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Intelligence Matters; Jobs Report & Wall Street
Aired January 09, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SEN. BARACK OBAMA (D-IL), PRESIDENT-ELECT: He will have my full support as he develops our capabilities, strengthens information gathering and sharing, enhances cooperation with foreign governments and provides policymakers with the information we need, even if it's not always the information that we want.
As someone who has handled intelligence as a sailor at sea and a strategic thinker in Washington, he was have the expertise and authority to ensure that our 16 intelligence agencies act with unity of effort and of purpose.
Admiral Blair's experience will be exceptionally complimented by Leon Panetta, my choice to be director of the CIA. Leon is one of the finest public servants of our time, and he's committed himself to this country since he put on the uniform of the United States Army.
As a congressman, OMB director, and White House chief of staff, he has unparalleled experience in making the institutions of government work better for the American people. He has handled intelligence daily at the very highest levels, and time and again, he has demonstrated sound judgment, grace under fire, and complete integrity.
Let me be clear, in Leon Panetta, the agency will have a director who has my complete trust and substantial clout. He will be a strong manager and a strong advocate for the CIA. He knows how to focus resources where they are needed, and he has had a proven track record of building consensus and working on a bipartisan basis with Congress.
I am confident he will strengthen the CIA's capabilities to protect the American people as it continues to adapt to reform our intelligence community.
I will also rely on the talent and expertise of several distinguished public servants with substantial intelligence experience. The current DNI, Mike McConnell, will continue to offer his counsel through my foreign intelligence advisory board. The National Counterterrorism Center, the hub of our efforts to prevent attacks and root out terrorist networks will continue to benefit from the leadership of Michael Leiter.
And I am pleased to announce that John Brenna, a close adviser, CIA veteran, and former leader of the National Counterterrorism Center, will be my homeland security adviser and deputy national security adviser for counterterrorism serving with the rank of assistant to the president. John has the experience, vision, and integrity to advance America's security. The demands on the intelligence community are huge and growing. To have a successful and sustainable national security strategy, I've made clear that we will need to deploy and balance all elements of American power -- our military, diplomacy, homeland security, economic might, and moral suasion. Good intelligence work is necessary to support each of these endeavors.
Right now, there are men and women working around the world to bear this burden. We may never know their names, but we will always honor their sacrifice. The task for the team that I've assembled is to guide, support, and integrate their efforts so that we protect our security and safeguard the values that all of us have pledged to uphold.
With that, I would like to give Admiral Blair an opportunity to say a few words.
ADM. DENNIS BLAIR, DIR. OF NATIONAL INTELLIGENCE NOMINEE: President-elect Obama, thank you for this opportunity to carry out this responsibility that you have entrusted me with.
Our mission in national security is absolutely clear. Timely, accurate, relevant intelligence to those who keep this nation safe and to you so that you can make informed national security policy decisions. And it's an honor to lead the U.S. intelligence services.
As you stated so well, Mr. President, the American people do not always know about these thousands of men and women who serve with patriotism, with dedication, but without public recognition. They are outstanding public servants.
And we in that group will perform our duties fully and capably and according to law. We will uphold the standards that articulated and that the American people have a right to expect.
You've made it very clear, sir, that you are best served by hearing different perspectives and by respectful debate. And the intelligence services will support you with facts, interpretations, assessments in a straightforward manner, and we will tell you how well we know what we know and what we don't know.
So I deeply appreciate the opportunity to lead our intelligence services and, if confirmed by the Senate, I look forward to joining the national security team.
And as President-elect Obama has said, Leon Panetta's achievements have been remarkable. His services at the top level of the executive branch and in the Congress combine leadership and wisdom and, in this business, we will count on him for both. I could not ask for a better leader of the Central Intelligence Agency, one of the key agencies within our intelligence community.
Leon, with your background and perspective, the skilled professionals on your team, the agency is in superb hands. And so I welcome your counsel and support as together we seek to serve the president. Thank you.
LEON PANETTA, CIA DIRECTOR NOMINEE: Thank you, Mr. President- elect, for this honor and this opportunity to, once again, serve our great country.
Throughout my 40 years in public life, I've had the honor and the privilege of serving this nation in a number of capacities. In recent years, my wife Sylvia and I established the Panetta Institute whose mission is to inspire young people to lives of public service.
Surely, we can now do no less. Particularly at a time when our national security is threatened, I believe it is important to respond again to this call to duty like so many other brave Americans have done.
And it's because of them that I will work tirelessly to defend this nation and to provide you, Mr. President-elect, with the most accurate and objective intelligence that you need to lead this nation at a time of great peril but also a time of great opportunity. The Central Intelligence Agency has a rich and proud history. As you referenced, the professionals at CIA serve bravely around the world, many in dangerous places and away from their families, often undercover, sometimes under fire.
They are the front line of our defense at a very dangerous time and they deserve and will have my complete confidence and support. Strong intelligence requires a strong team, and I look forward to working with Admiral Blair, John Brennan, as well as the other many talented and dedicated men and women of our intelligence community.
And I look forward to working with the other members of your administration, particularly those involved with national security. And I commit to consulting closely with my former colleagues in the Congress to form the kind of partnership we need if we're to win the War on Terror.
The inscription on the wall at the old headquarters building at Langley quotes scripture. "And ye shall know the truth, and the truth shall make you free."
If confirmed, Mr. President-elect, I will be honored to lead the men and women of the CIA to seek and speak the truth. And in so doing, to help preserve this nation's freedom.
Thank you.
OBAMA: OK. With that, let me take some questions. We'll start with (inaudible) of AP.
QUESTION: Mr. President-elect, do you believe that your choices for your national security team should signal to the international community any softening of the U.S. stance on Iran? And does it also signal either a reassessment or a crackdown on policies involving harsh interrogation techniques and detention?
OBAMA: OK. Well, let me start with the second part of the question.
I was clear throughout this campaign and have been clear throughout this transition that under my administration, the states does not torture. We will abide by the Geneva Conventions that we will uphold our highest values and ideals.
And that is a clear charge that I've given to Admiral Blair and to Leon Panetta. And I think it is important for us to do that not only because that's who we are, but also, ultimately, it will make us safer and will help in changing hearts and minds in our struggle against extremists.
OBAMA: With respect to Iran, I'll have more to say about Iran after January 20th. I have said in the past during the course of the campaign that Iran is a genuine threat to U.S. national security. But I have also said that we should be willing to initiate diplomacy as a mechanism to achieve our national security goals.
And my national security team, I think, is reflective of that practical, pragmatic approach to foreign policy. And when we have a policy towards Iran that has been shaped by my national security team, we will release it.
Debbie Charles (ph) from Reuters?
QUESTION: You had said that you had had constructive dialogue with the members of Congress about -- or your team has -- with members of Congress about the stimulus plan. Are you concerned that -- now, Democrats are voicing some concerns, especially, over the tax part of -- to your tax proposals. Are you worried that this is a harder sell than you had expected?
And does this change the way you might be presenting the package? Is it all going to be in one? Are you going to have to, instead, maybe break it down in bits in order to get it approved?
OBAMA: Well, let's take a look at what we've achieved so far. And, obviously, I'm not sworn in until January 20th.
But we've provided a framework where my incoming administration and Congress share a common set of goals. We have -- there's no disagreement that the economy is in dire straits. There's no disagreement that we need to create jobs. And so the goal that I've set of creating or saving 3 million jobs is one that members of Congress agree with.
There's no disagreement that we need action by our government -- a recovery plan that will help to jumpstart the economy. And so having provided the framework, now, we're going to have a consultation. And my staff is up on the Hill as we speak talking to various members of Congress, asking them for their ideas, you know.
Our expectation is that we will continue to hone and refine our package over the next several weeks. But the one thing that I tried to lay out yesterday to the American people -- and I will continue to insist on -- is we cannot delay. We cannot -- there are going to be a whole host of good ideas out there, and we welcome all of them. And we're going to sift through all of them, and we are going to work in a collaborative fashion with Congress.
What we can't do is drag this out when we just saw half a million more jobs lost. You know, the American people are struggling. And behind the statistics that we see flashing on the screens are real lives, real suffering, real fears. And it is my job to make sure that Congress stays focused in the weeks to come and gets this done.
And I have every expectation that we will get it done.
QUESTION: (Inaudible)?
OBAMA: Oh, you're assuming that I expected it to be easy.
QUESTION: Not really.
OBAMA: No. It's always hard. But I have confidence that we're going to get it done.
Chip Reid (ph)?
QUESTION: Thank you, Mr. President-elect. I'd like to follow up on that.
Larry Summers, as you said, is up on the Hill right now, and we're told he's getting an earful from some Democrats who say their plan just isn't big enough. And I know you've resisted putting a number on it, but your staff has talked about a high end of about $800 billion or something like that.
They say if that's true and if 40 percent of it is tax cuts that don't have the bang for the buck that spending has, it's not big enough. Paul Krugman, today, said that it's falls far short of what you're going to need to put America back to work.
How do you respond to those critics?
OBAMA: Well, look, there are some people who have said that it's not big enough. There are others who say it's too big.
QUESTION: (Inaudible).
OBAMA: Well, as I said before, Democrats or Republicans, we welcome good ideas. And so the challenge for all of us, I think, is to identify good ideas, good spending plans that deliver on my commitment to create or save 3 million jobs.
OBAMA: I want this to work. This is not an intellectual exercise. And there's no pride of authorship. If members of Congress have good ideas, if they can identify a project for me that will create jobs in an efficient way, that does not hamper our ability to, over the long term, get control of our deficit, that is good for the economy, then I'm going accept it.
If Paul Krugman has a good idea in terms of how to spend money efficiently and effectively to jumpstart of economy, then we're going to do it. If somebody has an idea for a tax cut that is better than a tax cut we've proposed, we will embrace it.
So, you know, one of the things that I think I'm trying to communicate in this process is for everybody to get past the habit that sometimes occurs in Washington of whose idea is it, what ideological corner does it come from -- just show me. If you can show me that something is going to work, I will welcome it.
If it works better than something I have proposed, I'll welcome it. What is not an option is for us to sit and engage in posturing or, you know, the standard partisan fights when the American people are out there struggling.
And I don't expect Congress is going to do that because I think that they understand the urgency of the situation and they're hearing from their constituents.
QUESTION: You said you're going to hone and refine the package, but...
OBAMA: I'm sorry?
QUESTION: You said earlier you're going to hone and refine the package. Are you open to substantially increasing the size of it as it's being described? The spending portion?
OBAMA: You know, I think that there are going to be a lot of different opinions out there. We're going to take all of them in. And at the end of the day, we're going to have a package that Congress passes and I sign.
Hans Nichols of Bloomberg?
QUESTION: Thank you, Mr. President-elect.
Throughout the campaign, you talked a lot about changing the way things work in Washington. But I want to go outside of Washington a little bit to some of those foreign embassies and plush ambassadorial residences. Will you be appointing big donors in the time-honored tradition to foreign embassies to serve as ambassadorships? Or will you draw solely from the ranks of career foreign service?
OBAMA: Well, we have not begun to think about all the ambassadorial appointments that are out there. There are some that are critical that have to be filled immediately, and those are the ones I am focused on.
For example, the ambassador to Iraq, you know, I think is very important. Ryan Crocker has done outstanding work, and he's been a remarkable public servant. I think he deserves -- he is one of the unsung heroes in terms of reducing violence in Iraq. But he's been serving there a very long time in a very difficult post. And so, you know, we're going to have to take a look at the whole host of those critical ambassadorial positions. My general inclination is to have civil service, wherever possible, serve in these posts. And we have outstanding public servants, and I've spoken with secretary of state designee, Hillary Clinton, about the importance of rejuvenating the State Department.
I want to recruit young people into the State Department to feel that this is a career track that they can be on for the long term. And so, you know, my expectation is that high quality civil servants are going to be rewarded. You know, are there going to be political appointees to ambassadorships? There probably will be some. I don't -- you know, I think it would be -- it would be -- it would be disingenuous for me to suggest that there are not going to be some excellent public servants but who haven't come through -- through the ranks of the civil service.
But, you know, as we roll out our ambassadors, I'll you'll be able to make an assessment in terms of the professionalism and high quality of the people that we appoint.
OK? Thank you, guys.
QUESTION: (Inaudible).
OBAMA: Congratulations to Florida, one of the -- one of my former detail leaders for secret service, their son is a starting -- is a left tackle for Florida. And so I've sent him an e-mail telling him congratulations. I have to point out -- if I'm Utah, if I'm USC, or if I'm Texas, I may still have some quibbles. And you've heard my pitch.
QUESTION: (Inaudible) number one.
OBAMA: That's why we need a playoff.
(LAUGHTER)
All right, guys.
TONY HARRIS, CNN ANCHOR: Oh, no. He did not weigh in on the BCS scramble? Did he just do that?
Barack Obama, I guess, was -- he was picking Florida to win the national championship game last night. And as you know, Florida won the national championship game last night. But there are still a lot of people up in arms over who the true national champion is at this time. Many people pulling for Utah, and then there is a group in this room, in the CNN NEWSROOM, still pulling for Texas, and asking for the Bowl Championship Series, plus one that would include at this point a game between Florida and -- I suppose that would be Texas.
Can we move on? All right.
Barack Obama officially naming former Clinton chief of staff Leon Panetta as his pick to head the CIA, and Dennis Blair as his boss. Admiral Blair, once confirmed, will become the next director of national intelligence.
The Panetta certainly choice raised questions. Many asked aloud, why a man with a thin intelligence resume was being named to head the CIA. The president-elect, as you heard, citing Panetta's strong management skills as being very important at this time of reforming and strengthening the CIA.
Senior Political Correspondent Candy Crowley live from Washington.
And Candy, one of the clear messages from the President-elect, that he is expressing through this team, is that this is a national security team that does not torture. This administration does not torture.
And my question is, will Leon Panetta be charged with bringing the CIA guidelines, for example, in line with the Geneva Conventions on torture and ending the practice of extreme rendition?
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Well, first of all, saying that the CIA does not admit to torturing and that kind of thing. You know, absolutely, that is his job, is to carry out the president's wishes. So that is part of the job.
I'll tell you what I thought was really interesting, because the main part of the jobs of both of these men is to gather intelligence. It's to take it, you know, all around. And I thought there were several really interesting phrases that came up.
One of them from Dennis Blair, saying we will give you the intelligence -- "We will act according to the law, and we will give you the intelligence, even if it's not what you want to hear."
HARRIS: That's right. Yes.
CROWLEY: So I thought there were a lot of kind of subtle references. Leon Panetta sort of hinted at that, as well, saying, we are going to give you straight and direct information, talking about that sign on the CIA wall, "Ye shall know the truth, and the truth shall set you free." We will give you the truth.
So I thought that was kind of the tone they wanted to set, at least for this news conference.
HARRIS: And Candy, you know, as I mentioned a moment ago, there were certainly many people who vocally questioned the qualifications of Leon Panetta to go to the CIA, if confirmed.
Is he expected to be confirmed?
CROWLEY: Oh, I think absolutely. I mean, if something comes up we don't know about, then all bets are off.
But you saw after that initial sort of objection that came from Dianne Feinstein, who is the incoming chairman of the Select Committee on Intelligence, and Jay Rockefeller who is the outgoing chairman, that, A., they hadn't been consulted at all, much less notified. But B, they kind of wanted an insider, someone who understood "the culture." But they have heard since from Barack Obama, and both of them have softened that, saying that they expect that they will, in fact, go ahead and vote for confirmation.
So I don't see this being a big problem at all.
HARRIS: OK.
Our senior Political Correspondent Candy Crowley for us.
Always good to see you, Candy. Thank you.
CROWLEY: Thanks.
HARRIS: Several stories unfolding right now affecting jobs, the economy, and the nation's security. We have got it all covered for you.
We are watching market reaction to a higher-than-expected job unemployment rate, President-elect Barack Obama's pick to have the Labor Department facing a confirmation hearing on Capitol Hill. And the president-elect just moments ago announcing his choices for key positions in intelligence and security.
Again, Barack Obama's pick for labor secretary on Capitol Hill right now. A Senate panel is holding a confirmation hearing for Hilda Solis. The California congresswoman earns high marks from union officials. The president-elect says Solis will stand up for working families.
Issue #1, the economy and your job. The number of Americans without one surged in December.
Companies cut more than 500,000 workers last month. That pushed the unemployment rate to 7.2 percent. Add up the cuts for all of 2008, and it comes to 2.6 million jobs lost.
Take a look at the map. The states in red are running a jobless rate higher than the national average. The South, Midwest and West Coast are the hardest hit areas.
The White House had this to say about today's ugly unemployment numbers. "Understanding how severe the problem was, the president worked aggressively to address the root causes of the current economic problems. He signed an additional expansion of unemployment insurance benefits to help more Americans weather the downturn." That from White House Press Secretary Dana Perino.
All right, so you want some congressional oversight this morning? We have got that for you.
Live pictures from Capitol Hill. The House Financial Services Committee is taking a look at shady mortgage operators. There is concern unscrupulous subprime lenders are changing their names and getting approved to write FHA loans. Some aren't sticking to FHA lending rules.
Now, the number of FHA secured loans and the number of approved lenders more than doubled in 2008.
And I am not going to let you lose sight of what is happening right now with gas prices. AAA says they've jumped 16 cents a gallon over the last 10 days. The national average for regular unleaded today, $1.78; a gallon up two pennies from yesterday. Experts blame the increase on fear and uncertainty generated by turmoil in Gaza.
And as you just heard, more than half a million jobs were lost last month. So how is Wall Street taking the news?
Susan Lisovicz is at the New York Stock Exchange for us.
Susan, good morning.
SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Good morning, Tony.
Well, the market is taking it pretty well. Why is that? Even though the U.S. economy lost 524,000 jobs in one month, that number was actually better than what a lot of folks on Wall Street feared, because remember, a couple days earlier, we had a report that said in the private sector alone, the U.S. economy lost nearly 700,000 jobs. And these were, of course, broad-based declines.
We saw it in manufacturing, construction, retail, even in December. And so, overall, in 2008, 2.6 million jobs lost.
The market handling it pretty well because of the fears that it could be worse. Also, you know, it's a backward-looking number.
As one strategist I spoke to today, Tony, said, you know, it's clear to everyone that the U.S. economy fell off a cliff in mid- September. That is when Lehman Brothers failed and credit seized up. And the expectation is that things are going to get worse, probably, before they get better.
A couple of stocks of note to tell you about today. KB Homes, for instance, saying things may get worse before they get better. Its shares are down seven percent. Coach -- Coach has profit warning. A lot of the women in the newsroom and a lot of our viewers know Coach bags.
Coach did not reduce prices during the holiday season. It's paying dearly. It issued a profit warning. Shares are down 12 percent. And CVS, big drugstore chain, also issuing a profit warning. That's the reality. That's now -- its shares are down 10 percent. The market overall down, but not too badly -- Tony.
HARRIS: OK. Susan, appreciate it. Thank you.
LISOVICZ: You're welcome.
HARRIS: In the next hour of NEWSROOM, my newsmaker interview with Elizabeth Warren. She leads the panel that is tracking the taxpayer money spent from the $700 billion bailout, literally tracking your money. And Elizabeth Warren is not happy about the answers she is getting.
You can't get in, you can't get out. Historic flooding shuts down the Seattle/Tacoma area. We are tracking the storms in the CNN Severe Weather Center.
(COMMERCIAL BREAK)
HARRIS: Boy, the truth is, western Washington can't seem to catch a break. More rain than it can handle. This from iReporter Jay Immelt. He lives near downtown Arlington and shot these pictures for us. Flooding at an intersection. One of dozens of highways swamped by heavy rains. Jay says a levee breached and flooded nearby farms.
The soaking rains are over, at least for now. But much of Washington State remains cut off today by severe, perhaps historic flooding. CNN's Ted Rowlands is live for us from Thurston County, Washington.
Ted, this is really an unsettling story at this point. We have farm towns, parks soaked, and my question for you, is a significant stretch of I-5 still closed?
TED ROWLANDS, CNN CORRESPONDENT: Absolutely. And we are at one of the ends of it. You can see it is completely closed off to traffic, and there are no detours here, so you can imagine the problems it's created. There's a National Guardsperson here at the head of this, keeping traffic off of it. The problem was, I-5 was covered in three feet of water.
Today the water has receded. Right now, in fact, they are assessing the damage to the freeway. They're hoping they can open it at some point today within the next few hours. Ten thousand trucks use this a day, and they haven't been able to use it for two days. So, you've got literally thousands and thousands of trucks waiting to go up and down this corridor between Washington and Oregon.
Across this region today, the floodwaters have receeded. You see that National Guards truck there. About 200 miles north of here, we were with the National Guard as they were helping pull people out yesterday afternoon after a levee broke. Widespread damage throughout this entire region.
Even though the rivers and streams are now recreeding, the real difficult part will start. Damage assessment, and people are going to go back to their homes -- 25,000 people were under evacuation orders. Those folks going back to their homes and seeing the reality, the stark reality of what they have to deal with. Horrible clean-ups ahead for those folks.
But the good news and the silver lining is that the rain has stopped. And the next phase of this nightmare can continue -- or can progress now.
HARRIS: Can move forward. Yes, absolutely. ROWLANDS: And hopefully, they'll get this I-5 open within the next few hours.
HARRIS: All right, Ted Rowlands, appreciate that. Let's get the latest on the weather conditions where you are now. Rob Marciano is tracking that for us in the Severe Weather Center. Good morning.
(WEATHER REPORT)
HARRIS: OK, Rob, appreciate it. Thank you.
We've got some breaking news for you. The Illinois House has voted to impeach Governor Rod Blagojevich. As you know, the governor accused of trying to sell the Senate seat of Barack Obama. You'll recall that yesterday, an Illinois House committee unanimously recommended that Governor Blagojevich be impeached for abuse of power.
The stage was then set for the entire Illinois House to take a vote. And the Illinois House, as we've justified reported moments ago, has voted to impeach the Illinois governor, Rod Blagojevich. Now, with that vote, this whole process now moves to the next stage. That means it goes to the Senate, the Illinois Senate, where a trial will be held. Again, yesterday, a committee unanimously recommended that he be thrown out of office.
Let's bring in our Susan Roesgen now, who has been following this story, with the very latest for us. All right, Susan, if you would, bring us the latest details.
SUSN ROESGEN, CNN CORRESPONDENT: Well, as you said, Tony, the vote just wrapped up. The House did vote to impeach Governor Rod Blagojevich. The vote, Tony, was 114 yes, 3 people not voting and one person said no. So you can be sure we're trying to find out who that one person is right now. Don't want to give you the name that we suspect it is until we find out for sure who this person was, and why this person voted no.
Now, that impeachment does not mean the governor is removed from office. He is still a governor. He still has full powers to carry outstate duties. But now the whole matter goes over to the state Senate, and they're going to have hearings of their own. They call it a trial in the Senate, Tony.
And when that happens, they'll have maybe two or three weeks -- could be that long, perhaps, of hearings, more testimony, possibly listening to some of the wiretaps. And then the Senate will vote. And if the Senate votes to impeach the governor, the Senate will be voting to remove him from office.
So that is the next step. We did see the governor here this morning, Tony. The governor came out for a jog. He does this pretty regularly. But obviously, we were surprised. I mean, the vehemence of the people who voted on that investigative committee yesterday to recommend impeachment by the full House was so strong. That committee was so angry, and today in the vote, the legislators who spoke were so angry, and talked about an abuse of power. And here the governor goes jogging.
But, of course, the governor is not charged with any crime, and he is innocent of anything. He has right now, by what he says, he has vigorously denied the criminal complaint against him. He said he will be completely exonerated. So, he went for a jog. He says he's going to have a news conference in a few hours, and we will be there.
HARRIS: And that criminal complaint, Susan, just to sort of complete the circle here, has not yet gone to a grand jury, correct?
ROESGEN: No, it hasn't. And so that's why it's just a complaint at this point. A grand jury would have to decide whether or not to actually indict the governor. And then he would go to a trial. But that hasn't happened.
HARRIS: And that's because a federal judge essentially gave an extension to prosecutors to give them more time to pull all of the pieces of the case together before going to the grand jury, correct?
ROESGEN: Yes, he did. The grand jury was supposed to be January 7th, yesterday. It's been extended now until April. Tony, some people said that that meant that the federal prosecutor's case was weak, that he needed more time to get more goods on the governor.
But other criminal experts say that no, what it means is that more people have been coming out of the woodwork now to share their stories of what they think was wrongdoing by the governor. Once again, he is not charged with any crime, and he denies all of the charges listed in that criminal complaint.
HARRIS: All right, Susan Roesgen for us from Chicago. Susan, good to see you. Thank you.
You know, we are just days away from the historic inauguration of our nation's first black president. But don't say that to this student.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Barack Obama never preesented himself as a black candidate. And for everyone to say that he's the first African- American president, and that's historical, and that's it, I think is belittling the election.
(END VIDEO CLIP)
HARRIS: Hear more from these smart young people on race in America. It is the last part of my series, "Class in Session." A couple of the students right here in the CNN NEWSROOM, and they're next.
(COMMERCIAL BREAK)
HARRIS: Barack Obama will be our nation's first black president, but what does that mean for race relations in this country? Will they get any better? Class is in session, and the future leaders are weighing in.
(BEGIN VIDEOTAPE)
HARRIS: Are we, with this election, the nation's first black president, are we beyond race?
UNIDENTIFIED MALE: No.
UNIDENTIFIED FEMALE: No.
UNIDENTIFIED MALE: Never.
STEPHANIE, HIGH SCHOOL SENIOR: There are always going to be those barriers. Socio-economic status, different things, they're always going to matter. Just to say that, well, now we've elected an African-American, now that we have all of the support, that the glass ceiling has just all of a sudden disappeared, I think that's unrealistic.
TAYLOR, HIGH SCHOOL SOPHOMORE: I believe that race will always be a problem. And that as time changed our format for being harsh to a different racial group has changed.
TAYLOR, HIGH SCHOOL SENIOR: I think it's always going to be in the back of everybody's mind because, I mean, for some people, it's second nature. It's what they were taught when they were little, like for grandparents and great-grandparents. They can't help it.
BEN, HIGH SCHOOL SENIOR: sI'm not going to teach my kids that, you know -- about racism and all that. I'm going to teach them everybody is all good. I mean, as you go through the age -- eventually, as you get through, like, as you get down to my grandkids and great-grandkids and stuff, eventually race is going to become less and less of an issue until it's almost nonexistent.
UNIDENTIFIED MALE: That's not true, though.
DEMARIUS, HIGH SCHOOL SENIOR: In the elementary and middle- school students (ph), I went to all-black schools. And I didn't really meet white people until the summer before I got to Grady.
And at those schools, where there were all black people, I had teachers who were people who fought in the civil rights movement and had parents who fought in the civil rights movement, and they told us these stories about these things, and that created an ingrained -- some type of xenophobic, or some view -- like, because we didn't know these people, then, you know, I -- Caroline is a person that I should be afraid of.
And that didn't go away, because Barack Obama was elected president. I think the fear is now we're a lot less honest about it. I think if the '60s people were honest about their racism, and right now it's more under the rug, and that's the danger.
UNIDENTIFIED FEMALE: Or there could be the actual possibility that maybe we are changing. CAROLINE, HIGH SCHOOL SENIOR: A 4-year-old who is growing up now thinks it's completely normal that a -- an African-American man and a woman were viable candidates for the presidency, and one of them is now the president. And that will never be weird or impossible, because it's what they grew up with.
HARRIS: How many of you believe that race relations in this country will improve during your life?
AKURE, HIGH SCHOOL SENIOR: I think it depends on Barack Obama's actions as president. They'll associate that with whether race relations improve or not.
UNIDENTIFIED FEMALE: I wish people weren't so afraid to say I don't know. And we don't know.
HOLDEN, HIGH SCHOOL FRESHMAN: Well, one of my hopes is that, like Barack Obama's election will stop people seeing, like, black culture and white culture as, like, opposite cultures, so much as just like a different type of culture.
TAYLOR, HIGH SCHOOL SENIOR: And another thing is, Barack Obama, during the whole election, he didn't present himself as the black candidate or as the African-American. He just went on as I'm another candidate, these are my ideas, et cetera. So I think he himself took that step forward.
MICHAEL, HIGH SCHOOL SOPHOMORE: Though racism does exist in our country, and there are tensions between the different races, I think that is not as big as everybody is making it. Yes, we just elected an African-American to the presidency.
But at the same time, we have a country that's in economic turmoil. That's what we should be talking about, and that's what we should be worried about, not whether Caroline and I will hate each other tomorrow. Because --
HARRIS: Because the answer is no.
MICHAEL: Probably not.
UNIDENTIFIED MALE: P.J.
MICHAEL; I think that -- I don't think that race is a big problem as it were -- as it was in the 1960s. I think that this country has come a long way, and inevitably, no matter what happens, it will go even further.
HARRIS: Anyone else? last word. Okay, good. Awesome.
(END VIDEOTAPE)
HARRIS: These really smart students are joining us right here in the world headquarters of CNN. You will hear more from them coming up next.
(COMMERCIAL BREAK)
HARRIS; All right. A few of the rock stars from our "Class in Session" series are with us right now. We've got Michael Barlow. Michael, say hello to everyone. There you go. Caroline McKay. Caroline. Michael Robinson. Taylor Fulton. Hey, Taylor.
All from Atlanta's Grady High School with us right now. And it's great to see you guys.
Hey, first of all, I'm wondering what you think. We talked about a lot of issues obviously. And I'm wondering what you think Barack Obama should do the day after he is sworn in, the day after -- the first day in office. What should be his first priority? And if you say anything other than the economy, I'm going to throw you all out of here. Is it the economy for all you? Address that? No?
Taylor, what are you thinking?
TAYLOR, 12TH GRADE: I think should be the first thing he does. For one thing, Obama he's still human. I think, for one, he's not a magician. So, the first thing that should happen is he needs to breathe and realize what his priorities are.
HARRIS: He doesn't have time to breathe, Taylor.
TAYLOR: I don't want him to sit and take a little ten-minute nap. I want him...
HARRIS: You want him to reflect on the moment?
TAYLOR: He needs like a pad and a pen. He's need to sit down and say, what are the priorities of the country? It may not be the economy.
CAROLINE, 11TH GRADE: I think what Taylor's saying is that she doesn't want him to rush an economic crisis -- or package. She wants him to think about it get, you know, (CROSSTALK) input from all the top economists, and then make a real effective package.
HARRIS: Right, right. Go on, Michael.
MICHAEL BARLOW, 10TH GRADE: Yes, I think that the first thing that Barack Obama should really do is fire Larry Summers. Because, you know, we look at -- the '90s, and Larry Summers ran Russia's economy into the ground. And now, we're looking at it and we're asking him for advice on our economic crisis?
HARRIS: Yes, yes.
BARLOW: I wondering what exactly this is doing, and where this is going.
HARRIS: Mr. Robinson.
MICHAEL ROBINSON, 12TH GRADE: Either way that you put it, no matter if he cools it as he's done a great job of doing, no matter which way you put it he's still has to address the economy.
HARRIS: Yes.
ROBINSON: I think the economy is going to be at the top of his list.
HARRIS: Very quickly, what are your thoughts on his chances of improving the economy, say over the course of the life of this proposed stimulus package. Two years. What are the chances that he will be successful in stimulating this economy.
Caroline, you want to go first?
CAROLINE: Well, I think it's a combination of the stimulus package and creating jobs through new energy initiatives --
HARRIS: You've always liked that -- that -- that notion. That -- that portion of the package, haven't you?
CAROLINE: Yes.
HARRIS: You've been in favor of that?
CAROLINE: I mean, I think that eventually it will get better. I think that people are excited about the new administration. I think people's feelings actually affect a lot about how they buy into the (CROSSTALK) market or how they spend their money. So I think it's going to get better.
HARRIS: Taylor, you want to jump in?
TAYLOR: I think the economy is not something that is completely controllable by a certain plan. It's not just something that's written on paper. It's something that has to be proven and experimented with. The economy is so big and includes so many things that it's going to take a lot of joint efforts from this entire country to actually create, restabilizing the country.
HARRIS: Mr. Barlow?
ROBINSON: I think that...
HARRIS: Mr. Robinson?
ROBINSON: ...his...
(LAUGHTER)
ROBINSON: ...I think that definitely there has to be some plan. But I don't entirely agree that it must be a stimulus plan. Like, I don't think, just, like, throwing money at society is going to necessarily make it better. You have to change. You have to establish some kind of confidence in the American people that -- so they'll be willing to continue to invest money...
HARRIS: Generally speaking, optimistic about the future of the country? More optimistic than pessimistic?
BARLOW: Well, I mean, I think if you look at the economic proposals that Barack Obama is making right now, the -- specifically continuing with the corporate bailouts and these economic stimulus plans, then we look at Herbert Hoover was doing the exact same thing at the beginning of the Great Depression. And that didn't work very well.
So, I think we need to ask ourselves, like, is this sound economic policy? All of the top economists are saying, that yes, it is, but if this wasn't enough to revert the Great Depression, why is it going to be enough to revert whatever is coming now?
HARRIS: I thank you. Thank you all. Thank you all for your participation. Thank you for your spirit, your goodwill and putting up with me. You guys have been tremendous. And from time to time, let us check in with you and find out how you're doing in your high school career and your college career. All right?
CAROLINE: Well, thanks for having us.
(CROSSTALK)
HARRIS: Yes, yes, yes. And your parents were watching?
(CROSSTALK)
HARRIS: All right. OK. They did fine. They were great, weren't they?
All right, still to come in the NEWSROOM, a worker strike stopped one premiere Hollywood event last year. This year Tinseltown wants to be sure the gold is really glowing.
(COMMERCIAL BREAK)
HARRIS: The 66th annual Golden Globe Awards are handed out Sunday night. CNN entertainment correspondent, Kareen Wynter is in Beverly Hills with a preview.
Kareen, I haven't seen you in forever, good to see you.
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: Hi there, Tony. You know, all of Hollywood, Tony, is eagerly anticipating Sunday's main event.
We're actually at the Beverly Hilton Hotel in Beverly Hills. And Tony, come Sunday, this will be the place to be. The after party of all after parties. The "In Style"-Warner Brothers after party; it'll be filled A-listers from Zac Efron to Meryl Streep. Speaking of Meryl Streep, we caught up with the "Doubt" star and some other nominees to get their take on the big day.
(BEGIN VIDEOTAPE)
DANNY BOYLE, DIRECTOR: I mean, it's kind of unbelievable where we are right now. Absolutely unbelievable. And I -- the only way I can kind of keep it in context is because of the place where we made it and what the people were like.
(MUSIC PLAYING)
It's sort of fun to accept it, you know whatever comes your way, you'll accept it. So, it's just very exciting for a film that you love and love making for it to be received like this is wonderful, you know.
ANNE HATHAWAY, ACTOR: Why is this so difficult for you to understand?
To have John Demme say I think you can do this, that was a dream come true. And then I played it, and I was actually really proud of what I did, so that was a dream come true. So, then to have it be received with all of this, I mean, it's a bit overwhelming but I'm very happy.
KATE WINSLET, ACTOR: I thought you turned the job turned?
I was very lucky it landed in my lap first and I just immediately thought, well, maybe this is something that Leo and I can do together.
Wouldn't you still be wasting your wife toiling away at a job you find ridiculous?
I just couldn't believe it when he read it and said, wow, wow, I'm in. I'm in.
SCARLETT JOHANSSON, ACTOR: How do you know I take picture pictures?
PENELOPE CRUZ, ACTOR: I found them in your luggage.
I'm very excited; I'm very Grateful. And you know, just for the nomination. And I will take part of my family and hope they have fun and I have fun, and it has a day about celebrating.
(END VIDEOTAPE)
WYNTER: And, Tony, just to correct, you actually heard from a slew of people, not Merle Streep, but "Slumdog Millionaire's" director. Also, Penelope Cruz, who's nominated in the Best Supporting Actress category.
And the reason Sunday is such a huge deal, Tony, is that you win a Golden Globe, it's usualy a great ichndicator that you'll be included in race of all races in Hollywood, The Academy Awards. So, so many will be watching.
HARRIS: I got to go see that slumdog movie. I'm hearing great things about it.
WYNTER: Excellent!
HARRIS: Yes, I'll take your recommendation on that.
Karren, go to see you, thank you.
She is the go-to person on the billion dollar bailout of the nation's banks. Elizabeth Warren, get to know that name.
Next hour, where are all of those taxes going? Mrs. Warren, show us the money.
(COMMERCIAL BREAK)
