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Bailout Vote Scheduled for Today; Obama Faces Transition Issues; Freezing Temperatures Across Midwest; Steve Jobs's Health Impacts Apple Stock

Aired January 15, 2009 - 11:59   ET

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

TONY HARRIS, CNN ANCHOR: Hello, everyone. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines from CNN for this Thursday, the 15th day of January, 2009.
The president-elect pushes the Senate for more bailout money. Today's vote looks like a real nail-biter.

The deep freeze puts the eastern third of the country on ice. Bitterly cold air spilling all the way down to the Gulf Coast.

Israeli soldiers push deeper into Gaza City in their fight against Hamas. One attack puts Israel at odds with the United Nations.

OK. A busy day for potential members of the Obama administration. There's already been a committee vote on Senator Hillary Clinton's secretary of state nomination. Other confirmation hearings going on -- Susan Rice for ambassador to the United Nations; Ken Salazar as secretary of the Interior; and Eric Holder for attorney general.

Clinton got quick approval from the Foreign Relations Committee. No problem there. But a judiciary committee hearing for Holder is proving a little tougher. More on that later.

Also playing out on Capitol Hill today, a $350 billion showdown over the remaining money from the financial bailout, the so-called TARP program. The Senate votes on whether to release the money to the Obama administration or block it.

Senior Congressional Correspondent Dana Bash joining us live.

All right. So, Dana, the Senate is absolutely where the action is today. Tell us about the TARP vote that is scheduled for late this afternoon.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: It is high drama here, Tony. You know, we have just been spending some time, still, talking to senators and talking to some sources, senior sources inside the Obama transition. And it is still really unclear what is going to happen, whether or not Barack Obama is going to get what he is asking for, because it is a very, very controversial thing. And that is, you know, $350 billion more for a very unpopular program, a rescue for the financial sector. And, look, the bottom line is, when you talk to Republicans and, even more importantly at this point, Democrats, they will tell you they understand that he is saying that he needs it, he is saying that this is essential for the economy. And they understand that this is something that, you know, politically, he also needs very much because it is the first -- a big showdown that he's having with Congress.

On the other hand, they're hearing from their constituents, still, to this very moment, even more so now that there is all this attention being paid to it, saying, wait a minute, what about us? You know, you're spending all of this -- you know, hundreds of billions dollars more for the financial sector. You know, we are still in dire straits, and they just don't think it is a fair thing.

So those are the dynamics here that the senators are dealing with. And still, in talking to senator after senator, are hearing, "I haven't decided, I'm not sure." And that's why this is so dramatic.

HARRIS: Dana, I want to get you one more question on the TARP vote, and then I want to turn to the stimulus package. Is the president-elect actually going to lose votes from his own party later today?

BASH: Well, it is entirely possible. In fact, it is probable that he is going to lose votes from his own party. But it is his own party that his team -- in fact, Barack Obama himself, I'm told, is still making calls, probably as we speak, to members of his own party, because, look, you'll remember back in the fall, 34 Republican senators, a big chunk of them, voted for this. But now, in talking to Republican senators, in talking to members of the leadership, it seems as though many of them will not support this.

And why is that? Because of the dynamic I just told you about, the fact that their constituents are angry. But also, they are really unhappy about the fact that their own president, President Bush, mishandled this, but also, from their perspective, misdirected this money in spending it on the auto industry.

So one of the things that we are waiting for now is something that Republicans demanded, Tony, and that is written assurances from the Obama team that they will not spend this money on anything other than the financial sector, and maybe on homeowners. But not on other industries like the auto industry.

HARRIS: OK. And Dana, what's the latest on the massive economic stimulus plan? Is it possible that this plan could actually be growing in size?

BASH: Well, it has grown in size a bit in terms of the numbers we were hearing before. And I'll basically tell you what it is.

You see on the screen $825 billion. That is the package that has been agreed to with House Democrats and the Obama team. They've been working on this behind the scenes for some time.

Five hundred and fifty billion dollars of that is going to go for spending to the states -- infrastructure, health care, education, the kinds of things that Barack Obama says he hopes will jump-start the economy by, for the most part, providing jobs -- building highways, things like that. Then tax cuts, $275 billion in tax ruts.

And within that I think is a lesson for Barack Obama, that he is not going to get everything he wants from this Democratic Congress. He had campaigned on the idea of $3,000 for businesses who give people jobs, but talking to Democrats, it was really clear they did not like that, they did not think it was going to stimulate the economy. That's not in his package.

Other tax cuts though that he campaigned on, they are in this. And what they're hoping inside the Democratic Caucus and over at the incoming White House, team Obama, is that those tax cuts will lure Republican votes that they very much need. And I can tell you, Republicans are looking at the fine print as we speak to see if they can support this.

This is the beginning, it is the blueprint, and it is the beginning of a very long negotiation, I can tell you that.

HARRIS: Our Senior Congressional Correspondent Dana Bash for us.

Dana, appreciate it. Boy, a lot on your plate today.

Two of the Senate's best-known members are moving on. We told you Hillary Clinton is moving to the State Department. Joe Biden becoming vice president. Both gave farewell speeches to the chamber just a short time ago.

(BEGIN VIDEO CLIP)

JOSEPH BIDEN, VICE PRESIDENT-ELECT OF THE UNITED STATES: The United States Senate, and that is not hyperbole. It literally has been my life. I've been a United States senator considerably longer than I was alive before I was a United States senator.

And I may be resigning from the Senate today, but I will always be a Senate man. Except for the title "father," there is no title, including vice president, that I am more proud to wear than that of United States senator.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE-DESIGNATE: Ten years ago, I asked the people of New York to take a chance on me, to grant me their trust and their votes. And in the years since, as our economy has grown more interconnected and the world more interdependent, I have worked to keep faith with my fellow New Yorkers.

(END VIDEO CLIP)

HARRIS: A lot of transition issues face Barack Obama as he counts down the days until he takes the oath of office. Our Suzanne Malveaux is at the White House.

And Suzanne, what's topping that agenda today?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, obviously, Barack Obama is in his transition office here in Washington. He is working the phones, as Dana had actually mentioned, working the phones behind the scenes, trying to reach out to Senate Democrats, as well as some Republicans and the blue dog Democrats, those fiscally conservative Democrats who are not yet sold on releasing this money here.

They realize that it's an uphill battle that he really has to sell. That is what he's been working on very earnestly, I can tell you. Aides saying working the phones behind the scenes very intensively for the last 48 hours here.

They are trying to avoid any potential of him having to issue a veto within his first week of office. Looking at all kinds of things -- Barney Frank's legislation to actually offer some guarantees in terms of helping homeowners get -- make sure that they stay in their homes; accountability for some of the CEOs; transparency with banks.

This is the thing that they're looking on the House side here, what kind of legislation, written guarantees. They're not wild about it, they're not crazy about it, but they are expressing some willingness behind the scenes to work with lawmakers to make sure that, yes, that money is released, and also to make sure they've got that huge economic stimulus package that Barack Obama has been talking about for months now. That is on his desk as president in mid- February.

So that is the top priority here. Obviously looking at the nominations that -- and the confirmation process of various individuals, but right now it is all about the money.

HARRIS: Yes, it sounds like it. All right. Our White House Correspondent Suzanne Malveaux for us.

Suzanne, good to see you. Thank you.

And tonight, President Bush says farewell to the nation. About an hour ago, he said good-bye to employees at the State Department and praised them for their service. He says he plans to echo that sentiment in his speech tonight.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm going to urge our nation to continue to engage the world with confidence, confidence in the transformative power of freedom and liberty. These are the ideals that gave birth to our own nation. These universal ideals gave birth to America. And over the past eight years, together we have worked to advance these ideals.

(END VIDEO CLIP) HARRIS: And a reminder, you can see President Bush's farewell address of the nation right here on CNN. That's tonight at 8:00 Eastern.

HARRIS: A winter blast from the Arctic is settling over the eastern third of the nation today. Scenes from the snowy Midwest. Temperatures today are below zero or in single digits across much of the region.

Windchills in Minnesota and North Dakota in the minus 40s. Are you kidding me? Most schools there are closed or started late due to the dangerous temperatures.

Let's make a cold call in Columbus, Ohio, now. Reporter Mary Jedlicka joins me from our affiliate WSYX.

And Mary, how are people in your city coping with the cold? No, no, no, no, no. Let me start with you. How many layers are you wearing today?

MARY JEDLICKA, REPORTER, WSYX: I have five layers on, Tony.

HARRIS: Oh, man.

JEDLICKA: We have been out here since 4:00 in the morning, and it is brutal, I'm not going to lie to you. So not only are people in Columbus worried about staying warm and keeping warm, they're also worried about getting around the city.

If you take a look at our main roads, you can see bare pavement. That's good news. And as we flip the camera around, the big concern for people living in the city of Columbus, the residential streets.

(BEGIN VIDEOTAPE)

JEDLICKA (voice-over): Shoveling the sidewalk to get out of your house and to your car isn't so tough. But driving your car down Columbus' side streets is another story.

UNIDENTIFIED FEMALE: You have cars just parked close together when some of the streets are smaller. My street's a little bit bigger, but you don't want to hit nobody's car.

JEDLICKA: Unlike the main roads, residential streets are last on the city's list. So right now, after a big snowfall, it's usually the drivers digging out, not the city's plows.

UNIDENTIFIED FEMALE: I had to clean around it.

JEDLICKA: And when enough snow is out of the way and it's time to go...

UNIDENTIFIED FEMALE: Taking off is kind of hard because you slide, you know, before you can get traction to pull off.

JEDLICKA: Once you do get going, drivers tell us it's still not an easy ride.

UNIDENTIFIED MALE: The side streets are horrible. I mean, you know, it's basically five miles an hour. Hopefully your car is not (INAUDIBLE) drive to where you'll have a chance to fishtail into other vehicles.

JEDLICKA: So far, this driver is lucky, he says that hasn't happened yet. But winter is not over and the streets are far from clear.

(END VIDEOTAPE)

JEDLICKA: And normally, the City of Columbus waits 48 hours after a big snowfall like this one to attack the side streets. But because the temperatures are plummeting, they say that's not going to happen. They are hitting the streets now, because -- before it gets even worse -- Tony.

HARRIS: Wow.

Mary Jedlicka from our affiliate there in Columbus, WSYX, with five layers on, wishing, perhaps, it were six.

Mary, thank you.

What am I laughing about? She's out there freezing. It's so warm and toasty here.

(WEATHER REPORT)

HARRIS: A U.N. compound in Gaza has been hit. A lot of questions being raised about how it happened. We will have a live report from the region.

(COMMERCIAL BREAK)

HARRIS: Israeli shells spark massive fires in Gaza. One at United Nations relief headquarters, the other at a building housing international news outlets. Day 20 of the Israeli assault, seeing the heaviest shelling so far.

Live now to our Paula Hancocks in Jerusalem.

And Paula, look, let's talk about it here, the attack on the U.N. compound, the strike on a building housing international media outlets. At the very least, it drives home the point, doesn't it, that there is really no safe place in Gaza right now?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Tony. There is no front line to this.

Also, people who are trying to escape their homes don't know which neighborhood to go to. And certainly, as the fighting is in the most densely populated areas of Gaza, the center of Gaza City, neutral buildings and neutral installations are being hit. Now, we heard from the United Nations Relief and Works Agency, saying that they believed white phosphorous shells had been dropped near the U.N. building, and they believe that is what set on fire the warehouse which was containing thousands of tons of food, water, medical supplies, definitely needed humanitarian aid for 1.5 million residents in Gaza.

Now, the Israeli prime minister, Ehud Olmert, was talking to the U.N. secretary-general, Ban Ki-moon today. Said, "I don't think it should have happened and I'm very sorry, but the Israeli forces were attacked." He also went on to say, "As it happened, the response was very harsh and I'm very sorry."

So the Israelis saying they did come under militant attack, and they believe that the militants then hit inside the U.N. building. The U.N., at this point, wants proof of that, and Ban Ki-moon said he is outraged that the U.N. building was targeted.

And as you say, another neutral building, a media building. Two Abu Dhabi TV employees were injured and rushed to hospital after the shelling hit that particular building.

So the longer this goes on, the more fighting in this incredibly densely residential area, the more the casualties are going to increase, is the fear. And, of course, the Palestinian casualties, according to medical sources, well over 1,000. And around a third of those are thought to be children -- Tony.

HARRIS: CNN's Paula Hancocks for us in Jerusalem.

Paula, thank you.

President-elect Obama's choice for attorney general is running into opposition on Capitol Hill. What hurdles will Eric Holder have to overcome?

(COMMERCIAL BREAK)

HARRIS: The man nominated to lead the Justice Department is facing senators this morning. Eric Holder's confirmation as attorney general promised to be the most contentious of the Obama nominees.

CNN's Brianna Keilar live now from Capitol Hill.

And Brianna, a ranking member, Arlen Specter, was expected to lead the tough, close questioning of Eric Holder. Has it played out that way?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yes, tough questions about two pardons by President Clinton that happened while Eric Holder was the number two official at the Department of Justice. The first one being the pardon, controversial pardon, last-minute pardon of Marc Rich, a fugitive commodities trader who fled the country while he was facing charges of tax evasion. His ex-wife had donated hundreds of thousands of dollars to the Democratic Party and the Clinton Library.

Critics say that Eric Holder facilitated the pardon, which kind of went in a way that circumvented the normal Department of Justice, sort of, I guess, standard protocol. What's clear though is that Eric Holder didn't stand in the way of this pardon. And this did come up in this exchange between ranking Republican member Arlen Specter and Eric Holder.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (R), PENNSYLVANIA: Were you aware, Mr. Holder, of the atrocious record that Rich had in dealing with the Iranians and (INAUDIBLE) and arms in exchange for oil and rockets? Were you aware of this kind of a record this man had?

ERIC HOLDER, ATTORNEY GENERAL NOMINEE: No, I was not. And that was one of the mistakes that I made. I did not really acquaint myself with his record.

I knew that the matter involved -- it was a tax fraud case, it was a substantial tax fraud case. I knew that he was a fugitive, but I did not know a lot of the underlying facts that you have described. And as I said, that was a mistake.

(END VIDEO CLIP)

KEILAR: So why is this such a concern? Well, according to Arlen Specter -- and he told me this right before going into the hearing -- is that his concern is this is an example where Holder kowtowed to what President Clinton wanted to do. Specter said the president needs to be told no when he's doing something wrong. He said this was a big concern he had with former attorney general Alberto Gonzales, that he did President Bush's bidding and didn't tell him no when he should have.

So, obviously, you can see pretty contentious, these issues coming up. I do have to say, Tony, though, Holder still expecting to be confirmed.

HARRIS: All right. Brianna Keilar on Capitol Hill for us.

Brianna, appreciate it. Thank you.

So how do experts think this confirmation process is going? Is the attorney general designate up to snuff?

NPR's Justice Department correspondent, Ari Shapiro, joining me from Washington.

Ari, great to see you.

ARI SHAPIRO, NPR JUSTICE DEPT. CORRESPONDENT: Hi. Good to be with you.

HARRIS: But give me your take here. How's it going so far?

SHAPIRO: You know, from the very beginning, Holder said some things that really set him apart from his predecessors. He said waterboarding is torture. That's something the last two attorneys general were not willing to say. He said the president does not have the authority to override and immunize people for acts of torture.

So, he really tried to establish that he was looking forward, taking kind of a post-9/11 approach to the job. And the Marc Rich questions were there. Everybody expected them to be there. But so far, he seems to be doing well and his confirmation doesn't seem to be in doubt.

HARRIS: And Ari, an interesting exchange between Senator Patrick Leahy and Holder regarding the use of waterboarding and torture.

Have a listen, and let's talk about it.

(BEGIN VIDEO CLIP)

SEN. PATRICK LEAHY (D), VERMONT: Do you agree with me that waterboarding is torture and illegal?

HOLDER: If you look at the history of the use of that technique used by the Khmer Rouge, used in the Inquisition, used by the Japanese and prosecuted by us as war crimes -- we prosecuted our own soldiers for using it in Vietnam -- I agree with you, Mr. Chairman, waterboarding is torture.

LEAHY: Do you believe that other world leaders would have the authority to authorize torture of United States citizens if they deemed it necessary for their national security?

HOLDER: No, they would not. It would violate the international obligations that I think all civilized nations have agreed to, the Geneva Conventions.

(END VIDEO CLIP)

HARRIS: And Ari, a pretty clear explanation of what this Obama administration feels about waterboarding and torture moving forward.

SHAPIRO: Yes, but in a way, saying that waterboarding is torture is the easy part. The hard part is going to be figuring out what you do with the people who have been waterboarded.

People who are involved in the transition tell me that going forward, a lot of the responsibilities for prosecuting terrorists that had been at the Department of Defense are going to be moved to the Department of Justice. And so, you have to ask how Holder and President-elect Obama are going to try to bring to justice some of these people who have been waterboarded, if, in fact, as Holder says, they believe that waterboarding is torture.

HARRIS: And Ari, a couple of other issues -- let's touch on them -- that may come up in the hearing.

What role did Eric Holder play in the repatriation of Elian Gonzalez to Cuba in 2000, while Janet Reno, it must be pointed out, was attorney general?

SHAPIRO: Right. Janet Reno was attorney general. Eric Holder was the deputy attorney general. And this is one of the -- several actions that Eric Holder took as deputy attorney general that Republicans have honed in on as a potential weakness.

The Elian Gonzalez controversy, as we remember, was this young boy who was in the United States and taken back to Cuba, angering many in the Cuban community here in the U.S. Republicans have said that that's one of the things they're going to ask about, in addition to the pardons of Marc Rich and others that we heard about earlier.

HARRIS: And one final one. What role did Eric Holder play in -- I guess it was the 1999 pardon of 16 members of the Puerto Rican...

SHAPIRO: Yes, FALN.

HARRIS: Yes. Yes.

SHAPIRO: Right. He recommended granting clemency, and President Clinton did in fact grant clemency to these FALN members.

The problem was, apparently, it has come out that Eric Holder tried to persuade career attorneys to change their recommendation. The career attorneys did not want him to grant clemency. Eric Holder, after trying to persuade them to change their recommendation, was unsuccessful, went ahead and supported President Clinton in granting those FALN members clemency.

And so that's another one of the decisions he made as deputy attorney general that may trip him up a bit in this hearing.

HARRIS: Ari Shapiro, thanks for your time.

SHAPIRO: Good to be with you.

HARRIS: We appreciate it.

And very quickly now, we want to get to our Ben Wedeman, who, my understanding is...

Ben, you are inside Gaza right now. If you would, describe what you're seeing from your vantage point.

BEN WEDEMAN, CNN SENIOR CORRESPONDENT: Yes, Tony, we are in Rafah, which is a town on the far south of the Gaza Strip. We just crossed over from Egypt about an hour ago.

The sun has gone down. This area does seem to have electricity.

When we were crossing over, obviously we did hear some explosions. It's hard to determine exactly what. I'm told that the strip -- the border between Gaza and Egypt utterly turned into rubble. All the houses along the border have been destroyed by some very punishing Israeli airstrikes. I'm told yesterday and the day before, it was particularly intense.

Here, Tony, I wouldn't say life is normal, but there is electricity. There is a car driving by in the street. I see people walking around (INAUDIBLE). But at the moment this area is...

HARRIS: And let me apologize for the interruptions in Ben's signal. I wanted to stay with that as long as possible, only because our understanding is Israel has essentially barred all reporters from Gaza, so we wanted to try to get as much from Ben as possible. We will take a look at your money when we come back. You're with the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's take a look at the big board. New York Stock Exchange right now as you can see, just past three hours into the trading day and the Dow triple-digit losses right now. The Dow's down 179 points. The NASDAQ is down 29 as well. Now here's what's interesting that we've been telling you throughout the morning -- throughout the day here that the Senate is expected to vote on releasing the second half of, and the remaining portion of, the TARP funds at some point today, most likely after the markets close for the day.

We have just received information from our Dana Bash, our senior congressional correspondent, that that vote is now scheduled for 4:30 p.m. Eastern time. We'll, of course, follow those developments for you right here in the CNN NEWSROOM.

On Wall Street now, there are renewed concerns about the health of Apple CEO Steve Jobs. He says he will take a medical leave of absence until the end of June and that news is taking a bite out of Apple's shares. Christine Romans is in New York with details on this really, he is a celebrity CEO and Christine, what's happening to Apple stock?

CHRISTINE ROMANS, CNN CORRESPONDENT: Apple stock is getting hammered. There's been a lot of speculation over the past few months about the health of Steve Jobs. Apple is defined by him and he is defined by Apple. He is the number one shareholder in Apple. So every time his stock gets killed, he is the one who feels it more than anybody else. Look at how his appearance has changed just since 2005 on the right of your screen, 2005 and on the left of your screen is last year. He's lost a lot of weight. Even in his trademark jeans, tennis shoes and black mock turtleneck he has very, very visibly lost an awful lot of weight.

He is a cancer survivor, a cancer survivor for more than five or six years now and there was an awful lot of speculation that he was having more health concerns and the company really didn't address it very forthrightly for a very long time. Then last week the company said that he had a hormone imbalance. He said he had a hormone imbalance and he was going to maybe change up his diet would be what he would be able to do to try to attack that. Now today a statement from him and the company saying that he will be stepping down, in fact in order to take myself out of the limelight and focus on my health and to allow everyone at Apple to focus on delivering extraordinary products. I've decided to take a medical leave of absence until the end of June.

So, not stepping down but stepping aside I should say until the end of June while he handles these health issues. But Tony, it just shows you the parallel of a company that's so strongly identified with just one person, the co-founder there, the person who somebody earlier today called him the Svengali of the company. He's so strongly associated with that company and that company with him that his health problems have clearly become a distraction there and it's been bad for the stock.

HARRIS: Christine, let me just ask you. Hasn't he put good people in place? Isn't there a succession plan if he can't return or decides he doesn't want to return?

ROMANS: Well, Tim Cook is the chief operating officer of the company. He'll become responsible for the day-to-day operations of Apple. You're right, there are some really bright people there. The company many analysts say have to do a better job of communicating that indeed it is a very deep and strong bench. I think that even people -- even shareholders who know that, who know that there are some fundamental strengths with the talent of this company, this whole health thing has been a very big distraction. When reporters would call, responding in many cases to technology blogs where there was wild speculation about his health, the company would often say, when we have something to report about it, we will report it. So there were a lot of unanswered questions for a very long time.

HARRIS: Christine, appreciate it. Thank you.

You know, these days saving money in your 401(k) may not be enough. Your health care costs alone in retirement are estimated to be almost $6,700 a year. Personal finance editor Gerri Willis joins us now with how you can sort of supplement your 401(k). Gerri, where else can people save money for their retirement?

GERRI WILLIS, CNN CORRESPONDENT: Well, look, Tony, if your employer doesn't offer a 401(k) plan or maybe you have some extra funds you'd like to invest, you can always put money in a traditional IRA or a Roth IRA. You're not taxed on the amount you contribute to a traditional IRA. But you'll pay taxes on the money when you withdraw it. Roth IRA, just the flip side. You take the tax hit now but you get the funds tax-free later. You can crunch numbers to see which IRA might be right for you at finance.cch.com. the maximum legal IRA contribution is just $5,000 per individual. So if you're age 50 or older, you can make additional catch-up contributions of $1,000.

HARRIS: Gerri, what is this about using - boy I don't know if I like the sound of this already -- credit cards to help save for retirement?

WILLIS: We're trying to do everything we can, right? We're looking everywhere. So you are all familiar with credit cards that have frequent flyer programs or maybe gas rebates. Now there is a credit card where you can put your rewards towards your retirement savings, sounds crazy. Fidelity has a new retirement rewards card. After you've earned enough points, the card then deposits cash into your Fidelity IRA. The downside, interest rates on the card higher than average at 16.99 percent. Now this card really only benefits you if you make your credit card payments on time. Otherwise, not so pretty a situation. And Charles Schwab also introduced an invest- first Visa signature credit card. The card gives you 2 percent cash back on purchases and that's automatically deposited into a Schwab one brokerage account each month. If you do choose to use a credit card to save for retirement, make sure you understand those details because they are critical Tony.

HARRIS: Well maybe you can tell us about some of the new rules when it comes to retirement accounts.

WILLIS: This is really important. If you're in retirement, getting into retirement, there is a new rule for you out there that is going to make it easier. Lawmakers have recently placed a one-year moratorium on taking the required minimum distribution for this year. That's the money you take out of your retirement, that you're required to take out. Previously if you were over 70 1/2 years old, you would be required to take funds from your retirement account or face a 50 percent penalty on the amount you should have taken out. That's not true this year.

That's the good news there. If you're in retirement, you're worried about taking money out with the stock market at these lows, it is trading down today, I think everybody is watching and worried it is going to go through the 7,000 level, you're not going to have to do that. You can just wait on the sidelines, maybe use some cash instead. Critical information for folks out there worried about their retirement savings, in retirement already. Of course, if you have any questions about your retirement account, send them to me at gerri@cnn.com. Love to hear from you.

HARRIS: Great information as always, thanks Gerri.

WILLIS: My pleasure.

HARRIS: As Barack Obama prepares to take office, he's learning a little charm can go a long way especially as he puts together the key players for his administration. Here's CNN's senior White House correspondent, Ed Henry.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): With his Treasury pick on the run, President-Elect Barack Obama is playing both defense and offense defending Timothy Geithner's failure to pay $34,000 in taxes a few years ago.

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: Look. Is this an embarrassment for him? Yes. He said so himself. But it was an innocent mistake, so my expectation is that Tim Geithner will be confirmed and my expectation is that he is going to do an outstanding job.

HENRY: He's also facing questions about why Transportation secretary designate Ray LaHood backed so many of those earmarks the president-elect says he opposes. Meantime, incoming White House chief of staff Rahm Emanuel is trying to put out another fire, Republican questions about why Mr. Obama needs $350 billion in bailout funds.

UNIDENTIFIED MALE: Larry Summers and Rahm Emanuel knew they had a skeptical offense.

HENRY: But along with the defense, a charmed offensive, new details from the president-elect's efforts to win over skeptics in his own party. Sources inside a private meeting tell CNN that when senators called him Mr. President-Elect he interrupted. I'm still just Barack until next week, an effort to show he's not taking fellow Democrats for granted.

GARY ANDRES, FORMER ASST. TO PRES. GEORGE H.W. BUSH: I think one of the biggest mistakes that new presidents make is to come into office and think that the job of Congress is basically to transact the White House' agenda. And that is really one of the ways that you get yourself into trouble.

HENRY: Team Obama learned that lesson after failing to consult Democratic Senator Diane Feinstein about the nomination of Leon Panetta for CIA director. Now Democratic officials say Rahm Emanuel is trying to head off similar problems by giving out his cell phone number to senators so they have a direct pipeline. Aides say Democratic Senator John Tester decided to test the offer and was surprised to reach Emanuel last Sunday afternoon.

They dished about the stimulus plan and the following morning Emanuel dispatched a top economic adviser to the senator's office to hear him out some more. Stroking eagles, however, only gets you so far. Eight years ago, President Bush spent plenty of time socializing with lawmakers, giving them funny nicknames, but now he's leaving the stage with very few victories, a fate the incoming president wants to avoid. Ed Henry, CNN, Washington.

(END VIDEOTAPE)

HARRIS: As Barack Obama gets ready to assume the presidency, what are Americans saying about the man he will replace?

(COMMERCIAL BREAK)

HARRIS: President Bush preparing to leave office in just five days. He delivers a farewell address to the nation tonight. So what is the public sentiment for the president as he exits the stage? Senior political analyst Bill Schneider, live from Washington. And Bill, the public sentiment for the president seems to be not so good.

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: That's correct, Tony. President Bush delivers his farewell speech not a moment too soon, most Americans say.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): As President Bush prepares to leave office, three quarters of Americans say they are glad he's going. It's been like a failed marriage. Things started out well. When President Bush first took office, more than 60 percent saw him as strong and decisive. That impression was confirmed after 9/11.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The people who knocked these buildings down will hear all of us soon.

SCHNEIDER: The public still saw Bush as strong and decisive when he took office a second time in 2005. No more. The public has lost confidence in this president, especially since he hasn't been able to do much about the collapsing economy. President Bush once had a reputation as a good manager. Then came hurricane Katrina.

BUSH: Brownie, you're doing a heck of a job.

SCHNEIDER: And Mr. Bush's reputation as a manager got blown away. Mr. Bush got elected on a promise.

BUSH: I think people look for someone who is a uniter, not a divider.

SCHNEIDER: But the vast majority of Americans believe he betrayed that promise. He says it's his greatest regret.

BUSH: I am disappointed by the tone in Washington, DC.

SCHNEIDER: Fewer than one third of Americans believe George W. Bush will go down in history as a good president. Forty percent say he left a poor legacy. Another 28 percent call Bush the worst president in American history. Mr. Bush's view -- let history decide, later.

BUSH: I don't think you can possibly get the full breadth of an administration until time has passed.

(END VIDEOTAPE)

SCHNEIDER: At his news conference, Mr. Bush advised his successor that all the controversies won't matter if there is another attack on the homeland. That's how President Bush hopes he's remembered -- as a president who helped keep the country safe -- Tony.

HARRIS: Senior political analyst Bill Schneider from Washington, Bill, thank you.

Just another reminder, you can see President Bush's farewell address to the nation right here on CNN. That is tonight, 8 Eastern.

Building a better battery. Is this Detroit's ticket back to success?

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HARRIS: Europe's fuel shortage stretching out at least into the weekend. Ukraine today rejected Russia's latest proposal to allow natural gas to flow westward. The ongoing impasse leaving many Europeans without heat or cooking gas in an especially cold winter. Both sides now plan to meet in Moscow Saturday to discuss the crisis. EU officials say they're willing to join in the talks. Job losses in the auto industry have made Michigan's unemployment rate the highest in the country. But advanced battery technology could be the key to Detroit's comeback. Cnnmoney.com's Poppy Harlow has our energy fix from New York. Good to have you back there Poppy. A lot of hopes in that industry now seemingly pinned to battery technology.

POPPY HARLOW, CNN CORRESPONDENT: It's exactly right, it really is the future of the auto makers are saying and Michigan is betting on it. We saw (ph) the North American auto show in Detroit this week is that nearly every major car company announced big plans for electric vehicles. Michigan also now wants to become the world leader in building and developing next-generation batteries that those cars will need.

Yesterday, Michigan's governor signed legislation providing $335 million in tax credits to battery makers who set up shop in the state. Now despite Michigan's $1 billion budget deficit, the governor says, hey, this is money well spent. Take a listen.

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GOV. JENNIFER GRANHOLM (D), MICHIGAN: Alternative energy, clean tech jobs feed off of the auto industry but create a whole other slice of jobs and that's why we've focused so much on putting incentive dollars -- even though, yes, it costs taxpayer dollars, there is a cost to us to be able to do that. But honestly, if we don't reshape this economy, then we're going to emerge from this recession in worst shape than when we went in.

(END VIDEO CLIP)

HARLOW: Now General Motors will be getting some of the new tax credits. The company announced plans this week to build a battery assembly plant, build a new plant -- that's a huge deal -- in Michigan, that will be for the Chevy Volt, which is a plug-in hybrid that's due to hit show rooms next year. But building a domestic battery industry in this country is not going to be easy. That market is dominated heavily by Asia right now. But again, Governor Granholm says this has to change.

(BEGIN VIDEO CLIP)

GRANHOLM: You'd hate to substitute a reliance on Middle Eastern oil for a reliance on batteries from Asia or anywhere outside of the U.S. If you want to be energy independent as a nation, you've got to have the solutions for that energy independence in the United States.

(END VIDEO CLIP)

HARLOW: Now the federal government is getting involved, very involved. That stimulus plan unveiled on Capitol Hill this morning, well that includes $2 billion for advanced battery development. We'll see what happens, Tony, but I think she's got Obama and his team on her side. Back to you. HARRIS: No doubt, you have to subsidize it. Come on, that seems to be the simple truth of it. Poppy, good to see you, thank you.

HARLOW: You too.

HARRIS: It is the super bowl of politics and you probably can't even get in! Inauguration ticket fever!

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HARRIS: We know President-elect Obama is a devoted family man. Now a public glimpse at some private thoughts. "Parade" magazine asked Obama to share his thoughts about what he wants for his daughters. In a rare open letter, Obama writes, in part, I realize that my own life wouldn't count for much unless I was able to ensure that you had every opportunity for happiness and fulfillment in yours. In the end, girls, that's why I ran for president, because of what I want for you and for every child in this nation. Whoa.

Tickets for the inauguration are just about the hottest ticket going right now. Our Jim Acosta tells us some people have ticket fever and won't give them up, even for big bucks!

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OBAMA: Unprecedented numbers of Americans are planning to join us in Washington.

JIM ACOSTA, CNN CORRESPONDENT (voice-over): Welcome to Washington, home of Super Bowl XLIV, as in the inauguration of the 44th president. Tickets are going fast, in all sorts of ways.

SEN. HARRY REID, MAJORITY LEADER: We have a lot of interest in this inauguration.

ACOSTA: Senate Majority Leader Harry Reid picked seven lucky winners out of a hat. What was your first reaction when you heard that you got a ticket?

JENNY HARROW, TICKET HOLDER: Kind of that facial expression right there.

ACOSTA: Jenny Harrow got her ticket from a friend. Like a lottery winner she was all of a sudden very popular.

HARROW: I have gotten some offers. People were saying I could make a killing but the money is not worth it.

ACOSTA: Not everyone shares that opinion. On the Web site Craigslist, scalpers are selling tickets to the swearing-in for thousands of dollars. How did they end up there? Don't blame them. Each inaugural members of Congress are given hundreds of tickets to pass out to employees and friend.

ANNE SCHROEDER MULLINS, POLITICO GOSSIP COLUMNIST: Once the offices give away these tickets, you can't really control what happens after that.

ACOSTA: A handful of congressional offices have confirmed to CNN and other media outlets they've uncovered a variety of schemes to auction off their tickets. Technically it is not against the law.

MULLINS: It is a huge gray area. Don't you love it? Of course in Washington, everything is a gray area.

SEAN PATE, STUBHUB.COM: The really rock star status of President-Elect Obama has kind of made these events can't-miss events.

ACOSTA: The online ticket service Stubhub decided against the selling of swearing-in tickets and is instead offering up pricey passes to the parade and inaugural balls.

PATE: And for some of the galas as well as the parade, it actually exceeded this weekend's NFL championship game.

ACOSTA: Jenny Harrow says you can't put a price tag on history.

HARROW: Money comes and it goes. I mean experiences like this are once in a lifetime. So I couldn't pass that up.

(END VIDEOTAPE)

HARRIS: Wow.

KYRA PHILLIPS, ANCHOR, CNN NEWSROOM: It is true.

HARRIS: You're going to be there. You're not working it.

PHILLIPS: Well, both. Little work --

HARRIS: I can give you an assignment?

PHILLIPS: Sure.

HARRIS: I know you've got your own show, but would you mind either blogging or sending an iReport for my show?

PHILLIPS: Sure, I'll be an iReporter for you. Sure, I'll send you some pictures.

HARRIS: Will you please?

PHILLIPS: Yes, definitely. I'm on it.

HARRIS: I love when a plan comes together.

PHILLIPS: I'll be your special correspondent at the inauguration.

HARRIS: Not that I gave you a real opportunity to say no with this thing. Oh, OK.

PHILLIPS: And I've give you a part of my exclusive interview with Obama.

HARRIS: Will you please?

PHILLIPS: Yes, I'll hook you up.

HARRIS: All right. CNN NEWSROOM continues right now with Kyra Phillips.