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Illinois Lawmakers Begin Impeachment Process; Obama Signs Orders aimed at Environmental Concerns; Outlook for Jobs?; Refugees Get Brutal Treatment in Thailand
Aired January 26, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
BETTY NGUYEN, HOST (voice-over): Out of state but not out of mind. Rod Blagojevich opts for the media glare in New York over the glare of Illinois lawmakers at his impeachment trail, but we are live with the opening session in Springfield.
ANDREW CATTON, TOURIST: Whenever someone raised their head or sat up, they would -- they'd strike them with a whip.
NGUYEN: A CNN exclusive: turned away in Thailand. Refugees from Myanmar who survived a perilous sail face a brutal reception on shore, and they don't stay on shore for long.
(END VIDEOTAPE)
NGUYEN: Hello, everybody. I'm Betty Nguyen, live at the CNN world headquarters in Atlanta, and you are in the CNN NEWSROOM.
All right. We have lots of ground to cover for you today. The governor of Illinois media hopping to sell his case.
We're also making time for a basketball coach fired for a big win. Maybe a little too big, like 100-to-nothing big.
And a wild story in Chicago that has nothing to do with the governor. A cop reports for duty and goes out with a partner for several hours. The trouble is, he's no cop. In fact, he's not even old enough to drive.
But first, the impeachment trial of Rod Blagojevich is getting underway in the Illinois capitol, but the scandal-ridden governor is putting his face in the court of public opinion. He's in New York with a full day of talk show appearances on his schedule, and one key message on his agenda. He claims, and we quote here, "the fix is in."
Blagojevich may be boycotting events in Springfield, but our Susan Roesgen is watching lawmakers' every move. She joins us now live.
Hey, Susan. So set the scene for us there.
SUSAN ROESGEN, CNN CORRESPONDENT: Well, the state senators, Betty, have just had their prayer, probably praying for this national embarrassment to end for them here in Illinois. A Pledge of Allegiance, as well, and now they're getting down to business.
The state house has already impeached the governor. Now it's up to the state senate to decide whether or not he should be kicked out of office. And pretty much, we're expecting them to do just that, and probably pretty quickly, as well.
Because the governor, as you mentioned, Betty, has decided to ignore this state senate trial. He's not here. He calms it a sham. As you said, he says the fix is in. He says that he can't get a fair shake here. And so, instead, he's decided to make the rounds of the television talk shows. He will be on CNN's "LARRY KING LIVE" later tonight.
But today Barbara Walters on "The View" asked him the one question that everybody wants a straight answer to, and that is simply, did you try to sell Barack Obama's Senate seat.
(BEGIN VIDEO CLIP)
GOV. ROD BLAGOJEVICH (D), ILLINOIS: If you hear the whole story and you hear all the different tapes, you'll hear a combination of discussions in an effort to try to do the right thing and make the right decision. Let me unequivocally state right here before you and the whole country, under no circumstances was I trying to sell a Senate seat. Under no circumstances did I break any laws.
(END VIDEO CLIP)
BLAGOJEVICH: Now, again, Betty, this is not a criminal trial. It's called a trial, a senate trial. The senators are sort of like jurors, and they will hear witnesses, but it's not a criminal trial.
And what the governor has said here is that he doesn't believe it's going to be fair for him because he says he can't call witnesses. The truth is he can call any witness he wants as long as it's not someone who might be called in the actual criminal trial, which hasn't even come close yet, which hasn't even started, and that criminal trial would include that charge that he tried to sell President Barack Obama's Senate seat -- Betty.
NGUYEN: All right. So let me ask you this. I mean, what sense does it make not to show up? I mean, is he just conceding that the fact that if, in his mind, there's no way of winning this, so just forget about it?
ROESGEN: Yes, that seems to be it. And yet at the same time he's not slinking away in some hole. He's come out swinging here. In fact, we understand that's the reason that his main lawyer, a very well-respected, tough lawyer, Ed Genson, quit on Friday, because he didn't want the governor to make these rounds on the talk shows and to come out and talk and talk and talk and talk and talk.
And you can be sure that the state senators don't want to hear him talk either. They're -- if he doesn't want to come here, they don't want to have him going all around the country, saying that it's not fair, that the process isn't fair. Again, they believe it's completely fair, that the rules are fair to everybody, but he doesn't want to participate.
And I guess, after trying to drum up some public sympathy, then he'll have to prepare for his criminal trial. And the outcome of that will be much more serious, Betty. Yes, they can kick him out of office. Yes, they can even do what they call a political death penalty, which means they can vote to say that he can never run for public office. But far worse than either of those is the fact that he could spend years in prison if he's convicted in an upcoming criminal trial.
NGUYEN: All right. A lot to be seen still ahead.
All right, Susan. Thanks so much for joining us. Susan Roesgen live for us.
In the meantime, don't forget, the Blagojevich media tour takes him this evening to "LARRY KING LIVE." That's at 9 p.m. Eastern right here on CNN.
Well, in Minnesota, a new round opens in the U.S. Senate rate that refuses to end. Republican incumbent Norm Coleman has been claiming for weeks that a statewide recount was flawed, and now his attorneys have to prove it. The trial starts this afternoon on Coleman's bid to overturn the recount, which gave a slim 225-vote victory to Democrat Al Franken. That trial, well, it could last weeks.
And the mess in Minnesota raises this question. Why didn't officials simply call for a runoff between Coleman and Franken? All right. Well, the simple answer is this. There is no state provision for a runoff. But there is one for recounts. They're triggered when the winning margin is less than half of one percent, which was the case in the Coleman/Franken race. That may change.
The state lawmakers say they'll push for legislation providing for a runoff in place of a recount when the top vote getters are separated by half a percentage point or less.
The energy agenda emerges on day seven of the Obama administration, declaring America's peril must be turned to progress. The president today signed orders aimed at conservation, fuel economy and curbing greenhouse gases.
CNN's Suzanne Malveaux brings us up to speed. She joins us now live.
All right. So Suzanne, at least one of these measures represents what appears to be another slap at the Bush administration.
SUZANNE MALVEAUX, CNN CORRESPONDENT: You know, it's really interesting, because President Obama is putting his stamp on his environmental policy, reversing some key initiative by President Bush.
One of the things, increasing fuel efficiency standards, you know, that Congress initially passed some legislation going from -- we get about 27.5 miles per gallon to 35 miles per gallon, and they want that completed by 2020. Well, President Obama says, "I want that done faster, by 2011." That's just one thing.
The other thing that President Obama did is that he said, "Let's consider here allowing the states of California and some 13 others who are calling for stricter auto emissions standards, beyond what is required by federal law, to allow them to do that."
Now, what that would require, simply, is a waiver by the Environmental Protection Agency. When Governor Schwarzenegger went to President Bush, he denied him that waiver. Well, President Obama says, "Let's reconsider that. Perhaps they should be allowed to actually implement those stricter, tougher standards."
Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNTIED STATES: The days of Washington dragging its heels are over. My administration will not deny facts; we will be guided by them. We cannot afford to pass the buck or push the burden on to the states. And that's why I'm directing the Environmental Protection Agency to immediately review the denial of the California waiver request and determine the best way forward.
(END VIDEO CLIP)
MALVEAUX: Betty, not everyone agrees that that really is the best way forward. It's rather controversial. There are several senators that have spoken out today, saying they don't think that this is the way to go.
Senator James Inhofe earlier today saying he thought perhaps these automakers will ask for more bailout money, taxpayer dollars. We also heard from Senator Voinovich of Ohio. He's saying this, that "I'm fearful that today's actions will begin the process of setting the American auto industry back even further."
So clearly, there's some folks who don't believe this is the right idea, but Barack Obama, the president, saying that this is connected to jobs, creating jobs. And he used this occasion earlier today to push once again for that $825 billion economic stimulus package, saying, "Look at all of these announcements, all of these thousands of jobs that are going to be lost in the next couple of months," that they've got to push for that package and that it is related to creating those green jobs -- Betty.
NGUYEN: All right. CNN's Suzanne Malveaux joining us live from the White House. Thank you, Suzanne.
The daily White House media briefing is at 1:30 p.m. Eastern, and you will see it live right here in the CNN NEWSROOM.
Meanwhile, though, President Obama's cabinet is set to get another member. The Senate is expected to confirm Timothy Geithner as treasury secretary, despite a dustup over some of his past tax returns. The full Senate vote is expected around 6 p.m. Eastern. Now, as you recall, during his confirmation hearing, Geithner revealed that he failed to pay $34,000 in back taxes earlier in the decade. He paid all the delinquent taxes shortly before his nomination. Geithner is currently president of the Federal Reserve Bank of New York.
All right. Let's talk about it now. Home Depot, Caterpillar, Sprint/Nextel, General Motors, another batch of household names announcing huge new layoffs.
Heavy equipment maker Caterpillar was planning to cut 15,000 jobs in 2009. Well, today, that figure became 20,000. Telecom giant Sprint/Nextel is cutting 8,000 workers and suspending its 401(K) match for the year. Home Depot will cut 7,000 jobs, largely by closing all 34 of its expo design centers. And beleaguered GM plans to cut another 2,000 factory jobs in Michigan and Ohio.
You don't have to be an economist to know times are tough. But a survey by the National Association for Business Economics finds the worst business climate since at least 1982, with no improvement expected anytime soon.
Well, you know, it just seems like the economic floodgates have opened, and the layoffs just keep gushing out. There are a couple of things that we want to know.
OK. Yes, we are in a recession, but is this barrage of bad news normal? Also, with the market filling up with job seekers, are there any places where they should be looking? In other words, is anyone out there hiring?
All right. So to help us answer some of these questions, we turn to Susan Lisovicz, who's at the New York Stock Exchange.
All right, Susan. Let's start off with those layoffs. We've got a lot of questions for you.
First up, are cuts like this typical in a recession?
SUSAN LISOVICZ, CNN CORRESPONDENT: They're certainly not what we saw in the last recession, which was in 2001. But then again, we all know, Betty, this is a much deeper recession. Why is that? If you remember, that was the dot com bust. That was led by business. Right? Everybody was getting into this new so-called paradigm. And it was just inflated, and it went away.
And the recession lasted only eight months, and we're already well beyond that with this recession.
This is a consumer-led recession. It started in the housing market, extended to the credit crisis, and it is a global recession. The UK, big industrialized countries in Europe. Japan, the second biggest economy in the world. So it's much deeper. And that's what you're seeing.
Big multinational companies like Caterpillar today. Caterpillar was surviving the housing recession. It was doing fine because there was demand overseas. It was the fourth quarter where things went downhill and downhill fast, and that's why CAT says it's got to lay off 20,000 people.
But, yes, it is an opportunity, as well. You are seeing hiring. And we saw it in December, Betty, just with the government's monthly jobs report, and we have said it time and time again. Education, health care. These are two areas where we saw -- and for all of 2008, health care added 372,000 jobs.
What else? Well, Suzanne was just talking about what President Obama was saying about alternatives to oil, for instance. Green jobs. They've been going up. Postings for green jobs have gone up, and you know, the short term these are more niche-oriented jobs, more management. But as they become more mainstream, it will become more rank and file, as well.
You want a specific company?
NGUYEN: Yes.
LISOVICZ: McDonald's.
NGUYEN: Really?
LISOVICZ: McDonald's. First of all, McDonald's says it's opening 1,000 restaurants this year. It reported its quarterly earnings. A lot of them are abysmal for a lot of the companies we've been talking about. That's why they're laying off.
NGUYEN: Is it, then, also a sign of the economic times: people can't go to the fancy restaurants anymore, so that's driving business to places like McDonald's?
LISOVICZ: Very -- very good question. Yes. We have seen folks trading down on eating out, but also Mickey D's has gotten its act together. You remember it got into fancy coffee, less expensive than Starbucks? It says that its southern style chicken biscuit -- I don't know, maybe that is something real popular down in Atlanta.
NGUYEN: I've had a few of those in my time. They're not too bad.
LISOVICZ: Drive-through service is better. And its spending more than $2 billion this year, not only on new restaurants but, you know, upgrading its existing ones. So those are jobs. Those are jobs.
And for investors, not a bad stock to hold. Over the past year, McDonald's shares are up 9.5 percent from a year ago.
NGUYEN: Really?
LISOVICZ: So, yes, there are opportunities. It is tough out there. Eventually, the economy will come back. But you've got to sort of look forward, as well. Because you're going to see, with the stimulus plan, there should be job creation, as well.
NGUYEN: Yes. So strategically we're looking at education, health care, green jobs, and Mickey D's. I like it.
LISOVICZ: Exactly.
NGUYEN: Thank you, Susan.
LISOVICZ: You're welcome.
NGUYEN: So if you think the economy could not get any worse, well, it can, and you know what? It probably will. That is the word from a survey of private sector economists.
Nearly 40 percent say their companies will lay off employees within the next six months, and 47 percent said overall industry demand is falling. Consumer demand, profit margins and capital expenditures have all hit their lowest level since the survey started some 27 years ago.
Well, it is a nightmare unfolding on the white sand beaches in Thailand.
(BEGIN VIDEO CLIP)
DAN RIVERS, CNN CORRESPONDENT (voice-over): They look like logs, but these are people. Dozens of Burmese refugees detained on a Thai beach.
(END VIDEO CLIP)
NGUYEN: Scores of refugees fleeing the repressive government of Myanmar are seeking safe haven in Thailand. Our exclusive report uncovers their fate at the hands of Thai authorities.
And brace yourself, because another round of wicked weather is coming your way. We'll explain.
(COMMERCIAL BREAK)
NGUYEN: Chicago police are investigating one of their own. Well, kind of. You'll never believe who managed to suit up and ship out to patrol city streets.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (singing): You're cold as ice. You're willing to sacrifice our love.
(END VIDEO CLIP)
NGUYEN: Nowhere is that song month fitting than Colorado. The folks there, and in fact, other parts of the nation are likely to see more snow today. Major winter storm warnings are posted for several states.
So let's go to our meteorologist, Chad Myers, in the CNN severe weather center.
Cold as ice is what we're playing.
(WEATHER REPORT)
CHAD MYERS, CNN METEOROLOGIST: Betty, I'm not kidding. Probably over 1 million, but I'll go hundreds of thousands of people without power, at least.
NGUYEN: Oh, goodness.
MYERS: This is a big-time ice event.
NGUYEN: Not the way to ring in a new year.
MYERS: Yes.
NGUYEN: Because it is the lunar new year. Happy New Year to you.
MYERS: Yes, I saw that on the calendar.
NGUYEN: Yes, the year of the ox or the water buffalo, if you're Vietnamese. In fact, millions around the world are celebrating today. Take a look at some of the celebrations in China.
The Chinese New Year has arrived. As I mentioned, this is the year of the ox, and the lunar new year is the country's most important holiday. Families, friends, spend a whole lot of money on meals. And many exchange red envelopes stuffed with cash. Not a bad way to ring in the year.
Much of Beijing was up late celebrating with fireworks.
So let's talk about this, because they are hungry. They're scared, allegedly beaten and then abandoned at sea in boats with no engines? Our exclusive report on the fate of refugees from Myanmar seeking safety in Thailand.
(COMMERCIAL BREAK)
NGUYEN: Well, there is a warning this hour of a possible attack on the U.S. embassy compound in Yemen. An embassy spokeswoman says it has received a report that an attack could take place in the foreseeable future. Now, this person gave no further details. Americans there are urged to exercise caution and take prudent security measures in areas popular among westerners.
Last September, as you recall, suspected Islamic insurgents attacked the embassy, killing 11 people, including one American. Al Qaeda later claimed responsibility.
Well, tragedy in Vietnam on the eve of the lunar new year. A small ferry overloaded with holiday shoppers sank in the central part of the country, killing at least 40 people. Most of the victims were women and children. Thirty-five passengers were rescued or managed to swim ashore.
Now, an initial investigation revealed the boat, designed to carry 12 passengers, was jammed with nearly 80. The boat's owner and captain have been detained for questioning.
We do have another horror story to tell you about out of Asia, this in the tourist paradise of Thailand. If you're a refugee seeking safety from oppression, you may want to stay away. That's what CNN's Dan Rivers uncovered in this exclusive report.
(BEGIN VIDEOTAPE)
RIVERS (voice-over): They look like logs, but these are people. Dozens of Burmese refugees detained on a Thai beach. These photos were provided to CNN last week, as three different tourists voiced concern about the way the Thai authorities were treating these migrants.
CATTON: Whenever someone raised their head or sat up, they'd strike them with a whip.
RIVERS: So we traveled to a remote stretch of the Thai coast, four hours' drive north of the holiday island of Phuket, keen to investigate local reports that Thai military had been secretly detaining Burmese Rohingya refugees here before towing them back far out to sea and leaving them to drift.
Koh Sai Daeng is uninhabited, part of a national park. But there was plenty of evidence that large numbers of people had been detained here.
This man helped the army guard the refugees for one night on the island. "We treated them well," he says. "We gave them food and whatever they asked for."
(on camera) It seems a lot of evidence that a large number of Rohingya refugees were, indeed, camped out here at Koh Sai Daeng. All around there are discarded shoes and clothes. There's several campfires that look fairly fresh here, as well as food wrapping, as well.
But the big question is, how did the Rohingya leave? Did they leave voluntarily, or were they towed out to sea by the military?
(voice-over) On a nearby island, we find one of the distinctive Rohingya boats abandoned on the shore. The Rohingya are a persecuted Muslim minority who've been fleeing Myanmar in rickety boats like these for years, looking for a better life. This proves how they arrived, but not how they left.
We traveled to another island where villagers told us about some Rohingya refugees who'd escaped and were living in the jungle. We were keen to talk to the refugees to hear their story. We didn't have to wait long. That night, a local army-trained village defense force took us on patrol. We hurried to a hamlet after reports they caught one of the migrants. This is what we found. Villagers had captured a Rohingya man, who they think had been living in the jungle for days.
UNIDENTIFIED MALE (through translator): Please, brother!
RIVERS: He was clearly distressed.
UNIDENTIFIED MALE (through translator): Please!
RIVERS: Over the next three hours, we tried to piece together his story.
UNIDENTIFIED MALE: All men...
UNIDENTIFIED MALE: Dead?
UNIDENTIFIED MALE: Dead.
RIVERS: He was taken back to the port, where he continued to try and communicate with us. Through a combination of broken language, sign language and drawings, he told us his name was Iqbal Hussein (ph), and he was on one of six refugee boats which arrived in December.
He said they were towed back out to sea in January, but five of the six boats sank. His, he said, made it back to shore.
But this is the final piece of evidence. Photos were given to CNN by someone involved in what he said was an ongoing Thai operation to tow refugees out to sea. They show refugees being processed on Koh Sai Daeng, the same camp that we visited.
And incredibly, this shows the Thai army towing a boatload of some 190 refugees far out to sea. The source who gave us these photos says they provided them with food and water. Another source in the military confirmed they have been towing refugees out to sea, again stressing they gave them supplies. Neither would appear on camera for fear of repercussions.
We asked the Thai government about our findings, and it says it is investigating. A sign of how embarrassing these photos may be considered, it says the prime minister will receive a full report this week.
These are the last images of the refugee boat as it disappears over the horizon. Neither this boat, nor the refugees aboard it, have been seen since.
Dan Rivers, CNN, on Koh Sai Daeng, Thailand.
(END VIDEOTAPE)
NGUYEN: What a story there. Well, in Iceland, iReporters are sharing images of political turmoil that resulted today in the collapse of the coalition government. Want to show you some video from Halldor Sigurdsson. It's from a peaceful protest over the weekend.
It was a much different scene, though, last Wednesday, when anger spilled onto the streets over soaring prices and rising unemployment.
he global financial crisis has hit the Iceland nation very hard. First, its national banks collapsed, and the country needed an international bailout. Well, now officials are trying to form a new government to rule until elections in May.
Meanwhile, back here at home, all eyes on the West Wing. The daily White House Q&A is just moments away, and you're going to see it live right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
BETTY NGUYEN, CNN CO-ANCHOR: Fixing the economy, saving, creating, restoring jobs, curbing global warming, managing wars. Expect to hear questions about all those things at the White House media briefing that's just about to get under way. You take a live look right now at the room. As soon as the press secretary, Robert Gibbs, steps up to the mike, we'll bring that to you live.
In the meantime, though, for America's workers, the hits just keep on coming. In a matter of hours today, news that some big companies are cutting tens of thousands more jobs. At Caterpillar, 20,000 employees will go. The equipment maker had planned 15,000 layoffs this year, but with the economy still tanking, management expanded that by 5,000.
Telecom Sprint Nextel is cutting 8,000 people and suspending its 401(k) match for the year. Home Depot will cut a total of 7,000 jobs, largely by closing all 34 of its Expo Design Centers. General Motors has confirmed 2,000 factory workers in Michigan and Ohio losing their jobs shortly. And Deere & Co., the farm equipment manager -- or manufacturer, I should say, will lay off close to 700 workers. The bulk of those from a factory in Brazil, the other 200 in Iowa.
Let's talk about Home Depot, because it clearly got hammered by the housing market, but the economy says its upscale Expo stores have never really done that well. Our Brooke Baldwin is at an Expo Design Center in Atlanta. So, Brooke, how are they taking the news there?
BROOKE BALDWIN, CNN CORRESPONDENT: Right. It's one thing, Betty, to hear all those numbers. It's quite another to hear about the people. We've talked to a number of employees who were heading into Home Depot this morning to the Expo Design Center here in Atlanta, and they tell me they're shocked, they're disappointed, they're devastated. Home Depot told me that they told their employees about these cuts over conference calls over the last two days, but some employees that we talked to this morning just got the news this morning. We're talking about 34 of these higher-end interior design stores. This is one of them here in Atlanta. They will be closing down some time in the next two months. Add to that a couple of other design stores owned by the world's largest home improvement retailer, and that comes to 5,000 employees cut. Add to that 2,000 additional non-store cuts, including 500 corporate headquarter positions. Grand total -- 7,000 cuts here.
That translates roughly into a 2 percent reduction of the company's work force. We heard from CEO, the Home Depot of CEO this morning on a conference call, Frank Blake, and he said this was a tough decision, a difficult decision but a necessary one. He also pointed to the fact that these sort of higher-end stores haven't done as well in the past.
And I want to read you a statement to that point from Home Depot this morning. They say, "Even during the recent housing boom it was not a strong business. It has weakened significantly as the demand for big-ticket design and decor projects has declined during the current economic environment."
We want to add to that the fact that the executives are freezing their salary. They're freezing the executive salaries. They're also reducing the executive workforce by about 10 percent. Some of the silver lining, the fact that they will continue to match other employee bonuses. The customer service employees, they'll still be getting the 401(k).
But this is a big story, Betty, and it's also trickling down to the home improve -- the designers who come into these stores, the vendors and subcontractors. So, a lot of people touched by this news here out of Atlanta.
NGUYEN: Like a domino effect out there. All right. Brooke Baldwin, joining us live. Thank you for that.
Well, some energy policy changes announced today by President Obama. He signed an order directing the EPA to take another look at California's request to set its own auto-emissions and fuel-efficiency standards. The end result could be states requiring automakers to crank out vehicles that get better mileage than the national standard. The Bush administration and the auto industry were opposed to this this idea, claiming more rules on pollution would be confusing and hard to enforce.
Well, right now, auto dealers are having their annual convention in New Orleans. So, how are they dealing with these tough times? Here's CNN's Sean Callebs.
SEAN CALLEBS, CNN CORRESPONDENT: Betty, the car dealers are independent operators, but really, they're hooked at the hip with the manufacturers in terms of trying to make it through this sour economy. Well, we're feeling that at this year's convention. Definitely a different tone, much more somber, much more focused. Gone are the evening cocktail parties. But the organization did find some money to bring in some high-powered speakers. (BEGIN VIDEOTAPE)
CALLEBS (voice-over): There's a lost standing and talking, but not much else.
BRADY SCHMIDT, PRESIDENT, NATIONAL BUSINESS BROKERS: It's definitely been slower. The foot traffic is down from last year, maybe by about 40 percent, 40 to 50 percent, I would say.
CALLEBS: This company shelled out about a half a million dollars for the annual National Automobile Dealers Association convention, and say they'll do about 30 percent of the business they did last year. It's no huge surprise. The Big Three went hat in hand to Congress to stay afloat at least through March. And about 900 of the nation's 20,000 dealerships closed this past year. A gloomy backdrop to what's supposed to be a high-energy event.
UNIDENTIFIED MALE: It's tough on them, I think. I don't know if we've seen the bottom yet.
CALLEBS: Auto industry CEOs faced furious public criticism when they flew corporation jets to D.C. to ask for bailout funding. Here the auto dealers are paying for big-name speakers, including former presidents George Bush and Bill Clinton. The organization won't tell us how much, but the two can command $150,000 a speech. No apologies. The head of the dealers association says it's money well spent.
ANNETTE SYKORA, NATIONAL AUTOMOBILE DEALERS ASSOCIATION: For our dealers, for our vendors, for our manufacturers, as a way to come together, as a way to help inspire them. I think having the presidents come, the messages that they can give to the auto industry I think are very important at this time.
CALLEBS: Any inspiration is important right now, according to some here. They argue the CEOs of the Big Three may have actually dragged the market down more for dealers.
SCHMIDT: If you're a consumer, you want to go out and buy a car from a company that says it may not be in business in four or five months, so I think that was a little bit of a collateral damage from the hearings.
(END VIDEOTAPE)
CALLEBS: So, let's hope the presidents have some inpirational messages. If you listen to the people inside, they expect this to be a very gloomy year. They say as many 2,000 more dealerships could go under, and they say about 30 to even 40 percent of the booths inside the convention could be gone by next year -- Betty.
NGUYEN: All right. Right now, we are waiting on this, right here that you're seeing live, the White House briefing, that daily briefing. We're waiting for press secretary Robert Gibbs to step up to the microphone. We're going to hear a lot of things today, including fixing the economy. A lot of that will deal with President Obama's green plan, and that handles the new auto-emissions and fuel- efficiency standards that states may be getting in on the action there. Also that $825 billion economic stimulus, which includes renewable energy. On top of that, curbing global warming, managing these wars.
There's a lot to talk about, and we're expecting to hear much of that. It's supposed to be getting under way in about a couple minutes. We've been waiting for this for about the past ten minutes. Running a little bit behind today, but we're waiting for press secretary Robert Gibbs to take to the microphone. A lot on the plate.
And as we know, since President Obama took office, he has been really focusing on the economic situation and trying to find a fix to this financial crisis, so a lot of questions will be geared toward that area. So, stay tuned to CNN. We'll bring that to you live just as soon as it happens.
In the meantime, though, almost every parent has done it, shared their bed with their newborn. But is that simple nurturing act putting babies at risk? And unemployment lines, they are getting longer and longer as more companies shed jobs. Gerri Willis has some pink slip 101 for you, CNN NEWSROOM next hour.
(COMMERCIAL BREAK)
NGUYEN: All right. Here we go. We see him right there, press secretary Robert Gibbs for the daily White House briefing. Let's take a listen.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: Let me just get organized here and bring you up to date on a couple of announcements, the first of which, our apologies if you've e-mailed any of us in the last 2 1/2 hours. Our e-mail system is not working so well. So, our apologies on that, and we'll endeavor to get you information from earlier in the day, hopefully in a little bit more of a timely manner if we can get the e-mail to work.
A couple of quick things before I take your questions. The president made a series of phone calls to foreign leaders today, which we'll have a readout on in just a little bit. He talked with Chancellor Merkel of Germany, President Medvedev of Russia and President Sarkozy of France.
Also later on today, the president will host Senator Mitchell and Secretary of State Clinton in the Cabinet Room to discuss Senator Mitchell's trip beginning this evening to the Middle East to begin the process that the president promised to be actively engaged in, the peace process there in the Middle East. He'll visit Cairo, Jerusalem, Ramallah, Amman, Riyadh, Paris and London on this trip. And I know the State Department has more details if you need some of them.
UNIDENTIFIED MALE: What time is that meeting?
GIBBS: It is at 4:15? 4:15.
UNIDENTIFIED FEMALE: Is there any press coverage in that meeting? GIBBS: Yes, the pool will be brought into the Cabinet Room for that.
UNIDENTIFIED MALE: Can you (INAUDIBLE) the cities one more time, Robert?
GIBBS: Sorry?
UNIDENTIFIED MALE: The cities one more time?
GIBBS: Yes, I'm sorry. Cairo, Jerusalem, Ramallah, Amman, Riyadh, Paris and London.
UNIDENTIFIED FEMALE: (INAUDIBLE)
GIBBS: No.
And with that, let me take a few questions.
UNIDENTIFIED FEMALE; Thanks, Robert. This morning, Susan Rice was at the U.N. and talked about direct diplomacy with Iran. Assuming she's not freelancing here, can you describe a little more fully about what she meant by that, at the president's direction, what sort of direct diplomacy?
GIBBS: Well, let me begin by first saying that the administration is pleased that the Senate has confirmed Ambassador Rice to what the president believes is a very important job. I think what Ambassador Rice outlined today was simply to restate the position that I think many of you heard the president outline throughout the campaign for the past two years, that this administration is going to use all elements of our national power to address the concerns that we have with Iran. There are no specific initiatives that we're announcing either at the U.N. or here today, and when we have anything more specific to announce, then we'll do so.
UNIDENTIFIED FEMALE: So you can't say when this diplomacy will begin or how --
GIBBS: No. Again, I don't -- again, it's not a specific announcement, but more the restating. Again, I think whether you were on the campaign trail or not, clearly this was something that generated a lot of coverage over the past two years, and I think Ambassador Rice was simply restating the position that the president had.
UNIDENTIFIED FEMALE: Robert?
GIBBS: Chuck.
CHUCK TODD, CHIEF WHITE HOUSE CORRESPONDENT, NBC NEWS: Hey, Robert. Yesterday, on some shows, you had Larry Summers talking about housing plans. He was talking about the stimulus plan and then talking about a financial -- you talked about it from the podium last week. When are you guys going to announce a housing plan, and where is the money? Are you going to be asking for new money for this housing plan? Is it part of the $350 billion coming from TARP? Where is it?
GIBBS: Well, as you know, in principles that went to Congress before they voted on the second $350 billion, one of the components of those principles was money to address home foreclosures. And as I talked about in this room last week, there are a number of aspects that the president has asked his economic team to formulate policies on and recommendations for him to make decisions about, specifically addressing home foreclosures. Addressing financial stability in banks.
TODD: You separated that out. That's what I mean. So is it -- does that mean it's not going to be part of the $350 billion?
GIBBS: Well, I know that part of that is going to be part of the $350 billion. There may also be additional steps that are taken outside of that. But before I announce a housing plan, let me have the economic team put a series of proposals in front of the president to do that.
I do think what is incredibly important for you and for the American people to understand is, the president believes that and outlined this to Congress before they voted, we have to use the second $350 billion far differently than we used the first $350 billion, to address the foreclosure crisis. To do so in a way that's transparent so the American people will know where the money is going.
There was a report today in "The Wall Street Journal" that many of the banks that have gotten money are actually lending less now that they have that money. That clearly has to change. The point of that money was to go to banks to free up lending, free up credit, capital.
TODD: Are you going to order banks to lend more?
GIBBS: We're going to change the way that money works to ensure that money that is injected into banks is used to provide small businesses with loans, to provide families with college or auto loans. We have to do so in a way that's transparent, and we have to make sure that there's some change in executive compensation as it relates to entities that participate in that program and get the money. Karen?
KAREN TUMULTY, NATIONAL POLITICAL CORRESPONDENT, "TIME": What kind of a relationship does President Obama hope to establish with China? Tim Geithner's comments last week branding China currency manipulator caused a stir in Beijing. Do specific trade action follow from that, and also more broadly, could you talk about what kind of relationship he wants with Beijing, not only on economic issues but on security and other issues?
GIBBS: Well, obviously China is a big player in the world economy. It is an area that we clearly have to have a vibrant policy on. As it relates to what Mr. Geithner, I guess, wrote in testimony rather than saying is that he was restating what the president had said during the campaign. We have to take a comprehensive approach to enhancing our economic relationship with China, including the currency issue.
As you know, by law, the administration and every administration since 1989 has had to make a determination about currency each spring. That determination will be made not any differently in this administration, sometime in the spring. So, what Mr. Geithner was doing was restating what the president had said during the campaign, not making any determinations.
TUMULTY: Although the Bush administration avoided using that terminology because of the trade actions that it implies.
GIBBS: Right. Well, again, I think it's safe to say that this administration, like others, will determine in the spring what that means. Let me say one thing as it relates to Mr. Geithner. We are hopeful that sometime later today, he'll be approved by the full Senate. That nomination, as I understand it, will be voted on later this afternoon, and we hope that he's sworn in and gets to work very quickly on any series of projects relating to financial stability and recovery and reinvestment.
I think we've all -- we all today saw a series of companies that have made job announcements, and not the kind of job announcements you want to stand up and trumpet. Several companies laid out, including Caterpillar, an Illinois company that announced the layoffs totalling more than 43,000 employees. I think it underscores the necessity and the need to work swiftly to get a recovery and reinvestment plan through Congress and on the president's desk so that he can sign it and that we can start using that money to get this economy moving again.
UNIDENTIFIED MALE: Robert, you spoke earlier about the "Journal" story, and one of the 13 banks that got TARP funds but has not been lending money more so in the fourth quarter than in the third quarter is Citigroup. Citigroup is spending $50 million on a new corporate jet. And I'm wondering if President Obama or the Obama administration, has a position on whether or not corporations that are getting tens of billions of dollars in these funds should be refraining from expenses such as these, or corporate executive compensation, and about the announcements President Obama made today.
One of the reasons, of course, why these CAFE standards and emission vehicle standards, a lot of these actions have not happened yet is because of the concern that it would hurt the ailing auto industry. How can President Obama ensure that these moves will not cost jobs?
GIBBS: Well, let's split these questions up and take a few moments. Obviously, the president believes that great care should be used any time the taxpayers' money is being used to do something for the greater good, particularly injecting capital into banks so that they can lend money. The president said this during the transition as it related to the auto companies using private jets. Doesn't believe that's the best use of money at this point.
Instead, that money should be used to lend to consumers to get the economy moving again, to free up capital and credit and help small businesses create jobs. He said that as it relates to the auto industry, and he believes that as it relates to banks as well.
Let me now address your second question, which is fuel-efficiency standards. Understand that the debate on fuel-efficiency standards is not one that started last fall. It didn't even start in the last decade. This is a 27-, 30-year-old debate back and forth about auto- mileage standards. The particular action that the president took today was to take legislation that Congress approved in December of 2007 and President Bush signed, and in January of 2009, implement changed CAFE standards for model year 2011.
So I don't think it comes as any surprise to automakers or consumers that a change in our fuel-mileage standards was on the horizon. In fact, between December of 2007 and October of 2010, which is when manufacturers begin the next model year, we believe, and I've seen testimony from the auto companies that changing those fuel- mileage standards is certainly doable.
The president wants to work with the auto industry to ensure that the fuel efficient cars of tomorrow are produced and built here in America for Americans to buy. And I think that working -- government working with the auto industry can ensure that we have a sustainable path toward the production of more fuel-efficient autos, that those fuel-efficient autos will be more appealing to American consumers, and that that can be a win/win for both.
The actions the president took today put us on the path when we realize a fuel-efficiency standard of 35 miles to the gallon -- it's 27 1/2 now -- 35 miles to the gallon, will constitute a savings of 2 million barrels of oil a day, which is roughly comparable to the amount of oil that we import each day from the Persian Gulf. So the president is taking the actions of Congress ensuring that we take bold, demonstrative steps towards energy independence and reducing what we are forced to import every day from countries, many of whom don't like us.
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Robert, clearly a majority of the Congress, as you pointed out, two years ago felt this was a smart move on fuel-efficiency standards. However, that was before one or more were teetering on the edge of bankruptcy and the federal government was handing --
GIBBS: You've got to remember, Ed, this is a -- if you go back to the mid-'80s, you'll find this debate. And late '80s and the early '90s and the mid-'90s and the late '90s and the early 2000s and the mid-2000s and now the late 2000s. I think you could make a case that it is time to update our fuel-efficiency standards to create a product that is more appealing to the American consumer, to do so with some help, to ensure that the consumers have something that they want to buy and the manufacturers have something that they can produce and can sell in this country.
HENRY: So, the question though is, now, where we are, does the president believe it's worth it to move forward obviously on these initiatives even if one or more of the automakers goes bankrupt?
I think you heard the president say today that -- and I don't know whether it was in this building or whether it was on Capitol Hill, but President Nixon declared that we were going to take steps to reduce our dependence on foreign oil. And you can find clips that go from President Nixon through the most previous President Bush. The time to have this debate and the time to talk back and forth, the president believed, was over, and the time for decisive action that got our country on a path towards reduced dependence on foreign oil, that was something he believes should start today.
UNIDENTIFIED MALE: The president today said again --
GIBBS: Let me just point out before I leave, we're talking about model year 2011, OK? The law states that auto companies are required to have 18 months simply from the directive from rules being passed to production to plant, right? So, not only do you have that 18 months, but again, you have a proposal that Congress passed in December of 2007, I think more than adequately gives companies and suppliers the planning time that they need and consumers, so the consumers can make decisions.
HENRY: The president again promised he could create a million new green jobs. Would you define in simple terms, what is a green job? he keeps using that term, but nobody -- it doesn't seem like anyone really understands what that is. Right now, people just keep reading, as you mentioned, jobs being lost. He keeps talking about creating up to 4 million jobs, but 1 million that are green jobs. Could you define what that is?
GIBBSS: Sure. The president visited in this campaign a windmill manufacturer that produces -- it wouldn't even fit in this room -- turbine blades for windmills. Those are green jobs. We went to --
HENRY: (INAUDIBLE) green jobs already -- how is he going to create a million of them? The question is a million more.
GIBBS: Well, hopefully, we're going to build more windmills. Hopefully the tax credit that goes through Congress -- you know, I don't want to get too deep into the weeds here, no pun intended, but, you know, each year, at least at the end of last year, you had tax credits for wind-energy jobs. There's a one-year tax credit, right?
And so every year in August or September, there's a huge scurry to make sure that next year's tax credit is available. Well, if you're going to build a windmill, the size of which is going to produce energy to lower the power costs of millions of Americans, there's some lead time that's involved. So, instituting a renewed tax credit in this economic stimulus bill to give the producers of wind energy some understanding of what's available for them to use in creating these jobs and to give them some economic certainty is important.
That's just one example. I mean, we went to Ohio -- like I said, it all blurs together. It was probably only a couple weeks ago, a week and a half ago, where we went to a manufacturer for the turbine itself, not the blade. You've got biofuel jobs. You've got solar projects.
