good tease -
WHITFIELD: This is a tease - these are the questions that people are asking and we're going to have Scott back to answer them. How's that?
LEVS: Someone yelling at a TV station right now because he knows the answer.
WHITFIELD: That's right but somehow his mic is off.
All right. Josh, thanks, appreciate it. We'll try it again.
LEVS: OK.
WHITFIELD: All right. Well, U.S. troop deployment. It could be almost doubling in Afghanistan.
And a gift from the heart that allows a man to see again.
(COMMERCIAL BREAK)
WHITFIELD: Does that look familiar to you? Do now know anybody who has this kind of miserable experience with Santa? Maybe even you? Well tomorrow in the CNN NEWSROOM at 4:00 Eastern, we're going to show some of your best and worst pictures of visits with Santa. It can be of you, from any years ago, or maybe it is a kid that you know or a kid that you've got. Send us your best and worst pictures of the traditional visit with jolly 'ole Saint Nick through I-report.com. We'll get what we can on the air tomorrow, beginning at 4:00 Eastern. Always fund to get a hoot out of that.
All right. Monthly pain. It disrupts the lives of so many young women. So are birth control pills a safe and effective way of wasing cramps. CNN medical correspondent Judy Fortin takes a look.
(BEGIN VIDEOTAPE) JUDY FORTIN, CNN MEDICAL CORRESPONDENT: For some young women, their monthly period is more than just a curse, it's a real nightmare.
DR. CARRIE CWIAK, EMORY SCHOOL OF MEDICINE: When period cramps are incapacitating, so they prevent you from going to work, they prevent you from going to school, they require you to take medications.
FORTIN: One way to lessen the pain is to give these patients birth control pills. The reason why it works is pretty simple.
CWIAK: In any situation, the pill has the ability to decrease the blood flow that is associated with your menstrual period and decreasing that helps decrease the cramps associate with it.
FORTIN: But some parents are worried that by putting their daughters on the pill so early they expose them to risks later on in life.
CWIAK: Luckily, there are no risks involved with long-term usage of the pills. And in fact, your noncontraceptive benefits increase the longer that you are on the pill. After even after five years of being on the birth control pills, your risk of ovarian cancer drops by 80 percent. Your lifetine risk of uterine cancer drops by 50 percent and, possibly, some other protective effects for other types of cancers.
FORTIN: But there are some risk factors that can make this pill not the right choice.
CWIAK: Well, I think one of the things to be sure of is your own family history, so if you have a strong family history of cardiac disease, of blood clots, then it is important, no matter what medication your teenager decides to go on, it is important to make sure that you are aware of that and you let her doctor be aware of that.
FORTIN: Make sure you discuss this all with your doctor before deciding if popping a pill might make your monthly pain go away. Judy Fortin, CNN, Atlanta.
(END VIDEOTAPE)
WHITFIELD: OK. So when the money runs out, you hope for unemployment benefits, right? What if that money runs out?
And what to wear to the big event. A decision not made lightly for the future First Lady.
(COMMERCIAL BREAK)
WHITFIELD: All right. Happening right now, Canada is making good on its pledge to tack on 20 percent on whatever aid the U.S. offers in auto bailout loans. Today it announced that $3.3 billion in aid goes to Canadian subsidiaries of Ford, Chrysler and GM.
The Pacific Northwest is bracing for another brutal storm. Blizzard warnings are in effect in parts of Washington State. Heavy snowfall is expected tonight and tomorrow.
A storm that hit the region earlier in the week is now paralyzing the Midwest and the Northeast. Tens of thousands of people are without power, and hundreds of flights have been canceled or delayed.
Pretty miserable stuff.
(WEATHER REPORT)
WHITFIELD: All right. Well, the government's latest unemployment report is out, and it's not a pretty picture, either.
Unemployment rose in 37 states and the District of Columbia last month. The national unemployment rate now 6.7 percent. Analysts say the numbers show the recession is broad based and hammering almost every job sector.
So, you are out of work, and you look to the state to help tide you over. But what happens when the state is actually running out of money as well in order to help you?
Well, CNN's Mary Snow looks at who is feeling the pinch.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): As jobs disappear at rates not seen in decades and unemployment lines grow, there's less money to go around. Now, states are running out of funds to pay jobless benefits.
JEANNE MEJEUR, NATL. CONF. OF STATE LEGISLATURES: This is the perfect storm, higher claims and less money.
SNOW: Michigan, home to the struggling auto industry, is essentially broke when it comes to its fund to pay unemployment checks. Its jobless rate is 9.6 percent, well above the national average. Michigan is now borrowing from the federal government to pay out its unemployment benefits.
Indiana is in the same boat. And the National Association of State Workforce Agencies says the list of states with unemployment trust funds, about to become insolvent, is growing quickly.
INGRID EVANS, NATIONAL ASSN. OF STATE WORKFORCE AGENCIES: Right now, there's approximately 30 states that have trust funds that are in jeopardy of being completely empty for the most part.
SNOW: And that is expected to happen within six months, even less time for New York and Ohio.
One economist says while this isn't unusual in a recession, states will have to replenish those funds through...
DAVID WYSS, CHIEF ECONOMIST, STANDARD & POOR'S: Higher taxes. You've got to have higher tax rates. Those payroll taxes are going to be going up. SNOW: It's already happening in Michigan. Starting in January, payroll taxes are going up for thousands of businesses. It amounts to roughly $67 per worker. One policy analyst says it's one option to raise more revenue.
And while it's a tough environment to hike taxes, it's seen as a better choice than the alternative.
MEJEUR: They could consider cutting benefits, or restricting eligibility in some way. But that's a harsh choice when things are so tough.
SNOW (on camera): Ohio and New York expect to run out of state unemployment funds within weeks, forcing them to be next in line to borrow money from the federal government.
Mary Snow, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: All right. So we told you earlier about the new credit card rules coming your way, and you still have lots of questions about them. We have been fielding all your e-mails.
Let's bring back the creator of debtsmart.com, Scott Bilker, in New York.
And Josh Levs, right here in Atlanta, Josh has some questions.
But Scott, back to you. Real quick, so advantages, disadvantages of all the changes? How do you see it? Quickly.
SCOTT BILKER, CREATOR, DEBTSMART.COM: I see it overall as positive for the consumer.
WHITFIELD: You do?
BILKER: Yes, definitely, because all these changes are going to make us more aware and give us a chance to pay back our debt more quickly. For example, one of the changes is allocation of payments.
What banks are doing now is, when you send in your payment, they apply it to your lowest rates first, effectively locking in any balance you have at a high rate.
WHITFIELD: Yes. Then you don't have to pay forever.
BILKER: Exactly. Now they're going to have to apply some of that to the higher interest rate balances, but they don't have to apply it all to the higher interest rate balances.
WHITFIELD: Yes. Sadly, we've got to get through a whole year before all that good stuff happens though, Scott.
All right. So, Josh Levs taking in the e-mails.
We are going to try this again.
JOSH LEVS, CNN CORRESPONDENT: We're going to try it again.
WHITFIELD: We got a lot of questions from the e-mailers.
LEVS: Yes, exactly. I want to bank right into it.
Scott, you are here, right? Say something to me.
BILKER: I am here.
WHITFIELD: Yes.
LEVS: Score! OK.
I'm going to give you the short version of what's going on here. So many people are writing us saying, since this doesn't take effect until July 2010, can't the credit card companies get away with all this stuff right now, raise their rates, kind of penalize us in advance to make up for any money they might lose through the new rules?
BILKER: I think to some degree that may be true, but I don't know if it's going to penalize us in advance. But I think what they're going to do is start to strategize ways to incorporate the new fees over this time.
I mean, they have been doing these things for years, charges us fees and default rates. Some rates as high as over 30 percent.
LEVS: Oh my goodness.
WHITFIELD: Oh my gosh. That is cruel. That's criminal.
LEVS: So really, pathetically, this actually could happen. There could be some of that.
BILKER: Well, they're just going to continue what they have been doing now until then, but I think they are going to find new ways to charge us new fees.
LEVS: All right. We've got a lot of e-mails. I want to get to another one, because this is also symbolic of what a lot of people are writing to us.
This one comes to us from Gayle Warren, who says basically, "Why are we are bailing out banks and not getting immediate relief from the high credit card interest rates?"
You're hearing all the stuff about mortgage interest rates. Why aren't there some new rules that are laws now that limit the kind of interest rate that these credit card companies can stamp (ph) starting right now?
BILKER: Well, that would be great. But you know what? The banks avoided these things a long time ago. It used to be that they were held to the usery (ph) laws of each state. But back in 1978, the Supreme Court ruled that the state in which the banks are headquartered is the rate that they can -- you know, is depending on the rate. That's why all your banks have moved to South Dakota and Delaware, because those states made it more favorable for the banks. So, the rates are high in those areas.
LEVS: Scott, I want to toss in one more here. Then back to Fred.
This one is interesting to me, because it's an angle you don't hear about.
Billy Jo writes us, "Hey, is the government going to impose a law on how many credit cards a person can pick up? Because don't forget, people's responsibility with ordering credit cards has helped get us into this mess in the first place."
No doubt that consumer debt people have taken on is part of the problem. Should there be a law? Will there be a law?
BILKER: I don't think there's going to be a law about how many credit cards you can have. And it's true that personal responsibility plays a big part, but the banks aren't innocent here, because they're the ones that are trying to get everyone to use their credit, sending out letters that entice people to take advantage of credit that they won't be able to pay back. You know, it's always in the big print, you know, "Go on a vacation," "Buy a new grill." But you never get a letter that says you better pay more towards your credit card debt because you might be in debt forever.
WHITFIELD: Oh my gosh.
LEVS: That's interesting.
Scott, thanks for that.
WHITFIELD: This is scary stuff, isn't it? It's depressing too.
LEVS: It is. It's depressing.
WHITFIELD: I've got to be frank on that.
LEVS: You've just got to hold out hope that in July 2010, things won't get too bad by then so that these new rules will actually start to clean up the mess.
WHITFIELD: Yes. All right.
Scott Bilker, thanks so much.
And thanks to you for all the e-mails that you've been sending our way.
And Josh, thanks so much for fielding them all.
BILKER: My pleasure. Thanks for having me. WHITFIELD: Appreciate it. Thanks, Scott.
All right. Well, a lot of folks are grimacing over credit card debt and the economy, but then there's the flip side. A lot of folks are really excited about what's to come during inauguration.
And then there's the controversy over the choice of the benediction speaker. Anticipation over Michelle Obama's dress, all that just a month away.
(COMMERCIAL BREAK)
WHITFIELD: All right. Well, time to crack open the "Technofile." If traveling to a convention or trade show is not your idea of fun, you may want to go the route of a researcher here in Atlanta. She gets around in the virtual world, from the comfort of her home.
Here's Reynolds Wolf.
(BEGIN VIDEOTAPE)
REYNOLDS WOLF, CNN CORRESPONDENT (voice-over): Back the plane up. Instead of traveling to that next convention, how about logging on to a virtual conference instead?
Listen to a keynote.
UNIDENTIFIED MALE: We used that vaccine device and made healthy people.
WOLF: Or visit exhibit booths.
SUSU ZUGHAIER, EMORY UNIVERSITY VACCINE RESEARCHER FEMALE: You could see people here. That's the booth for Novartis, that seems.
WOLF: Emory University scientist Susu Zughaier decided to go the virtual route instead of traveling to an important vaccine conference in Boston. Less hassle and less guilt, she says.
ZUGHAIER: I have children. My children are a priority. My youngest is 3 years old, the other one is 7 years old. And every time I travel for a conference, a huge guilt trip that I go through.
WOLF: ON24, a company specializing in webcasting, also designs virtual conventions, creating the look and the feel of the real thing.
SCOTT RAY, ON24 VICE PRESIDENT: We can do an online virtual show for pretty much any type of -- we can make it look like anything. We have 3D graphic artists that can replicate the look and feel of a Las Vegas conference center. We can replicate the look and feel of any location in the world.
WOLF: But as real as virtual gets, everyone admits there's nothing quite like being there and making those important connections.
RAY: You can't actually talk physically with the people in the virtual environment. Most of the communication amongst people in an ON24 virtual show are done via chat or exchange e-mail messages within the environment, or by posting information onto message boards.
WOLF: For Susu, what's loss in the real face-to-face is made up with less hassle. And in this day and age of a down economy and budget cuts, the fact that Susu can log on, listen to lectures, and download and analyze research papers from her office or home, the benefits outweigh the bother, expense and even guilt of being there.
Reynolds Wolf, CNN.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
WHITFIELD: All right. Barack Obama's inauguration not without controversy. Some people are angry about Obama's selection of Rick Warren to deliver the invocation and his swearing in. Well, particularly offensive, they say, Warren's positions on abortion and same-sex marriage.
Joining us from Warren's home state of California, syndicated columnist Earl Hutchinson, whose latest book is called "How Obama Won."
Earl, good to see you.
Well, my pleasure.
WHITFIELD: OK. Well, should anyone be surprised that Obama likes Rick Warren? I mean, he did visit the Saddleback Church, after all.
EARL HUTCHINSON, SYNDICATED COLUMNIST: Yes he did. As a matter of fact, it was a very celebrated appearance back in August.
WHITFIELD: So what changed?
HUTCHINSON: Well, really, nothing has changed. When you really look back, two things about Obama I think are very clear.
One of the major things that he said over and over again, I'm going to reach out to Evangelicals. He made a big point of that during the campaign. So Rick Warren, the appearance at Saddleback Church, is part of that.
The second thing is Obama professes -- and he's written about this in his books and some of his speeches -- to be a man of great faith. Moral values, faith and individual values, and so forth have been really three or four of Barack Obama's mantras. So I don't think we should be surprised at the Rick Warren invitation.
WHITFIELD: But I guess the rub, you know, from a lot of critics of the selection are saying they don't like really the association of Rick Warren kind of leading the push to make sure that same-sex marriage was not recognized in California. But Barack Obama has already said, he's been on record as saying, you know, marriage between man and woman, but he doesn't dislike the idea of a civil union between gays.
So, does it mean that his choice for this benediction has to reflect exactly his personal views?
HUTCHINSON: No, it doesn't, because remember, there's a blend here. Obviously, he has his personal views about same-sex marriage, civil unions, and, of course, gay marriage, but also something else.
Remember, Obama is a consummate, a very shrewd, a very good politician. He understands one thing. And he said this many times -- look, my administration and my candidacy and now my administration is about reaching about the big tent philosophy.
So Rick Warren fits into that because remember one other thing. Thirty million to 50 million persons in America still profess to be very conservative Evangelicals.
Now, I have to tell you, as we well know in the past, Evangelicals have been a powerful force in electing presidents and they're still a powerful force. So there's a political calculus at work here.
WHITFIELD: All right. So how come there's no controversy over Joseph Lowery, who apparently is going to be performing the benediction, and he supports same sex marriage. How come we are not hearing from those who say, we don't like that idea, yet, you know, Lowery is going to be present and be speaking?
HUTCHINSON: Well, now after you said that, you may give some people some ideas. I mean, Joe Lowery may be on the hot seat.
WHITFIELD: Yes.
HUTCHINSON: I don't think it's quite the same.
Remember, Rick Warren is a megachurch minister, high profile. You know, his book has sold millions and millions. He's a very prominent person.
And then one other thing. I'm in California, so I know this. The controversy over Proposition 8, same-sex marriage, gay marriage, you know, obviously that's creating (ph) a lot of hot buttons and nerves. So that's where the controversy is. I don't really see any controversy about Joe Lowery.
WHITFIELD: All right. Earl Hutchinson, thanks so much. Good to see you.
HUTCHINSON: And very good. My pleasure.
WHITFIELD: And have a happy holiday.
HUTCHINSON: And happy holiday to you.
WHITFIELD: Thanks so much.
HUTCHINSON: Take care.
WHITFIELD: All right. Well, all eyes will be focused squarely on President-elect Barack Obama on Inauguration Day whether you like the idea of the invocation speaker or not. But the night, actually, well, much of the attention will actually shift to Michelle Obama. Why? People want to know who she is wearing, what she is wearing, what's the designer?
CNN's Brianna Keilar reports on some possibilities.
(BEGIN VIDEOTAPE)
BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): Fashion insiders are buzzing about Michelle Obama.
MARY ALICE STEPHENSON, STYLE EXPERT: I think she will be the biggest fashion icon in recent history in the White House. You know, there's Jacqueline Kennedy, but up until -- since then, really, we haven't seen a fashion-forward first lady.
KEILAR: The comparison is rampant, as you can see on "Mrs. O," a blog that chronicles Obama's every outfit. Michelle Obama's fashion choices can cause controversy or send a message in a troubled economy.
STEPHENSON: She has to be recession chic all the way and she's been very smart in doing so in the last year by mixing her fashion choices. Yes, sometimes she splurges and picks clothes that are expensive. But we also see her in H & M and Target wearing clothes that don't break the bank but are just as fresh and just as feminine as designer clothes.
KEILAR: With January 20th quickly approaching, top designers submitted sketch after sketch clamoring for the opportunity to make the gown Obama will wear on inauguration night. In the fashion world, bets are on a designer from the Obama's hometown of Chicago.
MARIA PINTO, FASHION DESIGNER: I'm a very attracted to color because I think it really lifts our spirits and it flatters a woman.
KEILAR: Maria Pinto is responsible for most of the clothes Obama has worn at historic events when her husband announced his candidacy and clinched the nomination at the Democratic Convention and on this historic visit to the White House. But asked if she's designing the dress, she plays coy.
PINTO: We have many clients that will be wearing Maria Pinto, including myself.
KEILAR (on camera): Whoever designs it, it's a huge honor, because the inaugural gown goes on permanent display in the Smithsonian's First Ladies Collection.
Brianna Keilar, CNN, Chicago.
(END VIDEOTAPE)
WHITFIELD: All right. Well, she loves to talk on television, so how does Whoopi Goldberg actually feel about arguing on TV?
(COMMERCIAL BREAK)
WHITFIELD: OK. Whoopi Goldberg usually asking questions on "The View." Well, now she is answering them on CNN.
The talk show host and comedienne gives CNN's Howard Kurtz an exclusive interview on "RELIABLE SOURCES." She covers all the bases, including the presidential candidates, racial issues, and her job.
Howard asked her if she likes arguing with her co-hosts.
(BEGIN VIDEO CLIP)
WHOOPI GOLDBERG, CO-HOST, "THE VIEW": Well, I don't like to argue. I like to talk about stuff. I like to have lots of great discussions. And better they should pay me well and do it on television.
(END VIDEO CLIP)
WHITFIELD: OK. Simply put.
We'll catch the rest of Whoopi's interview on "RELIABLE SOURCES" tomorrow, 10:00 a.m. Eastern, 7:00 Pacific.
A gift from a stranger. For our "Focus on Giving" holiday series, photojournalist Emmanuel Tembacacas (ph) introduces us to a man who was given the gift of sight.
(BEGIN VIDEOTAPE)
MICHAEL MASTRONARDY, POLICE CHIEF, TOMS RIVER POLICE DEPARTMENT: In May of 2007, our department responded to a serious motor vehicle accident in front of the high school.
UNIDENTIFIED FEMALE: She was a passenger. She smashed into the back of a school bus.
MASTRONARDY: Rushed her to the hospital.
UNIDENTIFIED FEMALE: And subsequently died four days later.
MASTRONARDY: Michael Mastronardy, chief of the Toms River Police Department.
UNIDENTIFIED FEMALE: My name is Royce Bolly (ph), the mother of Jennifer Bolly (ph).
MASTRONARDY: There's some that stick with you, and certainly Jennifer's case, being in front of a school.
UNIDENTIFIED FEMALE: Jen was my only child, so basically Jen's death has affected me in a deep and sad way.
UNIDENTIFIED MALE: My name is Michael Canalan (ph).
UNIDENTIFIED FEMALE: Jen was a teenager when we spoke about organ donation.
UNIDENTIFIED MALE: I went for a routine eye surgery. From there, my vision got worse.
UNIDENTIFIED FEMALE: I always believed in organ donations.
UNIDENTIFIED MALE: One morning I woke up in excruciating pain and I was unable to see.
UNIDENTIFIED FEMALE: True giving is when you give something and you don't expect anything in return.
UNIDENTIFIED FEMALE: Just doing a kind, charitable act.
UNIDENTIFIED FEMALE: She just had her beliefs. Organ donation was one of them.
UNIDENTIFIED MALE: I basically lived the life of a blind person for seven weeks and not knowing if you were ever going to see again.
UNIDENTIFIED FEMALE: I respected her wishes.
UNIDENTIFIED MALE: I had a cornea transplant done in my left eye. And the gift of sight was the greatest gift I have ever received and will ever receive. I don't know what I would have done if I had to have spent the rest of my life being blind.
UNIDENTIFIED FEMALE: We met. It was very rewarding.
UNIDENTIFIED MALE: It really made her at peace with Jennifer's choice.
UNIDENTIFIED FEMALE: He called me last Mother's Day, which was unbelievable to me, because it was a bad day.
UNIDENTIFIED MALE: That was the day that her child had died, which was extremely tough, being the one-year anniversary.
UNIDENTIFIED FEMALE: Jen didn't know she would be giving it, but I know if she could look down and see, I know it would make her feel good. I know it would. And I know she would like Mike.
UNIDENTIFIED MALE: She will get to see the world and see great things through my eyes.
UNIDENTIFIED FEMALE: It was a gift to a stranger, but it's the best gift because it's a gift that money can't buy. And it's a gift from the heart. And those are the best gifts, really.
(END VIDEOTAPE)
WHITFIELD: Wow. That's unbelievably generous.
So, for more on our "Focus on Giving" series, visit our Web site, CNN.com/giving.
I'm Fredericka Whitfield. I'll see you tomorrow.
The next hour of the CNN NEWSROOM just minutes away.
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