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Blueprint for Recovery; Gloomy Jobs Report; Saving the Banks; President Obama Signs Executive Orders; Timothy Geithner Recommended by Committee to the Senate to be Treasury Secretary; Are Liquidation Sales Good Deals?

Aired January 22, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Thursday, January 22nd, and here are the top stories we are following for you in the CNN NEWSROOM.
Democrats in the driver's seat. President Obama's $825 billion stimulus plan makes speedy progress in the House.

The president's treasury secretary nominee inches towards Senate confirmation. A Senate committee looks ready to give its approval shortly.

And at the White House this morning, President Obama discusses recession-fighting strategies with his money team.

And good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

So let's start with issue #1, the economy.

The president wants a stimulus package on his desk by mid-February. His plan to break the recession has cleared one House committee. It's in front of two more this morning. But Republican complaints about the spending part of the stimulus are growing louder.

CNN's Kate Bolduan at the Capitol this morning.

Kate, we are just minutes away from hearing from House Minority Leader John Boehner. If you would, preview what he is likely to say.

KATE BOLDUAN, CNN CORRESPONDENT: Well, we're going to hear something similar to what we have heard over the past -- I would even see weeks now, concerns that Republicans have over this massive spending bill, as what is included.

You mentioned, Tony, that the $825 billion stimulus package, it overcame one hurdle yesterday. The spending portion of it was approved by the House Appropriations Committee. Two other committees are taking their portions of the bill up today, including the tax cut portion of it, which it comes out to $275 billion. That's going to be before the House Ways and Means Committee.

All of this kind of coming together as this bill slowly works its way to a House floor vote, which Democrats are hoping for very, very soon. But Republicans are pushing back, arguing that this isn't -- hasn't been put together with bipartisan spirit. Republicans are requesting and calling for even a meeting with President Obama in order to voice their concerns and request changes to the package. Some of those concerns have to do with business tax cuts.

Republicans are calling for more business tax cuts, less spending, arguing that that's the way to help jumpstart the economy, rather than massive infrastructure spending projects. But they are argue, and they also hold up a new Congressional Budget Office report that says that that's not going to help create and save jobs, because those spending projects won't start immediately. They could start a few weeks out.

So Republicans are now working on setting up a me meeting. The guidance, we're told, is that that meeting with President Obama, with House Republicans will be next week, all at the same time. House Democrats, Tony, are still trying to get a House vote, and in their mind, of course -- and in their minds, they are hoping to get a vote on the House floor by the end of the month, to get this bill to President Obama as quickly as possible -- Tony.

HARRIS: And very quickly, Kate, we were anticipating some comments from Speaker Pelosi. Has she spoken yet?

BOLDUAN: I believe she is speaking right now.

HARRIS: OK.

BOLDUAN: And I'm not sure if we have any sound prepared very quickly to throw up. I know she is talking now. She is -- if we have any sound, we could run it so we can hear...

HARRIS: We can dip in. Yes, why don't we do that?

BOLDUAN: Perfect.

HARRIS: Why don't we dip in for just a moment?

BOLDUAN: Let's hear what Nancy Pelosi has to say.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: Today we are marking up in at least three committees. Yesterday, the Appropriations Committee marked up the bill. Next week, we will bring it to the floor, and we're very proud of the product that is emerging through the legislative process.

(END VIDEO CLIP)

BOLDUAN: Republicans, Democrats, House Speaker Nancy Pelosi, really trying to push for this to get through, because they are trying to hold true to what President Obama is calling for. He wants to have the bill on his desk by the Presidents Day break, when Congress will recess. As we can see, as always happens, Tony, and you and I are always talking about, it's a slow, bumpy road. It's unclear where this will be taking us over the next few days.

HARRIS: And the speaker has promised that there will be no break, there will be no recess, unless there is a bill that is crafted and ready for the president's desk.

BOLDUAN: We will see. I mean, if House Speaker Nancy Pelosi threatens that, you can be sure she will probably hold you to it.

HARRIS: Yes.

BOLDUAN: But often, they try to use that to get people to work a little faster and to start cooperating a little better.

HARRIS: That's right.

BOLDUAN: So we'll see how that works.

HARRIS: All right. Kate Bolduan on Capitol Hill for us.

Appreciate it, as always, Kate. Good to talk to you.

BOLDUAN: Sure.

HARRIS: New claims for unemployment benefits jumped to 589,000 last week. That's more than expected, and it matches the 26-year high mark set a month ago.

Let's talk about jobs and the stimulus package with "YOUR $$$$$" co- host, Christine Romans.

Christine, good to see you as always.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Tony.

HARRIS: The stimulus package is about creating and saving jobs. More evidence this morning that jobs are being lost at an alarming rate.

ROMANS: That's right, Tony, 589,000 people, as you pointed out, lined up for the first time for an unemployment check last week -- 589,000. Put that into perspective.

The president and his team want to save or create 3.7 million jobs over two years. So look at that. In one week, half a million people said they had to go get unemployment checks.

When you look at the number of people who are continuing to collect benefits, that's 4.6 million people are surviving on jobless benefits right now. And keep in mind, those are not as much as a paycheck would have been. So it's one of the reasons why you're seeing consumer spending less, more concerns about people not being able to make their mortgage payments, and, of course, the food pantries are seeing a spike in use, up 30 percent for some of the food pantries. Look, we're talking about an awful lot of people who are out of work here. The big dilemma right now from economists -- this is called a high-frequency kind of economic report they watch it every single week -- is there any sign of a turnaround yet? And they're really not seeing it quite yet.

In the meantime, recent announcements, including this morning from Microsoft, 5,000 jobs. Fourteen hundred people at Microsoft today, Tony, are going to find out that they lost their jobs. And the rest of those people will learn over the next 18 months.

Williams Sonoma, 1,400. Intel, up to 6,000. United Airlines yesterday, 1,000. I mean, I make a list for you, Tony, quite frankly, and every 12 hours it needs to be updated.

So here we are in this situation. We all know, we can see out for about six months, and it looks kind of grim looking out for six months.

And I've been watching these Geithner hearings. Tim Geithner, the new treasury secretary -- nominee, I should say...

HARRIS: Yes.

ROMANS: ... got a big job on their plate here. I mean, the economic news -- and the economy doesn't slow down for hearings, new presidents, inaugurations. I mean, this continues to just drag on.

HARRIS: Well, Christine, yes. Let me have you pause for just a second, because I want to come back to you. But I want to report the news that we're just getting in to CNN, and then I've got another question for you.

It's a story we've been following. President Obama set to sign, we understand now, three executive orders in the next half-hour or so regarding the closure of Guantanamo -- the Guantanamo Bay detention facility, the banning of torture on terror suspects, and a review of all detention policies.

That is set to take place in the next half-hour. We will, of course, check in with our White House correspondent, Suzanne Malveaux, for that.

But Christine, back to you for a second. Tim Geithner, the treasury secretary nominee, will probably learn in the next couple of minutes, as expected, that he will be confirmed to that post pending a full Senate vote on that nomination. But I'm wondering, do you see down the road, once the confirmation process is behind us, this huge sort of meeting with the Obama financial team and, let's say, the chiefs of the big nine banks in this country, where they come together, around one table, and the agendas for both sides are placed squarely on that table?

ROMANS: Well, I'll tell you right now that my sources are telling me that they're working 24 hours in the banks, and at Treasury, and that they're talking to each other constantly, ,all day long. HARRIS: Good. Good.

ROMANS: So that is definitely happening. What those agendas are, and what they're going to hammer out, he was very careful not to say exactly what the comprehensive strategy they're going to have will be, because, Tony, I think -- and he made this comment that I think is very interesting.

He said that we want to be careful about giving clarity on something that isn't quite the right thing that we're going to do, because people need clarity and confidence.

HARRIS: Yes.

ROMANS: And you know, when they started switching gears, that really -- remember, with the -- troubled assets and then pumping...

HARRIS: Sure. And then capitalizing the banks.

ROMANS: ... the money into the banks. And then it didn't work, or they weren't lending the way that people...

HARRIS: And for many, it felt like a bait and switch.

ROMANS: Absolutely. And that hurt confidence even more. So he is being very careful not to say what it is he's going to do until they know they're going to do it.

Now, another thing here is that a lot of people in those hearings and watching those hearings have been saying that they're coming away with a sense that we don't know what the silver bullet will be, and there might not be one. And that they're trying to figure out day by day what the next best step to make.

HARRIS: Yes.

ROMANS: And as one person told me yesterday, nobody knows exactly what to do, and whether what they're doing will work. And that's what we're -- we have never been in this situation before, so there's a lot of, you know, demands for accountability and for transparency and for access, and what the banks are doing. But at the same time, you know, it's just a monumental problem.

HARRIS: Yes. Yes.

ROMANS: And we pointed this out yesterday, Tony, and you pointed this out several times. We're talking about upwards of $7 trillion of interventions and loans and guarantees. It's more than just the bailout and the stimulus he's going to be overseeing.

HARRIS: Great point.

ROMANS: It's a huge, huge intervention into the -- into the markets and the economy.

HARRIS: All right, Christine. Appreciate it. Thank you. Let's get more on the nation's critical banking mess.

CNN's Mary Snow looks at options the new administration has to shore up the industry.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Despite the era of optimism in Washington, Wall Street is increasingly worried about the banking industry. With banks wracking up billions in losses, many economists say the Obama administration needs to act quickly. But options are few.

Britain is moving toward nationalizing some banks -- leading to fears the same might happen in the U.S.

CHRIS MAYER, COLUMBIA BUSINESS SCHOOL: That idea that the government just take over the banks entirely, I think, is not only dangerous politically -- that is, we really don't want the U.S. government running our entire financial system -- but, also, I think, is likely to be ineffective.

SNOW: Some economists point to success in Sweden. Back in the 1990s, it nationalized banks to deal with its financial crisis.

One former FDIC commissioner notes while it worked, Sweden had fewer banks to take over.

WILLIAM SEIDMAN, FORMER FDIC CHAIRMAN: We have, you know, a couple of hundred big banks and thousands of small banks. And obviously the government doesn't want to take all of those over.

SNOW: Another idea -- some economists say the government should create a so-called bad bank. Simply put, the government would buy toxic assets from struggling banks and segregate them.

SIMON JOHNSON, FORMER IMF CHIEF ECONOMIST: You want to take them out of the picture. So the government is buying those assets from the banks and is giving them cash or Treasury securities in return.

SNOW: One major challenge -- putting a price tag on those troubled assets. One economist doesn't see any of these options really working.

MAYER: I think we have to keep the banking system alive. And there really isn't much of an alternative to doing it other than injecting capital and trying to generate some private capital and then working to fix the housing market in a serious way.

SNOW (on camera): Treasury secretary nominee Timothy Geithner was asked during his confirmation hearing about creating a so-called bad bank. He acknowledged the idea was under consideration, but also difficult to get right.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

HARRIS: So what about this idea of creating a bad bank and rounding up all of the toxic assets? Will that shore up America's economy and get credit flowing again?

Jeanne Cummings, we love her, chief money correspondent for politico.com, is here with a reality check for us.

Jeanne, it's always great to see you.

JEANNE CUMMINGS, POLITICO.COM: Thanks for having me.

HARRIS: And let's pick up on the Tim Geithner point here. Tim Geithner, a treasury secretary nominee. During the confirmation hearing yesterday, Senator Kerry made the point that we may be in the process right now of throwing good money after bad. Have a listen and let's talk about it.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), MASSACHUSETTS: We're propping up fundamentally insolvent institutions, and unless those institutions clear their books of those toxic assets, we're simply going to compound this crisis.

(END VIDEO CLIP)

HARRIS: OK. So, Jeanne, what do you think of the idea of a bad assets bank, so to speak, and how would it work?

CUMMINGS: Well, that's been on the table for a long time. It was what Secretary Paulson seemed to suggest they were going to do with the first installment of the TARP funds.

And we have done something similar when we got ourselves out of the savings and loan crisis, where they bought up all of the bad assets and then resold them. Ultimately, taxpayers ended up making a little bit of money out of the savings and loan crisis. So the government has been through a process like that before.

What you talk to economists about, what the problem is right now is -- and I think the one that Secretary Paulson became confronted with last summer -- is how do -- what do the taxpayers pay for these assets? How do you -- how do you put a value on them?

HARRIS: Yes.

CUMMINGS: And who does that evaluation? I mean, the very people he would have to bring in, or the government would bring in to place a value on these assets, are from the very banks that we're going to end up buying them from.

HARRIS: Yes.

CUMMINGS: And so it's just rife with conflicts of interest, and it's just very tricky to do in terms of making sure the taxpayers don't just simply overpay for bad assets, let the banks off the hook, and they pay no penalty for the bad bets they made.

HARRIS: And Jeanne, very quickly, do we have any real idea of the size and scope of the financial crisis we're dealing with, with the banking sector: I mean, might it be in the offing down the road at some point that we're talking about, sorry, TARP II?

CUMMINGS: I think that there is a possibility that at some point, the government will have to bring even more money to bear on the system. All economists say we are nowhere near the bottom yet, we're still at a very perilous position.

The Bank of America request for additional funds just a week ago was a reminder that the financial system is not fixed, and nor will it be, many economists say, until the government deals with the underlying problem, which is the housing sector. They need to stabilize that before the banks then can find a foundation upon which to rebuild themselves.

HARRIS: And Jeanne, House Minority Leader John Boehner is about to speak in maybe just a couple of minutes here, and he is going to express Republican outrage over the size of the stimulus package.

I'm wondering, how successful do you believe Republicans can be in linking the stimulus plan to the TARP plan, and one plan we absolutely need -- that is the stimulus plan, to the TARP plan -- that no one seems to be happy with?

CUMMINGS: Well, it's a tricky thing to do. He's going to lump it all as big government spending, which is true.

HARRIS: Yes.

CUMMINGS: But I think if you look at public opinion polls, the stimulus is not nearly as unpopular as TARP, which will give the senators and House members cover on the Hill to go ahead and push that through. And I tell you, if they don't pass that stimulus, the effect on the market will be extraordinary, because the investment class has already baked in the idea that indeed it will pass. And if it doesn't, I think it's going to be pretty ugly out there on the market.

HARRIS: Boy, OK. Jeanne, as always, great to see you.

Jeanne Cummings from Politico.com.

Jeanne, thanks.

CUMMINGS: You're welcome.

HARRIS: Following two stories right now. Tim Geithner, the confirmation process through the Senate Finance Committee -- it continues right now -- and the Obama executive orders.

We're back in a moment.

(COMMERCIAL BREAK) HARRIS: Live pictures from the White House now, where President Barack Obama has just made a major shift in the war on terror. The president just issued three executive orders. One of them calls for closing the U.S. detention facility at Guantanamo Bay, Cuba, within a year.

Let's go live now to our White House correspondent, Suzanne Malveaux.

Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Tony.

We are actually waiting for a tape to come in very shortly of this signing that just happened. He was before some retired military personnel, but there are executive orders that he has issued to send a very clear sign that this is a break from the Bush administration when it comes to the war on terror, the first one talking about closing Guantanamo Bay detention center -- facility within a year or so.

This is something that Barack Obama talked about on the campaign, that it was very important, that it was really considered somewhat of a moral stain, if you will, on the United States, that particular facility. And so that is one thing that he is calling for by executive order.

The other thing, obviously, is going to be dealing with torture, banning torture.

Now, this is the sound that's coming in. Let's take a listen, Tony.

(BEGIN VIDEO CLIP)

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: This is the order that we are signing by the authority vested in me as president by the Constitution and the laws of the United States of America in order to affect the appropriate disposition of individuals currently detained by the Department of Defense at Guantanamo, and promptly to close the detention facility at Guantanamo, consistent with the national security and foreign policy interests of the United States.

In the interest of justice, I hereby order.

And we then provide the process whereby Guantanamo will be closed no later than one year from now. We will do -- is there a separate executive order, Greg, with respect to how we're going to dispose of the detainees? Is that...

GREG CRAIG, WHITE HOUSE COUNSEL: We set up a process.

OBAMA: We will be setting up a process whereby this is going to be taking place.

The individuals who are standing behind me represent flag officers who came to both Joe and myself and all the candidates and made a passionate plea that we restore the standards of due process and the core constitutional values that have made this country great, even in the midst of war, even in dealing with terrorism. They made an extraordinary impression on me. They are outstanding Americans who have fought and defended this country. And for them to fight on behalf of our constitutional ideals and values, I think is exceptional.

So I wanted to make sure that they were here to witness the signing of this executive order.

There we go.

(APPLAUSE)

UNIDENTIFIED FEMALE: Thank you, everybody. Thank you.

UNIDENTIFIED MALE: There's more.

OBAMA: There are three of these.

UNIDENTIFIED MALE: Several more.

OBAMA: This one... by the authority invested in me by the Constitution and the laws of the United States of America, in order to improve the effectiveness of human intelligence gathering, and to promote the safe, lawful and humane treatment of individuals in United States' custody and of United States' personnel who are detained in armed conflicts, and to ensure compliance with the treaty obligations of the United States, including the Geneva Conventions, and to take care that the laws of the United States are faithfully executed, I issue this following executive order that effectively ensures that anybody detained by the United States for now is going to be -- any interrogations taking place are going to have to abide by the Army Field Manual.

We believe that the Army Field Manual reflects the best judgment of our military, that we can abide by a rule that says we don't torture, but that we can still effectively obtain the intelligence that we need. This is me following through on not just the commitment I made during the campaign, but I think an understanding that dates back to our founding fathers that we are willing to observe core standards of conduct, not just when it's easy, but also when it's hard.

And so with that, let me sign the next executive order.

There you go.

(APPLAUSE)

Two more. I've got two more.

What we're doing here is to set up a special interagency task force on detainee disposition. It's going to be made up of the attorney general, secretary of defense, secretary of state, secretary of homeland security, director of national intelligence, the director of the CIA, the Chairman of the Joint Chiefs, and any other officers that we may need. They are going to provide me with information in terms of how we are able to deal in the disposition of some of the detainees that may be credible in Guantanamo that we cannot transfer to other countries, who could pose a serious danger to the United States, but we cannot try because of various problems related to evidence in an Article III court. So this taskforce is going to provide us with a series of recommendations on that.

Is that correct, Greg?

CRAIG: That's right. And detainee policy going forward.

OBAMA: And detainee policy going forward so we don't find ourselves in these kinds of situation in the future.

CRAIG: And clear guidance to military...

OBAMA: And that we are providing clear guidance to our military in terms of how to deal with it.

OK. There we go.

(APPLAUSE)

OBAMA: And finally, this is a much more specific issue related to the current detention of Ali Saleh Kahlah al-Marri. Some of you are familiar with the al-Marri case.

You have a legal resident who has been detained. He is clearly a dangerous individual. His case is currently before the Supreme Court.

We have asked for a delay in dealing -- going before the Supreme Court in dealing with this case so that we can properly review the evidence against him and the various policies that have been presented up until this time.

So -- all right.

(APPLAUSE)

OBAMA: With those three executive orders, the message that we are sending around the world is that the United States intends to prosecute the ongoing struggle against violence and terrorism. And we are going to do so vigilantly. We are going to do so effectively. And we are going to do so in a manner that is consistent with our values and our ideals.

And all of the individuals who are standing behind me, as well as, I think, the American people, understand that we are not, as I said in the inauguration, going to continue with a false choice between our safety and our ideals. We think that it is precisely our ideals that give us the strength and the moral high ground to be able to effectively deal with the unthinking violence that we see emanating from terrorist organizations around the world.

We intend to win this fight. We're going to win it on our terms. Thank you, everybody.

MALVEAUX: And so there you have it, Tony, President Obama signing those four executive orders, essentially differentiating himself dramatically from the Bush administration.

You might have noticed, as well, Tony, he was reaching out and talking to somebody who was off camera. That is Greg Craig, the White House counsel, who he was turning to when he had some questions.

He's going to be somebody who be here in the briefing room momentarily to give us some background information about the executive orders. But most notably, the first one. That is closing Guantanamo Bay detention facility within a year.

Obama essentially recognizing that it is going to take some time here. There are legal issues, there's also a lot of diplomacy that goes into this, as well, trying to find a home for some of those detainees with U.S. allies, making sure that they're in countries where they're not tortured or abused in any way. So that is really a process that will continue with the Pentagon, with other countries.

Now, the other thing that he mentioned, too, was a ban on torture. Now, President Bush (sic) -- this really is a difference of how you define torture. He said we are going to go by what is outlined in the Army Field Manual when it comes to interrogation techniques. That is a distinction from what some CIA officers and personnel have been using, what's called enhanced interrogation techniques, including waterboarding.

Well, Barack Obama, President Obama, making it very clear that he believes waterboarding and some of those advanced techniques amount to torture, and that that is not going to be permitted anymore. There is going to be some consistency, that they are going to follow the guides in that Army Field Manual.

And then finally, really an acknowledgment here that this is a lot of work ahead. There have been a lot of questions about whether or not and how these detainees have been treated, whether or not this has been proper. The former president, President Bush, said that he wanted to close Guantanamo Bay detention, but never went through with it. So there is going to be an interagency taskforce with a lot of high-powered individuals in the administration looking at these questions about detention policy -- Tony.

HARRIS: Terrific. All right, Suzanne. Appreciate it. Thank you so much.

And while Suzanne was wrapping that signing ceremony, we just received word that the Senate Finance Committee has approved the nomination of Tim Geithner to be the next secretary of the Treasury by a vote of 18- 5. Of course, now this process moves to the Senate for a full Senate vote which is expected by, I believe, maybe tomorrow, early next week at the very latest.

Americans are split over whether to close the prison at Guantanamo, but support for shutting it down has gone up significantly since 2005. In a new CNN/Opinion Research Corporation poll, 51 percent favor closing the facility. That is up from 36 percent in a 2005 poll. Forty-seven percent are opposed to closing the prison, compared to 58 percent who were against it in 2005.

The new Obama administration holds its first news briefing next hour, and you will see it live, right here in the CNN NEWSROOM. That's at 12:45 Eastern, 9:45 Pacific.

Companies are going out of business so you can get great deals at those sales, right? The going out of business sales.

Your personal finance editor, Gerri Willis, has your top tips next. That's coming up next.

(COMMERCIAL BREAK)

HARRIS: Gas prices creeping back up. AAA says the national average price for a gallon of regular unleaded is now $1.85. That is up .2 of a cent from yesterday, and marks a ninth straight day of increases at the pump. People in five states are already paying 2 bucks or more for a gallon of gas.

The housing market takes another big hit as new home construction plunges to a record low.

(BUSINESS REPORT)

HARRIS: Going out of business. Everything must go. You will hear that a lot this year. But are liquidation sales really good deals?

Personal Finance Editor Gerri Willis is here with tips.

Gerri, if you would, break it down for us.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: All right.

Well, when a large retailer goes out of business -- and we've talked about these companies before, Linens and Things, Circuit City -- a liquidator comes in and buys the merchandise. And this company, hey, they bring in their own staff. A they're the ones who hang the signs, do the advertising.

These liquidation companies are trying to get as much money as they can from the sales. And these liquidation sales usually last a month, two months. They can mean very big business for these liquidation companies.

HARRIS: Well, all that said, are liquidation sales even worth our time?

WILLIS: Well, they're not as good as you may think.

First of all, you may find better prices online or at other retailers. Keep in mind the liquidators can raise prices that the original retailer... HARRIS: Yes.

WILLIS: ... already set. They can also get rid of any previously scheduled sales. Going out of business ads attractive consumers who are assuming they're getting a good deal, but there's usually little incentive to actually give those big discounts, according to the folks we interviewed.

Now, a liquidation sale may only give you 10 percent off, but the longer you wait, the more attractive prices may get. Plus, when you buy an item from a liquidation sale, there is typically no refund available. So you won't be able to return the goods if they're defective or you're not happy, and that can be a big minus, particularly if you're buying one of those big electronics or big- ticket items.

And I'm sure thought a lot about that, Tony.

HARRIS: Well, yes, but I'll tell you, what's amazing to me is that you can go into a store a week before the liquidation sale and see one price, and you go back for the liquidation sale and the price is even higher. That's the thing that is shocking.

WILLIS: Yes.

HARRIS: But I'm wondering, is there any advice if you're heading out to one of these liquidation sales?

WILLIS: Well, you know, and I think you summarized it pretty neatly, you don't know what those prices are going to be.

HARRIS: Yes.

WILLIS: So you have to comparison shop. As we've mentioned, you may find that you save more money if you shop online.

HARRIS: Right.

WILLIS: Or check with another merchant, ask how close they can come to matching that price.

Now, if you do decide to buy something at one of these sales, check in with the manufacturer to see if the warranty is going to be honored. Very important before you purchase anything, that you have all of the accessories, the instruction booklet -- that's important -- that the item is in good shape, because you're not going to be able to return it.

Finally, buy it on your credit card, because you have some more consumer protections that way.

HARRIS: Gerri, you are just large and in charge. You have got a new show premiering this weekend.

WILLIS: I don't know if that's really a nice thing to say to a woman or not. HARRIS: Well, that's -- your orbit is growing.

WILLIS: OK.

HARRIS: The size and scope of your...

WILLIS: Particularly my bottom line.

HARRIS: ... inboard (ph) is growing on the network.

Tell us about this new show premiering this weekend.

WILLIS: All right. Well, you know -- particularly my bottom line.

OK, "YOUR BOTTOM LINE," this is the show we're doing. It's all about helping you protect, save, build your money.

This week we're going to examine the policies of the new administration. I know you'll want to see this, Tony. We're going to see if lawmakers in D.C. will -- you know, what's right, what's wrong, what are they doing? Are they doing what they promised?

"YOUR BOTTOM LINE," that's the show, Saturday morning, 9:30 a.m. Eastern, right here on CNN.

HARRIS: Tracking the money, that's what we try to do. Right?

WILLIS: Large and in charge.

HARRIS: Boy, that really didn't turn out quite the way I anticipated.

WILLIS: I like it. I like it. I just said I liked it.

HARRIS: All right, Gerri. Appreciate it. Thank you.

And as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice and answers. Check out our special report, "America's Money Crisis." Again, that's at CNNMoney.com.

Our CNN iReporters showing us more great shots from President Obama's inauguration. But not everyone left the Mall with good memories.

(COMMERCIAL BREAK)

(WEATHER REPORT)

HARRIS: Our CNN iReporters showing us more great shots from President Obama's inauguration, but some not allowed to participate, even after following all the rules.

(COMMERCIAL BREAK)

HARRIS: Inauguration frustration. Thousands of people who managed to get a ticket were still not able to witness history. Our iReporters are sharing their stories of human gridlock in the nation's capital. Let's get the time machine going here. Let's take a trip to CNN.com's iReport Desk and check in with one of the folks helping us run things down there in our iReport operation, producer Rachel Rodriguez.

Rachel, good to see you.

You know, my understanding is that there were some with tickets who ended up watching the inauguration in a bar or restaurant somewhere because they couldn't get through security.

RACHEL RODRIGUEZ, PRODUCER, CNN.COM: Yes, that's right, Tony. There absolutely were.

By CNN and iReport estimates, there were about 5,000 people who had tickets to the inauguration but weren't able to get in. And we have a few pictures. We can show these pictures from Caitlin O'Brady and Carrie Kuhn (ph), and they shot these photos right outside the purple gate as Obama was taking the oath of office. So you can see they weren't able to see anything at all.

HARRIS: Yes, that's got to be pretty frustrating. I mean, they did everything the right way.

RODRIGUEZ: Yes, absolutely. And they still weren't able to get in.

HARRIS: Yes.

RODRIGUEZ: They said there was just gridlock at the security gates.

HARRIS: Wow. All right. Hey, and are you getting more and more of those iReports? Give us a sense of maybe what the assignment is for later in the day for our iReporters.

RODRIGUEZ: Well, later on today, we're asking for questions for John Boehner, the House minority leader.

HARRIS: Very good.

All right, Rachel. Good to see you. Appreciate it.

RODRIGUEZ: Thanks, Tony.

HARRIS: Thank you.

And next hour, an iReporter snaps the rescue photos from inside the D.C. Metro station after a woman fell from the platform to the tracks.

New administration, new Web site so you can follow along.

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HARRIS: Call her "Madame Secretary of State." Hillary Clinton taking command of U.S. diplomacy today.

Clinton got a rousing welcome when she arrived at the State Department a short time ago. President Barack Obama visits her at her new post later today. He has given Clinton a mandate to step up U.S. diplomacy and help to restore the nation's image abroad. She told employees it is a new era.

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HILLARY RODHAM CLINTON, SECRETARY OF STATE: This is going to be a challenging time, and it will require 21st century tools and solutions to meet our problems and seize our opportunities.

I'm going to be asking a lot of you. I want you to think outside the proverbial box. I want you to give me the best advice you can. I want you to understand there is nothing that I welcome more than a good debate and the kind of dialogue that will make us better.

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HARRIS: Well, Clinton was sworn in during a private ceremony yesterday after the Senate voted 94-2 to confirm her.

A shakeup in the process of filling Hillary Clinton's vacant Senate seat. Caroline Kennedy is out of the running after hours of mixed signals last night. Kennedy issued a statement saying she was dropping out of consideration for personal reasons. According to a statewide poll, New Yorkers prefer Attorney General Andrew Cuomo over Kennedy to fill the Senate seat.

Illinois Governor Rod Blagojevich wants new White House Chief of Staff Rahm Emanuel to testify at his impeachment trial, but Blagojevich is griping that he can't subpoena witnesses. Illinois lawmakers say that's because the governor missed a filing deadline. Blagojevich told Chicago affiliate WGN the proceedings are a sham.

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GOV. ROD BLAGOJEVICH (D), ILLINOIS: This has nothing at all to do with defiance on my part and everything to do with respect for the office of the governor. What the Senate and the House and the legislature is trying to do is to thwart the will of the people and remove a governor elected twice by the people without a fair hearing, without due process, and not giving me the right, the most basic right that every citizen in our country has, and that is the right to call witnesses.

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HARRIS: Governor Blagojevich is accused of, among other things, trying to sell the Senate seat held by President Obama. He refuses to resign. His impeachment trial begins Monday.

President Barack Obama earlier this hour signed four new executive orders, all involving U.S. efforts against terrorism. We are expecting the orders to show up on the new White House Web site soon. And you will have a chance to weigh in.

Our Josh Levs is here to show us how all of this will work.

Good to see you, Josh.

JOSH LEVS, CNN CORRESPONDENT: Yes, we were watching that event right here in the NEWSROOM...

HARRIS: Yes, that's right.

LEVS: ... right, earlier this hour, as you said. And this is part of the new whitehouse.gov. It's going to be really interesting to see how quickly these things show up and the fact that you can look at every word. What are you going to say about it?

Let's zoom in here. This is the new whitehouse.gov, completely revolutionized from the previous version that was there. It showed up the exact minute that he took the oath of office.

I want to go straight to this, because you can click on "executive orders" toward the top. I refreshed it just briefly a few minutes ago. It was not there yet. It should be up at any given time soon.

But you do see executive orders from yesterday. And in fact, if we go to this next page, you can read some of them.

This is on presidential records, for example. You can read the text, see what you think about it. And that interactivity is part of what's critical about the new whitehouse.gov.

Let's go to this page right here, which is the "Contact Us" page. And Tony, I want to tell you about this. It's a big change.

What they have here is you can fill in basic information, then if you scroll down, you're able to type in up to 500 characters right here. Now, obviously, that's not a new concept, but think about the political significance, Tony.

This gives Barack Obama and his administration contact information for so many people, so next time he needs to push his legislation, he can contact all these people, say contact your lawmakers, help me push it. It goes both ways.

HARRIS: Yes. So push this forward a little bit for us, Josh. How much of a break from the past is this Web site really going to be?

LEVS: It's very different. It looks very different. It takes on a whole different style. It follows the symbolism and the color scheme of his campaign.

This is what it looked like before, a lot of bloggers posting this right now. This is the previous version.

And one thing to show you, Tony, just to look way back, we have some video for you here. I want you to see this. This is what whitehouse.gov was in 1998, Tony.

HARRIS: Oh my, yes. LEVS: Check it out, a cute little Web site. It had like five little clicks. Ah.

HARRIS: Cute, huh?

LEVS: It was cute. You know? Look at that -- President and Vice President. Back in the day, 10 years ago.

HARRIS: Just lovely.

LEVS: Look how far we've come. Not bad, huh?

HARRIS: That's not bad. That's not bad. A step forward. OK, Josh. Good to see you. Thank you.

LEVS: Thanks, Tony.

HARRIS: Tracking the campaign promises the new president keeps. It's in the next hour of the CNN NEWSROOM.

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